Murphy profit soars despite revenue fall

Aaron Morby 1 week ago
Share

Murphy chief executive Steve Hollingshead has completed his first full-year at the contractor with pre-tax profit ahead almost 70% to £23m.

The financial success last year builds on the return to profit in 2015, after a £9m loss in 2014 following a problem contract on a fat-fired combined heat and power project in East London.

Hollingshead has set the target of doubling turnover to £2bn by 2025. As part of the business’ strategy, Murphy wants to improve profitability across a portfolio of products to at least 5% before tax, growing to 10% by 2025

While pre-tax profits recovered strongly, turnover slipped for the third consecutive year to £614m due to Crossrail works completing in 2015 and reduction of activity in other parts of the UK business.

Murphy ended December 2016 with a cash balance of £97m and net assets of £214.1m.

The group order book stood at £1.2bn compared with £962m in 2015, an increase largely due to winning one of the blocks of HS2’s enabling works. This will be worth £175m to the group.

The firm said with the size and visibility of the pipeline it was confident of delivering its budget for 2017.

But finance director David Burke warned: “The picture is less certain for 2018; there are signs that certain projects will be delayed, particularly in the South East.”

Hollingshead, said: “We can look back on 2016 with considerable pride. It was a year when we overachieved against our financial goals and I’m proud that Murphy and our people continued to deliver.

“Our ten-year plan is about sustainable growth and taking Murphy to the next level. But this is not simply a set of target numbers and a determination to hit them. The plan is like construction itself – making sure that every part of our business is professional, rock-solid and able to support the ambitious plans we have for our development.”

The year saw significant wins – as well as securing enabling works for HS2 in joint venture with Laing O’Rourke, Murphy was named preferred bidder on the tunnelling element of the £2.4bn York Potash mine with Hochtief, and the Canadian business Surerus-Murphy built an order book worth $400m.

 

Latest news

South African construction giant buys into Byrne Group

Johannesburg-listed construction giant Wilson Bayly Holmes-Ovcon eyes UK opportunity
38 mins ago

Crewe crane collapse victim was teenager on first job

Police identify both victims after crane came down while being erected
2 days ago

Rotherham unveils new town centre revamp plan

Ambitious regeneration plan focused on Forge Island area of the town
1 hour ago

Premier Modular bags £225m offsite housing deal

Central Housing Investment Consortium picks Premier for volumetric housing
3 hours ago

Singapore developer gets green light for £130m London flats

Final stage of Wandsworth's Riverside Quarter to start next year
3 hours ago

Every tower block checked so far fails fire tests

Cladding on 60 high-rise blocks in 25 local authorities fails combustibility tests
1 day ago

Willmott Dixon wins Old Admirality Building refurb

Contractor takes-on job originally earmarked for BAM
7 hours ago

Michelmersh buys Yorkshire brick maker for £31m

Deal for Carlton Main Brickworks will boost output to 100m units a year
6 hours ago

Celotex to stop supply of Grenfell insulation to towers

Insulation giant halts supply for rainscreen cladding systems to high-rise buildings
3 days ago

Crane drops 500 scaffold fittings on worker

Court hears how victim suffered three fractures and cuts to her head
7 hours ago

Council chief sounds warning over Battersea build costs

Wandsworth planning chairman claims project is facing "significant challenges"
3 days ago

Sisk seals £190m Quintain Wembley Park resi block

Builder also in talks about a further 500 homes next to Canada Court plot
6 hours ago

Police consider manslaughter charges after Grenfell fire

Detectives "seizing relevant material from a number of organisations"
3 days ago

Over 200 Birmingham tower blocks to get sprinklers

Council could delay its building projects to fund £31m retrofit programme
3 days ago

First tests reveal combustible cladding on 11 towers

Up to 600 towers need to be checked
4 days ago

Safety alarm raised over fall in HSE construction visits

Surprise site visits by inspectors drop by 14%
3 days ago

Plans for 35-storey Manchester student tower

Unite unveils plan for 600-bed student block near Oxford Road station
3 days ago

London’s Camden Council to strip cladding from five towers

Chalcots Estate project was delivered by Grenfell contractors Rydon and Harley Facades
4 days ago

Contractors urged to stop asking site chefs for skills cards

Firms urged to use common sense over allowing non-construction staff on sites
3 days ago

Planning thumbs up for £150m Lincoln shopping centre

St Marks shopping centre owner Standard Life plans to start work in 2020
3 days ago

Two killed in crane collapse on Crewe construction site

Tower crane comes down on Seddon site
5 days ago

Berkeley cleared to fast-track scheme for Grenfell survivors

Homes and Communities Agency strike deal to buy Kensington Row luxury apartment scheme
5 days ago

Buckingham Group targets £500m revenue in 2018

Profits soar as firm eyes swelling pipeline of stadium projects.
5 days ago

Five more Edinburgh schools found with building defects

Investigation reveals more schools in Edinburgh suffered wall-tie defects
4 days ago

Galliford/Lagan jv wins £135m RAF Marham hangar

New hangar will house a dozen F-35B vertical take-off jets
5 days ago

CIOB sets up commission to probe control of build quality

Paul Nash to lead urgent review into behaviour that undermines quality in construction
5 days ago

Barratt names new finance boss

Barratt promotes Jessica White to top financial executive
4 days ago

Opinion: Construction must say never again to another Grenfell

The industry must break with its lowest cost culture
5 days ago

Profits soar at Berkeley despite housing market uncertainty

Berkeley worried about Brexit impact on skills as half its site labour comes from EU
5 days ago

Hewden sell-off raises £120m but trade creditors get pennies

More than £41m was owed to plant hire giant's trade creditors
5 days ago

Contractor services