Firm says annual revenues for 2016 dipped, but profits double
Willmott Dixon has reported an 8% reduction in turnover for 2016, having 鈥渟limmed down鈥� its activity in residential contracting.
However the group, which revamped its housing and support services businesses at the beginning of this year, said 2016 pre-tax profit had more than doubled, with management noting the financial performance for the year had been 鈥渟lightly better than expected鈥�.
Reported revenue was 拢1.22bn, while profit before tax more than doubled to 拢28m. Profit from joint ventures quadrupled to 拢7.8m.
The firm said the profit hike was 鈥渕ainly influenced by improvements from contracting activity, particularly the unhelpful impact of a number of legacy housing projects having been removed鈥�.
Willmott Dixon said it was in line to build more than 2,500 homes for rent, and its Be residential operation required 鈥渁 material injection of expansion capital to support what is becoming a substantial business with significant potential鈥�. The process of attracting such funding was underway, it added.
The group had previously been considering a but makes no mention of this in its latest results.
Willmott Dixon also revamped its support services division 鈥� naming it Fortem 鈥� after failing to find a buyer for it last year. It said that while there had been the 鈥渙bvious distraction of aborted sale negotiations鈥�, the operation鈥檚 team had been 鈥渞ejuvenated鈥� by the decision to make it a standalone brand.
The firm recently won both its targeted lots , which it said would provide potential contract volumes up to 拢2.25bn over the course of the next four years for public sector customers in England, Wales and Northern Ireland. Willmott Dixon had previously been Scape鈥檚 sole contractor.
No comments yet