Direct delivery model pays off as Murphy profit soars to £67m

Aaron Morby 6 months ago
Share

Murphy’s direct delivery model yielded strong returns last year with pre-tax profit soaring 50% to a record £67m.

John Murphy said future spending on transportation, natural resources, power and water would drive growth in years ahead
John Murphy said future spending on transportation, natural resources, power and water would drive growth in years ahead

As the wider industry battled with supply chain challenges, Murphy’s marked improvement in performance saw operating margins jump from 3% to 5%.

Group revenue marginally declined 5% to £1.42bn in 2023, primarily due to the timing and completion of projects in Canada, although this was offset by continued revenue growth in both Ireland and the UK.

Staff headcount rose over the year by 4.5% to 3,855, as Murphy continued to invest and develop talent.

The latest 2023 results, which saw operating profit hit £72m, complete a dramatic turnaround in profitability in recent years following losses of £27m back in 2018.

Murphy trading over six years
2023 2022 2021 2020 2019 2018
Op. profit £72m £46m £22m £13m £1m -£27m
Revenue £1.42bn £1.49bn £1.27bn £1.12bn £880m £780m
Margin 5% 3% 1.7% 0.1% 0.1% N/A

Alongside a strong balance sheet, Murphy saw net cash increase to £347m.

John Murphy, chief executive officer of Murphy, said the group now expected to benefit from a continued focus on its three geographies of the UK, Ireland and North America, as demand grew in its strategic sectors of transportation, natural resources, power and water.

He said: “We remain committed to our self-delivery operating model, we believe this is a competitive differentiator and offers our customers a high level of confidence and assurance on safe, timely and quality project delivery within the sectors we operate in.

“We continue to maintain a balanced portfolio across our core sectors and geographies and we aim to grow our market share in the emerging energy security and net zero opportunities.

“I am also pleased to report our selective tendering activity has resulted in another strong order book, which has increased by 31% from 2022 to over £3.3bn in 2023.”

Murphy said that there was a particularly positive outlook for UK construction in 2024.

Regardless of the short-term hiatus caused by the forthcoming General Election, Murphy said it expected to see multiple opportunities in the years ahead from the Government’s £700bn National Infrastructure and Construction Pipeline over the next 10 years, with requirements for transport, energy and water investment.

Investment-linked to the wider energy transition and to support energy security would also provide significant opportunities for the business globally with the wider adoption of renewable energy sources as part of the shift towards more sustainable energy solutions gathering pace.

Latest news

Bid rigging probe launched into school repair work

Firms raided this week with focus on roofing contracts
22 hours ago

McLaren hires ex-ISG regional boss for north east expansion

Andrew Beaumont becomes MD of new Yorkshire and North East business
3 hours ago

Government commits to four new prisons in seven years

£2.3bn pledged for new prison build programme
21 hours ago

Road and rail delays hit revenue at Van Elle

Turnover drops 5% as markets remain challenging for piling specialist
2 hours ago

Boot reports ‘noticeable improvement’ in planning system

Government planning reforms already unblocking council planning
2 hours ago

Go-ahead to revamp former London city hall

Project will straighten the building's leaning profile with terraces to every level
10 hours ago

United Living to divert Midlands gas pipeline

600m pipeline diversion clears way for M54 to M6 link road construction
1 hour ago

Credit insurance saves Billington from ISG hit

Steel specialist puts on extra shifts at its plants to cope with demand
1 day ago

M&E specialist Dodd doubles profit on retrofit surge

Family-owned Telford specialist delivers record revenue of nearly £250m
1 day ago

Go-ahead for 800-home Croydon dual towers

One Lansdowne Road build to rent scheme to cost £260m to build
1 day ago

Construction inflation set to return raising tender prices

End of 2024 to mark the bottom of present inflationary trough
1 day ago

Start date for vast Balfour and Costain carbon capture power job

£4bn Teesside project to start construction next year creating 3,000 jobs
2 days ago

Plans go in to start revamp of North Finchley town centre

Developer Regal unveils first details of Barnet masterplan
1 day ago

Glencar bags £18m Big Yellow London store

Six-storey stoarage centre to be built at Staples Corner
1 day ago

Plan unveiled for 31-storey London Fenchurch Street tower

Demolition work to start in 2026 for new office tower
2 days ago

Vinci Building buys tower cranes for first time

Contractor invests in two WOLFFKRAN all-electric cranes at £138m Sheffield site
2 days ago

30 local firms land United Utilities £500m framework

Minor works deal win for North West civils and M&E specialists
2 days ago

Restructure pays off as Higgins returns to profit

Housing contractor recovers from £25.9m loss last year
2 days ago

Former Heathrow boss joins Mace in board rejig

Firm completes string NED appointments to expanded group board
3 days ago

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
3 days ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
3 days ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
3 days ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
5 days ago

Roofers caught using phone lights to work at night

Roofing boss handed suspended prison sentence for lack of edge protection
3 days ago

£380m North West housing framework out for bid

St Helens-based Torus aims to build 9,000 homes by 2029
3 days ago

Historic property magazine to close

Estates Gazette has been in business since 1858
6 days ago

M&S Marble Arch rebuild approved after three-year planning fight

Plans were delayed when Michael Gove backed carbon campaigners
7 days ago

£191m revamp funding approved for London Barbican Centre

Construction to start in 2027 on five-year programme
6 days ago

RED Construction tops £100m turnover

Builder maintains profit margin at 1.7% as business nearly doubles in size
6 days ago

Timber designs shortlisted for roads ‘footbridge of the future’

Three of five designs for National Highways propose timber structures over busy highways
6 days ago

Contractor services