Problem contracts slash margins at Mace | Construction Enquirer

  • Stephen Pyecroft said new work over the year included a major data centre in Ireland for the construction team

    Problem contracts and rising costs saw margins at Mace’s UK and Europe division crash from 1.7% to less than 0.5%.

  • Overall the group operating margin including construction, consultancy and FM activities around the world halved to 1.1% over the year.
  • Announcing Mace results for last year, executive chairman Stephen Pyecroft said: “2015 saw some challenges for our construction business.

    “The sector delivered £1.42bn in turnover, an 18% increase on 2014.

  • However a number of difficult projects did impact on the margin level delivered to the business.

    “But we lived up to our long-standing reputation of being a trusted partner able to deliver large, complex and iconic projects.”

    He added: “Mace continues to go from strength to strength and while challenges remain in the UK and global economies, we have an enviable pipeline of work stretching well

    into 2016 and beyond.”

    Mace’s group pre-tax profits were actually up 4.5% on last year to £36.2m, supported by almost £18m profit from a major property disposal, thought to by its London student accommodation development Assam Place.