Willmott Dixon has set its sights on a £1.5bn construction business after securing £747m of new work by the end of July, 89% of it under main contract. The contractor said the awards give it secure and visible revenue for 2027 and beyond and lay the foundations for revenue growth from that year.
The construction division is targeting expansion from £1.03bn of turnover last year, with defence and healthcare expected to spearhead the growth. Education generated the largest individual wins in the period, led by the £93m College of North West London campus at Wembley and the £58m Mosslands secondary school.
Profit improves as revenue dips
Group pre-tax profit rose 15% to £11.5m in the six months to June, even though revenue edged down to £545m from £548m. Willmott Dixon attributed the slight decline to major starts taking time to come through. The group now has a £1.37bn secured order book and more than £3.5bn of identified workload, taking its total pipeline to around £5bn.
Chief executive Graham Dundas said: “Our priority this year was to convert our record level of preconstruction appointments into main contracts.” He added that the £747m secured by the end of July, most of it under main contract, provided secure and visible revenue for 2027 and beyond.
The order book also includes £28m of affordable homes at Princes Gate in Oldham for Muse, Portsmouth’s £22m Bransbury Park Leisure Centre and the £16m Bath Fire Station. Frameworks remain the main engine of orders and generated around 90% of new work, the company said. The mix of work spans education, residential, leisure and emergency services, while defence and healthcare are expected to lead longer-term expansion.
Cash position strengthens
Willmott Dixon strengthened its cash position to £127m, with no debt and record shareholders’ funds of £190m. The balance sheet figures sit alongside the higher pre-tax profit and a pipeline that the company presents as providing visibility beyond the major starts that held back first-half revenue.
Dundas warned, however, that cost pressures were still squeezing customers and suppliers. He said global conflicts continue to push up energy, fuel and material costs, and that financial resilience and a proven delivery record matter more than ever when customers choose who to work with.
The relaunched Willmott Dixon Developments arm is also seeking growth through public sector regeneration partnerships. It most recently secured the £100m Baytree Shopping Centre scheme in Brentwood with Milligan.