Tier one contractor McLaren Development’s annual turnover has exceeded £1bn for the primary time and pre-tax revenue virtually doubled, because it eyes additional progress to mark its 25th birthday this 12 months.
The agency employed extra employees final 12 months and is pursuing alternatives within the healthcare and information centre sectors, however has voiced warning in regards to the life sciences market.
The London-based contractor reported turnover of £1.12bn within the 12 months to 31 July 2025 – up 21 per cent from the earlier 12 months, in response to its newest audited accounts.
The turnover determine precisely mirrored group chief government Paul Heather’s prediction of £1.1bn that he made final 12 months.
Talking to Development Information shortly earlier than the audited outcomes had been launched, chairman Kevin Taylor stated the agency was “on course” to submit turnover of £1.25bn in its subsequent set of outcomes.
The agency is now on 24 frameworks – two greater than final 12 months – as diversification into the general public sector contributed £250m to group turnover.
Taylor stated he had his “fingers crossed” that the agency can win work on the “thrilling” NHS New Hospital Programme (NHP), the place it’s one in every of 16 shortlisted bidders for as much as 11 slots on a £37bn framework.
However the contractor stated it was not actively concentrating on life sciences jobs.
On the one hand, Heather stated that the sector overlaps with McLaren’s current capabilities, however he additionally stated: “We haven’t seen a pipeline that we thought we might see. It’s definitely not within the place that we hoped.”
He added: “That stated, if we’re invited to tender, we might have an interest.”
New enterprise
McLaren was ranked twenty fifth in final 12 months’s CN100 desk of prime contractors, however the newest efficiency would have seen it shoot as much as 18th place.
The accounts stated McLaren was engaged in additional than 81 lively tasks final 12 months – together with eight within the United Arab Emirates.
Of the general complete, 21 had been in negotiation, 31 had been reside on web site and 29 had been accomplished by the top of the monetary 12 months.
Distinguished new enterprise wins within the 12 months included a £280m Cardiff enviornment and resort job (pictured) with shut involvement from its Development Administration & Specialist Initiatives division, which was arrange final August to focus on large-scale actual property and public sector tasks.
“They’ve already been sporting out their shoe leather-based when it comes to knocking on doorways and simply explaining our development administration functionality,” stated Heather.
“That’s one thing we’re going to push laborious with, and we expect we’ve received the appropriate experience within the enterprise to do it.”
Aside from the Cardiff job, early development administration successes embrace a task in an unnamed power challenge in England, he added.
Taylor stated “repeat prospects which have the religion and provides us work” represented the bedrock of McLaren’s income.
Heather added that repeat enterprise accounted for “75 to 80 per cent” of total group turnover.
“We deal with all the tasks in the identical method, they usually’re given the identical gravitas that all of them deserve,” he stated.
“That’s why we’ve received that quantity of repeat prospects. As a result of we’re not in it for the one-offs, actually.”
Pre-tax revenue surged from £11.9m to £21m, because the agency’s margin broadened from 1.3 per cent to 1.9 per cent.
The improved end result translated into a better return on capital employed of 20.4 per cent, in contrast with 12.2 per cent the 12 months earlier than.
Revenue was 10 instances increased than 2022’s determine of £2m, when McLaren returned to the black after two consecutive loss-making years in the course of the Covid pandemic.
The accounts stated the mixed London and South enterprise continued to “maximise market alternatives”, whereas the Midlands and North unit maintained momentum in industrial, logistics and public sector work.
Heather highlighted ongoing work by the Yorkshire and North East division, shaped within the 2023/24 monetary 12 months, on the York Central regeneration scheme with sister agency McLaren Property.
“We’’ve received a pleasant, small, lean group there, choosing up some good tasks,” he added.
“They’re nonetheless in PCSAs [preconstruction services agreements] on plenty of schemes, so we’ve not transformed something [yet]. However for the buying and selling 12 months we’re in now, they’ve picked up two or three PCSAs that they’re working via.”
Strengthened steadiness sheet
The steadiness sheet strengthened in the course of the 12 months, with money at financial institution and in hand rising to £80.9m, up from £67.3m.
The group reported no exterior financial institution borrowings. However regardless of its stronger liquidity, Heather stated acquisitions “aren’t excessive on the agenda”.
The strategic report acknowledged that McLaren had invested greater than £2.5m in the course of the 12 months in “enhanced enterprise techniques, governance and threat administration, technical and specialist useful resource and digital supply techniques”.
It stated this funding was supposed to “help diversification into rising sectors resembling well being, defence, information centres and schooling, whereas assembly evolving buyer expectations and regulatory necessities”.
Know-how investments have enabled McLaren’s employees to spend much less time tied up with administrative paperwork and extra time “out on the park having fun with their job”, stated Heather.
Headcount rose from 912 to 1,082 workers, primarily on account of recruiting 150 extra web site managers and senior managers.
The hiring spree contributed to a 25 per cent hike within the agency’s annual wage invoice from £74.8m to £92.6m.
Wanting forward, the strategic report stated turnover was “anticipated to extend additional into 2026” as PCSAs transformed into fundamental contracts.
Potential examples embrace a knowledge centre for an unnamed shopper in east London, the place CN understands McLaren is already on web site beneath a PCSA.
