VolkerFitzpatrick has posted £729.5 million in revenue for 2024, marking a 7.4 per cent increase over the previous year’s £678.6 million.
Growth was driven by higher volumes in the aviation sector and the full award of the Southern Renewals Enterprise for Network Rail’s Control Period 7 (CP7), alongside major infrastructure projects like HS2, Heathrow Airport’s southern runway, and Hornsea 3.
However, a slowdown in the industrial and distribution sector partially offset these gains.
Despite challenges such as material shortages, inflationary pressures, and delays due to the general election, the company achieved a pre-tax profit of £19.5 million, a modest £600,000 increase from £18.9 million in 2023.
Operating profit remained stable at £15.1 million (FY2023: £15.3 million).
As part of the VolkerWessels UK group, VolkerFitzpatrick, which provides its construction and engineering services across various sectors, contributed to a four per cent revenue increase to £1.49 billion and a 24.4 per cent rise in pre-tax profit to £48 million in 2024.
VolkerFitzpatrick’s gross profit margin alone remained stable at six per cent, reflecting risk management and a focus on high-value projects.
Its performance was underpinned by major infrastructure projects, including those previously mentioned, as well as others; HS2 and Eastbrook Studios.
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Cash and cash equivalents stood at £116.8 million, a 13.7 per cent increase from £102.7 million.
The company announced a dividend of £14.4 million, slightly down from £16.7 million in 2023.
Its secured order book grew to £703.7 million by year-end (FY2023: £684.1 million), bolstered by key projects like the Radlett Rail Works and the M27 Junction 10 Upgrade.
Looking ahead, the company anticipates a recovery, supported by a strong financial position and diverse market sectors, including growing areas like aviation, rail, and life sciences.
It said: “Our long-term strategy is to generate improvements in the quality of earnings through focused tender selectivity and providing an enhanced service for our clients. In addition, continuous improvement in operational delivery, and the management of risk throughout the lifecycle of our projects is also a key feature of strategy.
“Overall, we are pleased with the business’ performance for the year, particularly considering the economic and market conditions.”
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