Specialist engineering and construction company Murphy further strengthened financial position in 2023 - profits were up 50%, while an already strong order book increased by 31% from 2022 to over £3.3 billion of contracted revenues, according to its financial results for the year ended 31 December 2023.

Group operating profit was £71.7 million (2022: £45.7 million) for the year. Murphy said an improved margin of 5.0% (2022: 3.1%) is a result of the continued commercial discipline influencing risks, opportunities and contract selection.

The group, which operates in the United Kingdom, Ireland and North America, also saw a rise in the number of employees to 3,855, up from 3,688 in 2022.

Murphy also further strengthened its balance sheet, closing 2023 with increased net cash of £71.6 million to £347.1 million. .

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.”

“We continue to maintain a balanced portfolio across our core sectors and geographies and we aim to grow our market share in the emerging energy security and net zero opportunities. I am also pleased to report our selective tendering activity has resulted in another strong order book, which has increased by 31% from 2022 to over £3.3bn in 2023.”

Financial and operational highlights set out in the report include:

• 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.
• The Group’s order book rose by 31% to £3.3 billion, up from £2,52 billion in 2022.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.
• Upgrading the water supply to Liverpool from Oswestry water treatment works as part of the Advance Plus joint venture for United Utilities.is among a number of key projects highlighted in the report. Murphy’s Self-Delivery Concrete teams have handed over the water-tight structures to the next project phase, where its MEICA team and supply chain partners will pick up in late 2024.