Mace Construct posts £62m pre-tax loss in carve-out year

Mace Construct has reported a £61.8m pre-tax loss for 2025, despite revenue climbing 10% to £2.3bn, according to the firm's annual report and accounts published this week.

The loss stems largely from a near £60m exceptional hit tied to the separation from Mace Consult, which completed in March, alongside a write-down on a development investment. Strip those costs out and the picture brightens: operating profit before exceptionals recovered to £6.5m, up from a £28m loss the prior year. A £205m year-end cash pile and net assets of £56m complete the balance sheet, and the business is now debt-free following the carve-out.

What happens to revenue next?

It shrinks. Mace Construct expects lower revenue this year "because macroeconomic factors have delayed the conversion of some second stage projects and several major infrastructure clients have limited their capital spend."

Interim Mace Group Chief Financial Officer Tony Arthurton put it plainly: "This year, like many others in the sector, Mace Construct has seen several major projects delayed in securing stage two contracts, resulting in reduced revenue but healthy performance on margin."

He added: "As in 2025, we expect further exceptional costs related to the transaction in March this year."

The falling income has already forced a response. The company said "the group has been actively targeting significant cost reductions across the business."

Who runs the company now?

Executive chairman Mark Reynolds, who holds a controlling stake in Construct, returns to operational leadership as Chair and Chief Executive from the New Year. CEO Jason Millett and CFO David Allen both stand down. Chief operating officer Stephen Jeffery joins the board as Mace merges its board and executive committee meetings to cut management layers.

Further down the org chart: infrastructure managing director Nigel Cole retires early in 2027, with specialist services boss Gavin Seager succeeding him. Danny Martin takes over Seager's old role.

What's the strategy?

A new one arrives early in the New Year, with the stated aim of pushing the renamed Mace Construct into the top three contractors. A new name and logo land next month, following the March demerger from Mace Consult.

Reynolds framed the moment as the end of a long build. "For Mace Construct, the next few months will see us complete a transformation that has been two years in the making – with a new brand, a new head office, a new leadership team and a new strategy that will see us grow across the UK and expand into adjacent sectors where there were perceived conflicts of interest because of Mace Consult's client relationships," he said.

"The wider team and I are excited to finally begin to show off our new identity in the coming weeks."

The numbers underline the scale of the turnaround ahead. A £6.5m underlying operating profit on £2.3bn of revenue is thin by any measure, and the Consult separation isn't finished generating exceptional costs. Still, the firm enters 2026 debt-free with £205m in cash, a clean brand break, and a controlling shareholder back in the chief executive's chair. The next twelve months will show whether that's a foundation or just a fresh coat of paint.