Murphy’s revenue hits nearly £1.3bn

Murphy’s revenue increased by 14 per cent in 2021 – hitting nearly £1.3bn.

Financial results for the civils-focused contractor showed its revenue totalled £1.27bn at the end of last year, rising from £1.11bn in 2020.

“Strengthened relationships” with key clients across the UK, Ireland and Canada were a key factor behind last year’s growth, according to Murphy, which revealed operating profit rose by 67 per cent.

It said the growth in operating profit, which rose from £13m in 2020 to £21.7m last year, was down to “strong contributions from all sectors of the business”.

It is the second year that the firm’s revenue has grown, building on last year’s increase of over a quarter. Murphy previously suffered a £26.7m loss in 2018 due to problem contracts.

Positive financial results for the firm follow an update from ISG last week that showed its revenue grew by £300m last year.

The Murphy report said that a renewed focus on its core sectors of energy, transport, water, and construction and property allowed the firm to “successfully navigate the challenges presented by the pandemic”.

It also saw net cash reserves increase to £216.6m during 2021, up from £173.8m in 2020. This marked £42.8m growth as the group pointed towards its “strong commercial disciplines”.

Murphy chief executive John Murphy said: “These results reflect the strengthening resilience across the group and the benefits of actions we have taken in recent years to improve contract selectivity, enhance relationships with our key client base, and to focus on generating a strong cash position.

“We have made significant progress during 2021 in delivering against our ‘Greener Murphy’ climate action strategy and in supporting our clients on the journey to net-zero, with continued investment in our operating model, enabling future transitional benefits to be achieved.”

Last year, Murphy invested £21.5m in environmentally friendly plant including electric, hybrid and hydrogen powered equipment which helped to deliver a 30 per cent reduction in fuel usage year-on-year.

The chief executive added: “The quality of our people, client base and the delivery of our secured workload, together with maintaining discipline in contract selectivity irrespective of economic conditions, remains core to our ongoing success.

“At the year end, we had a high quality and growing order book of more than £2.24bn, up 28% from the previous year, giving us an exciting pipeline of opportunities, which underpin our confidence for the years to come, as we look to deliver on our ambition of being the leading family-owned construction business.”

The group said its strong performance last year had given them confidence for the year ahead that they would be able to deliver on long-term ambitions. This is despite the tough economic background which has presented issues with supply chains and materials shortages.

Murphy recently missed out on the chance to build the controversial HS2 tunnel project, with the National Highways opting for an international consortium made up of Spain’s FCC Construcción, Italian firm Webuild and BeMo Tunnelling from Austria.

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