VolkerWessels UK strong profit growth lifts margin to 2.8%

Aaron Morby 1 year ago
Share

Despite the challenging market, VolkerWessels UK raised pre-tax profit by more than a third to £38m last year.

Richard Offord said all main operating divisions contributed to a strong year of growth
Richard Offord said all main operating divisions contributed to a strong year of growth

Key operations in rail, building, marine and energy infrastructure all enjoyed revenue growth helping the UK arm of the Dutch group to raise revenue 17% to £1.35bn. Highways and airport revenue were slightly down on last year.

The main driver of growth was VolkerFitzpatrick, which saw revenue practically double to £337m, lifted by biopharma, warehouse and film studio projects.

VolkerWessels divisional revenue
2022 2021
Rail infrastructure £494m £469m
Highways and airports £324m £346m
Building commercial, industrial and education £337m £170m
Marine, water, environment and energy £193m £166m

CEO Richard Offord, who took the helm a year ago after 32 years at firm, said that the increase in operating profit margin from 2.4% to 2.8% was driven by a lag in overheads growth compared to revenue growth.

He said: “All of our businesses contributed positively to these results through the delivery of quality projects and services in their
specific markets, with a few projects in the marine and energy sectors generating losses during the year, which were mitigated by strong performance elsewhere in the business.

“We are seeing ever increasing levels of collaboration between our businesses, combining our main contractor strengths with the specialist skills that we have in-house, and offering added value and expertise for our clients in this way.”

Looking ahead VolkerWessells maintained a strong order book at year end at £1.73bn, down from £1.77bn in the prior period.

Cash improved rising 8% to £147m.

 

Latest news

JRL close to deal on sale of stake to Far Eastern buyer

Equity sale plan to strengthen balance sheet and improve liquidity
6 hours ago

Groundworks firm Corbyn files administration notice

Court notice lodged by £33m-turnover contractor
6 hours ago

Vistry takes another £50m hit on build cost blunders

Second profit warning but problems contained in one division
6 hours ago

Watkin Jones go-ahead for Leeds co-living project

Firm will convert former office block Headrow House into 230 homes.
7 hours ago

United Utilities hunts for ground investigation specialists

£170m five-year framework deal out to tender
5 hours ago

WSP names new chief for UK and Ireland

Paul Reilly promoted to UK president after just over two years at consultant
7 hours ago

£125m cash injection for infrastructure at Barking Riverside

Home England funded works to boost 20,000-home development in east London
1 day ago

Subcontractors wanted across the North West

Register now to meet major buyers at Manchester event
5 hours ago

Management buyout at joinery specialist TMJ Interiors

Founder James Taylor hands over reins to directors
24 hours ago

Guinness Partnership starts race for £1bn housing deal

Housing association to renew preferred firms for 15-year housing retrofit programme
1 day ago

Rockwool plans new factory to ramp up output

Stone wool maker plans second factory in Midlands
2 days ago

McAleer & Rushe wins London City 670-room student job

Dominus confirms builder for 65 Holborn Viaduct
1 day ago

Electrician caught abusing covid loans

Middlesbrough spark subject to seven years of stringent bankruptcy restrictions
1 day ago

Wates hires Bouygues chief as MD for residential arm

Phillippa Prongue will replace Helen Bunch who retires
2 days ago

Civils powers on but house building falters

Buyers report "solid output growth" despite decline from record September
2 days ago

Multiplex tops October contracts league

£300m Glasgow Uni win tops big new orders
2 days ago

Key industry rebar supplier loses fight to stop factory closure

Kent rebar facility supplying 30% of UK rebar set to close
2 days ago

Vital Energi/Hemiko JV to build £1bn heat network for Westminster

Heat captured from the River Thames, Tube and sewers to warm Parliament
2 days ago

Plans in for Birmingham 300-bed student scheme

China Quarter stepped project will rise to 15 storeys
2 days ago

United Living looking to continue expansion

Record results as infrastructure and property spending flows
2 days ago

Paralysed builder stranded on floor for six hours after fall

Court hears how contractor failed to properly plan housing job
2 days ago

Network Rail scales back Liverpool Street station scheme

Architect changed and developer Sellar dropped as £1.5bn original plan scrapped
3 days ago

Muse JVs with pension fund insurer to build 3,000 homes

New Habiko business will build affordable low carbon, rental homes
3 days ago

£1.3bn revamp plan for South London shopping centre

Landsec plans 1,700 homes at Lewisham shopping complex site
3 days ago

Network Plus names new chief executive

Kevin Fowlie steps up to succeed founder Dan Holland
3 days ago

TanRo lands latest Clowes business park

Groundworks due to start in new year at 31-acre Harrier Park site
3 days ago

New consultant buys M&E specialist TACE

Contollo Group has ambitious growth plans over next five years
3 days ago

Skanska signs £197m deal for Mayfair offices job

South Molton job consists of two big office buildings
4 days ago

Cost of fixing unsafe cladding soars to over £16bn

Watchdog urges new 'hard target date' to complete all recladding works
4 days ago

Scottish Water opens bidding on £800m framework

Innovative ceramic membrane water treatment works programme
4 days ago

Contractor services