- 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.
- The construction sector can be broadly classified into five categories: Commercial, Industrial, Infrastructure, Institutional and Residential.
- The reasons for this growth can be attributed to various macroeconomic factors conducive to the construction sector.Key Macroeconomic Trends Driving Growth in UAE Industrial Construction SectorUAE is one of the most diversified economies in the Gulf region.
- Looking at the Middle East, UAE can be seen as one of the fastest growing economy, with its construction industry ranked third among the construction industries of the Middle East countries.
- The construction industry is third largest economic activity after oil and trade, in the UAE, including approximately 6000 companies with most of the construction activities taking place in Abu Dhabi and Dubai.
- The industry’s output value in real terms is forecast to rise at a CAGR of 6.52% in the next five years period; up from 3.55% during the period 2010-2014.The promising future of the construction industry can be seen by observing its past trend.