Contractor sees fall in profit despite £1bn turnover
Willmott Dixon has reported a 21 per cent fall in its pre-tax profits.
In its results for the 12 months to the end of December 2011, the contractor announced pre-tax profits of £21.1 million, down from £26.6 million the previous year.
During the same period, the group’s turnover pushed through the £1 billion barrier for the first time to stand at £1.052 billion, up from £989.5 million in 2010. The net balance sheet also grew from £142.9 million in 2010 to £144.7 million in 2011.
The group, which has an order book of £1.2 billion, said that more than three quarters of its budgeted work for 2012 was already secured.
Rick Willmott, group chief executive, blamed the declining profit line on tightening margins on contracts and the effects of the continuing public sector cuts.
‘While it’s a substantial milestone in our 160 year history to become a £1 billion turnover company, our reduced profit for 2011 also reflects the tough market we are in where margins are now being squeezed,’ he said.
‘The lack of funding in the public sector together with a lack of confidence in the private sector is placing pressure on workload volumes.’
‘That said, our strategy to focus Willmott Dixon on new areas of growth, especially in the green economy, to re-balance our work equally between public and private sectors and develop a pipeline of opportunities in our development division Regen, which will also benefit our capital works division, is gaining real traction.’