Strong performance brings 23% rise in operating profits for Wates
- Turnover[1] up 20.4% to £1.53bn (2015: £1.27bn)
- Operating profits (EBITDA[2]) up 23% to £45.5m (2015: £37m)
- Profit before taxation[3] up 17.1% to £35.5m (2015: £30.3m)
- Cash flow from operations up 22.5% to £71.7m (2015: £58.5m)
- Group cash up 50.4% to £191.6m (2015: £127.4m)
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 2016, with an order book of £3.6bn heading into 2017.
In a year which saw the Company awarded the accolade of Major Contractor of the Year[4], as well as CEO of the Year[5] for CEO Andrew Davies, Wates saw its operating profits grow by 23% to £45.5m. This performance was translated into operational cash flow of £71.7m, which took year end cash to £191.6m.
Highlights of 2016
- Turnover up £259.4m to £1.53bn, with strong growth in Construction (up 39.6%) and Property Services (up 8.0%).
- Profit before taxation3 up 17.1% to £35.5m.
- Successful integration of SES (Engineering Services) Ltd together with trade and assets of construction projects from Shepherd Construction Ltd.
- Queens Award for Enterprise: Sustainable Development for the Companys work with social enterprises and its commitment to providing training and employment opportunities for young people and those from disadvantaged backgrounds.
- Order book of £3.6 billion despite market uncertainties.
- Following the effective mobilisation of its Birmingham City Council maintenance contract, Wates Living Space now maintains over 500,000 homes on behalf of housing associations and Local Authorities across the UK.
- 2,500 new homes either completed or under construction during 2016.
- Key contract wins with both new and existing clients including the Defence Infrastructure Organisation, Select Property Group, Glaxo SmithKline, HSBC, Royal Mail, Marks & Spencer, Gatwick Airport, the Houses of Parliament, the University of Cambridge and the City of London Corporation.
Andrew Davies, Chief Executive of Wates, commented:
We are encouraged by the Companys operational performance, which has produced these results. We have put in place the right systems, right processes and right people to meet our strategic objectives. The successful integration of SES Engineering Services as well as a number of construction projects from Shepherd Construction has broadened our coverage and capabilities.
The growth in our construction output has been particularly encouraging, given the current uncertainties in our sector. We believe we are well-positioned to keep delivering for our clients, because of the quality of our people, our stable supply chain and our focus on the communities in which we work.
At the heart of everything we do is an absolute commitment to health and safety. In 2016 we introduced our Company-wide Were Safer Together zero harm campaign, giving us a structure around which all our efforts will be focused over the next three years and beyond.
James Wates, Chairman of the Wates Group, said:
The Companys strong financial results are a testament to the quality and commitment of our people, the strength of our relationships with clients and partners, and our robust financial management. The excellence of our management team was reflected in Building Magazines recognition of the Wates Group as Major Contractor of the Year and of Andrew Davies as CEO of the Year.
Our commitment to excellence was reflected in our winning the Queens Award for Enterprise in the Sustainable Development category for the second time. This was a great accomplishment of which all employees should be proud. This award recognised that our commitment to long-term sustainability is truly integrated into our business and is a vital ingredient of our success.
- Download our company credentials brochure which accompanies this release
- Watch some highlights from 2016 in this video review:
[1] Including share of joint ventures and associates
[2] EBITDA Earnings before interest, tax, depreciation, amortisation and including share of joint ventures and associates
[3] And before taxation of joint ventures and associates
[4] Building Magazine Major Contractor of the Year (>£300m)
[5] Building Magazine CEO of the Year 2016
