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Steve Pycroft has been at the helm of construction consultant Mace for 100 days. He has inherited a company in a strong financial position: results published this week reveal that in 2004, the last year of former chief executive Bob White鈥檚 tenure, pre-tax profit rose 28% to 拢5.2m and turnover rose 36% to 拢183m.

This is the latest step in a fairly lengthy success story. Over the past five years, pre-tax profit has increased more than 400%, and about 73% of Mace鈥檚 workload is repeat business.

All of which puts a little bit of pressure on Pycroft. White is a well-known face in the industry, whereas Pycroft is a more behind-the-scenes character. But he has spent three years in the anteroom to greatness as chief operating officer.

The company is working on some of the UK鈥檚 biggest projects, including Heathrow鈥檚 Terminal 5, London鈥檚 2012 Olympic bid, and Royal Bank of Scotland鈥檚 headquarters at Gogar in Edinburgh. And it has just thrown its hat into the ring to programme manage the Olympic construction programme if London is named as host city in July.

Pycroft鈥檚 challenge is to stamp his mark on the business. But when he talks about the handover from White he is keen to emphasise continuity. 鈥淚t鈥檚 been a seamless transition, although I鈥檝e had to accept that I鈥檝e now got less of a day-to-day role in construction.鈥�

His task so far has been to engage in more strategic thinking. This has resulted in a plan to grow Mace鈥檚 existing businesses, to expand geographically and to groom the next generation of managers.

On the face of it, the structure of the company looks complex, because it has diversified into so many different sectors. The company鈥檚 main activities are project management, construction management, quantity surveying, construction and fit-out, and facilities management.

Diversification has, according to Pycroft, saved Mace from falling victim to a market in which aggregate demand is holding up while particular sectors are prone to disastrous contraction.

Staff numbers increased 40% in 2004, and the firm now employs 1600. It is aiming to hit the 拢200m turnover mark in 2005, with 70% of this target already secured, and also achieve a 拢6m pre-tax profit. By 2010, it is looking for a 拢400m turnover with 85% repeat business.

Pycroft makes clear the firm now has the skills and market positions it needs, and that the plan is therefore to cast Mace鈥檚 net further.

It鈥檚 not about looking for diversification, but markets outside the UK

Steve Pycroft

鈥淚t is not about looking for further diversification, it鈥檚 about looking to markets outside the UK.

鈥淓very year we look at a different country and the potential for Mace there. Last year we looked at China, secured a 拢1bn project and opened an office on the back of it.鈥�

Mace has joined with a Hong Kong contractor called Hsin Chong in a joint venture to build Macao鈥檚 first Las Vegas-licensed casino.

This year Mace is turning its attention to the USA for the first time. 鈥淚t is our next research target,鈥� he says. 鈥淎fter the holiday season we will send a small group of people to consider where best to locate Mace.鈥�

Pycroft also has India in his sights, and is aiming to strengthen Mace鈥檚 position in the Chinese market.

Back in the UK, there are some big challenges ahead. The fit-out sector has been subdued in the past three months, although Pycroft says it is now picking up. But he adds that the biggest challenge is attracting quality people into the industry.

As for PFI work, despite being involved in the government鈥檚 city academies programme, and having a stake in education consultant Place Group, Pycroft is generally happy to steer clear. 鈥淚t has such a high entry price, and it鈥檚 a lottery,鈥� he says.

To safeguard the future, succession planning is under way. 鈥淲e have a second tier of directors in place, and below them we have the Futures Group, which is about 25 junior staff with the highest potential. 鈥�

The Mace board owns 100% of the firm, and at the end of next year, White will make his financial exit, remaining non-executive chairman.