Page 6 - Business Review 2016

6 Business Review 2016
A good year is always pleasing, but a good year in a period
of transition and refocus is especially so.
Steve Hollingshead, our CEO, completed his first full year
with us in 2016. His ambitious Ten Year Plan was launched,
touching every part of the business and the period saw
new appointments to our senior management team that
strengthened the organisation, to help meet
the demands of the plan.
All the while, our people continued to deliver Murphy’s
hallmark quality and reliability across a host of projects and
sectors, working safely, winning business, beating targets
and generating improved earnings.
Our growth agenda
At the heart of Murphy’s Ten Year Plan is an ambition to grow
in every respect: operationally, geographically, financially and
in reputation. We are well placed to achieve this. Murphy is
an independent business, wholly owned by its founding
family, which fully endorse the plan and agree that we are
ready to achieve more. The evidence is already clear in the
Tier 1 projects we're winning, the calibre of applicants and JV
partners we’re attracting, and the skills and resources we
offer under our self-delivery model.
The plan now calls for us to raise our game in every
department. With this comes the need to gain much greater
visibility and control over our business, and later in this
report, we outline how we are strengthening our governance
and risk management accordingly.
Our leadership team
I want to thank Paul Collins for his valued interim contribution
before David Burke arrived in October to take up the role of
chief financial officer. David brings extensive experience from
his previous senior financial positions at Serco, Barclays,
Citibank and KPMG.
We were also pleased to strengthen our leadership with a
series of new appointments. The start of the year saw
Russell Kellett join us as group operations director.
In February, we welcomed Martin Mather as director of
procurement, and he was followed in July by Alastair Smyth
as director of engineering and Chris Green as commercial
director. At the close of the year, Jonathan Wright took up
the role of people director.
Our people
At Murphy we are now well into our seventh decade and are
proud of our self-delivery model: virtually every person on a
Murphy site and, indeed, every tool and machine they may
operate comes from under our roof. In a world of
sub-contractors and transient labour, we select, train
and develop our people and their skills. And it shows.
This not only drives higher standards but engenders a sense
of membership and pride. When I talk to our clients or visit
our projects, this is something that continually shines
through. We are now of an age where we have many
second-generation Murphy employees.
I would like to thank everyone out on our sites and in our
offices for the roles they performed so well again in 2016.
It was a year in which we bid successfully for some of the
highest-profile projects in the UK, and continued to cement
our Tier 1 credentials.
A positive climate
I also serve on boards in other industries, but believe that
the public infrastructure sector is one of the most resilient.
The UK Government is supportive, and has demonstrated
that commitment through projects such as HS2 and
the Heathrow Airport expansion. There’s also a growing
awareness that well-conceived, well-executed projects
deliver measurable advantages to our economy, create
opportunity and benefit society as a whole. The Murphy
board also believes that the sector will stand firm in the face
of the seismic changes heralded by the Brexit vote.
Investment in infrastructure is seldom a nice-to-have - it
is driven by essential needs such as good transport, clean
water and secure energy supplies. In many areas, the UK still
relies on infrastructure built in Victorian times. When I look at
some countries I visit, it is clear Britain needs to maintain its
investment if it is not to fall behind.
Chairman’s
statement
A STRONG PERFORMANCE, BUILDING
FOUNDATIONS FOR GREAT THINGS TO COME