Mace, the leading UK contractor, has announced record financial figures for 2023, marking a significant milestone in its growth journey.
- Revenues soared by 25% in 2023, reaching an unprecedented £2.36bn, driven by strong performances in the UK and the Middle East.
- The firm’s pre-tax profits experienced a substantial rise, growing by 69% to £61.7m, following strategic organisational changes.
- Mace secured 60 new projects, primarily through repeat orders, reflecting high client satisfaction and trust.
- The consultancy arm’s growth continues, contributing significantly with a £619.4m turnover, buoyed by major client projects.
Mace, a prominent entity in the UK construction landscape, has reached a new pinnacle with its revenue hitting a historic high of £2.36bn in 2023. This achievement signifies a 25% increase from the previous year, underscoring the firm’s robust market presence and operational success. International ventures, particularly in the Middle East, have provided a significant impetus to this growth, though the UK market remains its primary revenue source, constituting 93% of total earnings.
The company’s pre-tax profit demonstrated remarkable advancement, ascending by 69% to £61.7m. This leap in profitability is partly attributable to the strategic divestiture of its Mace Operate facilities management business, a move aimed at streamlining focus on core construction and consultancy services. Mark Reynolds, the outgoing chief executive, noted that these financial outcomes mark a major stride towards Mace’s ambitious revenue goal of exceeding £3bn annually by 2026.
Mace’s construction arm thrived with a remarkable £1.73bn in turnover, witnessing a 26% rise compared to the prior year. This growth trajectory was bolstered by the successful acquisition of 60 projects, predominantly through repeat business, which Gareth Lewis, construction chief executive, recognised as a testament to Mace’s enduring client relationships and trust. Significant project completions, including London’s Forge development and infrastructure undertakings at Heathrow Airport, further encapsulated Mace’s expansive influence.
The consultancy division also mirrored this upward trend, realising a 24% increase in turnover to reach £619.4m. This growth was powered by key projects with entities such as Manchester Airport and the Ministry of Justice. As Mace Consult fortified its future projects pipeline, with a secured order book of £3.9bn, David Allen, chief financial officer, highlighted the expected rise in this segment’s revenue contribution and its potential to bolster overall margins.
Even as headcount expanded from 7,271 to 7,421, Mace maintained financial health with £175.81m in bank reserves and a sustainable debt structure, ensuring no short-term liabilities. This prudent financial management, alongside dividends totalling £3.9m, slightly above the preceding year, underlines Mace’s stable fiscal strategy. The firm’s adaptive business model, marked by withdrawing from direct property development, positions it strategically for future success, as noted by Reynolds.
Mace’s impressive financial performance in 2023 sets a strong foundation for its strategic goals towards 2026, showcasing its adaptability and market acumen.
