Willmott Dixon chief executive Rick Willmott has expressed concern for the construction industry because of the medium-term impact of covid-19 on the global supply of materials.
Willmott warned of “spiralling demand and restricted supply” creating pressures on the sector including:
- “Rampant” cost inflation in a generally fixed price environment that could erode supply chain margin
- Lack of availability of materials delaying project completions
- Capital projects may no longer be financially viable, leading to a hiatus on contract awards
Willmott’s cautious tone came as the business unveiled its accounts for the year to 31 December 2020. 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.
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