Page 10 - Business Review 2016

10 Business Review 2016
2017: showing our strengths
We headed into 2017 with real confidence, for a wide
range of reasons:
■ There’s a good climate for infrastructure: The current
need to invest is well understood by the UK
Government and our initial success in HS2
and other high-profile bids position us well for
future business.
■ A solid order book: We targeted achieving secured
work valued at 70% of revenue going into 2017,
and actually achieved nearly 80%.
■ A broad base: We are strong in the UK and
internationally, with one able to help offset the other
in the event of contract delays. For example, Ireland
was one of the fastest-growing construction markets
in 2016 and we are well placed to benefit there.
■ A better bid-win ratio: We’re improving the targeting
and execution of our bids, and are building our bench
strength in the functions that support them - from
commercial, engineering and planning, to project
control and procurement.
■ A Tier 1 player and natural partner: Murphy is one of
the UK’s leading construction companies and we are
also in demand as a joint venture project partner.
We have a proven track record, an excellent
health and safety culture, and a robust balance sheet.
■ A self-delivery model: Clients recognise the skill
levels, commitment, cohesion and spirit that come
from a contractor with its own employees,
plant and resources.
I would like to place on record my thanks to our clients,
both those who continue to compliment us with repeat
business year after year, and those whose new
relationships we have made during 2016. Thanks also go
to our supply-chain partners, for their collaboration
across the year. Additionally, the company's shareholders
are unwavering in their support for our way forward and
I thank them for their backing. I also want to thank all my
colleagues at Murphy. Their loyalty and hard work,
to deliver projects of the highest quality in all conditions
and climates, is an inspiration.
As we move into the next few years of our Ten Year Plan,
we are looking forward to showing even more of what we
can do for the UK, Ireland and beyond. As we build on
our legacy, we will broaden our engagement across a
greater range of the asset life cycle, while continuing to
deliver the economic, social and environmental benefits
that world-class infrastructure can bring.
Steve Hollingshead
Chief executive officer
Chief executive officer’s review
THE YEAR’S HIGHLIGHTS
Externally and internally, we achieved so much to move
Murphy forward. It’s a challenge to list them all but a few
highlights jump out for me.
Working together
We made great strides forward in coming together as
'One Murphy'. This was particularly evident in two parts of
our business. Murphy Plant came together as a standalone
business and is now offering an improved asset hire
service to the Murphy group. Our ground engineering and
piling teams from across the UK and Ireland have also
joined together, now offering a service to customers in
a more coordinated way than ever before.
York Potash
As part of the overall £2.4bn mine project, Murphy was
selected as preferred bidder for the tunnel element,
in a joint venture with Hochtief.
Building our team
Recruitment is a useful barometer of how our business is
perceived and it speaks volumes that we attracted so
much high-calibre talent in 2016. People want to develop
their careers with us, not only because of the projects
we’re winning but also our long-term purpose and ambition,
which is expressed in the Ten Year Plan.
HS2 enabling works and civils
We were delighted to secure the enabling works package
for Phase 1 the north through LM, our joint venture with
Laing O’Rourke. The contract will be worth around £180m
to Murphy. The year also saw us construct the biggest bids
in Murphy’s history, for three HS2 main works civil
contracts. Working again in a JV with Laing O’Rourke
and FCC, these bids were the catalyst for a major
coming-together of talent, experience and resources. I’m
immensely proud of Murphy’s contribution to the JV, called
LFM, as we pursue this valuable and high-profile prize.
Working conditions
By working closely with our people, we made important
strides during the year to standardise issues such as
working conditions, skills measurement and upskilling.
We also advanced plans to make sure that everyone who
works with us has a clear career path.
Canada
We had an excellent first full debut year from our team in
the Surerus-Murphy JV as it worked to become a partner
of choice for the key owner companies in the oil and gas
market. In a short space of time, it has built a workbook
worth $400m and has created a sustainable business.
This has been a great example of Murphy exporting a
world-class capability and gaining impressive and
rapid results.