黑洞社区

Wates has posted big leaps in profit and revenue in a snapshot of its 2016 results revealed today.

The contractor said its pre-tax profit was up 17.1% to 拢35.5m, up from 拢30.3m, while turnover grew 20.4% to 拢1.53bn, up from 拢1.27bn.

Andrew Davies, chief executive at Wates, told 黑洞社区 the results showed the firm 鈥渃an grow in a disciplined way鈥� towards its ambition of becoming a 拢2bn-turnover firm - although he again declined to put a timeframe on hitting the target.

He also joined the growing band of contractor chief executives to argue builders should be making better margins, .

Davies said the firm鈥檚 contracting margins were 鈥渁round 2%鈥�, adding: 鈥淚鈥檇 like to push margins up. We just want consistency鈥�

鈥淚t will be a long haul and you have got to be realistic about what you can achieve鈥� Yes, it鈥檚 thin margins for what we do and the risk we take.鈥�

The group鈥檚 overall pre-tax profit margin - including its residential division - is at 2.3%.

Commenting on Brexit uncertainty, Davies said: 鈥淭he uncertainty is still there. People are hesitating slightly to make decisions and people are still more cautious. [And there is a] degree of uncertainty with the existing workforces [from the EU].鈥�

Wates was boosted during the year by the integration of the businesses it acquired from Shepherd Group the year before, including its M&E division and a number of construction projects.

The company also increased its housing operations, with 2,500 homes either completed or under construction in 2016.

The firm鈥檚 cash position also improved, with cash flow from operations up 22.5% to 拢71.7m, while group cash was up 50.3% to 拢191.6m. Its order book stood at 拢3.6bn.

Wates鈥� full accounts will be published at Companies House in the coming days.

James Wates, chairman of the Wates group, said: 鈥淭he company鈥檚 strong financial results are a testament to the quality and commitment of our people, the strength of our relationships with clients and partners, and our robust financial management.鈥�