Willmott Dixon has set aside an additional £5.4m to “draw a line” under the financial uncertainty related to cladding and fire protection issues with buildings it previously completed.
The figure, revealed by group chairman Colin Enticknap, in the firm’s annual results for the year to 31 December 2020, takes the total amount set aside by Willmott Dixon to deal with cladding issues on completed buildings to £10.3m.
It said the total figure reflected “our view on the group’s liability net of insurance recoveries to settle all claims”.
It has also put subsidiary WPHV, formerly Willmott Dixon Partnership Homes, which undertook much of the cladding work, into administration.
Enticknap said the increased provision had a “smaller but still material” impact on the group’s profit, as compared to the sizeable impact of disruption caused by the covid-19 pandemic.
Willmott Dixon’s turnover declined to £1.19bn, down from £1.25bn the year before. Its pre-tax profit dropped to £11.9m for the year, down from £31.3m, with its pre-tax profit margin slipping from 2.5% in 2019 to 1% in 2020.
