Wates trumpets record order book despite Brexit slowdown

Contractor Wates Group started the year with record orders despite seeing a Brexit related slowdown in mainstream construction activity in 2018.

Growth in its residential development and property services businesses helped to offset a 9% fall in construction activities last year.

Wates ended 2018 with stable pre-tax profits up 1% to £36m on steady revenue of  £1.6bn, maintaining group operating margin at 2.4%.

Over the year the firm invested £56m its residential developments businesses and £10m in its commercial property portfolio.

Across the group residential development revenue rose 11% to £233m, property services turnover grew 8% to £514m, while mainstream construction slipped back to around £850m.

Chief executive David Allen said after encouraging results Wates was looking forward to a strong 2019 with record orders at £5.4bn.

“We’ve delivered another year of increased profits by continuing to concentrate on working in the sectors and geographies where we have proven expertise and for customers with whom we enjoy positive, effective relationships.

“We’ve entered 2019 in great shape, with a record order book and significant backing from our banks to support the investments we want to make in our future.

“So, we’re excited about what lies ahead for the Wates Group, whatever external pressures the next few months might bring.”

The group maintained a strong cash position throughout the year, finishing 2018 with £114.2m and received a significant endorsement from its existing banks and from a new bank who, together, have committed to a bigger and extended £120m facility.

from Construction Enquirer http://www.constructionenquirer.com/2019/03/21/wates-trumpets-record-order-book-despite-brexit-slowdown/

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