Mace set to continue global expansion following profit growth

Pre-tax profit at Mace, the multidisciplinary group with QS and project management divisions, jumped by nearly a third last year.

The firm posted a profit of £5.2m for the year to 31 December 2004, up 28% compared with 2003. Turnover also grew, rising 36% to £183m.

Staff numbers increased 40% in 2004, and the firm now employs 1600 staff. Mace is aiming to hit the £200m turnover mark in 2005, 70% of which is already secured, and is looking to make £6m in pre-tax profit. By 2010 Mace is aiming for turnover of £400m with 85% repeat business.

New chief executive Steve Pycroft said the firm was looking to expand geographically rather than to offer new skills. The firm set up a new QS division, called Sense, which is run by ex-Gardiner & Theobald partner Chris Goldthorpe and has already won work for clients such as housebuilder Countryside.

Pycroft said there would be no more sector diversification at the group. He said: “From Mace’s point of view, it’s not about looking for further diversification, it’s about looking to markets outside the UK.

“Every year we look at a different country and the potential for Mace there. Last year we looked at China, secured a £1bn project, and opened an office on the back of it.”

This year Mace is turning its attention to the US, where it has not worked to date. “It is our next research target, and after the holiday season we will send a group of people to consider where best to locate Mace,” said Pycroft.

Every year we look at a different country and the potential for Mace there

Steve Pycroft, Mace

He also has India in his sights, and is aiming to strengthen Mace’s position in China.

The company is working on some of the UK’s biggest projects, including BAA’s Heathrow Terminal 5 and Royal Bank of Scotland’s new headquarters at a in Edinburgh.

It has also just thrown its hat into the ring for the next phase of London’s 2012 Olympic bid, to programme manage it alongside partner Deloitte & Touche.

Pycroft took over as chief executive from Bob White, who is now chairman, just over three months ago.

Pycroft said the firm was already looking to develop the potential of future management at Mace and that succession planning was under way: “We have a second tier of directors in place, and below them we have the Futures Group, which is around 25 junior staff with the highest potential.”

The Mace board owns 100% of the company. White will make his financial exit at the end of next year, while remaining non-executive chairman.