Mace directors awarded shares worth £9m

Aaron Morby 5 months ago
Share

Directors of construction group Mace received a £9m share based payment last year to incentivise them to return the business to profitability.

The incentive plan for the group’s nine directors was revealed in results for Mace Finance, Mace Ltd’s holding company, which have just been posted at Companies House.

This reveals Mace delivered pre-tax profit before the share based payment of nearly £5m, down from £27m the year before.

But after accounting for the £9m directors’ share based payment, which is charged to the profit or loss account, the firm tipped into a pre-tax loss of £4m.

Total group revenue covering construction, consulting and development rose 14% to nearly £2bn.

A breakdown of the group’s performance by region reveals that UK and Europe suffered a £10.9m loss against £18m pre-tax profit in 2015.

Commenting on the construction business, Mark Reynolds, chief executive officer, reported: “2016 was a challenging loss-making year for Mace.”

The firm’s UK construction business was hit by problems on Land Securities £2.2bn Nova scheme, and the £170m Highpoint Tower in Elephant and Castle, which is being developed by Mace subsidiary Newington Butts Developments

Reynolds added: “During 2016 shares were awarded from the Employee Benefit Trust to group board members and this resulted in a share based payment charge to the consolidated statement of comprehensive income of £9m.

“The purpose of this share issue was to incentivise the recipient group board members to return Mace Finance to previously forecast levels of profit on ordinary activities and therefore increase the value of Mace Finance limited shares.”

He added” “We have no doubt 2017 will be another year of success for the group.”

The firm’s accounts also revealed Mace issued a bond of £100m, purchased by an institutional investor in March, to fund the firm’s growing development business.

The highest paid director at Mace saw his salary and benefits package remain flat at £1,437,000.

A Mace spokesperson said: “Share Based Payment is an accountancy term used under IFRS to reflect an appropriate charge for the movement of a company’s shares.

“The £9m is a valuation imposed for the purposes of the redistribution of the shares, which occurred following the departure of Marcus Burley from the group board. This was not paid as a bonus and any suggestion otherwise is inaccurate.”

 

 

Latest news

Almacantar chief in Twitter tirade against McAlpine

Mike Hussey says he would not trust contractor to 'deliver a pizza'
11 hours ago

Persimmon chiefs hand back £50m after bonuses outcry

Persimmon bosses waive second instalment of bonuses
12 hours ago

Colas and Volker to exit huge London highways contract

CVU joint venture and TfL agree to part company early on eight-year framework
1 day ago

Lendlease on board for £4bn London Euston district

Arup and Grimshaw will now work on Euston plans
21 hours ago

Carillion cracked hospital beams remedial work unfinished

Auditors and pension regulator heavily criticised by MPs
1 day ago

Amey Rail snaps up Carillion rail projects saving 700 jobs

Projects in the East Midlands, London and North West England back on track
2 days ago

Willmott Dixon gets start date for £49m Colston Hall revamp

Work to start in June on major regeneration for Bristol landmark
22 hours ago

Boost your online presence with the new Enquirer Directory

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

Betting Spy: England to win the Calcutta Cup

England can cover the handicap in the Six Nations while West Ham have it all to do as usual at Anfield
22 hours ago

Carillion bosses dodge pension black hole

Accounts show one pension scheme was in surplus while the rest had an £800m deficit
2 days ago

Morgan Sindall profits soar as margins restored

Fit-out and construction deliver strong profit growth as 2018 set to be bumper year
2 days ago

Centre Point Tower developer claws back £1m from McAlpine

McAlpine counts cost of row over design and build or construction management route for London tower
2 days ago

Sisk vows to complete joint venture jobs after Lagan collapse

Contractor will complete Highways England schemes on its own
2 days ago

Suspended sentence for scaffolder spotted without harness

Court hears how experienced worker chose to ignore safety rules
2 days ago

Construction slave labour ring smashed in East London

Fifty Eastern European workers saved after exploitation on sites
2 days ago

GRAHAM wins £86m Liverpool build to rent tower

Demolition work to start on waterfront site this month
2 days ago

Interserve to close power lines operation axing over 70 jobs

Power transmission firm to be wound down over next few months
3 days ago

Lagan puts construction arms into administration

Up to 200 jobs at risk as construction and building divisions hit by delays and disputes
3 days ago

Barratt looks to new building methods to boost volumes

Completions creep up by 2% as UK's largest house builder looks to use more offsite construction
3 days ago

BAM counts cost of weaker pound

UK business pre-tax profit slip of 7% to £35m due to exchange rate change
3 days ago

Galliford Try clinches £55m Leamington Spa housing project

Partnerships arm will build 375 homes for Waterloo Housing Group
3 days ago

Green light for London Deutsche Bank HQ

Developer Landsec says construction to continue once substructure is complete next March
3 days ago

Highways England calls bids for £326m Area 10

Hunt starts for maintenance and response contractor in north west
4 days ago

Carillion directors ‘contemptuous’ of pension funding

Carillion trustees alerted watchdog twice over pensions shortfall to no avail
4 days ago

Civils to start on £160m Yorkshire shopping centre

Advanced highways and infrastructure work to start this summer
4 days ago

Liverpool advances £700m Festival Park redevelopment

Willmott Dixon to carry out enabling works around Festival Garden dome base
4 days ago

Consultant Dar to build new Holborn HQ

Hunt on for contractor as Currie & Brown owner plans UK expansion
4 days ago

Another 152 Carillion staff axed taking job toll to 1,141

Staff told to pack up as fresh wave of job cuts unveiled today
4 days ago

Mace lands £350m Stevenage town centre revamp

Council picks winning developer for major town centre regeneration
4 days ago

Construction cartel whistleblowers offered £100k for tip-offs

Competition and Markets Authority targets construction in latest crackdown
4 days ago

Contractor services