Brookfield Multiplex margin hits 3% as profits soar

Aaron Morby 6 years ago
Share

Contractor Brookfield Multiplex has delivered soaring four-fold growth in pre-tax profits on the back of the London high-rise boom.

Ross Ballingall predicts 2016 will be a better year that last for revenue growth
Ross Ballingall predicts 2016 will be a better year that last for revenue growth

A string of major London projects helped the firm to more than double turnover to £620m and drive pre-tax profits up from £5m to £22m in 2015.

The improved performance saw operating margin jump from around 1.3% to 3% last year.

Ross Ballingall, managing director of Brookfield Multiplex Construction Europe, predicted further growth in revenue this year after a bumper £1.1bn haul of contract wins last year swelled the order book to £3.1bn at the December year-end.

These included 100 Bishopsgate, the 1.1m sq ft Goldman Sachs building in Farringdon and most recently the former Pinnacle site at 22 Bishopsgate, which will be home to the city’s tallest tower.

The contractor is presently contracted to deliver 5.2m sq ft of grade A office space for a total value of £1.9bn.

The residential portfolio was also boosted with a £95m contract to deliver 72 luxury flats in Holland Park and a £184m contract for the 50-storey Principal Place residential block in the City.

Ballingall said the London construction market was buoyant, particularly in the high-end residential sector underpinned by foreign investment.

But he warned stamp duty changes, the slowdown in China together with increased  supply of high-end apartments provided some risk to the ongoing health of the market.

On the other hand he said the London commercial market outlook was bouyant due to lack of supply after the 2008 financial crash.

“It is therefore expected that the commercial sector is at less risk of overheating and is at a sustainable level over the near term,” he said.

The surge in workload launched Brookfield Multiplex into a recruitment drive lifting staff headcount from 476 to over 700 in the year.

Ballingall predicted that tender price inflation would continue to run at more than 4.5% in the medium term, driven by wage inflation and under supply of skilled labour.

He said that Brookfield was agreeing all major subcontract packages prior to entering into the main contract to reduce risk.

Latest news

Hinkley Point delayed another year as costs rise by £3bn

Covid blamed for construction delays and cost increases
12 hours ago

DfE to unveil plans for school procurement shake-up

Supply chain summit to be held next month in Birmingham on future of schools frameworks
16 hours ago

Plan for £100m clifftop hotel and flats in Newquay

Developer Salboy's landmark scheme to go in for planning shortly
16 hours ago

Top 30 M&E contractors set for growth – ranking

Major M&E firms prepare for work surge after riding out pandemic
17 hours ago

Former Mace boss joins Taylor Wimpey board

Mark Castle takes on another non-exec role
16 hours ago

ISG starts £28m duo of Yorkshire leisure centre jobs

Harrogate and Knaresborough leisure centre jobs get underway
16 hours ago

HS2 workforce surges to 25,000 jobs milestone

Over 2,500 firms form the HS2 supply chain
17 hours ago

Green light for 1.4m sq ft Yorkshire logistic hub

Work at the site, located 24 miles from Leeds city centre, is expected in September.
17 hours ago

Contractors lift tender margins to 9% on bids in the Capital

Developer Landsec to press ahead with trio of London office schemes this year despite cost inflation
2 days ago

Fire safety work plunges Countryside to £182m loss

Countryside Partnerships forms dedicated division to handle retrofits on a 123 buildings
2 days ago

Site wages row looms as union dismisses “derisory” pay offer

Unions want 10% increases but employers offer less than 4%
2 days ago

Fusion wins Manchester high rise student block appeal

Planning inspector overturns city council refusal for 28-storey Deansgate block
2 days ago

Failed London fit-out specialist owed trade firms £13m

Twenty 1 Group owed HMRC £9.7m leaving more than 300 firms with no hope of payment
2 days ago

Demolition work imminent on half-built Taylor Wimpey flats

Angry local residents share pictures of site set to be torn down
2 days ago

B&K returns to strong profit growth across the group

Pre-tax profit jumps 23% to £65m as revenue edges up to £1.18bn
3 days ago

British Land expects tender price inflation to hit 10%

Developer says 91% of costs are fixed on planned schemes
3 days ago

Morgan Sindall set for £80m leisure and health hub

West Suffolk public service development to be built at no extra cost to tax payers
3 days ago

Plans in for £500m Hollow Mountain pumped hydro scheme

Work removing 2m tonnes of rock could start within two years
4 days ago

L&G to pump £4bn into West Midlands developments

West Midlands Mayor Andy Street signs landmark investment deal with L&G
3 days ago

Hunt starts for £250m Stockport 8 site developer

Town centre 8-acre site is earmarked for 1,200 homes, shops and leisure
3 days ago

Higgins bags trio of East London passivhaus schemes

Partnership to build 220 affordable homes for Newham council
3 days ago

Water industry revives PFI model for £1bn job

Vast Haweswater Aqueduct upgrade to pilot new DPC model, hailed as the future for water companies
4 days ago

VolkerRail fined £550,000 after trench collapse

Court hears how two metre deep excavation was unsupported
4 days ago

‘Ratty the Robot’ takes bite out of costly pipe inspections

Pipe-crawling tetherless robo-rat makes light work of complex underground inspections
4 days ago

Graham gets green light for £124m M25 Junction 28

Consent allows work to start this Autumn on Essex junction upgrade
4 days ago

Six win £600m panelised housing DPS deal

Better Building alliance of 29 housing associations signs up manufacturers
4 days ago

Watkin Jones reports record £2bn pipeline

Student rooms and BTR builder plans corporate name change in big rebrand
4 days ago

Race starts for £500m Scottish zero carbon hospital job

Bidding starts for new University Hospital Monklands near Airdrie
5 days ago

Manchester airport taxis out £60m terminal 2 pier job

Bidding to start before the end of 2022 for project start early next summer
5 days ago

Plan for 1,100-home complex at Leicester factory site

Galliford Try investments plots Corah Factory transformation
5 days ago

Contractor services