Problem job sees Multiplex profit slump to £4.4m

Aaron Morby 4 years 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
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

Ten demolition firms named in cartel probe

Biggest names in demolition face massive fines over "unacceptable" behaviour on 19 contracts worth over £150m
1 day ago

Imtech vows to avoid big resi jobs after return to profit

Engineering services arm puts trio of loss-making residential jobs behind it
22 hours ago

Sisk replaces Morgan Sindall on £1bn Midlands Highways Alliance

Four firms secure places in Midlands framework renewal race
2 days ago

Winvic wins Bristol Redcliff Quarter 468 flats job

Grainger buys planned build to rent project and brings in Winvic to start this Autumn
22 hours ago

Peel takes on Wirral Waters after Urban Splash modular collapse

Developer is reviewing whether to return to traditional build methods after modular specialist collapse
23 hours ago

Kier launches £80m JV to build 2,000 homes by 2027

Property arm JV with Lloyds fund to develop housing on urban brownfield sites
2 days ago

Mace chief Reynolds replaces Mitchell at CLC

Mark Reynold takes over as co-chair of the Construction Leadership Council
2 days ago

Cost inflation forces bid rethink for £200m M5 junction 10

ECI simplified and amendments made to reflect rising construction costs
2 days ago

Wages among key trades keep pace with cost of living rise

Self employed plasterers, plumbers, roofers and scaffolders enjoy wage rises ahead of annual inflation rate
2 days ago

Midgard drives recovery at JRL Group

Revenue tops £600m again at diversified contractor
2 days ago

Green light for £100m Norwich A47 dualling

Galliford Try to start work in October on 2.6km dualling between Norwich and Acle Straight
2 days ago

Design change sees 70,000 cubic metres of concrete cut on HS2 stretch

Revamp of Staffordshire cutting will mean 6,700 fewer concrete mixer lorry loads
2 days ago

Subcontractors and suppliers wanted across the Midlands

Constructionline Meet the Buyer event in Derby: Register now
3 days ago

Contract race starts as cost of giant aqueduct job hits £1.75bn

United Utilities looking to shortlist three bidders for Haweswater Aqueduct Resilience Programme
3 days ago

M&S blasts Gove after Oxford St rebuild plan called in

Retailer "bewildered" after Housing Secretary steps-in over embedded carbon concerns
4 days ago

Springfield buys rival Scottish house builder for £46m

Mactaggart & Mickel Group takeover deal includes 17 sites with planning for 700 homes
3 days ago

Costain bets on hydrogen infrastructure

Consortium launches to develop hydrogen infrastructure for shipping and aviation in the Westcountry
3 days ago

Caddick starts on Star Wars bar office scheme

Host of employee-friendly features on new building at Crewe Business Park
3 days ago

Murphy to host virtual recruitment day

Specialist engineering and civils contractor opens doors online to potential new staff: Register now
4 days ago

Plans in for Isle of Dogs 52-storey resi tower

460 flats skyscraper to replace offices at 4 & 5 Harbour Exchange Square
4 days ago

Van Elle seals piling deal on Transpennine Route Upgrade

Firm appointed to the piling framework for the West of Leeds section
4 days ago

Demolition firm fined £5,000 after fatal platform fall

Contractor went into administration following death plunge at Scottish Power site
4 days ago

Modular specialist TopHat to open vast housing factory

Goldman Sachs-backed house builder to open Europe's largest modular factory in Corby
5 days ago

Asphalt giants make low carbon standard for road mixes

Tarmac and Aggregate Industries make warm mix asphalt new standard on highways jobs
5 days ago

Wates launches Retrofit brand for net zero work

Wates Retrofit to target domestic and non domestic clients
4 days ago

BAM wins £24m Wigan net zero carbon school

BAM has started enabling works at Fred Longworth High School development
4 days ago

Urban Splash modular failure to cost supply chain £12m

Suppliers left with mountain of worthless invoices following Urban Splash House collapse
5 days ago

Kier to trial hydrogen generators on site

Zero-emission generator to start trial on South West site
5 days ago

Hinkley Point remobilises to over 8,000 workforce – video

Construction work on second reactor achieves 20%-30% efficiency savings
5 days ago

Kier and Wates win £500m deal to expand six prisons

New houseblocks to be built at HMPs Bullingdon, Channings Wood, Elmley, Highpoint, Hindley and Wayland
5 days ago

Contractor services