Murphy plans to double business size by 2025

Aaron Morby 6 years ago
Share

J Murphy & Sons chief executive Steve Hollingshead has set out his plans to double the size of the business over the next 10 years.

Murphy chief Steve Hollingshead sets out 10-year growth plan with growing international interests
Murphy chief Steve Hollingshead sets out 10-year growth plan with growing international interests

Hollingshead, who spent 24 years in senior positions at Laing O’Rourke, is planning to target main infrastructure markets using the contractor’s largely direct labour model.

Unveiling the steady growth plan he said: “The strong operating performance across our business gives us the confidence to invest, building a platform for us to double in size over the next ten years.

“We aim to deliver steady growth in revenue from over £648m in 2015 to £2bn by 2025, and improve profitability across a portfolio of services to at least 5% net profit before tax, growing to 10% by 2025.”

The firm aims to focus on the core infrastructure sectors of rail, power, water and natural resources, with other revenue generated by other trading activities and regional opportunities.

Murphy returned to profit last year after putting a loss-making contract behind it for a fat-fired combined heat and power project in Beckton, East London.

The firm delivered an operating profit of £2.5m last year after running up a near £16m operating loss in 2014, largely down to the problem job.

The firm is hopeful of winning work on the giant HS2 project and is bidding for three major civils packages in joint venture with Laing O’Rourke and Spanish giant FCC.

During the summer it was named preferred bidder in joint venture with Hochtief for the main 23-mile tunnelling contract on a planned £2.4bn potash mine in North Yorkshire.

Hollingshead said Murphy’s international business offered opportunity for growth. Presently Murphy holds a 50% stake in Brisbane-based  Murphy Pipe and Civil and Canadian piepeline contractor Surerus Murphy. It also recently acquired a US-based infrastructure contractor and has started contracting operations in that market.

“I anticipate our international business will deliver 15% of the group’s revenues by 2025. However, we recognise that although higher margins are available to us in overseas markets, risk management remains a vital consideration,” he said.

He added: “As our pipeline of work increases, we need to maintain our bidding discipline and remain strict about our financial hurdles and other key performance indicators.

“I am very positive about the future and there is no reason why we cannot hit all our goals.”

Latest news

£1.25bn Stonehenge tunnel job winner revealed

Spanish, Italian, and Austrian JV scoops A303 Amesbury to Berwick Down scheme
13 hours ago

McAleer & Rushe on track for record £425m revenue

Revenue and profit return to pre-pandemic level as focus grows on high-rise flats
3 hours ago

Domis on the hunt for subcontractors and suppliers across Cornwall

Contractor hosting meet the buyer event to set-up local supply chain for string of major projects
7 mins ago

Lendlease £140m hospital claim to hit High Court

Cramlington hospital trust claims for new temporary building while remediation works carried out
11 hours ago

Balfour bags £50m Piccadilly Line upgrade

First award under latest London Underground High Voltage Power framework
11 hours ago

Cash runs out on HS2 old Curzon Street station refurb

Laing O'Rourke/Murphy JV halts work on historic station renovation
15 hours ago

MPs call for cut in building demolitions to save carbon

Watchdog MPs set out urgent plan to prioritise retrofit and reuse of buildings over new build
15 hours ago

Structure Tone stems losses as order book grows

Fit out specialist racks-up £4m loss but is confident of turnaround this year after restructuring
16 hours ago

Construction leaders launch inflation busting taskforce

All sides of industry urged to work together rather than row over price hikes
1 day ago

HG Construction names next chief executive

Adam Quinn, son of one of the MBO founders, to take the reins in July
16 hours ago

Lendlease Stratford IQL blue towers approved

35- and 14-storey hexagonal blocks will provide 350 flats
15 hours ago

Track worker killed by train was controller of site safety

Distracted rail worker "lost awareness of his position relative to the line the train approached on"
1 day ago

MechFS went down owing £9.5m to supply chain

Subcontractors left holding millions in worthless invoices
2 days ago

HG Construction profit jumps 50% to £25m

Multi-storey homes and student accommodation jobs drive sales to record £243m
2 days ago

Go-ahead for Newcastle’s largest build to rent project

Work to start on 14-storey flats complex in the autumn
2 days ago

Contractors wanted for £288m Northumbrian Water frameworks

Ten lots up for grabs under latest major civils deal
2 days ago

Plans in for 142-room Exeter net zero hotel

RED Construction to build first of hotel developer's planned chain of net zero hotels
2 days ago

Rail workers vote to strike over maintenance job cuts fears

Network could grind to a halt next month
2 days ago

Race for £100m Immingham ferry terminal job

AB Ports aims to start work in mid 2023
3 days ago

Sisk wins Stockport £60m Weir Mill restoration

Work to start next month on 250 flats scheme
3 days ago

Developer swoops for 1,000-flats landmark Leeds site

Revised plans to be submitted by the end of the year for start soon after
3 days ago

Dominvs seals £173m funding for 713-bed student job

HG Construction to start major Hammersmith student complex in November
3 days ago

Briefings start for £1bn Midland Mainline Electrification plan

Market engagement starts for next seven sections covering 139km route to Sheffield
3 days ago

Forterra pushes back £27m factory refurb plan

Supply chain shortages hit project as brick prices rose another 12% last month
3 days ago

Speedy Hire results slowed down by KPMG

Hire giant left "frustrated and disappointed" by delay request from auditor
3 days ago

London office starts set to surge over next 6 months

Deloitte Crane Survey predicts jump in starts in Capital despite high building costs
4 days ago

Fit-out firm BW Workplace slips into the red

£5.2m backdated R&D tax credit deal lifts after tax performance
4 days ago

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

Covid blamed for construction delays and cost increases
6 days ago

Competition probe launched into Bouygues’ Equans takeover

Bouygues is hoping to finalise acquisition later this year
4 days ago

TfL seeks developers for trio of over-station sites

Plum sites at Bank, Paddington and Southwark come with consent for 600,000 sq ft
4 days ago

Contractor services