Multiplex has set up a special internal committee to prepare for the risks presented by Brexit, as it announced increased profit in 2018, despite a fall in revenue to £1.1bn.
Accounts filed for Multiplex Construction Europe showed that the firm made earnings before interest, taxation, depreciation and amortisation (EBITDA) of £17.9m for the year to 31 December 2018, up from £14.5m in 2017.
That was despite a £100m drop in annual revenue from £1.2bn in 2017.
Multiplex said the “consistent” turnover was a reflection of its focus on improving risk management and consolidating its position after four-year period where it had more than tripled turnover.
Meanwhile, the firm pointed to a £4.6bn pipeline of work as at the end of 2018, up from £4.2bn the year before. The workbook is mainly made up of nine residential projects worth £2.1bn and six commercial projects worth £2.1bn.
Among the projects Multiplex secured in 2018 and in early 2019 are the Broadway, a £420m mixed-use development in Westminster made up of 268 apartments and 142,000 sq ft of commercial and retail space, and the £243m phase four of Chelsea Barracks, a 13-acre development on Chelsea Bridge Road in London, made up of 91 apartments across three buildings.
Meanwhile, the company revealed that it has set up an internal Brexit committee “to address key risks arising from the ongoing political uncertainty in the UK”.
While Multiplex said it was sheltered from foreign exchange risks because its contracts are generally in pounds Sterling, it recognised that subcontractors relied on labour and materials from Europe.
