Wates has unveiled financial results for 2023 showing profits up 37% on record turnover, topping £2bn for the first time.
Wates Group made a pre-tax profit of £46.2m (2022: £33.7m) on revenue up 15% at £2.18bn (2022: £1.89bn).
It has now delivered a profit before tax every year for more than two decades.
Wates ended the year with a record order book worth £8.54bn. Net cash was reduced from £153m to £138m on account of investments including house-building joint ventures. A £90m revolving credit facility remained undrawn at the year-end.
Wates Construction reported £1.17bn turnover, up 22% from last year, and secured £1.1bn in new work, with a highest-ever average project value of £48.3m.
Current major schemes include the design and build of the AESC UK gigafactory in Sunderland, the redevelopment of London’s Canada Water and the 4 Angel Square office building in Manchester.
Turnover in the group’s residential business was up 4% to reach £323m, delivering 276 homes over the year with more than 3,000 homes under construction.
Wates Developments secured its highest-ever profit before tax, alongside a turnover of £147m, an increase of 16% on 2022. Property Services increased turnover to £545m in 2023. Wates Facilities Management increased its turnover by 19% thanks to contract renewals and extensions.
Chief executive Eoghan O’Lionaird, who joined the business in February 2023, said:
“Despite a challenging external environment, we delivered a strong performance last year. Whilst it’s great to pass the £2bn turnover mark, it’s just as encouraging to see an increase in profit. Our stable family governance and clear purpose have provided a firm foundation upon which we continue to go from strength to strength.
“We are in an excellent position, with profitability across all parts of our business, a solid cash balance and a positive tangible net worth. Our record forward order book demonstrates our customers’ confidence in our ability to deliver projects of all types and sizes. This confidence is hard-earned, with Wates delivering profit before tax every year for more than two decades.”