Mace is on track to become a £1 billion turnover company after seeing revenues increase by 17 per cent in 2010, the firm said today.
The construction and consultancy company saw revenue increase to £851 million for the year ended 31 December 2010, with pre tax profit up nine per cent to £21m.
The firm said it is on target to reach its strategic target of a £1bn turnover in 2012 – and to deliver its five-year plan to grow the business’s turnover by over 50 per cent by 2015. Back in 2007, it was bringing in revenue of £546.5m.
Last year Mace also boosted its international presence from 49 countries to 65 – up from 36 countries in 2009 – and is forming a global services group this year to secure long-term global clients.
The firm reported that £773.5m of its turnover was generated in the UK last year, with the next biggest sales, flat at £44m, in the Middle East and Africa. Its European business took a 33 per cent hit down to £17.8m, with little work in France, Spain or Portugal. The company reported better progress in India and the Far East.
The firm behind the £426m Shard, the tallest building in Europe and scheduled for completion next year, saw 76 per cent of revenue generated from construction, amounting to £647m and up from £500m in 2009, when it represented 69 per cent of its sales.
Mace is predicting £700m of construction turnover for 2011, with 88 per cent of orders secured.
Stephen Pycroft, chairman and chief executive, said: “Mace continues to grow and demonstrate our resilience despite the continued challenging market conditions in construction and consultancy.
“With project wins in 2011 such as the TfL cable car for London, Heart of East Greenwich and ITV Media City, we have built a strong platform for future growth underpinned by the quality of our employees and creativity of our offer to clients across the property and infrastructure lifecycle.”
Consultancy contributed £204.3m in revenue, down almost 10 per cent on 2009, most notably in international project and facilities management. Total number of employees dropped slightly, from 2,929 to 2,902, after a slight reduction in project staff.
Mr Pycroft said the global economic conditions along with a shrinking private sector, public sector cuts, competitor and client merges and a “fiercely competitive bidding environment” will mean the market will not recover for another two years.
In 2010, it said residential was its busiest new sector, while education has delivered 10 per cent of construction turnover.
Mace intends to focus growth in infrastructure, utilities and energy markets, while extending services to offer “property and efficiency” solutions that “reduce costs in line with the government’s austerity agenda”.
The firm – celebrating its 20th anniversary – had £104.6m cash in the bank and no debt.
Last year saw major project wins such as London Bridge Quarter, New Doha International Airport, Thames Water programme management and EDF Energy nuclear new build, adding to Mace’s portfolio including the Shard, Birmingham Gateway (Birmingham New Street station redevelopment) and the London 2012 Olympic and Paralympic Games.
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Come back to CNPlus later today (Wednesday) for an interview with Stephen Pycroft.