Paul Drechsler, chairman and chief executive of Wates, has called for rapid clarity on the extent of public spending cuts after the general election

Speaking after the company announced solid results for the year ended 31 December 2009, Drechsler said prolonged uncertainty would be the biggest hindrance for the industry as it recovers from the recession.

He said: 鈥淲e will need clear, fast and good decision-making. In an industry of narrow margins, deliberation can be the difference between life and death. In that respect, a hung parliament would be the worst outcome.鈥�

Drechsler acknowledged that the country鈥檚 significant debt meant spending would need to be cut, but said slashing capital spending too far would produce a steep rise in unemployment.

Wates felt the onset of the recession in 2009 and turnover fell 7% and below the 拢1bn barrier to 拢945m. Pre-tax profit was down by 17% to 拢38.9m. The order book is 拢2.3bn and the firm finished the year with 拢178.9m cash in the bank.

Drechsler said: 鈥淥ur performance was very satisfactory. We ended the year with a strong balance sheet and cash position.鈥�

He said he was confident about the company鈥檚 performance this year, but described 2011 and beyond as 鈥渧ery uncertain鈥� although the firm aims to boost turnover to 拢2bn by 2014.

Drechsler also confirmed the company was keeping its powder dry on acquisitions. 鈥淲e are open to acquisitions, but we don鈥檛 need to do them.鈥�

The public/private sector turnover split was 80/20 compared with 50/50 two years ago. Drechsler said it would be closer to 60/40 this year.

Downloads

Topics