The business secured £2.3bn of new work during 2021 and ended the year with a record forward order book of £7.1bn, up 7% from its previous record in 2020.
As the Group entered its 125th anniversary year, it reported a leap in pre-tax profits to £37.4m (up £35.7m from 2020, and £1.2m (3%) higher than 2019) and EBITDA of £51.1m from turnover of £1.63bn (up 12%). It ended the year with £228.7m in cash, (up 6% from 2020) and net assets at £177.1m (up 25%). As a UK-based employer, the Group increased its total tax contribution to the Exchequer from £107m in 2020 to £233m in 2021.
Throughout the year, Wates strengthened its commitment to environmental sustainability, cutting carbon emissions by 53% (since 2019). It also continued to give back to the communities where it operates, generating £116m in social value over the course of the year. The Group will shortly be announcing details of a significant new sustainability-linked loan facility.
-- Advertisement --
All the Group's divisions performed strongly. Wates Construction generated pre-tax profits of £18.7m from a turnover of £772m (up 51%), cementing its position as a leader in the provision of new schools, offices, leisure facilities and homes while expanding its offer in new sectors including healthcare.
Wates Residential increased its turnover by 75% to £268m, as well as boosting its headcount by nearly 100 employees. Wates Developments saw its turnover jump 65% to £107m, generating £5.6m in pre-tax profits. This performance reflected the Group’s increasing investment in development activities.
Wates Property Services increased turnover by 14% across its three divisions to £475.9m, with its facilities management business, Wates FM, experiencing the best trading year in its history. Specialist fit-out and refurbishment contractor, Wates Smartspace, won more than £150m in new work. More than 50% of Smartspace's work is now for public sector customers. In 2021, this included a series of important projects for the Ministry of Justice (MoJ) and the Department for Work and Pensions.
