Canadian-owned contractor reports doubled UK revenue
Brookfield Multiplex has downplayed the risk that the London office market will overheat in its latest results, which show that the contractor doubled its UK turnover last year.
Brookfield Multiplex Construction Europe’s latest accounts, filed last month, says the London commercial sector remains ‘bouyant’ thanks to the dearth of new stock that came onto the market in the wake of the late Noughties recession.
The company predicts that tender price inflation will continue to exceed 4.5% in the medium term, driven by an under-supply of skilled labour leadng to rising wages.
As a result, the Canadian-owned company says the sector is “less at risk of overheating and is at sustainable levels over the near term.”
The results show that Brookfield’s UK construction arm more than doubled its revenue to £620m during the last calendar year, compared £284.1m in 2014. The company said that it expects revenue growth to continue in 2016.
Pre-tax profit quadrupled from £21.9m, up from £5.4m, and the company reported a £3.1bn workbook including £1.1bn projects won during 2015, which compared to a £2.8bn pipeline in 2014.
Big contracts landed during last year included Native Land’s £95.3m Holland Park Villas project, compromising 72 luxury flats. The firm is set to deliver a total of 952 apartments across six residential sites, with a total value of £739.3m.
To cater for increased workload, Brookfield’s headcount increased from 323 to 559 during last year.
The accounts also cover the payments received in February last year following the settlement of the terminated Pinnacle building contract, the site of which has been taken over by AXA and Lipton Rogers.