McLaren Construction’s annual results for the year ending 31st July 2024 show turnover dipping 4% to £924m (2023: £964m) but pre-tax profit almost doubled at £11.9m (2023: £6.3m).
This time last year McLaren Construction had been looking forward to breaking the £1bn turnover landmark. It missed. But chairman Kevin Taylor says he’ll do it this year instead.
Although there was no revenue growth for the business last year, it did grow in other ways, taking on larger and more complex projects.
The award of major contracts in the financial year paved the way for the creation of a new construction management division in August 2024. The Regeneration division was awarded the £200m refurbishment at Thirty High for Landsec. The London & South division signed contracts for the £132m refurbishment and repurposing of 318 Oxford Street for Publica Properties, while continuing the £200m ExCeL London expansion for its Emirati owners, ADNEC.
Landsec’s Thirty High was representative of the high proportion of business from long-standing customers. Of the firm’s turnover in the financial year, 74% was repeat business from developers such as British Land, Landsec, Stoford, GLP, Be First, DfE, Argent, Miller Developments, and the Cadogan Estate.
McLaren continued to build expertise and experience in healthcare and education during the financial year, taking on construction of the new High Leigh Primary School for Hertfordshire County Council and handing over both the Moorgate Outpatient Centre for Cleveland Clinic and a Sport & Wellness Centre for Chigwell School.
Work continued on upgrading the infrastructure of the Queen Elizabeth Hospital for Lewisham & Greenwich NHS Trust. The completion of that project in autumn 2024 positions McLaren well as the government confirms funding for the New Hospital Programme and private finance initiative (PFI) investors start the process of handing back hospitals as contracts expire, the company said.
Chairman Kevin Taylor said: “A stable year, full of successes for our customers and teams, has given us the foundations for further growth and diversification from the second half of 2024. New divisions offer new construction management capability and bring all the benefits of McLaren’s skills and track record to projects in Yorkshire and the Northeast.”
“2025 will be the year we exceed turnover of £1bn and that is a major achievement for a privately owned contractor. My colleagues should be very proud of what they have achieved together and the board commends them wholeheartedly.”
Chief executive Paul Heather added: “McLaren’s management of supply chain inflation is typical of an increasingly disciplined and technically adept business that has helped us to continue to grow. The systems are in place to channel the firm’s considerable in-house expertise into every project and to monitor performance in real time, whether that’s environmental impact or quality control. The results are seen in the successful delivery of an increasing number of projects worth over £150m.”
Got a story? Email news@theconstructionindex.co.uk
#McLaren #doubles #profits #growth #stalls