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McLaren turnover up 25% as Brexit fails to dent activity

McLaren’s turnover jumped 25 per cent to £600.3m in 2016/17, with the firm stating that an expected Brexit slowdown failed to materialise.

In an update ahead of publishing its full results, the contractor revealed that operating profit had increased in the year to 31 July 2017 from £3.6m to £4.4m.

This put the company’s operating margin for 2016/17 at 0.9 per cent, an increase on the previous year’s 0.7 per cent.

McLaren chairman Kevin Taylor said: “The outlook for McLaren Construction in the UK and internationally is positive, and the business is now strongly positioned to grow and further enhance its position.

“We have not detected any distinct slowdown in either business or enquiries since Britain voted to leave the European Union.

“In fact, in those situations where we had anticipated contracts being cancelled or delayed, clients have chosen to proceed.

“Of course, in light of industry-wide economic concerns, we’ll remain cautious for the longer duration.”

McLaren has grown significantly over the past two years, having also registered a jump in revenue from £378m to £481m between 2014/15 and 2015/16.

The company was bullish about its prospects for its next financial year, forecasting that revenue will remain above the £600m mark.

McLaren group executive director Phil Pringle said: “Whilst mindful of the economic uncertainty surrounding Brexit, we will remain focused on achieving controlled growth and ensure that we continue to strengthen our market share, through securing repeat business with our existing customers and by establishing new long-term relationships, coupled with targeting certain frameworks”.

McLaren cited a number of large projects in the London commercial market, covering retail and offices, as contributing to its recent growth.

These included a 250,000 sq ft office for Aviva in Uxbridge and a 150,000 sq ft commercial development in Farringdon.

It also delivered more than 5m sq ft of industrial space for clients including Amazon and The Range.

The firm said its residential arm had also performed well, with McLaren highlighting its work in London such as a 750-unit development in Quintain’s Wembley regeneration.

McLaren’s full results for 2016/17 are expected to be released later today.

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