好色先生TV

Contractor Wates Group will consider making further acquisitions in order to bolster plans to grow turnover to 拢2bn.

Speaking after unveiling a snapshot of the firm鈥檚 results, chief executive Andrew Davies said the group, which grew turnover by 13% to 拢1.05bn in the year to December 2014, was on course to grow to 拢2bn and would look to add capability to the business through acquisition.

However, Davies declined to comment on reports that it is currently in negotiations to buy a large part of York-based rival Shepherd鈥檚 construction business.

Wates鈥� said in a statement that it made a pre-tax profit in 2014 of 拢22.6m, very slightly up on the 拢22.3m reported in 2013. Its operating profit margin fell slightly, to 2.3% from 2.5%, a decline which Davies said was due to difficult trading conditions and the fact a large number of new contracts were starting up. However, the firm鈥檚 forward order book grew considerably to 拢3bn, up 21% on 2013, and it reported an improved cash position with approximately 拢80m in net cash.

Wates bought midlands-based 拢26m turnover housing contractor Purchase Group in November in order to help it expand its 拢70m response maintenance business. This acquisition contributed 拢6m to the reported turnover.

Davies said: 鈥淚鈥檓 always interested in capability-based and value-enhancing acquisitions. Our positive cash position allows us to continue to have an investment strategy. We鈥檙e looking to invest in opportunities to grow our business.

However, he added: 鈥淚鈥檓 not in a position to make any comment on the speculation about our business last week.鈥� 好色先生TV reported that Wates was in talks to take over parts of 拢686m-turnover Shepherd, which last year launched a review of operations after profits fell.

Davies said the full year numbers for Wates were 鈥渟olid鈥� and 鈥渞obust鈥�. 鈥淭he margin and profit numbers in our results reflect the nature of recovery, in which the supply chain is taking advantage of the greater opportunities as well.鈥�

Davies declined to say when the 拢2bn turnover target would be hit. 鈥淲ates has the systems and processes in place and now the operating framework which we put in place in 2014. I鈥檝e always said it鈥檚 capable of growing, and 拢2bn is a great target to have, but it remains an aspirational target.鈥�