Wates has unveiled financial results for 2023 showing profits up 37% on record turnover, topping 拢2bn for the first time.
Wates Group made a pre-tax profit of 拢46.2m (2022: 拢33.7m) on revenue up 15% at 拢2.18bn (2022: 拢1.89bn).
It has now delivered a profit before tax every year for more than two decades.
Wates ended the year with a record order book worth 拢8.54bn. Net cash was reduced from 拢153m to 拢138m on account of investments including house-building joint ventures. A 拢90m revolving credit facility remained undrawn at the year-end.
Wates Construction reported 拢1.17bn turnover, up 22% from last year, and secured 拢1.1bn in new work, with a highest-ever average project value of 拢48.3m.
Current major schemes include the design and build of the AESC UK gigafactory in Sunderland, the redevelopment of London鈥檚 Canada Water and the 4 Angel Square office building in Manchester.
Turnover in the group鈥檚 residential business was up 4% to reach 拢323m, delivering 276 homes over the year with more than 3,000 homes under construction.
Wates Developments secured its highest-ever profit before tax, alongside a turnover of 拢147m, an increase of 16% on 2022. Property Services increased turnover to 拢545m in 2023. Wates Facilities Management increased its turnover by 19% thanks to contract renewals and extensions.
Chief executive Eoghan O鈥橪ionaird, who joined the business in February 2023, said: 鈥淒espite a challenging external environment, we delivered a strong performance last year. Whilst it鈥檚 great to pass the 拢2bn turnover mark, it鈥檚 just as encouraging to see an increase in profit. Our stable family governance and clear purpose have provided a firm foundation upon which we continue to go from strength to strength.
鈥淲e are in an excellent position, with profitability across all parts of our business, a solid cash balance and a positive tangible net worth. Our record forward order book demonstrates our customers鈥� confidence in our ability to deliver projects of all types and sizes. This confidence is hard-earned, with Wates delivering profit before tax every year for more than two decades.鈥�
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