好色先生TV

Mace has broken through the 拢1bn turnover barrier and has now set its sights on becoming a 拢2bn global business by 2020, the firm鈥檚 latest results have revealed.

In the firm鈥檚 2012 annual report, revealed exclusively to 好色先生TV this week, Mace chief executive Mark Reynolds set out an ambition for the firm to become a 拢2bn-turnover global business by 2020 by targeting growth in five strategic overseas hubs.

Reynolds said the firm鈥檚 strategy over the next eight years was to remain a private company, with the growth strategy focused on the consultancy and construction businesses, as it looked to expand in the Americas, sub-Saharan Africa, the Middle East and North Africa and the Asia Pacific, as well as the UK and Europe.

鈥淲hile maintaining our position in our existing sectors, we will grow our capability in the property, infrastructure, energy and resources sectors,鈥� he added.

In its results for the year to 31 December 2012, Mace Group reported turnover of 拢1.1bn, up 18% on 2011, with pre-tax profit up 22% to 拢28.3m.

The UK construction business reported revenue of 拢829m, up 22% on the previous year, with operating profit of 拢37.5m, giving an operating margin of 4.5%.

The firm鈥檚 UK consultancy business reported turnover of 拢160m, up 10% on 2011, while revenue in the international business remained stable at 拢103m, with 拢81m from consultancy and 拢22m from construction.

Speaking to 好色先生TV, Mace executive chairman Stephen Pycroft - who handed over the role of chief executive to Reynolds at the beginning of this year - said nearly doubling turnover by 2020 would require 鈥渟tep up鈥� in growth in the consultancy and international businesses.

He said the firm was aiming to boost its combined revenue from the international and consultancy businesses - currently 拢263m - to around 拢600m by 2020, with the construction business in the UK and overseas aiming to turn over around 拢1.4bn, up from a current total of 拢851m in 2012.

We will do international construction for certain specific clients

Stephen Pycroft, Mace

Currently 拢981m, or 90%, of the group鈥檚 turnover is from the UK and Pycroft said that in order to boost its overseas revenue the firm would target major programme and project management jobs on the back of its role in delivering the London 2012 Olympics, as part of the CLM consortium. He said one such example was the delivery partner role on a 拢1bn-plus residential scheme in St Petersburg, Russia, which the firm announced last month.

But Pycroft said the firm would now also increasingly take on construction jobs overseas, albeit with select clients, with the aim of increasing overseas construction turnover significantly from the current 拢22m.

鈥淲e will go and do international construction for certain specific clients where we feel they鈥檙e the right kind of people,鈥� he said.

鈥淲here our clients ask us to go and build projects for them we will go and build them - previously we鈥檝e said we鈥檒l just do the project management, now we鈥檙e saying fine, if it鈥檚 right, we鈥檒l go and build the facilities for you.鈥�

In the UK, the construction business had a secured pipeline of 拢670m at the start of 2013, which Pycroft said was evenly split between commercial and residential work.

Revenue from residential work rose 80% last year to 拢85m, which is around 10% of UK construction turnover. Pycroft said this would continue to be a key growth area for the firm in the UK.

He said the business was also focused on boosting its infrastructure revenue, which was around 拢100m last year, or about 12% of UK construction turnover.

The firm reported cash balances of 拢103m, but Pycroft ruled out the possibility of acquisitions to support the growth push. 鈥淲e never even talk about acquisitions in the board room. We see the 2020 vision will be delivered through organic growth,鈥� he said.

鈥淭here鈥檚 no need for acquisitions or a massive change in strategy, just organic growth along the lines of evolving our service offer and extending our client base.鈥�