Willmott Dixon has said it is confident of a return to profit in 2024 after last year’s financial performance was impacted by supply chain insolvencies.
Turnover for the year ended 31 December 2023 was £1.172 billion, up from £1.147 billion in the previous financial period, generating a loss before tax of £5.2 million (FY2022: £0.8 million profit).
Much of its revenue last year (67 per cent) was procured though long-term frameworks, more than half with repeat customers, and affected projects are now either finished or close to completion.
The contractor’s Construction business saw turnover last year of £1.043 billion ahead of £1.014 billion the year prior, while its Interiors division declared £130.9 million, down from £133.4 million.
Twenty-three projects during 2023 were either net zero in operation or Passivhaus standard builds.
Willmott ended 2023 with £115.1 million in cash reserves, net assets worth £158.8 million, and zero debt.
As part of a trading update for 2024, the contractor reported £700 million of new orders secured since December including £230 million in April, with more than 85 per cent of work for the year now also locked in.
This new work, a mix of full contract wins and preconstruction orders, takes Willmott’s order book to more than £3 billion for the first time.
It added turnover and profit in the first quarter of 2024 are already ahead of its budgeted forecasts.
Chief executive, Graham Dundas, said: “We are delighted by the strong start that Willmott Dixon has made to 2024, with our Q1 profit and turnover already ahead of our budgeted forecasts and a record pipeline of over £3 billion.
“I’m particularly encouraged by the way in which the business has responded to a difficult 2023, when certain projects were materially impacted by the industry-wide problem of significant inflation, as well as key supply chain failures at critical times.
“With inflation easing and a strong pipeline of high-quality work, our resilient balance sheet and a healthy mix of long-term revenues means that Willmott Dixon is well-positioned to prosper in 2024.”
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