The industry’s 25 largest contractors reported an average pre-tax profit margin of just 1.2 per cent in the past year despite an increase in the average across the top 100, Construction News can reveal.
Data from the CN100 2016, which reveals the UK’s top 100 contractors ranked by turnover, shows that the average pre-tax profit margin among the top 100 contractors by turnover has increased to 2.4 per cent, up from 2.1 per cent in last year’s CN100.
However, the top 25 firms reported an average margin of just 1.2 per cent, down from 1.8 per cent in the 2015 edition.
In contrast, firms ranked between 26th and 50th by turnover reported an average pre-tax margin of 2.9 per cent, up from 2.2 per cent a year earlier.
For firms ranked 51-75, average profit margins stood at 2.1 per cent, while those from 76 to 100 saw the highest average margin at 3.3 per cent.
Turnover for the top 100 contractors was up to £64.40bn, up 6.6 per cent compared with last year’s total of £60.4bn.
The top 50 contractors make up the overwhelming proportion of the total table, accounting for 86 per cent of the top 100’s turnover.
The top 10 alone represented 47.6 per cent of the top 100’s entire £64.40bn turnover.
Balfour Beatty held on to the top spot despite a 4.3 per cent fall in turnover to £6.95bn.
New entries included civil engineering firm R J McLeod in 98th and demolition specialist Erith, which grew its turnover to £114.9m this year, in 100th place.
Brookfield Multiplex recorded the largest increase in turnover of any of the top 100 contractors, with the company’s revenue rising by 110.4 per cent in this year’s CN100 compared with last year’s entry.
Read the full report
This year’s CN100 features a full comparison of the top 100 UK contractors by revenue, profit, employee numbers and directors’ remuneration.
Interactive data and charts reveal the best-performing contractors at a glance.
The in-depth analysis features interviews McAleer & Rushe MD Martin Magee, Seddon chief operating officer Peter Jackson; Graham Construction executive chairman Michael Graham; Jim Briggs, MD at regeneration firm Durkan; Bam Construct executive director James Wimpenny; and NG Bailey CEO David Hurcomb.