Wates delivers improved profits and record order book again

Wates delivers improved profits and record order book again
Home News Wates delivers improved profits and record order book again

Company reports increased profit for year ended 31 December 2018, with forward order book of £5.4bn.

The Wates Group, one of the UKs largest family-owned construction, development and property services companies has reported increased profits for the year ending 31 December 2018, with a record order book of £5.4bn heading into 2019.

Turnover for 2018 was within 1% of the previous year at £1.60bn and the Groups operating margin increased to 2.4%.  The Group made significant new investments in its residential developments businesses (£55.6m) and its commercial property portfolio (£10.0m) and increased the contributions it made to its defined benefit pension scheme.  The Group maintained a strong cash position throughout the year, finishing 2018 with £114.2m and received a significant endorsement from its existing banks and from a new bank who, together, have committed to a bigger and extended £120m facility.

There was a 9% reduction in Construction turnover, a residual effect of the deceleration in the market in the quarters before and after the EU Referendum. However, performance across the Groups other key sectors of residential development (which grew by 11%) and property services (up 8%) improved on the back of key contract wins in regeneration and social housing.

Highlights of 2018

David Allen, Chief Executive, the Wates Group, said:

These are really encouraging results.  Weve delivered another year of increased profits by continuing to concentrate on working in the sectors and geographies where we have proven expertise and for customers with whom we enjoy positive, effective relationships.

Over the past year weve been reflecting on what really matters to us and how we want our business to be in the future.  We believe we have a responsibility to work together with our customers, suppliers and everyone involved in or affected by what we do – to inspire better ways of creating the places, communities and businesses of tomorrow.

Weve entered 2019 in great shape, with a record order book and significant backing from our banks to support the investments we want to make in our future.  So, were excited about what lies ahead for the Wates Group, whatever external pressures the next few months might bring.

[1] before deducting share of joint ventures and associates tax
[2] including share of joint ventures and associates

Watch highlights from 2018 in the video below: