Brookfield Multiplex margin hits 3% as profits soar

Aaron Morby 8 years ago

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

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
2 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
1 day ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
2 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
1 day ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
1 day ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
2 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
3 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
3 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
3 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
4 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
4 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
4 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
4 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
4 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
5 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
4 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
4 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
5 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
5 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
5 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
5 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
5 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
6 days ago

Contractor services