黑洞社区

Mace has confirmed that it has broken the 拢2bn turnover barrier for the first time but reveals profit slipped during 2018.

In the year ended 31 December the firm turned over 拢2.35bn, an increase of 19% on its 2017 figure, while pre-tax profit came in at 拢32.8m 鈥� down 8% year-on-year, and resulting in a pre-tax margin of 1.4%. 

In its annual report Mace also revealed chief finance officer Dennis Hone will retire at the end of the year.

Mark Reynolds, chief executive of Mace, told 黑洞社区 it had been a 鈥済ood year鈥� despite 鈥渃hallenges on a couple of projects鈥�. 

But he revealed that the group would see its revenue dip 鈥渜uite a bit鈥� below 拢2bn in 2019, having broken through the 拢2bn barrier for the first time last year.

Reynolds told 黑洞社区: 鈥淭here was a bit of a spike in our last year from our international business and datacentre contracts. It was a bumper year. This year [2019] will be less. There鈥檒l be a drop in turnover in London and the South East.鈥�

鈥淟ike many others, [if] you have a problem on a project and you have to write down profit it鈥檚 the 1% of projects that hurt you. This year coming construction will do very well. I鈥檓 not worried about turnover, it鈥檚 about profit. Our margin will go up significantly.鈥�

This year will be the last for current chief financial officer Hone, who joined the contractor in 2014. He was previously chief executive of the London Legacy Development Corporation, and before that as head of the Olympic Delivery Authority. 

He is set to be replaced by Richard Bienfait, who was made chief executive of higher education developer University Parternships Programme in January this year. He was previously chief financial officer at the group. 

Bienfait will join Mace in the likely aftermath of the UK鈥檚 exit from the European Union, with Reynolds saying he was concerned by clients being more selective about work as a result. 

鈥淭hey鈥檙e all more cautious with the Brexit effect. Brexit for us is a short-term hit in the first instance,鈥� he said. 鈥淭he movement of goods is the biggest risk. It can hit you on projects, with higher prelims, and delays and potentially damages.鈥�

Reynolds also warned against over-borrowing in the contracting business. 鈥淚t鈥檚 all about cash balances and cash resilience. If you have to borrow money to fund your operational business then that鈥檚 dangerous.

鈥淲ell-run companies don鈥檛 have these sorts of problems. The example is Carillion. If you pay out more than you earn over a long period, then you鈥檙e going to end up in a bad place.鈥�