Wates profit up as turnover grows 20% in 2016
Turnover at Wates Group jumped by more than 20% in the year to 31 December 2016, boosted in part by the the acquisition of Shepherd’s construction businesses.
In the group’s latest results for the year turnover reached £1.53bn in 2016, up from £1.27bn in 2015. Construction revenue was up 40%. Group profit before tax was up 17% to £35.5m, from £30.3m in 2015.
2016 was the first full year that includes the impact of the October 2015 acquisition of Shepherd Engineering Services (SES) and Shepherd FM together with a significant number of contracts and strategic frameworks from Shepherd Construction.
The results showed operating profits up 23% to £45.5m, translating into operational cash flow of £71.7m, taking year-end cash to £191.6m.
Order book at year-end was worth £3.6bn.
Chief executive Andrew Davies said: “We are encouraged by the company’s 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.”