In 2015 Mace鈥檚 turnover rose 19% to 拢1.77bn with pre-tax profit up 3% at 拢36.2m. In 2014 it made 拢35m profit from 拢1.49bn turnover.
With operating profit tumbling from 拢32.2m to 拢19.1m, the profit margin was halved from 2.2% to 1.1%.
鈥淎 number of difficult projects did impact on the margin level delivered to the business,鈥� admitted chairman Stephen Pycroft.
Despite this, the management-owned company is now set to hit its target of 拢2bn turnover by 2020 this year, four years early. 2015 was Mace鈥檚 25th consecutive year of growth, thanks to substantial growth in its infrastructure business, winning work for National Grid, Transport for London and Highways England.
Another growth area for the business is property development. Last year it sold Assam Place, a student accommodation development in the City of London. Mace鈥檚 investment business now has a gross development value of 拢1.4bn. This is a growing area for Mace and it is looking for a funding partner to help deliver new projects.
Chief executive Mark Reynolds said: 鈥淲e are now very close to achieving our 拢2bn revenue target, but are falling behind on margin targets. This is mainly due to legacy projects secured during the recession. Thankfully many now have come to a close and the final ones will be closed out in 2016.鈥�
Mace鈥檚 2015 annual report is available to read at .
Got a story? Email news@theconstructionindex.co.uk
