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Annual Report 2018 14.3MB CONTENTS 1 ABOUT US ....................................................................................... 5 A better perspective ........................................................................ 6 Our services and sectors ................................................................. 8 Our international presence ............................................................... 9 2018 at a glance .............................................................................. 10 Mace business model ...................................................................... 12 2 STRATEGIC REPORTS ................................................................... 15 Executive Chairman’s statement – Stephen Pycroft ......................... 16 Chief Executive’s statement – Mark Reynolds .................................. 18 Group Finance Director’s statement – Dennis Hone ......................... 28 3 OUR PEOPLE AND PROJECTS ........................................................ 33 The Mace Group Board ................................................................... 34 2018 people and project highlights: UK & Europe ................................................................................... 36 North America ................................................................................. 38 Asia Pacific ...................................................................................... 39 Sub–Saharan Africa ......................................................................... 40 Middle East & North Africa ............................................................... 41 OUR CONTRIBUTION TO THE INDUSTRY ........................................ 42 4 Supercharged free ports .................................................................. 44 City living ......................................................................................... 45 5 OUR ENGINES FOR GROWTH .......................................................... 47 Develop ........................................................................................... 48 Consult ............................................................................................ 50 Construct ........................................................................................ 52 Operate ........................................................................................... 54 6 2022 BUSINESS STRATEGY ........................................................... 57 Engage, develop and inspire our people .......................................... 60 Achieving stable and sustainable growth ......................................... 62 Driving innovation to improve service excellence .............................. 64 Be a responsible business ............................................................... 66 Be a responsible business – Health, safety and wellbeing ................ 68 7 ANNUAL ACCOUNTS....................................................................... 71 Greenwich Peninsula London, UK 4 Mace Annual Report 2018 ABOUT US 5 A BETTER ABOUT US PERSPECTIVE Mace is an international consultancy and construction company, founded on exceptional people, a commitment to service excellence and a deep-rooted entrepreneurial spirit. We are living in a world that is developing fast. Property and infrastructure projects and programmes are becoming more complex. The drive for sustainable development is ever more pressing. To create cities and communities that solve these challenges, we must look at solutions from all angles, innovating together to identify the best course of action. Our people give us that perspective, with their experience, confidence, drive and commitment to always go the extra mile. Together we strive to build more efficiently, more sustainably, more intelligently and more economically – to create cities and communities that don’t just function, but inspire. 6 Mace Annual Report 2018 For 28 years our adventurous spirit has driven us to do things better and drive change through our industry. We have helped shape cities around the world. Our people constantly strive for better and always go that extra mile, inspiring each other and clients Safety first to innovate. We challenge convention, apply a going home safe and well can-do attitude and are committed to quality and service excellence. We employ an open and collaborative approach with our partners. This gives us a better perspective on how we can deliver cost-effective and beneficial outcomes for all stakeholders on every project, no matter how complex or challenging it is. Create opportunity We strive to find better ways to deliver for our for our people to excel clients, communities and the construction industry. We constantly challenge the status quo, make the seemingly impossible possible, and will always do so. Client focus deliver on our promise Integrity always do the right thing 7 OUR SERVICES ABOUT US AND SECTORS SERVICES Develop Consult Construct Operate Development Project & programme Contracting Facilities management management consultancy Development Construction management management Cost consultancy Helpdesk services Fit out Advisory services Managed services Specialist services Strategic advisory services Logistics Architecture, engineering MEP and design services Secure works Building surveying Façades BIM SECTORS Arts and culture Nuclear, energy and Industrial, technology and Regeneration utilities biopharm Commercial Transport Health and education Industrial and Corporate real estate manufacturing Highways Mixed-use development Health and social care Technology Aviation Offices Education Research and Rail Retail Ports Hotels and residential biopharmaceuticals Defence and security Hotels Leisure and sport Residential and student Public buildings and accommodation estates 8 OUR INTERNATIONAL ABOUT US PRESENCE UK Mainland Europe Headcount Headcount Headcount 6,376 4,321 542 % of Group total % of Group total 68% 9% NYC LDN DXB HKG Americas Headcount 218 JHB % of Group total 3% Sub-Saharan Africa MENA Asia Pacific Headcount Headcount Headcount 171 784 340 % of Group total % of Group total % of Group total 3% 12% 5% Headcount includes consultants and temporary employees 9 2018 AT ABOUT US A GLANCE Total Group turnover International turnover Group pre-tax profit £2.35bn £831m £32.8m % % % 19 25 41 increase from 2017 increase from 2017 increase from 2017* *excluding 2017 finance income DEVELOPMENT CONSULTANCY Gross Development Value under management Consultancy turnover % 12 £2.0bn £274m of Group total 2018 £2.0bn 2018 £274m 2017 £1.8bn 2017 £267m 2016 £1.6bn 2016 £229m Development headcount Consultancy headcount % 42 18 2,679 of Group total 2018 18 2018 2,679 2017 18 2017 2,511 2016 14 2016 1,987 Development is an integral part of the wider Mace Our consultants live and breathe each project, business. Our skills range from deal origination, while our Group Board and senior management land acquisition, securing planning, raising project team have been praised for the way they lead from finance and procuring teams whose combined the top, taking personal ownership and making our experience help deliver financially sound schemes, promises to clients a reality. and consistently strong performance. With a growing Mace presence that spans our five In addition to our own development portfolio, we global hubs, we oversee work for world-leading are development manager/partner for landowners organisations across the public and private sectors. across the UK. Our Consultancy business is also responsible for some of the largest infrastructure-led regeneration programmes – helping to shape cities around the world. 10 Mace Annual Report 2018 Total Group headcount Accident Frequency Rate Value to society 6,376 0.10 £491m % % % 11 11 9 increase from 2017 increase from 2017 increase from 2017 CONSTRUCTION FACILITIES MANAGEMENT (MACE MACRO) Construction turnover Mace Macro turnover* % % 85 3 £1.99bn of Group total £144m of Group total 2018 £1.99bn 2018 £144m 2017 £1.63bn 2017 £120m 2016 £1.67bn 2016 £94m * includes costs recharged to clients Construction headcount Mace Macro headcount % % 33 18 2,121 of Group total 1,140 of Group total 2018 2,121 2018 1,140 2017 1,842 2017 982 2016 1,402 2016 766 From contracting to construction management and In over 30 countries Mace’s facilities management everything in between, our Construction business business, Mace Macro, has handled the running has given rise to some of our most recognised and of client properties, freeing up time for them to celebrated projects. concentrate on their core business. As fast paced and inspiring as it is to deliver gravity Mace Macro offers a complete facilities defying towers and improve nationally treasured management service for companies anywhere in landmark buildings, we are just as committed to the world. our work on smaller yet equally rewarding projects. From towers to police stations, our success is We support clients to build new premises, optimise founded on finding a better way of delivering for their existing properties or handle everyday our clients. maintenance and services. 11 MACE ABOUT US BUSINESS MODEL The breadth of our service offer and depth of OUR RELATIONSHIPS our experience means our people bring a unique Our people perspective, and every project and programme is an opportunity to challenge ourselves, innovate From project managers to technical specialists, and find a better way to deliver. graduates to the Group Board, our people are at the heart of our business and are critical to
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