Willmott Dixon puts housing repair division up for sale

Aaron Morby 3 months ago
Share

Willmott Dixon is putting its housing maintenance and energy services businesses up for sale to focus on core new build activities.

Willmott Dixon Partnerships
Partnerships housing maintenance business carries out 400,000 responsive repairs a year

The private builder told staff yesterday that contractors and private investors are being invited to submit expressions of interest in the two businesses making up the support services division.

Together the firms turnover around £143m a year, delivering a combined £2.9m pre-tax profit, according to the latest published accounts for 2014.

In a statement group chief executive Rick Willmott said the board believed the business had great potential, which was being hampered from being unlocked by being a minority concern in the wider group.

He said: “While the support services division is performing well under experienced and capable management, and is expected to continue delivering reliable and profitable returns well into the future, the group board believes there to be significant untapped potential.

“Indeed, with the right direction, support and synergies, it is confident that the two subsidiary companies involved – Willmott Dixon Partnerships and Willmott Dixon Energy Services – could each grow to challenge ‘market leader’ status in their respective sectors.

“However, the board also recognises that these businesses are being hampered to some extent by being minority players in a group predominantly rooted in contracting and development activity.”

Support Services Division

Willmott Dixon Partnerships

  • Pre-tax profits: £2.7m
  • Turnover: £124m
  • Staff: 1,300
  • Mick Williamson, managing director
  • 400,000 responsive repairs a year
  • Operates: Birmingham, Galacia, Guinness, Orbit, Home Group, Paragon, Metropolitan, Rotherham

Willmott Dixon Energy Services

  • Pre-tax profit: £200,000
  • Turnover: £19m
  • Staff: 52
  • Rob Lambe, managing director
  • Operates: Hull, Oxford and Leeds

A sale would free Willmott Dixon to focus on the two remaining divisions: major contracting and residential development.

The firm has reassured the 1,400 strong workforce that if the right buyer is not found it will retain the division within the group.

Rick Willmott added: “If the search does not identify a partner able to provide a compelling ‘added value’ proposition, it would mean that Willmott Dixon remains the best environment within which to drive both businesses forward – in which case it would continue to do exactly that, and with renewed vigour.”

The firm has appointed Ernst & Young as advisors and firm wishing to express an interest should contact Mark Brockway on mbrockway@uk.ey.com.

Latest news

WSP swoops to buy rival consultant Sweett

£24m deal sees WSP continue on the acquisition trail
13 hours ago

Swansea Tidal Lagoon developer dumps Chinese contractor

Swansea Tidal Lagoon developer to retender £300m sea wall contract
1 day ago

Cleveland Bridge UK returns to profit after four years of losses

New management team turns steelwork contractor around with £2.5m profit
12 hours ago

Leaking mobile crane closes London Blackwall Tunnel

Traffic chaos across South London as contractors battle to resurface damaged road
1 day ago

GPE gears up for two more London starts despite Brexit fear

Gt Portland Estates warns over ‘unhelpful’ EU stalemate
12 hours ago

Sixteen firms win national £1.5bn RE:FIT framework

National retrofitting scheme to lower public sector energy bills
13 hours ago

J Murphy joins trade body Build UK

Abestos removal firms also sign up to newly-former contractors' association
12 hours ago

Forrest to build £12.6m Manchester resi scheme

Construction to start this month on twelve-storey scheme
11 hours ago

Didcot recovery operation hit by further delays

Bodies of disaster victims still not returned to their families after three months
22 hours ago

Brexit fears send site wages soaring to £1,000 a week

Bricklayers now earning £25 an hour as skills shortages set to intensify if UK votes to leave Europe
2 days ago

Small companies being left behind by “BIM divide”

Smaller firms missing out on the benefits of computer modelling warns Morgan Sindall
1 day ago

Local contractors urged to chase £6bn schools deal

SME leaders encourage member firms to go for places on massive education framework
2 days ago

Renew hits acquisition trail as profits soar

Engineering services specialist delivers record results in first six months
2 days ago

Green light for £2.6bn Scottish windfarm

Construction to start this year on huge infrastructure investment
2 days ago

Skanska jv wins £100m National Grid Humber tunnel

Gas pipeline will be the longest in a tunnel, inserted in a single string in the world
2 days ago

New finance director for Clugston

Ian Pattison joins from Aim-listed office services group Restore
2 days ago

Gilbert-Ash seals £21m Oldham theatre revamp

Work to start on Oldham Coliseum and library revamp
2 days ago

Demolition starts for £400m Marble Arch Place

Brookfield Multiplex will replace 1960s Hyde Park tower with mixed-use development
2 days ago

Manchester Uni suspends £170m student halls as bids soar

University goes back to the drawing board as builders fail to meet target price
3 days ago

Wates lands £30m Farnborough exhibition centre job

Construction to start in September to expand home of famous airshow
2 days ago

Famous film labs to be turned into £120m resi scheme

Weston Homes to start revamp of Denham site where Star Wars and James Bond were created
3 days ago

Farrans bags £33m London special needs school

Oaklands 224-pupil special needs school will be built in Hounslow
3 days ago

Rowecord returns to structural steel fabrication

Group's Braithwaite Engineers business sets up new facility in Port Talbot
3 days ago

ISG wins Oxford Uni laboratory scheme

Work due to start in next few weeks on the complex new-build and refurbishment project
3 days ago

Russells to start Manchester £40m Axis resi tower

Work set to start on 28-floor block of flats almost a decade after plans first approved
3 days ago

Jail for phantom house builders

Fraudsters swindled tax man out of £500,000 for bogus building materials
3 days ago

Northern Line Tube Extension cost to soar by £240m

Battersea Power station developer in talks with TfL over who should foot major design change bill
6 days ago

Builders confirmed for £14bn Wylfa nuclear power station

Hitachi, Bechtel and JGC Corporation JV signs deal for Anglesey project
6 days ago

Bid race starts for £135m Dover Harbour revamp

Western Docks construction programme to start before the end of the year
6 days ago

Construction employers in “final” 5.25% pay offer

Contractors claim they have been 'pushed to the limit" during pay negotiations
6 days ago

Contractor services