Problem job sees Multiplex profit slump to £4.4m

Aaron Morby 6 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

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
23 hours ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
3 hours ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
3 hours ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
3 hours ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
18 hours ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
22 hours ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
1 day ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
1 day ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
1 day ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
1 day ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
1 day ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
2 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
2 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
2 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
2 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
2 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
2 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
2 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
3 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
3 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
3 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
3 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
3 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
3 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
3 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
3 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
3 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
3 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
4 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
4 days ago

Contractor services