Rick Willmott
Willmott Dixon increased its profit before tax margin to 2.8% in 2018 (up from 1.9% in 2017), on the back of a 55% increase in pre-tax profit to £37.5m.
Turnover during the year to 31 December 2018 rose to £1.32bn, up from £1.27bn the year before.
Chief executive Rick Willmott attributed the results to a focus on construction and fit-out and pointed to public sector procurement frameworks as a key driver of future business.
The contractor said 73% of its turnover in 2018 was produced via frameworks, while 67% of all its orders in 2018 were accounted for by repeat business.
The privately owned company also boasted no debt, with access to unused but committed bank facilities until 2021.
The level of cash it held at the bank increased in 2018 to £90.5m, up from £82.8m in 2017, while net assets rose to £170.2m, up from £142.2m.
That helped the business to make 92% of all payments on time, with average payment terms to suppliers of 32 days and 99% of all invoices paid in under 60 days.
Group chief executive Rick Willmott said: “Our approach of the last two years to focus entirely on construction and fit-out is showing strong results with good earnings growth, increased margin, a solid cash position and a robust, sustainable forward order book.”
“This at a time when the pipeline of work available to the country’s fifty largest contractors has continued to diminish post the 2016 Brexit referendum; caused by postponement or cancellation of project opportunities. Being in a position of strength to weather the consequences of a further material depletion in accessible workload will remain a key priority for Willmott Dixon.”
“That is why our role on public sector procurement frameworks will be a key driver for our business; at present this gives us access to £25 billion of potential workload volume.”
