The just published report, has shown that the company is in a strong financial position, continues to lead the industry's efforts to innovate, and offers its people the opportunity to be involved in some of the world's most complex and career defining projects.
Mace has achieved more than £2bn in turnover for the first time. This increase was ahead of our 2022 Business Strategy; and was due to the completion of a number of successful projects. Next year's revenue projection will fall back in line with the company's longer-term expectations for growth.
The business has continued to focus on achieving sustainable margins, speed of payment to its supply chain and carefully managing risk. Mace's growth over the last few years gives our clients the confidence that we are now able to successfully take on any major project or programme across the globe.
Dennis Hone CBE, Mace's Chief Financial Officer, will be retiring at the end of 2019. Dennis joined Mace from the London Legacy Development Corporation in 2014, and has overseen a period of significant success and growth across the business. He will continue to work with Mace as CEO of the Mace Foundation.
Richard Bienfait will be appointed as Mace's new Chief Financial Officer at the end of January 2020. Richard has held a number of senior executive roles in the infrastructure sector and joins Mace from UPP Ltd, where he served as Chief Executive of the UK's leading provider of on-campus residential and academic accommodation infrastructure.
Key points from the Annual Report:
• Mace recorded £32.8m in profits in 2018
• International turnover rose by 25% to £831m
• £44m was invested in R&D activities
• Cash balances rose 7% to £209m
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• Turnover increased 19% to £2.35bn
• The value Mace contributed to society rose from £449m to £491m
• Over the year our average time to pay invoices fell from 45 to 34 days
• 209 apprentices, trainees and graduates joined Mace in 2018
• Over £870,000 was donated to charities and worthy causes through the Mace Foundation and from our colleagues
As part of our 2022 Business Strategy, in 2017 we set ourselves four strategic priorities:
1. Engage, develop and inspire our people
2. Achieve stable and sustainable growth
3. Drive innovation to improve service excellence
4. Be a responsible business
Significant progress was made against each of these priorities. Particular highlights included the launch of Mace's new behaviour framework, "Behaviours for Success"; the amount of construction management work rising to £713m; the innovative 'Rising Factory' at East Village in Stratford, London, winning four major industry awards including the Sir Michael Latham Award; and an 80% reduction in corporate plastic waste.
Across our four 'engines for growth', Develop, Consult, Construct and Operate, we are well placed to ride out any significant market issues and take advantage of new opportunities.
Last year's project highlights included our appointment as development manager on the £350m GDV scheme to regenerate Stevenage town centre, our continued work on Dubai Expo 2020, our appointment to support the UK's Defence, Equipment and Support organisation, the completion of Tottenham Hotspur's world-class stadium, the completion of 70 St Mary Axe in the City of London and our expanding role to provide facilities management services to long-standing client Standard Chartered Bank.
Mark Reynolds, Chief Executive of Mace said: "2018 was a good year for Mace, with a significant increase in revenue and the amount of international work we do rising by a quarter to £831m; reflecting the fact that we are now well established as one of the leading global consultancy and construction businesses.
"Whilst we all face uncertainty in the short to medium term and it is hard to predict how the UK construction and consultancy sectors will fare over the next twelve months, I remain confident that Mace will remain in a strong position. Our 2022 Business Strategy will continue to guide our decision making and will ensure we remain a resilient, responsible and profitable business that offers career-defining opportunities for our people.
"Alongside our annual results, I am also pleased to announce the appointment of Richard Bienfait as our new Group CFO. Richard's excellent sector experience means that he is well placed to support Mace on the next steps of our journey; and I look forward to working closely with him. I would like to thank Dennis Hone for his support over the past five years and wish him all the best in his retirement."
Stephen Pycroft, Executive Chairman of Mace said: "Our achievements in 2018 would not have been possible without the support of our clients, our people and our supply chain partners.
"We will continue to ensure Mace pays our supply chain on time, while investing in our people, innovation to boost productivity and we will continue to proactively support change within our great industry.
"Being an industry innovator has been part of our DNA since we were founded 29 years ago. In 2018 we took great strides forward in innovation including our pioneering 'Rising Factory' approach on our East Village project which won four major industry awards."
(MH)
