Wates’ profits dip while order book remains strong

CONSTRUCTION services company Wates Construction, which has offices in Manchester and Warrington, has seen annual profits drop but believes it is in a strong position to take advantage of the upturn in economic conditions.

The national contractor posted pre-tax profits down 17% to £38.9m in 2009, on group turnover of £945m.

Wates said pre-tax profits were hit because of an exceptional contribution from its developments division in 2008.

But the family-owned business has a record forward order book of £2.3bn. 

Over the financial year to December 31, 2009, Wates completed the £18.1m ‘phase 1’ workshops for Stockport College while also commencing work on a £7m refurbishment of Manchester College’s Fielden Campus and a new £4.5m Performing Arts centre and Post-16 College at Birchwood Community High School, in Warrington.

John Shannon, business unit director for Wates Construction in the North West, said: “2009 was a challenging year, with the UK economy in recession and demand for construction services in decline.

“However, Wates’ focus on delivering value for customers and local communities has ensured we have continued to win a variety of new projects and is reflected in this highly satisfactory set of results.

“We are facing further economic uncertainty in 2010 and the challenge is to get closer to our customers to understand their challenges and deliver for them. We have made a strong start with projects secured in both the public and private sectors, alongside our appointment to the highly prized North West Construction Hub.”

Established in 1897, the group remains privately owned by the Wates Family. The group employs more than 2,000 people and had a turnover of £945m in 2009.

The company works across a range of sectors, including education, prisons, affordable housing, retail fit out and refurbishment, office interiors, land development and commercial buildings.

The group’s construction division saw turnover decrease by 5% to £937m but profit before tax in the division increased by 4% to £43.6m.