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McLaren increases London turnover by 349%

McLaren has announced it has increased turnover by £110m in its results to 31 July 2012, including a massive boost to its presence in London.

According to accounts filed with Companies House, the contractor and property developer said total turnover has increased from £266.6m in 2011 to £376.4m in 2012. But profit before tax was £6.1m - down from £7m in 2011 - while total operating profit was slightly less than £4m (2011: £5.3m).

McLaren director Phil Pringle said: “McLaren has seen growth in commercial offices together with mixed-use, data centres, leisure and student accommodation sectors.

“There has been continued growth across the target regions with increased turnover in London of 349 per cent, in the south of 14 per cent and in the Midlands and North of 77 per cent.

The group’s development pipeline now has an estimated gross development value of over £500m.

Thirty per cent of projects are in residential, 60 per cent in student accommodation and 10 per cent in mixed-use. Total assets were £88.3m in 2011, and £171.3m in 2012.

The company also increased its workforce by almost a quarter.

Mr Pringle said: “We anticipate continued expansion in new sectors such as commercial offices, mixed-use, student accommodation, education, sports and leisure and have also secured new projects in some of our core sectors including distribution, retail, residential and hotels.”

McLaren Construction has appointed four new directors from rivals including Sisk, Laing O’Rourke and Bowmer & Kirkland since the end of the financial year in July 2012 while it has also been confirmed for high-profile projects including being named as main contractor to build a new supermarket and commercial/educational space to the north of Tottenham Hotspur’s proposed new stadium.

McLaren Property managing director John Gatley said: “We will continue to invest group capital and source new opportunities within our current sectors, in addition to identifying new opportunities in other real estate markets.”

McLaren group finance director John Bailey said: “Our property division continues to go from strength to strength developing student accommodation, prime residential and retail-led mixed use schemes and contributed over 7 per cent to our construction division’s turnover in 2012.

“After two years of strategic investments, the division will start to realise sizeable financial returns on these projects during the 2013 financial year.”

McLaren results:

  • As at July 31 the group’s payment terms for creditors was averaging 30 days in respect of suppliers of invoiced goods and services and 14 days in respect of certified amounts due to subcontractors.
  • The company paid £17.5m in wages and salaries to staff in 2012 (2011: £13.7m) and its average monthly number of employees was 313 (2011: 253).
  • The highest-paid director received remuneration of £405,400, compared to £973,200 in 2011, while thr group paid tax of £1.8m compared to £2.1m in 2011.
  • The group was owed almost £15m on long-term contracts, up from £9.4m in 2011, and its total debtors amount to £88m, up from £56.4m in 2011.
  • Group creditor amounts due within one year are £148m compared to £71m in 2011.

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