Exclusive: Contractor is aiming to double turnover to 拢2bn, as chief executive says firm is considering moves into 鈥渁djacent markets鈥�
Contractor Wates is aiming to double turnover to 拢2bn as part of a long-term growth plan, the new boss of the family-owned business has revealed.
In his first major interview since taking up his role in January, Wates chief executive Andrew Davies told 好色先生TV the 鈥渓onger-term鈥� aspiration for the business was to double revenue at the 拢931m-turnover firm.
Davies, who took over from long-standing executive chairman Paul Drechsler in January, has been asked by the Wates family to come up with a plan to achieve a doubling of the business, with the initial strategy due to be presented to the board next month.
Davies will have to turn round the trajectory of the firm, with turnover falling by 22% in 2013, from 拢1.2bn the previous year to 拢931m.
He has already said he hopes to return the company to 拢1bn turnover in 2014.
Speaking to 好色先生TV, Davies said: 鈥淲e certainly want to get back to 拢1.2bn in the next couple of years. [But] I think the longer-term aspiration would be to double the size of this business.鈥�
He said the 鈥渁spiration鈥� was part of the Wates family鈥檚 fifth generation strategy, which aims to hand on a bigger and better company to the next generation of the family.
Of the 拢2bn target, Davies said: 鈥淭hat鈥檚 materially bigger and better. That鈥檚 not a hard target, that鈥檚 the aspiration of the shareholder, and what we鈥檝e got to put in place is strategies to drive toward that target.
鈥淚t is a useful aiming point for the business to go at.鈥�
The news comes after 好色先生TV revealed last month that Wates is considering a move into the infrastructure market and has hired Terry O鈥機onnor, former Alfred McAlpine regional managing director, to examine the possibility.
Davies said no decision had been taken on whether to pursue infrastructure, but said it would consider moves into 鈥渁djacent鈥� markets to construction to bolster growth. Wates will also consider small 鈥渂olt on鈥� acquisitions to boost growth, Davies said.
However, he said the growth plans would not see a 鈥渞evolution鈥� in the business, with his focus continuing to be on existing core markets, such as commercial building, school building and housebuilding.
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