Problem job sees Multiplex profit slump to £4.4m

Aaron Morby 2 weeks ago
Share

Profits at London tower builder Multiplex Construction slumped from nearly £16m in 2016 to £4.2m last year.

One Nine Elms contract is worth over £600m

In latest accounts for 2017, Multiplex said an improved performance from higher margin projects had been hit by reduced margins on a single challenging project that will be completed this year.

Revenues edged up by around 10% to a record £1.1bn as further major orders got underway.

Multiplex revealed it had made a cost provision of £10m for recoveries that were not certain in amount and timing.

The firm has now focused on a more selective bidding strategy concentrating on its core office high-rise market.

It also said it had aligned itself with more financially robust supply chain partners to limit the risk of subcontractor failures after being hit by concrete frame specialist Dunne’s collapse.

Multiplex: Last five years
2017 2016 2015 2014 2013
Pre-tax profit £4.2m £19m £22m £5m £11m
Revenue £1155m £1036m £620m £284m £295m

Ross Ballingall, managing director of Multiplex Construction, said the outlook for work in the capital remained good even amid on-going political uncertainty.

“Office space in London remains in demand, as does high-end and ultra high-end residential, resulting in a healthy pipeline for new work beyond secured projects.”

During the year Multiplex secured and started on three major London schemes.

The largest at One Nine Elms is a twin tower residential and hotel project worth over £600m.

In the same area it is building the Jenga Tower for £240m and in London’s Royal Docks Multiplex is contracted by Chinese developer ABP to deliver the first phase worth £217m of a multi-phase commercial and residential scheme of 4.6m sq ft.

These major project wins saw the year-end order book rise to £4.2bn from £3.6bn. This presently comprises 12 residential projects worth £2,2bn and five commercial projects worth £1.7bn.

Seven projects valued at £660m were completed in 2017.

As revenue and orders increased headcount rose 9% over the year to just over 1,000 staff, including a number of graduates as it introduced its first apprenticeship scheme.

Retention held by Multiplex’s clients rose to £75.5m (2016: £63m) with around £40.5m due in the year ahead.

The highest paid director received £499,000.

 

Latest news

Contest for radical rethink of rail footbridge design

Network Rail challenges engineers and architects to design the next generation of structures
2 days ago

Bristol Arena builder confirms project will be on budget

Crunch meeting to decide fate of stalled Arena project in two weeks
2 days ago

Galliford Try snaps up sites as Bouygues exits low rise housing

Partnerships arm will deliver more than 200 council and private sale homes in Wolverhampton
2 days ago

Mobile app means contractors can match paint in seconds

London contractor Lucas launches device to revolutionise trade decorating industry
2 days ago

Murphy makes switch to cleaner fuel on HS2 site

Contractor becomes first firm to switch to greener alternative to diesel
2 days ago

Brighton Uni starts £20m academic building bid race

Six-floor building will be located next to the Preston barracks redevelopment site
2 days ago

Speller Metcalfe wants to meet new subcontractors

Contractor keen to talk to new suppliers across Cardiff: Register now
2 days ago

Contractor fined over unsafe fleet of cherry pickers

HSE investigation finds lack of maintenance regime
3 days ago

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
3 days ago

Thames Tideway TBMs placed for big drive

Tunnelling to start later this year on 12km central section - picture special
3 days 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
4 days ago

ISG clinches £34m Twickenham campus scheme

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

HB Reavis raids Argent for major Waterloo scheme boss

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

Scotland to require sprinklers in all new social housing

Sprinklers to be compulsory in all social housing of over 10 people
4 days ago

Perfect Circle wins £300m Bristol Uni campus

AECOM, Gleeds and Pick Everard JV signed up for Temple Quarter Enterprise Campus
4 days ago

Single alliance plan for all smart motorways work

Highways England floats radical alliancing plan using three main contractors
4 days ago

Berkeley Group warns profits to drop 30% next year

London house builder's profit hits high water mark of £935m
4 days 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
4 days ago

More than half of construction workers in London from EU

Brexit alarm over Capital's reliance on foreign labour
4 days ago

Severfield margins restored to 8% target

Steelwork contractor's profit rises by nearly 20% to £23.5m
4 days ago

Galliford Try bags £45m Leeds Beckett sports research hub

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

Mears to help homeless in £75m housing deal

Contractor to buy and refurb 365 homes in Waltham Forest
4 days ago

Sellafield teams cut budget overruns in half

Sellafield clean-up facing £900m overspend despite improved delivery
4 days ago

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

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

Multiplex bags £400m New Scotland Yard redevelopment

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

Kier defends fire safety strategy after Glasgow blaze

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

McCarthy & Stone boss to step down after profit warning

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

Capita sells Constructionline to private equity giant

Procurement and supply chain specialist sold for £160m
5 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
6 days ago

Contractor services