McAleer & Rushe Set to Break £500m Turnover Barrier
- Michael Ghobrial
- Aug 14
- 3 min read
Updated: Aug 15
The design and build contractor McAleer & Rushe is positioned to soar past the £500m turnover milestone this year. Recent results for 2024 showcase a notable growth trajectory, attributed to an array of major project wins. With turnover climbing by 13% to £491m last year and a forecast of reaching £550m this year, McAleer & Rushe is in a strong position across its residential, student, and later living markets.
Strong Financial Performance
McAleer & Rushe's financial performance is impressive, with pre-tax profit soaring by 46% to £16m. Furthermore, the cash at bank escalated to £71m, up from £53m in 2023. This growth underscores the firm’s strategy of controlled expansion, a prudent approach that prioritizes sustainability and reliable income over aggressive growth.
The operating margin also reflects this strategic focus, rising from around 2% in 2023 to 2.7%. This increase in margin highlights the effectiveness of McAleer & Rushe's operational strategies and cost-control measures, ensuring that every penny spent has a targeted purpose.
Major Project Wins
Last year's remarkable results can be largely credited to several major project wins that have added significant value to the firm’s portfolio. Among them:
£225m Residential Scheme in Bermondsey: This flagship project highlights the firm’s commitment to addressing the pressing housing needs in London.
£110m Student Project at Crutched Friars in London: With student accommodation in high demand, this project showcases McAleer & Rushe’s strength in securing contracts that cater to key market demands.
£40m Hotel Next to Dublin’s Croke Park: This venture not only emphasizes the company’s versatility but also its capability to enter competitive markets successfully.
£80m Later Living Project in Royal Tunbridge Wells: As the later living sector gains traction, this project places McAleer & Rushe in a prime position to capitalize on an expanding demographic.
These major wins are not just contracts; they represent strategic steps toward establishing McAleer & Rushe as a key player in several booming markets.
Future Growth and Market Potential
According to Group Chief Executive Eamonn Laverty, the firm has observed a "notable uplift in the build-to-rent and private sale markets." These sectors are vital as they cater to a young, mobile workforce that is increasingly looking for flexible living arrangements. Moreover, 2024 has seen growth in the later living sector, which Laverty identifies as a strategic area of opportunity moving forward.
Investing in these markets indicates McAleer & Rushe's forward-thinking approach. With demographic shifts leading to increased demand for both rental and later living accommodations, the potential for future growth remains high. Shifting consumer preferences and market conditions pose unique opportunities for a company with the right vision and resources.
Sustainability and Infrastructure Investment
In line with ambitious targets to become a Net Zero business by 2045, McAleer & Rushe is making significant investments in their infrastructure. One key project is the refurbishment of the Drury Lane office in London, aimed at transforming it into an energy-efficient Grade A building. The firm recognizes that sustainability is not simply a trend but a necessity for modern businesses.
This investment in green building aligns with McAleer & Rushe's long-term strategy, ensuring that operational practices remain environmentally sound while also appealing to the growing segment of clients who prioritize sustainability.
The Road Ahead
As McAleer & Rushe moves closer to breaking the £500m turnover barrier, it represents more than just a financial milestone; it marks a significant stride in the company's evolution. With a robust portfolio of projects, strategic market focus, and commitment to sustainability, the future looks promising for this dynamic contractor.
Their intentional growth strategy showcases not only financial acumen but also a deep understanding of market trends and consumer needs. As they continue to build relationships and secure significant contracts, McAleer & Rushe is set to establish themselves as a leader in the industry.
In summary, McAleer & Rushe's success story is one of strategic foresight, partnership-building, and innovation. As they prepare to reach new heights, businesses seeking inspiration can learn valuable lessons from their journey toward sustainable growth and market leadership.
As McAleer & Rushe forecast their trajectory toward £550m and beyond, industry stakeholders are watching closely. The firm not only demonstrates resilience in a competitive landscape but also embodies the future of construction, an industry that increasingly focuses on sustainability, innovation, and community impact.
