Murphy profit soars despite revenue fall

Aaron Morby 2 months 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

Profit growth outstrips building rise at Persimmon

Housebuilder vows strong cost control "to deliver the best outcomes for our shareholders."
47 mins ago

Balfour replaces Costain on Hinkley Point tunnels job

Costain exits £200m-plus Hinkley Point marine package
21 hours ago

Phenolic foam board cladding system fails fire test

At least 228 buildings must be reclad after latest fire test result
32 mins ago

Chinese firm buys cladding giant Permasteelisa for £426m

Deal crates leading global curtain walling company
19 hours ago

Multiplex inks £240m deal for Jenga tower

Contractor wins ultra-luxury scheme at Nine Elms
20 hours ago

Engineers probe multi-storey car park collapse

Nottingham NCP deck failure leaves cars dangling in mid-air
23 hours ago

Balfour Beatty set to pull support for CITB

Group chief executive Leo Quinn fires broadside at training body
2 days ago

Carillion crisis chief Richard Howson returns to helm

Former chief executive back in a senior role just weeks after stepping down
4 days ago

Contest starts for 480 Manchester student rooms

Manchester Metropolitan University seeks contractor for £27m Birley campus project
23 hours ago

Public sector clients breaking prompt payment promises

Two-thirds of engineering services specialists being made to wait more than 30 days for their money
24 hours ago

Autumn start for £30m Yorkshire village flood scheme

VolkerStevin jv to start Mytholmroyd village flood scheme
1 day ago

McAlpine set for £29m Big Ben overhaul

Contract to be confirmed when MPs return to Parliament in early September
23 hours ago

Argent unveils Birmingham Paradise phase 2

290,000 sq ft One Centenary Way will be third office project at Paradise scheme
4 days ago

Subbies start winding-up petition against Titan Construction

Financial crisis at firm where ISG founder David King is chairman
4 days ago

J S Wright lands £10.5m Fish Island M&E package

26-month deal for major new resi scheme in Hackney Wick
4 days ago

Race starts for one of biggest demolition jobs of 2017

Six Grimsby tower blocks to be demolished
4 days ago

Major York city mixed-use scheme approved

Four block redevelopment of Hudson House near railway station approved
4 days ago

Midas construction margin edges up to 0.5%

South western builder sees recovery in profit to £1.6m
4 days ago

Colas to trial driverless cone laying vehicles on roads

Autonomous Impact Protection Vehicles can make highways sites safer: Video
4 days ago

Multiplex quits £750m Stage of East London project

Client hunts for new contractor to deliver vast scheme on Shakespeare’s Curtain Theatre site
5 days ago

Graham bags £19m East Anglian highways upgrade

Growing civils arm bags biggest highways package in over two years
5 days ago

Betting Spy: Defence is a dying art in the Premier League

Goals guaranteed this season while a home win treble can pay a 7/1 return
4 days ago

A2Dominion ramps up homes target to 6,000

Leadership shake-up to raise private rental and homes for sale
6 days ago

VolkerHighways names new ops director

Former Kier highways general manager Jerry Pert joins Volker
5 days ago

Contractors named and shamed over minimum wage

Builders among latest list of offenders published in government crackdown
5 days ago

Virtual reality set to spread across construction sites

Research programme to push use of high-tech headsets
5 days ago

Time nearly up for skills cards for fringe trades

85,000 recently issued Construction Related Occupation cards become obsolete within weeks
5 days ago

CITB buys plant simulators to fill operator skills gap

Sixteen plant simulators will help to train next generation of operators
6 days ago

Argent appoints five new firms on construction framework

Developer to shake-up one of the industry's longest running partnership deals
6 days ago

Balfour Beatty construction swings back into profit

Balfour generates positive cash from operations for first time since 2013
6 days ago

Contractor services