Willmott Dixon bounced back into the black in the first six months of the year with better profits than expected and a record order book .
Chief executive officer Graham Dundas said Willmott Dixon enjoyed a ‘prompt and healthy return to profit’ after what had been a difficult 2023 when it suffered a £14m pre-tax loss due partly to the insolvency of an M&E subcontractor.
“While market conditions remain competitive, both profit and turnover are ahead of our forecasts, underlining my confidence in our ability to deliver profitable long-term growth,” he said.
“Our strong start to the year is further illustrated by cash at the bank of £109m.”
Each of the privately-owned contractor’s subsidiary operations contributed to the £10m pre-tax profit in the first six months to June 2023, with revenue stable at £561m (HY23: £589m).
Dundas, who took up the chief executive role six months ago from Rick Willmott, predicted the demise of ISG and requirements of the Building Safety Act would now see a further shift in customer mindset from ‘lowest bid’ to ‘best quality’, with additional scrutiny placed on bidder financial robustness.
He said this would strengthen Willmott Dixon’s market position which enjoys 69% of turnover from frameworks, and over 55% of turnover from repeat customers.
Willmott Dixon agreed over £1bn of new orders by August and 98% of budgeted workload for 2024 is now contracted.
Dundas said:”In addition to a record secured orderbook, we also have preconstruction appointments on projects expected to deliver a further £1.5bn of work once successfully converted into main contract awards.“
He added: “We are on track for returning to full year profit in 2024 and growth in 2025. We are emerging as a stronger business with the challenges of 2023 behind us. However, while positive and cautiously optimistic, we are not complacent.
“Our markets remain strong, and the new Government’s focus on economic growth will lead to new investment in the building blocks of that growth, in the community infrastructure that encourages inward investment, connectivity and civic pride of place.”
