Turnover stable at 拢1bn as firm blames a handful of underperforming jobs for 2013 profit fall
Lower than expected margins on a 鈥渟mall number鈥� of underperforming projects have seen Willmott Dixon鈥檚 pre-tax profit fall by 19% to just over 拢16m.
In a statement ahead of its full results being published at Companies House, the firm reported a profit before tax and amortisation in the 12 months to 31 December of 拢16.2m, down from 拢20.1m the previous year.
The firm鈥檚 revenue remained stable at 拢1.02bn in 2013, a fraction lower than the 拢1.03bn it recorded in 2012.
Rick Willmott, chief executive of Willmott Dixon, said the reduced pre-tax profit 鈥渞eflected a small number of projects now completed that did not deliver the margins we had expected鈥�.
However, he said the firm鈥檚 turnover 鈥渃ontinued to hold up well鈥�.
He added: 鈥淲e are seeing more opportunities across our industry owing to greater economic confidence and a stronger housing market and we have focused our skill-sets and resources accordingly.
鈥淥ur frameworks and long-terms contracts continue to give us a robust pipeline of construction and support services work while our development business Regen, delivering both homes for sale and private rent, really 鈥榗ame of age鈥� in 2013 with a significant volume of development that will increase in 2014 and beyond.鈥�
Turnover from Willmott Dixon鈥檚 Capital Works division fell slightly to 拢899m in 2013, down from 拢904m in 2012, which Willmott said was a 鈥渞esilient performance given the trading conditions鈥�.
He said that high levels of repeat business and a flow of projects from its regeneration business had been key to sustaining work levels.
The firm鈥檚 Support Services division reported a rise in revenue to 拢121m in 2013, up from 拢110m in 2012 due to growth in its repair and maintenance business and new energy efficiency work under the government鈥檚 Energy Companies Obligation programme.
Willmott added that the construction industry was 鈥渃oming out the other end鈥� of the 鈥減ro-longed recession鈥�.
He said: 鈥淭he pent-up demand we are seeing for capital projects means the key challenges we face alongside maintaining a pipeline of work is a growing pressure on material and trade prices, staff recruitment and supply chain capacity. These are key factors we will focus on managing this year as clients鈥� capital investment continues to gain momentum.鈥�
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