Mace suffered a slump in pre-tax profits to just £10.7m on the back of turnover at nearly £2bn last year.
The wafer-thin margins were blamed on a number of problem jobs including the Nova scheme in Victoria which finished late and over budget.
Pre-tax profits were down 70% from £36.2m last time despite a rise in turnover to £1.97bn from £1.73bn.
Executive chairman Stephen Pycroft said: “It is fair to say last year was a challenging one for us.
“A small number of our projects were, for a variety of reasons, harder to deliver than first envisaged.”
He added: “Such unprecedented growth brings with it certain challenges in terms of delivery, not to mention the impact of the industry-wide issues we predicted in last year’s annual report and additional issues such as high risk projects, incomplete designs and a reliance on the performance of our construction partners.
“2016 has taught us some very valuable lessons and as a result, we have put in place additional measures to prevent these problems happening again.”
Chief executive Mark Reynolds said a “stronger bidding process” has been introduced alongside “more regular and intensive project risk reviews.”
Construction continued to make up the major share of turnover accounting for £1.67bn of revenue.
from Construction Enquirer http://www.constructionenquirer.com/2017/06/29/problem-jobs-see-profits-slump-at-mace/
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