Wates feels the pinch as profits slip
CONSTRUCTION group Wates reported an increase in revenue in 2012 but profits were down during a “tough year”.
Group turnover rose 7% to £1.2bn but pre-tax profits, adjusted for the impact of restructuring costs, slipped 10% to £29m.
In a statement it said just under a 10th of revenue, or £115.5m, came from its activities in the North West. This was up 24% on 2011.
The family-owned Surrey-based firm has Northern bases in Warrington and Altrincham and is building the £25m cultural centre at First Street, Manchester, called Home. It has also won the £8m Hugh Baird College in Bootle, Merseyside.
Wates is also working on the £113m Gateways to Oldham housing project which will see 317 new homes built and a further 322 refurbished across the borough.
During the year it completed Liverpool John Moores University’s £37.6m Redmonds Building and Merseyside Fire and Rescue Service’s £5.9m Toxteth Fire Fit Hub.
Phil Harrison, managing director for Wates in the Midlands and North, said: “It has been a tough year for the construction industry but we have met our economic challenges with adaptability and resilience to continue to deliver value for money for our clients.
“The 2012 results demonstrate our long-term focus on financial stability and sustainable business growth, giving our customers the confidence in our position as a responsible and trusted contractor.”