McLaren Construction Group PLC [McLaren] has published its results for the financial year ended July 2019.
The results reflect another positive year for the group, building on the 2017 and 2018 financial report. This reflects a strong performance in all areas of the business, working across multiple sectors.
Turnover increased 11 per cent year on year to £650.9m, delivering an operating profit of £3.6m. This has been achieved in a highly competitive market.
The group’s levels of liquidity are strong, with no long-term borrowing.
To diversify the pipeline of contracts to the business units, the group has invested considerable effort in establishing new routes to market within the public sector, primarily through places on national and regional framework agreements.
McLaren is evolving its digital strategy to stay at the forefront of technology, construction design efficiencies, data management, and supply-chain collaboration. The company achieved BIM Level 2 accreditation in 2019 and remains on track to deliver its three-year digital strategy. This will include the integration of a common data environment with project design, programme and procurement process – ensuring that all projects have an associated ‘Digital Delivery Plan’.
In 2019, McLaren also strengthened its main board by promoting four directors from within the business, reflecting the high calibre of colleagues within McLaren and the company’s ability to attract and nurture great talent.
The business continues to prioritise health, safety and wellbeing and has maintained excellent safety records with an Accident and Incident Rate well below the industry average. In a similar vein, the business is minimising the impact of its operations on the environment and enhancing systems and processes to focus on carbon reduction, monitoring energy use and implementing circular economy principles.
As part of McLaren’s commitment to leaving a positive legacy in the communities in which it works, the business continues to conduct its activities in an ethical and socially sustainable way, delivering on project community plans, improving social value targets and enhancing the lives of local people.
Kevin Taylor, chairman, commented: “McLaren continues to shine as one of the UK’s most successful, privately-owned construction companies and as a partner of choice for both private and public sector businesses.
“The appointment of four of our company directors to the main board demonstrates how we support the development of our colleagues and seek to promote from within. Our investment in delivering projects to the public sector shows our commitment to diversifying and securing future contracts in challenging market conditions and bringing more much-needed homes to the UK.
“Our focus remains on exceptional customer-delivery, which is why we have invested in new business approaches that meet the modern needs of agile and forward-thinking organisations. A defined digital strategy means we are bringing additional design efficiencies, data management and innovative project management processes to our business for the new decade.”
Project highlights from the year include completions at Bracken House, a commercial office building for Obayashi Corporation and now home to the Financial Times and The Ray, an award-winning commercial building and now home to LinkedIn UK, in Farringdon. McLaren also signed its fourth contract at Wembley Park, taking the overall value of its residential construction projects on the Quintain framework to more than £300 million.
The completion of the intu extension at Lakeside Shopping Centre, the Cineworld development within The 02 at Greenwich and the Ashford Designer Outlet extension for repeat customer McArthurGlen, evidence McLaren’s expertise in the retail and leisure markets.
The high-profile Leicester City Football Club training centre is on track for completion in 2020, utilising the company’s expertise in the sports and leisure sector. Work has also started at Castle Quay Waterfront, Banbury, building a new waterfront cinema, restaurant and leisure development that will enhance the existing Castle Quay retail outlet.
Internationally, The Al Karamah SEN School in Abu Dhabi, delivered for The Priory Group and Abu Dhabi Education authority, was the winner of the Big Project Middle East ‘Best Design and Build Project’ award for its innovative design for neurodiversity; beating some high-profile projects in the region.
