Wates made a record operating profit of 拢40m in 2021 (2020: 拢4.6m) on turnover up 12% to 拢1.63bn (2020: 拢1.45bn)
Pre-tax profit was up 5% to 拢37.4m (2020: 拢35.7m and 2019: 拢36.2m).
The business secured 拢2.3bn of new work during 2021 and ended the year with a record forward order book of 拢7.1bn, up 7% from its previous record in 2020, and with 拢228.7m in cash (up 6% from 2020).
Not only is the Wates family raking it in, it is also paying twice as much tax. Wates Group increased its total tax contribution to the exchequer from 拢107m in 2020 to 拢233m in 2021.聽
All the group鈥檚 divisions performed strongly.聽 Wates Construction generated pre-tax profits of 拢18.7m from a turnover of 拢772m (up 51%). The work came predominantly from building schools, offices, leisure facilities and housing, with a growing presence in healthcare construction. The construction forward order book was 拢3.9bn at year-end, up from 拢3.4bn at the start.
Wates Residential increased its turnover by 75% to 拢268m.聽 Wates Developments saw its turnover jump 65% to 拢107m, generating 拢5.6m in pre-tax profits. This performance reflected the group鈥檚 increasing investment in development activities, the company said.
Wates Property Services increased turnover by 14% across its three divisions to 拢475.9m, with its facilities management business, Wates FM, experiencing the best trading year in its history. Specialist fit-out and refurbishment contractor, Wates Smartspace, won more than 拢150m in new work.聽 More than 50% of Smartspace鈥檚 work is now for public sector customers, with projects for the Ministry of Justice (MoJ) and the Department for Work & Pensions.
Chief executive David Allen said: 鈥淚 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 鈥� and for extended periods 鈥� very challenging, we continued to work safely and produced the highest operating profit in Wates鈥� 125-year history.
鈥淲hat we鈥檝e accomplished shows that our strategy 鈥� 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鈥檙e making in data and modern methods of construction to enable us to offer market-leading services to all our customers and partners.
鈥淒espite 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鈥檙e looking forward to the future with confidence and excitement.鈥�
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