Construction giant posts record profits as it looks forward with ‘excitement’

The Wates Group, the construction and property services giant which recently opened in an office in Birmingham, has reported its highest ever operating profit of £40m.

The business secured £2.3bn of new work during 2021 and ended the year with a record forward order book of £7.1bn, up 7% from its previous record in 2020.

As the firm celebrtes its 125th anniversary, it has reported a leap in pre-tax profits to £37.4m (up £35.7m from 2020, and £1.2m (3%) higher than 2019) and EBITDA of £51.1m from a turnover of £1.63bn (up 12%). It ended the year with £228.7m in cash (up 6% from 2020) and net assets at £177.1m (up 25%).

David Allen, chief executive, the Wates Group, said: “I feel enormous gratitude for and pride in what the team here at Wates achieved in 2021. It is incredible that in a year that was frequently – and for extended periods – very challenging, we continued to work safely and produced the highest operating profit in Wates’ 125-year history.

“What we’ve accomplished shows that our strategy – of focusing on the performance priorities that will help us achieve our goals of being more trusted, sustainable and progressive – is working. This strategy is supported by significant new investments in our residential and developments businesses, and by the investments we’re making in data and modern methods of construction to enable us to offer market-leading services to all our customers and partners.

“Despite the economic and political pressures that are affecting everyone right now, the strength of our performance in 2021; the size of our order book; our proven ability to help customers and partners meet their sustainability goals; the clarity of our strategy; and the quality of our amazing team mean we’re looking forward to the future with confidence and excitement.”