Mace’s annual report and accounts show the company making strong progress towards delivering a seven-year growth strategy for 2013-2020, with an 8% increase in turnover to £1.18bn as well as a 14% increase in pre-tax profit.
The international construction company believes it is now on track for hitting its target of £2bn in turnover by 2020.
However, Mace’s 2013 turnover fell short of an interim target of £1.3bn, a prediction made by chief executive Mark Reynolds in an interview with Building magazine in September 2013.
In his statement in the annual report, executive chairman Steve Pycroft said: “Our financial performance and the seven-year business plan agreed by the board in 2013 have provided us with a strong platform for the future. By 2020 our aim is to become a Top 10 UK contractor and leading international manager trusted to deliver any project or programme – large or small – using our innovative and value driven approach.”
The new turnover high marks the 24th consecutive year of growth for Mace. It is made up of UK construction £904m; UK consultancy £175m; and global consultancy £102m. The annual report also says that at the end of 2013 Mace had a secured order book of £2bn, and 75% of its targeted turnover for 2014 was already in place.
The 2013-2020 strategy involves growing the company around five main international hubs: London, New York, Johannesburg, Dubai/Doha and Hong Kong. According to the annual report, that decision has paid off, with new projects being secured in all of these key regions.
New appointments in London in 2013 include the Novo development in Victoria for Land Securities, the W5 Regent Street scheme for the Crown Estate, and work on Battersea Power Station.
It is also set to build the world’s tallest tower, the Kingdom Tower in Saudi Arabia, in a joint venture with EC Harris, and was appointed delivery partner on Project Gutenborg in St Petersburg, which is due to become home to 22,500 people.
Major project completions over the past year include the British Museum’s World Conservation and Exhibitions Centre in London, and the new Coronation Street studios in Manchester for ITV.
In 2013, Mace won new work in the oil and gas sector, securing a global framework with Halliburton and Exxon Mobil and an Americas framework with BP. It also shored up its position in the pharmaceutical sector by securing programme manager roles in the UK and US for pharmaceutical company GlaxoSmithKlein.
In other achievements, the company created 400 new jobs, increasing direct employee numbers by 14% to 3,800. A focus on safety resulted in a 32% drop in RIDDOR injuries during the year, despite an 18% increase in the number of people working on Mace construction sites.
In a statement, chief executive Mark Reynolds said: “2013 was a strong and successful year for Mace and we are well on track to meet our £2bn turnover target by 2020. We continued to focus on working with our clients to build sustainable communities and help turn their aspirations a reality.”
