Mace Construct, formerly Mace Group, has reported a pre-tax loss of £61.8m for 2025, despite revenue increasing by 10% to £2.3bn, as the business prepares for a new brand, leadership structure and strategy following its separation from Mace Consult.
The contractor expects revenue to fall this year, citing delayed project awards and reduced investment by infrastructure clients. It said this would be “because macroeconomic factors have delayed the conversion of some second stage projects and several major infrastructure clients have limited their capital spend.”
The resulting pressure on income meant “the group has been actively targeting significant cost reductions across the business.”
Mace Construct said it will announce its new name and logo next month, following completion of the demerger from Mace Consult in March. A new strategy for the contracting business is due to be unveiled early in the New Year, with the ambition of establishing the renamed company as a top-three contractor.
The 2025 results illustrate the financial challenges facing the business as it establishes itself independently. Continuing operations, comprising predominantly Mace Construct, were affected by almost £60m in exceptional costs associated with the separation from Consult and a write-down of development investment.
However, operating profit before exceptional costs improved to £6.5m, compared with a £28m loss in the previous year.
Mace Construct ended 2025 with cash of £205m and net assets of £56m. The business became debt-free following completion of the Consult carve-out this year.
Executive chairman Mark Reynolds, who holds a controlling stake in Construct, will return to operational leadership as chair and chief executive from the New Year. Current chief executive Jason Millett and chief financial officer David Allen will step down at that point.
Chief operating officer Stephen Jeffery will join the board as part of a management restructuring that will combine board and executive committee meetings to reduce the number of management layers.
Further changes are planned within the infrastructure and specialist services divisions. Infrastructure managing director Nigel Cole will retire in early 2027, with specialist services director Gavin Seager taking over his responsibilities. Danny Martin will succeed Seager in the specialist services role.
Reynolds said: “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.
“The wider team and I are excited to finally begin to show off our new identity in the coming weeks.”
Tony Arthurton, interim Mace Group chief financial officer, added: “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.
“As in 2025, we expect further exceptional costs related to the transaction in March this year.”
