Wates demonstrates continued strength with excellent performance
Wates Group reports increased turnover and profit for year ended 31 December 2017, with forward order book of £5.1bn.
- Turnover[1] up 9% to £1.62bn (2016: £1.53bn)
- Record order book of £5.1bn (2016: £3.6bn)
- EBITDA[2] up 8% to £47.2m (2016: £45.5m)
- Profit before taxation[3] up 0.7% to £35.7m (2016: £35.5m)
- Net assets up 68.9% to £119.4m (2016: £70.7m)
The Wates Group, one of the UKs largest family-owned construction, development and property services companies, has reported increased revenue and profits for the year ending 31 December 2017, with a record order book of £5.1bn heading into 2018.
In a year which saw the Company awarded the accolade of Contractor of the Year[4] and retain its Investors in People Gold accreditation for the third successive time, Wates saw its turnover grow by 5.9% to £1.62bn. It maintained a strong cash position throughout the year, finishing 2017 with £169.5m at bank.
Performance was strong across the business with increased turnover in the Groups key sectors of construction, residential developments and property services.
Highlights of 2017
- Industry-leading health and safety performance with an accident incidence rate less than half the industry average
- Turnover up £90m to £1.62bn, with strong growth in Property Services (up 11.0%) and Construction (up 4.6%)
- Record order book of £5.1 billion
- 34 million hours worked on 2,000 projects
- Profit before taxation up 0.7% to £35.7m
- Construction turnover up 4.6% to £934.8m
- Residential Developments turnover increased by 0.4% to £206.1m
- Property Services turnover was £477.3m, up 11.0% from 2016
- Key contract wins with both new and existing clients including Scape Procure, Manchester City Council, Marks & Spencer, the London Borough of Camden, Public Health England, the London School of Economics, the Education and Skills Funding Agency, MEPC, Quintain and Royal Mail
- Over 5,000 new homes built in 2017
- Planning permission for new homes granted on three sites: Basingstoke in Hampshire, Chalgrove in Oxfordshire and Hungerford in Berkshire
- Over 500,000 homes maintained in the social housing sector, with facilities managed at more than 500 commercial properties
- 190 management trainees and apprentices employed during 2017
- Named Organisation of the Year at the inaugural UK Social Mobility Awards reflecting the Companys commitment to advancing social mobility in the communities in which it works and its sustainability programme, Reshaping Tomorrow
- £2.65m spent through Social Enterprises
James Wates CBE, Chairman of the Wates Group, said:
“These are really positive results for the Wates Group, demonstrating our continued success in what has been a challenging year for the sector. They attest to the quality and commitment of our people, the strength of our relationships with customers and partners, and our robust financial management.
The results demonstrate the resilience of our strategy, systems and processes, which have provided a strong foundation for our performance, led by our Executive team and David Allen, our Acting Chief Executive.
Performance across all areas of the business was very strong. We continued to maintain a balance of public and private sector clients, with notable success in appointments to major public sector frameworks for Scape Procure and the Education and Skills Funding Agency. We completed landmark projects for the V&A Museum, the Houses of Parliament and the London Business School, while our Property Services businesses continued to grow. A record number of new homes were built, with major development schemes in the pipeline, with, for example, Homes England and the London Borough of Havering.
These results reflect our belief that profitability has to be linked to the long-term sustainability, not only of our company, but of the industry and the communities in which we work. In 2017 we continued to invest in social enterprises, spending £2.65m and remaining on course to spend a cumulative £20m by 2020. The Group employed 190 trainees and apprentices as well as providing training and learning opportunities for over 1,500 young people to help build the workforce of the future. Most importantly of all, we improved our industry-leading health and safety record.”
ENDS.
[1] including share of joint ventures and associates
[2] before deducting share of joint ventures and associates interest and tax
[3] before deducting share of joint ventures and associates tax
[4] Construction News Contractor of the Year Award 2017
