Ray O’Rourke hails ‘new wave of interest’ in MMC
Laing O’Rourke CEO Ray O’Rourke is upbeat about the contractor’s prospects, saying covid-19 has increased interest in “the role and capabilities” of MMC on which his firm’s operating model is based.
Announcing its annual results, Laing O’Rourke revealed a strong order book and gross profit margin of 10.4% in 2020.
There was a slight decline in revenue to £3bn (down from £3.3bn) for the year to 31 March 2020, but an increase in profit before interest and tax of £72.9m (up from £47.2m the year before), despite lower volume and accounting for covid-19 impacts.
Its gross profit margin hit 10.4% during the year, up from 7.7% in 2019, and it finished the year with net cash of £155.2m.
At the year end, the contractor also had an order book of £8.2bn.
Laing O’Rourke said it had “insulated” its operations against Brexit via detailed contingency plans, with mitigation plans for talent and skills retention, labour availability, and plant and equipment imports.
Ray O’Rourke said the results were a “tribute to the hard work and dedication of our people and the leadership team guiding them”.
He said: “As we end 2020, our collective experience, coupled with a relentless focus on leading change in the sector, positions us to confidently face the post-covid, post-Brexit scenarios.
“While there are still challenges in the market, we remain committed to the changes necessary to transform our business and lead a more productive, safe and resilient construction industry.
“The past year has strengthened our resolve and the crisis has reminded policymakers of the strategic national importance of construction, creating a new wave of interest in the role and capabilities of the modern methods of construction on which our operating model is based.
“This new way of building will be vital to delivering tomorrow’s infrastructure and buildings, and to economic recovery.
“We remain grateful to government, our clients, suppliers and other stakeholders for their continued support and collaboration over the period, which bears testimony to the power of our experience.”