Engineer posts jumps in pre-tax profit and revenue

Nick Taylor

Engineering group Waterman has said its strategy of targeting growth in its home UK market is paying off, after posting jumps in pre-tax profit and revenue in half-year results to December 2014.

Waterman - which exited its Russian and UAE markets in its 2013-14 financial year to focus on its domestic market, Ireland, Poland and Australia - said the 鈥渟trength of the UK economy鈥� had boosted its figures.

The group posted a 57% rise in pre-tax profit to 拢1.1m for the half-year period, up from 拢0.7m the previous year, while revenue grew 29% to 拢36.7m, up from 拢28.5m.

UK operations accounted for 89% of group revenue and achieved 29% revenue growth over the period, Waterman chief executive Nick Taylor (pictured) said.

Taylor said the outlook for the UK market was strong, despite the prospect of a slowdown over the lead up to this May鈥檚 general election: 鈥淭he strength of the UK economy and the confidence of our clients is driving demand for our services with the number and size of commissions increasing year on year. 

鈥淲e expect that the looming general election will have a temporary dampening effect on activity levels during the second half.  However, looking further ahead, we anticipate continuing revenue growth throughout the UK, most particularly from retail and residential developments and in the highways infrastructure market.鈥�

Overseas, Taylor said the firm鈥檚 Ireland and Poland divisions were 鈥渆xperiencing positive and improving trading environments鈥� and in Australia 鈥渄emand remains stable鈥�.

Waterman鈥檚 revenue from the property sector increased by over a third (35%) to 拢20.7m, up from 拢15.4m, while operating profit from these operations grew 20% to 拢1.3m, up from 拢1.1m.

The firm said the retail sector was making a comeback and it landed major contracts over the period in the sector, including the engineering role on Land Securities and The Crown Estate鈥檚 one million sq ft extension to Westgate Centre shopping complex in Oxford.

The firm said it was on course to triple overall pre-tax profit before exceptional items to 拢3.3m by 2016.

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