Wates Group’s Reports Record-Shattering Fiscal Year
In the face of daunting economic adversities, including rampant inflation and convoluted supply chains, Wates Group not only persevered but excelled by marking a historic year in its 127-year legacy. With a record-breaking £2.18 billion in revenue and a strong profit before taxes, the Group demonstrated its tenacity and strategic foresight.
Record Turnover and Profit
Wates Group had a record-breaking year in 2023, with a turnover of over £2.18 billion, up more than 15% from the year before. This significant accomplishment not only illustrates the Group’s sound financial standing but also represents the first time the £2 billion turnover threshold has been crossed. Wates has been exhibiting a stable performance for over 20 years, as seen by the profit before tax of £46.2 million.
The record-breaking forward order book, valued at £8.54 billion, was a noteworthy high point of the fiscal year and suggested strong future operations and potential for long-term expansion. This track record reveals Wates Group’s capacity to land significant projects and keep a competitive advantage in the market.
Investment initiatives
Wates Group carefully distributed resources in 2023 to strengthen its market position and broaden its business. This includes continuous investments in House Building Joint Ventures, which, while reducing net cash to £138 million from the previous year, position the Group for long-term profitability. Notably, the £90 million revolving credit facility remained undrawn, demonstrating good liquidity management.
Wates Group’s total tax contributions grew by 23%, reaching £387 million. This rise not only strengthens the UK’s economic framework, but also demonstrates Wates’ commitment to budgetary discipline and societal benefit.
Stewardship and Sustainability
The Group achieved considerable strides in decreasing its environmental impact, lowering scope 1 and 2 emissions by 45.3% and nearly meeting the 46.2% objective set for 2030. Such projects demonstrate Wates’ commitment to sustainability and proactive approach to mitigating climate change.
Wates Group reaffirmed its commitment to environmental conservation after the Science-Based Targets program (SBTi) confirmed its greenhouse gas reduction targets. Cressida Curtis’ appointment as Group Sustainability Director underscores the company’s objective of thoroughly integrating sustainability into its corporate operations.
Operational Financial Highlights
Wates’ Property Services division achieved significant growth, with revenues reaching £545 million. This rise was fuelled by innovations such as the Healthy Homes Initiative and large contracts for social housing retrofitting.
The Facilities Management division recorded a 19.2% rise in revenue, owing primarily to renewed and extended contracts, including a significant cooperation with Yorkshire Building Society.
The Construction division’s turnover climbed by 22%, with new contracts raising the average project value to a record £48.3 million. This increase demonstrates the division’s efficiency and capacity to manage high-value projects.
Under the visionary leadership of CEO Eoghan O’Lionaird, Wates Group has not only navigated a challenging economic landscape but has set new benchmarks for success. The strategic foresight to invest in diverse sectors and commitment to environmental and social governance ensures that Wates Group is well-positioned for future growth. With a solid foundation and a clear direction, the Group continues to build on its legacy of success, promising to achieve even greater heights in the coming years.