{"id":521963,"date":"2025-06-05T09:00:12","date_gmt":"2025-06-05T08:00:12","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=521963"},"modified":"2025-06-05T09:15:43","modified_gmt":"2025-06-05T08:15:43","slug":"record-turnover-again-for-mace-despite-problem-job","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/mace\/record-turnover-again-for-mace-despite-problem-job-05-06-2025\/","title":{"rendered":"Record turnover again for Mace despite problem job"},"content":{"rendered":"

Tier one contractor Mace has reported a sharp fall in profit and challenges with one construction project, despite achieving a record annual revenue for the second consecutive year.<\/p>\n

Turnover in the year to 31 December 2024 grew by 18.3 per cent year on year to \u00a32.79bn, up from \u00a32.36bn the year before<\/a>, the firm\u2019s latest accounts show.<\/p>\n

Pre-tax profit fell by 30 per cent from \u00a361.7m to \u00a343.2m, though.<\/p>\n

As a result, the firm<\/a> \u2013\u00a0ranked fifth in the\u00a0CN100 2024 table of top contractors<\/a> \u2013\u00a0saw its margin narrow from 2.6 per cent to 1.5 per cent.<\/p>\n

Mace\u2019s construction operations delivered record turnover of \u00a32.1bn last year. This was a 21 per cent increase on the previous year\u2019s \u00a31.73bn.<\/p>\n

The firm completed 27 commercial, fit-out and civils projects last year, such as the 40 Leadenhall office scheme in London for M&G Real Estate and a cargo tunnel at London Heathrow Airport.<\/p>\n

And 48 new jobs contributed to a group-wide pipeline of work worth \u00a37.2bn, up slightly from the previous year\u2019s \u00a37.1bn.<\/p>\n

New governance<\/h3>\n

Contract wins last year included a \u00a3300m office refurb at 1 Victoria Street for Mitsubishi Estate London, and a \u00a3184m job to deliver the next expansion phase at the Oxford Science Park (pictured)<\/a>.<\/p>\n

But fewer construction contracts were won than Mace\u2019s record total of 60 in 2023, and chief executive Jason Millett said the fall in group profit was due mainly to legacy issues in the construction business.<\/p>\n

He said pre-Covid era projects that were affected by cost factors linked to inflation, and the conflicts in Ukraine and the Middle East, ultimately hit Mace\u2019s bottom line last year.<\/p>\n

One inflation-hit job in particular \u201chad a significant impact on our overall performance\u201d, chief financial officer David Allen said in the accounts.<\/p>\n

Millett told Construction News<\/em> that this contract has now been \u201cclosed out\u201d and the legacy of Covid is now \u201cvery much behind us\u201d.<\/p>\n

He added that Mace has retained a \u201creally good, positive position\u201d with the client on the problem job, and the contractor has other live projects with the client.<\/p>\n

While the factors behind the problem job were not unusual to Mace, the firm took \u201ca number of decisions to improve the consistency with which our Construct business will measure risk and operate going forward\u201d, said executive chairman Mark Reynolds.<\/p>\n

Mace formed a new group-level board and appointed six non-executive directors \u201cto help ensure we are robustly governed and challenged on our most important choices\u201d, Reynolds said in the latest accounts.<\/p>\n

He also handed the chief executive baton to Millett at the start of the year after Mace implemented a new governance structure.<\/p>\n

\u201cOur improved governance framework is more rigorous with risk and audit committees \u2013 but there\u2019s also more rigour about our selectivity in bidding,\u201d Millett told CN<\/em>.<\/p>\n

In May last year, Mace said it aimed to double the scale of its consultancy business to achieve more than \u00a31.2bn in revenue by 2030.<\/p>\n

The firm is slightly more than halfway to this target, with Mace Consult posting revenue of \u00a3686.6m in 2024, which Allen described as a \u201cstand-out\u201d year for the business.<\/p>\n

Consultancy revenue rose 10.8 per cent to \u00a3686.6m, with pre-tax profit soaring 74 per cent to \u00a377.7m. The division now contributes about a third of group turnover, up from just over a quarter in 2023.<\/p>\n

Strong liquidity<\/h3>\n

The group ended the year with cash at bank of \u00a3320.2m, another all-time high and up by 81 per cent on the previous year\u2019s \u00a3175.81m.<\/p>\n

\u201cRecord cash at bank at the end of 2024 was probably the most pleasing thing for me in many ways,\u201d said Millett.<\/p>\n

Mace held \u00a37.5m in short-term bank loan debt \u2013 the same as last year \u2013 though its long-term borrowings increased from \u00a350m to \u00a382.5m.<\/p>\n

\u201cIt\u2019s about giving ourselves different levers we can pull to help with our financial resilience,\u201d Millett said.<\/p>\n

Dividends of \u00a34.3m were paid out to shareholders, slightly higher than the previous year\u2019s \u00a33.8m.<\/p>\n

Staff headcount grew from 6,906 to 7,326 employees, and the annual wage bill rose from \u00a3595.3m to \u00a3614.4m.<\/p>\n

Looking ahead, Mace aims to achieve \u00a33bn in group revenue by 2026 and its accounts said \u00a32.1bn of 2025 revenue had already been secured.<\/p>\n

Overall, \u00a33.1bn is secured up to 2027, along with an additional \u00a31.9bn in pipeline opportunities.<\/p>\n

On the public-sector front, Mace is optimistic about the UK government\u2019s upcoming 10-year infrastructure strategy<\/a>.<\/p>\n

\u201cOne of the good things is that the government has been far more engaging with contractors on infrastructure strategy,\u201d Millett noted.<\/p>\n

While acknowledging the potential for fewer schemes, he praised the government\u2019s focus on \u201cmore reliability and predictability\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tier one contractor Mace has reported a sharp fall in profit and challenges with one construction project, despite achieving a record annual revenue for the second consecutive year. Turnover in the year to 31 December 2024 grew by 18.3 per cent year on year to \u00a32.79bn, up from \u00a32.36bn the year before, the firm\u2019s latest …<\/p>\n","protected":false},"author":135716,"featured_media":502781,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,539],"tags":[],"class_list":["post-521963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-mace"],"yoast_head":"\nRecord turnover again for Mace despite problem job | Construction News<\/title>\n<meta name=\"description\" content=\"Tier one contractor Mace has reported a sharp fall in profit and challenges with one construction project, despite achieving a record annual revenue for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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