Mace: Construction firm on track for £3bn revenues as it bolstered by international growth
Construction giant Mace has been bolstered by traction in its consultancy business and completions of landmark buildings abroad and in the UK (such as Battersea Power Station) during the year, hiking its turnover to £1.936bn.
The London-headquartered firm, which has plans to reach £3bn revenues by 2026, said that its consultancy business reached £500m in revenue, an increase of 36 per cent from 2021.
Its consultancy arm was boosted by overseeing the former Athens airport and the neighbouring coastal front regeneration project in Greece and also a multi-billion-dollar projects which will extend the Toronto subway network in Canada.
The privately-owned firm did however say that profit before tax fell slightly to £36.5m down from £38.3m in 2021 as it was hit by a £13m exceptional impairment of a loan on a joint venture – meaning that not all interest payments on the loan will be collected.
Despite the construction sector facing continued setbacks such as soaring costs on materials and energy, Mace said it was able to secure more than £2.1bn new projects during the year – including supporting the regeneration of London’s Battersea Power Station.
It comes as over the past few years, Mace said it has reduced its exposure to the UK property market and strengthened its balance sheet, improving year end cash from a net debt position of £147m in 2019 to a net cash position balance of £73m in 2022.
“Now two years into our 2026 Business Strategy, we are confident we have the pipeline and growth trajectory to meet the ambitious targets we set out to achieve in 2021, and we will be recruiting 2,000 new colleagues over the next three years and expect to grow the group by a further billion pounds in revenue,” Mark Reynolds, Mace’s chairman and group chief executive, said.
“Across the group, we won significant new projects, programmes and contracts, including significant expansion into new sectors, such as life sciences. We also secured long-term revenue and margin through appointments on some of the world’s largest and most complex infrastructure and regeneration programmes.”
He added: “Mace continues to push our industry forward; driving innovation, sustainable delivery, and purpose-led growth across the world, working with our clients to transform how we deliver. It’s a team I’m honoured to be a part of.”