Mace Group

Financial
2007 was another successful year for the Mace Group during which we have seen our turnover increase by 43% from £372m to £531m and our profit before taxation increase 46% to £10.8m. The financial highlights include:

• Turnover up by 43% to £531m
• Profit before tax up 46% to £10.8m
• Net assets up by 35% to £27.4m
• Profit after tax of £7.3m, reinvested into the business

This has enabled us to invest in areas which will strengthen our business as it continues to grow. In 2007, £7.3m was invested back into the business of which £3m went towards upgrading our core IT and communications infrastructure to provide a stable, scalable platform, with increased security and resilience for our staff and clients.

Internationally, our appointment to the Foreign and Commonwealth Office programme has taken the company across Europe, Asia and Africa and our ongoing relationship with key client Majid Al Futtaim will see us deliver its shopping mall portfolio across Africa and the Middle East. In Europe we're attached to some exciting projects across retail, commercial and other sectors. At home our strategy for diversification has taken us further into new sectors such as waste, utilities, healthcare, central government, academies and data centres.

The global credit crunch has undoubtedly started to affect the availability of funding for major projects and we've been working hard to assist our clients with strategies to mitigate the effects of the current squeeze. But in any kind of economic downturn the rules are don't stop innovating, keep your services diverse and prune costs. That sound approach is at the heart of how Mace Group is dealing with the new economic climate and in this way we aim to protect both our business and staff from as much upheaval as possible. Mace people are renowned for their innovation and their love of a challenge, it's what we do best. For that reason the company has faith that we can weather this market downturn better than the competition.

Service Offer
Our innovative approach to doing business, and our integrated service offer, mean that our clients now enjoy extra certainty, choice and service across every aspect of the property life-cycle. The group's construction management division won a new commission every month throughout 2007 and we were appointed to deliver multi-disciplinary consultancy services on more than 60 framework agreements in the public sector. Our market share in the education sector has expanded through our Building Schools for the Future consultancy appointments and construction delivery on a growing number of academies.

Mace Group is now recognised as a global multi-disciplinary consultancy and construction company and we have seen our reputation for quality and delivery grow stronger both abroad and at home. Whether appointed as project manager or cost consultant, construction manager or contractor, our roles enable us to offer clients a spread and breadth of services across all sectors, from schools and airports to offices and railways.

Customer Satisfaction
At 85%, our customer satisfaction rate for 2007 is our highest ever and we are continuing to improve year on year. Our position in The Sunday Times Top Track 250 has leapt from no.132 in 2005 to no.13 in 2007 to no.2 in 2008 and we were one of only two companies to increase sales by over £100m. We won numerous awards for our inspiring projects and our extraordinary people across the globe. But perhaps most importantly we have continued to win work with the right clients, across more sectors and locations than ever before. By continuing to ensure the quality of our people and listening to our clients needs, we will continue to build a stronger, better business.

Stephen Pycroft
Chief Executive Officer
2008