Supply chain disruption leads to significant loss at construction giant

Construction contractor Willmott Dixon has slipped to a substantial loss on the back of the collapse of a string of firms in its supply chain.

The company posted a loss before tax for 2023 of £5.2m – down from a profit of £800,000 in 2022.

Turnover remained steady – up slightly to just under £1.2bn.

Despite the loss, Willmott Dixon said it has made a strong start to its new financial year with £700m or new orders to the end of May. The firm’s first quarter profits and turnover are already ahead of forecasts and the it has revealed a record orderbook of over £3bn.

Chief executive Graham Dundas said: “We are delighted by the strong start that Willmott Dixon has made to 2024, with our Q1 profit and turnover already ahead of our budgeted forecasts and a record pipeline of over £3bn.

“I’m particularly encouraged by the way in which the business has responded to a difficult 2023, when certain projects were materially impacted by the industry-wide problem of significant inflation, as well as key supply chain failures at critical times.

“With inflation easing and a strong pipeline of high-quality work, our resilient balance sheet and a healthy mix of long-term revenues means that Willmott Dixon is well-positioned to prosper in 2024.”

Dundas said he is confident of a “swift” return to profit this year.