Wates reports sixth consecutive year of operating profit growth

11 April, 2011

Major UK construction company Wates Group Limited today announces a strong set of financial results for the year ended 31 December 2010. Turnover rose by 4% to £985m* and profit before tax increased by 12% to £43.5m, representing the sixth consecutive year of operating profit** growth. The performance has been achieved against a challenging backdrop, which saw construction output drop by 2.5% in the final quarter of 2010***.

Financial highlights include:

• £985m – an increase of 4%
• Profit before tax £43.5m – up by 12%    
• Year-end cash balance of £169.2m
• Strong balance sheet with net assets of £60.7m
• Forward order book of £2.0bn
• Total pipeline of business opportunities of £4.1bn

Non-financial highlights include:

• Award of Building magazine’s Major Contractor of the Year for the second year running
• Platinum status on the Business in the Community’s CSR Index - the first construction company to achieve the accolade
• C2E (Committed to Equality) Gold accreditation
• 95% of non-hazardous waste produced by the Group diverted from landfill

Paul Drechsler, Chairman and Chief Executive of Wates, said: “2010 was a challenging year with the UK economy still in recovery. However, through close collaboration between our clients, our supply chain partners and our people, we have been able to create value by delivering high-quality projects, winning a strong forward order book and engineering cost efficiencies. We have achieved a strong set of results while maintaining our market share and competitive margins.

“I am particularly pleased to report a year-end balance sheet that is one of the strongest in the industry, a forward order book of £2bn and a total pipeline of new business opportunities worth £4.1bn. To help deliver our ambitious growth strategy, we expect to hire around 300 new people in 2011.

“Economic factors, including a decrease in public sector funding, coupled with our commitment to deliver even more responsible value for customers mean we must continue to innovate across our entire business model. In this respect, our established key strategic programmes – safety excellence, operational excellence, supply chain management, marketing, people and CSR – have provided a robust framework for delivering progress. Our focus is on accelerating these improvements and we enter 2011 with confidence that we will build upon our results.

“We thank our customers for their continuing loyalty and fully acknowledge the contribution of our supply chain partners and professional service providers whose commitment to delivery helped us to achieve these results.”

* Includes share of joint ventures’ turnover

** Before exceptional item in 2006

***ONS, Output in the Construction Industry, issued 11 February 2011

To view a turnpage version of Wates' Annual Report and Summary Financial Statement click here

To go to the Financial Highlights 2010 page click here

To go to the Corporate Responsibility Highlight 2010 page click here

To download this press release as a pdf  click here

Categories: CR, health and safety, people, supply chain, awards, events, national

Tags: Annual report and accounts, corporate responisibility, cr, people