黑洞社区

Willmott Dixon has spun out its housing business with the aim of attracting new investment next year to turbo charge its growth.

The firm had already re-launched its housing business in May this year under the Willmott Residential brand and the leadership of former Berkeley Group executive Nic Simpkin, .

Now Willmott Residential has been spun out as a standalone 鈥渟ister business鈥� to Willmott Dixon鈥檚 main construction and interiors business. It will no longer report to umbrella group company Willmott Dixon Holdings, although it will remain owned and controlled by the Willmott family - at least for now.

Willmott Dixon also announced it has spun out its support services division - recently rebranded as Fortem - after failing to find a buyer for it earlier this year.

Speaking to 黑洞社区, Willmott Dixon group chief executive Rick Willmott (pictured) said Willmott Residential expected to secure a new 鈥渕inority鈥� investor next year as part of a 鈥渇irst phase鈥� funding round to help fuel its push into the build to rent sector and delivery of its 7,500 home pipeline. Willmott did not rule out a potential float down the line, but said this would not happen next year as part of the first funding round.

He said: 鈥淲e have an aspiration to attract third party capital into Willmott Residential鈥� It will involve equity and an investor taking a minority stake and we hope to complete this next year.鈥�

Commenting on the possibility of an initial public offering (IPO) on the stock exchange for the residential business in future, Willmott said: 鈥淚t all depends on the [first round] partner to be honest. The beauty of being a private business is we can weigh up all the options. We wouldn鈥檛 rule anything in or out.

鈥淎fter phase one, where that takes us depends on the market. If for instance there鈥檚 a massive government push on PRS in the forthcoming housing white paper that could accelerates things.鈥�

Willmott Dixon sought expressions of interest in buying its support services business earlier this year, but shelved the plan in June after proposals failed to live up to its expectations. Last month it rebranded the business as Fortem.

Commenting on the decision to also spin out this business, Willmott said: 鈥淭he market wasn鈥檛 ready [to buy it] and didn鈥檛 understand the offer and the business. We have decided to hang on to it and make it better.鈥�

Willmott said he 鈥渨ouldn鈥檛 rule out鈥� a potential sale of Fortem, but added: 鈥淲e are not out there looking to sell it鈥�.

In a snapshot of its financial results for the first half of this year to June, Willmott Dixon said pre-tax profit across all three businesses increased 48% to 拢12m, up from 拢8.1m the previous year. Turnover stood at 拢600m, while its forward order book hit 拢1.15bn. Results for the three businesses will be reported separately from now on.