UK’s Wates Group passes £2bn turnover mark

The 127-year-old company saw its turnover increase 15% year on year, as it made a 2023 pre-tax profit of £46.1 million ($58.4 million). It is the 20th year in a row that the company has delivered a pre-tax profit.

The group also ended the year with a record forward order book of £8.5 billion ($10.8 billion).

Wates’ construction group reported a turnover of £1.7 billion ($2.2 billion), up 22% from last year. It secured £1.1 billion in new work ($1.4 billion), with an average project value of £48.3 million ($61.2 million). Among its current projects are the AESC UK electric battery gigafactory in Sunderland and a new town centre in London’s Canada Water.

Meanwhile, its residential business increased turnover by £13 million ($16.5 million) to £323 million ($408.9 million). It delivered 276 homes over the year, with more than 3,000 in construction.

Wates’ development group generated a turnover of £147 million ($186.1 million) in 2023, an increase of 16% on last year. And its property services business also increased turnover to £545 million ($690 million) in 2023.

During the year, the Group delivered two of its 2025 social value targets ahead of schedule. The Group’s strategic spending with social enterprises, reached £31m since 2020, exceeding the original 2025 target of £25m. Wates also delivered triple its 2025 target for engagement with the sector’s future skills pipeline, supporting 80,000 young people in primary and secondary schools to consider a construction career since 2020, against an original target of 25,000.

Meanwhile, it reduced its scope 1 and 2 CO2 emissions by 45.3% against a 2019 baseline. This compares with its near-term (2030) science-based target of 46.2%.

Eoghan O’Lionaird, chief executive officer, Wates Group, 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.”