Murphy profit soars despite revenue fall

Aaron Morby 1 year 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

Gary Neville £200m Manchester tower gets the final nod

39-storey Deansgate skyscraper complex will be home to a 5-star hotel, luxury flats and offices
11 hours ago

Thames Tideway TBMs placed for big drive

Tunnelling to start later this year on 12km central section - picture special
10 hours ago

Contractor fined over unsafe fleet of cherry pickers

HSE investigation finds lack of maintenance regime
4 hours ago

Network Rail bans retentions to support supply chain

CP6 overhaul sees switch to project bank accounts with Tier 1 firms told to pay in 28 days
1 day ago

ISG clinches £34m Twickenham campus scheme

Firm to deliver 160,000 sq ft teaching block for Richmond upon Thames College
11 hours ago

HB Reavis raids Argent for major Waterloo scheme boss

Joe Martin joins as UK construction director for 1m sq ft Elizabeth House job
1 day ago

Scotland to require sprinklers in all new social housing

Sprinklers to be compulsory in all social housing of over 10 people
1 day ago

Perfect Circle wins £300m Bristol Uni campus

AECOM, Gleeds and Pick Everard JV signed up for Temple Quarter Enterprise Campus
1 day ago

Single alliance plan for all smart motorways work

Highways England floats radical alliancing plan using three main contractors
1 day ago

Berkeley Group warns profits to drop 30% next year

London house builder's profit hits high water mark of £935m
1 day ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
2 months ago

£400m north west small projects framework launched

Procure North West (Lite) framework to cover projects up to £1m and M&E work
1 day ago

More than half of construction workers in London from EU

Brexit alarm over Capital's reliance on foreign labour
1 day ago

Severfield margins restored to 8% target

Steelwork contractor's profit rises by nearly 20% to £23.5m
1 day ago

Galliford Try bags £45m Leeds Beckett sports research hub

Demolition to start next month at the Headingley campus
2 days ago

Mears to help homeless in £75m housing deal

Contractor to buy and refurb 365 homes in Waltham Forest
1 day ago

Sellafield teams cut budget overruns in half

Sellafield clean-up facing £900m overspend despite improved delivery
1 day ago

Network Rail starts race for £5bn trio of trackwork deals

The 10-year alliance deals will be let to designer/contractor JVs
2 days ago

Multiplex bags £400m New Scotland Yard redevelopment

Multiplex to start six-tower Westminster Broadway scheme in January
3 days ago

Kier defends fire safety strategy after Glasgow blaze

Contractors had agreed safeguards in place as repair estimates hit £100m
2 days ago

McCarthy & Stone boss to step down after profit warning

Retirement home builder to streamline after poor spring sales
2 days ago

Capita sells Constructionline to private equity giant

Procurement and supply chain specialist sold for £160m
2 days ago

McLaren lands new HQ for consultant Dar Group

John F Hunt to start demolition work in August to make way for new nine-storey scheme
3 days ago

Countryside strikes deal for 5,000 private rental homes

Deal with family private rental specialist allows Countryside to expand its partnerships business
2 days ago

Balfour Beatty fined £500,000 for white finger exposure

Court hears how workers were exposed to hand-arm vibration risk for nine years
3 days ago

On-site training boost to ease skills shortages

New £22m Construction Skills Fund now open for applications
3 days ago

Chandler promoted to Wates board

Wates MD, Paul Chandler, ushers in nearly £3bn of new business
3 days ago

Legal firm moves into cost consultancy

Blake Morgan hires former Aecom director to head project management and cost consultancy
3 days ago

Fire destroys Kier restoration of Glasgow School of Art

Second major blaze in four years reduces £35m of repair work to ashes
5 days ago

Race starts to build £20m Basildon cinema complex

Basildon town centre’s planned East Square cinema complex up for grabs
3 days ago

Contractor services