Tuesday 5 February 2019

Debt-free McLaren posts profit increase

McLaren Construction Group has posted a rise in profits without having to borrow a penny from bankers.

Latest results posted at Companies House for the year to July 31 2018 show pre-tax profits of £3.69m from £3.2m last time as turnover dipped slightly to £585.6m from £600.3m.

The contractor has no bank debts and strong liquidity with net cash of £37.8m at the financial year end.

Gross margins were up to 6.1% from 5.6% and McLaren said it expected those numbers to continue improving this year.

McLaren also flagged-up its high Dun & Bradstreet rating “reflecting not only the high tangible net worth of the group but also the payment behaviour to our supply chain.”

McLaren added: “We continue to make on-time payments to our supply chain, recognising the importance of our suppliers to our continued performance.

“The group continues to look for ways to improve on the speed and efficiency of all supplier and subcontractor payments.”

Chairman Kevin Taylor said: “The company continues to thrive and grow – further evidence that we are one of the leading, privately owned companies in the construction industry.

“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 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.”

 



from Construction Enquirer http://www.constructionenquirer.com/2019/02/05/debt-free-mclaren-posts-profit-increase/

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