VolkerWessels UK has delivered a significant increase in turnover and profit in its latest trading update, supported by a strong pipeline of work and healthy balance sheet.
Revenue for the year ended 31 December 2023 was £1.4 billion, a marked increase on the £1.3 billion achieved in the previous financial period, generating a pre-tax profit of £38.6 million (FY2022: £37.7 million).
This was in addition to a forward secured order book value of more than £1.3 billion, compared to £1.7 billion the year prior.
The VolkerFitzpatrick business was buoyed during the period by major projects such as HS2, Eastbrook Studios, Magna Park, and Hornsea 3 as well as rail projects at Gosforth and Birmingham.
While VolkerRail also delivered strong results due to major contracts with the East West Rail Phase 2 Alliance, the TransPennine Route Upgrade (East) Alliance, the Signalling and Telecoms Framework, and the Hope Valley Capacity project.
The wider engineering and construction group, headquartered in Herts, reported an operating profit last year of £36.1 million, not far behind the £37.6 million recorded in the prior financial period.
At the year end, VolkerWessels’ balance sheet had total assets worth £506.1 million, closing in on the £513.1 million recorded the year before, with healthy cash reserves too of £148.1 million (FY2022: £147 million).
The business posted an impressive profit for the year of £28.5 million, a significant increase on the £15.8 million it delivered the year prior.
VolkerWessels’ primary markets include rail, highways, aviation, marine, energy, utilities, and commercial and industrial building.
“Overall, the directors are pleased with the group’s performance for the year which, when taking into consideration the economic and market conditions […], is the product of a robust and effective long-term business strategy,” said the contractor.
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