2022 financial results show our highest-ever turnover

2022 financial results show our highest-ever turnover
Home News 2022 financial results show our highest-ever turnover

Record forward order book expected to propel Group to further growth

2022 financial results show our highest-ever turnover

We reported a profit of £33.7m on our highest ever turnover of £1.89bn, up 17% on last year.

We secured £2.8bn of new work during 2022 with a record forward order book of £8.35bn, up 17% from 2021, which was itself a record year for turnover.

Against strong inflationary pressure, interest rate rises and other economic headwinds, we rounded out our 125th anniversary year with order book and profit up across every one of our divisions and net assets of £162m. We ended the year with £153m of net cash, with a £90m undrawn bank facility, and as a UK-based employer, we increased our total tax take on behalf of the Exchequer from £233m in 2021 to £313m in 2022.

During 2022 we maintained our industry-leading health and safety performance and our commitment to creating real social value in the communities where we deliver projects. This was the second full year of our five-year social value strategy and the company generated £163m in social value whilst also spending £7.2m with social enterprises. We also continued moving toward becoming a net zero operator, continuing to play a key role in upgrading the energy efficiency of the built environment.

Operations across our business performed strongly. Our construction business won £1.32bn of new work, and turned over £958m, up 24% from last year, with a highest-ever average project size of £43m. This included projects completed during the year such as the Sandwell Aquatics Centre, which played host to the swimming events at the Birmingham 2022 Commonwealth Games and will now benefit the community of Sandwell for decades to come. We also completed over £100m of work on our largest-ever construction project, the c.£500m Envision AESC Gigafactory in Sunderland, which will make batteries to meet the growth in demand for electric vehicles.

Turnover in our residential business increased by £42m, taking it to £310m during 2022, a rise of 16%. We marked the year with a number of industry awards for our work with Cardiff Council, providing low-carbon, energy efficient homes, including many built offsite. Meanwhile, our Developments group turned over £123m, up by 15%, and held £148m in invested assets. Our portfolio of development investments in joint ventures performed well and new deals were created through our Partnerships business.

Our property services division increased turnover across its three businesses to £499m, with a forward order book of £1.9bn. We launched the Wates Retrofit offer, providing zero-carbon retrofit services to domestic and commercial properties, and 2022 was the best year yet for our specialist fit out and refurbishment business, which retained all its key customers and won or extended places on some of the market’s biggest public and private sector frameworks. One of these is the Ministry of Justice’s Construction Services Framework that will see us work on projects worth between £5m and £30m. Our facilities management business also went from strength to strength, having its best-ever year, winning new contracts and expanding work with existing customers.

These results in our 125th year represent a really strong performance in the context of a challenging economic environment. Each of our divisions have contributed strongly to profitability and I am delighted to see such consistency across the Group.

2022 saw us continue our upward trajectory on turnover, reaching £1.89bn the highest in our history. This high figure reflects the strong and stable family governance, hard work of people across the business, the scale of our ambition, our proven capability to manage large scale projects of strategic national significance, and our customers’ confidence in our ability to deliver for them, particularly in the public sector.

We are in a strong, resilient position, with profitability across all our divisions, another record forward order book, and a solid cash balance. These results are a testament to the efforts of everyone at Wates, and my particular thanks go to Philip Wainwright for his sterling performance as Interim Chief Executive. He has left a firm foundation from which I hope to continue growing this remarkable business.”
Eoghan O’Lionaird

Eoghan O’Lionaird,

Chief Executive, Wates

2022 Annual Review

Group Environmental Sustainability Plan

Sustainability is a strategic issue for us, and we regularly evaluate the resilience of all our investments and activities through this lens.

The Environmental Sustainability Plan announced today alongside the results, represents an evolution of the goals set by us in 2020, reflecting an improved understanding of the science behind addressing climate change and the actions necessary to drive the greatest impact within an achievable timeframe.

Last year, our near-term greenhouse gas emissions reduction targets were validated by the Science Based Targets Initiative.


Financial performance and productivity

Work winning

 Key contract wins in 2022 included:

Health, safety, and wellbeing

Sustainability and net zero

Social value

 Homes and properties

Greater inclusion and diversity