Turnover at Wates tops £2bn for first time

Wates Group saw turnover exceed the £2bn mark in 2023 for the first time in its 127-year history.

Latest accounts for the firm show turnover up to £2.18bn from £1.89bn last time generating a pre-tax profit of £46.2m compared to £33.7m previously.

Wates also ended the financial year with a record forward order book of £8.54bn but net cash was lower at £138m from £153m following investment in the House Building Joint Ventures portfolio.

Construction was the main cash generator with a £1.17bn turnover – up 22% from last year – with £1.1bn in new work secured including a highest-ever average project value of £48.3m.

Current major schemes include the design and build of the AESC UK gigafactory in Sunderland, the first new town centre in London for 50 years in Canada Water and a sustainable new office building in the heart of Manchester at 4 Angel Square.

Turnover in the Group’s Residential business increased by £13m on 2022 figures, to reach £323m, delivering 276 homes over the year with more than 3,000 homes under construction.

The Developments Group secured its highest-ever profit before tax, alongside a turnover of £147m, an increase of 16% on last year.

The Property Services business also increased turnover to £545m in 2023.

Eoghan O’Lionaird, Chief Executive Officer, Wates Group, said: “Despite a challenging external environment, we delivered a strong performance last year. Whilst it’s great to pass the £2bn turnover mark, it’s just as encouraging to see an increase in profit. Our stable family governance and clear purpose have provided a firm foundation upon which we continue to go from strength to strength.

“We are in an excellent position, with profitability across all parts of our business, a solid cash balance and a positive tangible net worth. Our record forward order book demonstrates our customers’ confidence in our ability to deliver projects of all types and sizes. This confidence is hard-earned, with Wates delivering profit before tax every year for more than two decades.

“Today’s results are a testament to the hard work of people across the Group, and I would like to extend my thanks to all our colleagues, as well as our customers, partners, and supply chain, for everything they do to make this continued success possible.”

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