VolkerWessels UK posts boosted profits and £1.49bn revenue as infrastructure growth offsets commercial slowdown

VolkerWessels UK has posted a strong set of 2024 results, with profits and revenue up despite economic challenges, as infrastructure growth helped counterbalance a slowdown in commercial and industrial turnover.

The multidisciplinary contractor, active across rail, highways, marine, energy and commercial construction, saw revenue, for the year ended 31 December 2024, rise four per cent to £1.49 billion (FY2023: £1.43 billion).

Pre-tax profit jumped 24.4 per cent to £48 million (FY2023: £38.6 million) – marking a 3.2 per cent return, up from 2.7 per cent last year – while operating profit rose 22 per cent to £44.1 million from £36.1 million in 2023.

Gross profit increased 4.9 per cent to £126.2 million (FY2023: £120.2 million), with margins edging up to 8.5 per cent.

The group delivered projects through its five core businesses – VolkerFitzpatrick, VolkerRail, VolkerStevin, VolkerHighways and VolkerLaser – which provide integrated construction and engineering services across the UK.

Growth in marine, highways and energy sectors offset a sharp 57.6 per cent decline in commercial, industrial and education turnover, which fell to £138.6 million.

Marine, water, energy and environment revenue surged 36.7 per cent to £340.4 million.

Rail remained the group’s largest sector, up 11.2 per cent to £547.1 million, bolstered by projects such as the Transpennine Route Upgrade (TRU).

Highways and airports revenue also grew 27.2 per cent to £465.1 million, driven by schemes on the A27, A31, and early works on a £280 million M3 upgrade with Balfour Beatty.

With £171.9 million in cash and £134.3 million in net assets, and paid £29 million in dividends.

While its order book rose to £1.5 billion, boosted by a £1 billion long-term rail deal under the Southern Renewals Enterprise framework.

Richard Offord, CEO at VolkerWessels UK, credited the group’s resilience, focus on critical infrastructure markets, and disciplined project selection.

“We are incredibly proud of the direction our business is heading in; despite the economic challenges we faced in recent years,” he said.

“Our strong performance is a testament to the outstanding work delivered by our teams across the group and our focus on selecting the right work for us and our supply chain. 

“We are pleased to see each of our Business Units contributing to our overall success.”

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