Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

McLaren recruits ex-Wates boss as results show return to profit

McLaren has returned to profit in a year that saw its turnover grow by more than £100m.

The company posted pre-tax profit of £4.1m for the year to 31 July 2016.

The figure marks a turnaround for the Essex-based contractor, which saw problem contracts contribute to losses of £15.7m in the previous 12 months.

McLaren also posted a 27 per cent rise in revenue from £378m to £481m over the same period.

The company said it expected turnover to exceed £600m for the year to 31 July 2017, adding that turnover for the current financial year was already £60m higher than at the same time in 2016.

McLaren attributed growth to strong performances in the logistics and residential sectors.

Recent wins included the 2.2m sq ft fulfilment centre for Amazon at Tilbury Docks, as well as £174m-worth of high-rise residential schemes in central London.

McLaren also confirmed the appointment of former Wates construction managing director and chief operating officer Dave Smith (pictured).

Mr Smith, who was at Wates for more than 30 years, will become McLaren’s managing director for construction in April.

David Murphy will be promoted to managing director of McLaren’s distribution and mixed-use arm, while David Gavin will be promoted to regional director for the South.

The company said the restructure it underwent in November 2015 – splitting its construction business into five divisions – had been successful and was a significant factor in the improved results.

Addressing the problem contracts that had an impact on last year’s results, the firm said it had now put in place estimating, design and planning procedures to minimise risk in the future.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.