11 June 2024
Murphy, a leading specialist engineering and construction company, is pleased to announce its financial results for the year ended 31 December 2023, which builds on the strong momentum generated by the Group in 2022.
Murphy has continued to deliver key critical infrastructure and is making good progress towards its vision of becoming the leading family-owned construction business in the three geographies in which it operates.
John Murphy, Chief Executive Officer of Murphy, commented:
“I am pleased to report another year of growth with a resilient, year-on-year improvement in both our financial performance and operational delivery, alongside a continued commitment to delivering world-class infrastructure. These results are underpinned by the dedication and hard work of our teams, our ongoing focus on sustainable business practices and our strong customer relationships.
“As we approach our 75th anniversary in 2026, our ‘Murphy at 75’ vision to be the leading family-owned construction business in the geographies in which we operate is well within reach. Our key focus remains on delivering long-term, sustainable growth, driven by our ability to provide our customers with a reliable and consistent level of performance as we strive to create a positive and lasting legacy across our projects and the communities we serve.”
Financial and operational highlights:
- Operating profit increased by 57% to £71.7m in 2023 (2022: £45.7m), driven by a strong performance across all areas of the business with increased levels of repeat business from existing customers.
- Net cash increased by 26% to £347.1m in 2023 (2022: £275.5m), enabling continued investment across all areas of the business, including a significant investment in key sustainability initiatives.
- Group revenue marginally declined 5% to £1,421m in 2023 (2022: £1,491m), primarily due to the timing and completion of projects in Canada, although this was offset by continued revenue growth in both Ireland and the UK.
- Employee numbers increased by 4.5% to 3,855, up from 3,688 in 2022, as Murphy continues to develop talent while creating a diverse, inclusive and engaged workforce.
- A 35% reduction in the number of Lost Time Injuries as part of Murphy’s continued commitment to safety for all teams.
Key project highlights included:
- Delivering Beaulieu Park, the first railway station to be built on the Great Eastern Main Line for over 100 years.
- Delivering two major design and construction packages for National Grid as part of their £1 billion flagship London power tunnels phase 2 scheme.
- Upgrading water supply to Liverpool from Oswestry water treatment works.
- Delivering the road infrastructure and associated utilities for a new town centre in West Dublin.
- Playing a key role in the Coastal Gaslink project, a 670km pipeline that will enable the export of Canadian gas from a new LNG terminal in British Columbia.
Sustainability highlights:
- Achieved a further 8.4% carbon reduction versus 2022, almost halving the Group’s cumulative emissions reduction total from the 2019 baseline by 48.2%, meaning that the Group is now well placed to reach 50% reduction target by 2026.
- Invested £39m in state-of-the-art, environmentally-conscious plant and equipment.
- Delivered a 35% increase in training and development spending, up from £2.3m in 2022 to £3.1m in 2023.
Outlook
- Group order book grew by 31% to £3.31bn in 2023 (2022: £2.52bn) with secured and anticipated orders across the UK, North American and Irish businesses.
- The acquisition of WHC Energy Services enables the Group to expand its operations into the US energy renewables and oil and gas markets.
- Continued growth in traditional markets, as well as newer sectors such as energy security and new infrastructure investment, underpinning confidence in the Group’s strategic direction and long-term growth plans.
You can read the full report here.
