McLaren margin hits 6.1%
McLaren Construction Group has increased its gross profit margin to 6.1%, while raising operating profit by 4.5%.
Publishing its financial results for the year ended July 2018, McLaren recorded a slight fall in turnover from £600.3m in 2016/17 to £585.6m last year.
Operating profit rose to £4.6m in 2017/18. That gave the group a 6.1% gross margin, up from 5.6% in the previous year.
Meanwhile the company, which says it has no long-term borrowing, hailed its largest-ever turnover for its London business, on top of expansion in the Midlands and Manchester and the development of a public sector team to deliver further growth.
It also forecast that turnover for 2018-19 is would exceed £600 million, with 98% of the order book already secured.
McLaren is now targeting growth in the senior living sector, as well as working more with the public sector. It has so far secured two local authority frameworks (Procure North West and Be First for Barking and Dagenham), providing gateways to more public-sector work and will bid for other frameworks, as well as partnership opportunities with local authorities.
Chairman Kevin Taylor said: “Our strategy for success remains focused on customer delivery. The benefit of that approach is clear from the improvement in gross margin and operating profit, with further growth forecast for next year. We remain selective in the customers we work with, balancing careful analysis of opportunities with our entrepreneurial culture.
“The key appointment of Kim Bromley-Derry CBE to the main board – previously CEO at London Borough of Newham – positions us well for improving our profile and being awarded more work within the public sector. Our capabilities in construction and development, high-quality delivery and ability to collaborate successfully, make us ideal partners for local authorities.”
Group executive director Phil Pringle said: “We will remain focused on achieving controlled growth and ensure that we continue to strengthen our market share, through securing repeat business with our existing customers and by establishing new long-term relationships.”