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VolkerWessels UK 2015 results sees profit up 41% but order book down as frameworks targeted

VolkerWessels UK saw pre-tax profit rise 41 per cent and revenue grow by 14 per cent in 2015.

Revenue increased to £852.1m for the year to 31 December 2015, up from £746.9m a year earlier, while pre-tax profit hit £20.8m, up from £14.7m in its previous results, according to documents filed at Companies House.

The majority of revenue came from construction contracts, which accounted for £743.3m in 2015, up from £642.7m a year earlier – a 15.7 per cent increase.

Service contracts (£91.2m) and plant hire (£17.6m) made up the remainder of the firm’s 2015 revenue.

VolkerWessels UK’s secured order book dropped from £1.8bn to £1.5bn at the end of the year, which it attributed to “a trend towards longer-term framework contracts” and the delivery of a number of large projects during 2015.

The company said its focus on “the selection of high-quality opportunities to tender with blue chip and public sector clients” had helped boost turnover and solidify its cash position.

It also achieved BIM Level 2 certification in March 2016, ahead of the government’s April 2016 mandate.

Staff numbers grew to 2,477, up from 2,155 a year earlier, while its wage bill climbed 13.3 per cent to reach £119.4m.

VolkerFitzpatrick, the group’s civil engineering contracting business, will work on the installation of a third railway line between Tottenham Hale and Stratford in London.

Its specialist rail contracting business, VolkerRail, will continue to work in partnership with Laing O’Rourke on Manchester’s Metrolink tram network, with the city centre’s link between Victoria Station and Exchange Square due to be delivered in 2017.

The rail business has also worked on the Department for Transport’s £5.7bn InterCity Express Programme, which included the construction of a depot for new Hitachi Class 800 trains at Stoke Gifford.

VolkerStevin, the group’s marine, energy and water division, started on the Thames Tideway Tunnel during 2015 and will begin work with United Utilities as part of its AMP6 water framework.

Earlier this year, VolkerFitzpatrick was shortlisted in a joint venture with Bouygues and Sir Robert McAlpine for civil engineering works packages on High Speed 2.

 

 

Readers' comments (1)

  • Certainly one of the very few medium to large contractors showing improved results year-on-year !!

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