黑洞社区

Wates has said it will look at more deals similar to the swoop it made on Shepherd last year as it presses on with its plan to become a 拢2bn turnover contractor.

The firm picked up Shepherd鈥檚 M&E and FM arms last September along with a number of contracts from its construction business, adding up to 拢300m in revenue.

Wates chief executive Andrew Davies (pictured) told 黑洞社区 turnover this year will hit 拢1.5bn and said he was 鈥渙pen-minded to possibilities鈥� of further deals. He added: 鈥淲e did need to grow. You get better recovery [of profit] when you grow and that鈥檚 what鈥檚 been happening.鈥�

Turnover in 2015 increased 21% to 拢1.27bn, up from 拢1.05bn the previous year, while the firm鈥檚 order book leapt a third to 拢4bn, up from 拢3bn.

But Davies said the priority this year was to bed in the Shepherd deals, which have seen it spend 拢1.8m on integration costs.

You get better recovery of profit when you grow and that鈥檚 what鈥檚 been happening

Andrew Davies, Wates

Despite the bill, the firm posted a 26% increase in pre-tax profit to 拢30.3m, up from 拢24.1m.

Davies said the Shepherd buys had given it a 鈥渇ormidably strong business in the North鈥� to complement the firm鈥檚 existing strength in southern England, and 鈥渃apability in the M&E space鈥�.

He added: 鈥淢arket conditions are still very challenging. Our strategy of disciplined growth has paid dividends.鈥�

Wates also spent 拢750,000 adopting BIM last year and Davies said it will plough a similar figure into the initiative this year.

This week, any firm wanting to be considered for central government construction work had to be BIM level 2 compliant. Davies added: 鈥淲e鈥檙e investing a lot of money [in BIM]. In truth it鈥檚 going to take time but it will get traction.鈥�

He argued BIM was worth the cost: 鈥淚t enables you to win projects 鈥� and [ultimately] it should save money.鈥�

Wates improved its cash position, with 拢127.4m at the bank, up from 拢87.4m.