The contractor set aside an exceptional charge of £28.8m in its latest accounts for moving its £185m defined pension plan last December to consolidator Clara-Pensions.

Wates also said its bottom line was hit by investing heavily in divisional overheads and support functions, higher than expected costs in house-building joint ventures in developments and closing out some projects in construction.

Results for the year to December 31 2024 show pre-tax profits fell to £2.6m from £31.4m last time on turnover up to £2.4bn from £2.2bn.

Eoghan O’Lionaird, Chief Executive Officer, Wates Group, said: “This year’s results represent a robust performance in difficult market conditions, with 2024 marking the 25th year in a row in which the Wates Group has been profitable.

“We are proud to be a 100 per cent UK family-owned business. With our new purpose at the heart of everything we do, we have an excellent foundation on which to build continued sustainable profitable growth.

“The business ended the year in a strong position with a solid cash balance and a positive tangible net worth. Importantly, we are proud of the excellent relationships we have built, with much of our work delivered for repeat customers.

“Our forward order book also demonstrates the confidence that our customers have in us to deliver projects of all types and sizes – and 2024 has seen more large projects won and delivered across our business divisions.

“I would like to extend my thanks to all our colleagues, customers, partners and supply chain for their hard work to make our continued success possible.”