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VolkerWessels UK orders pass £1bn as profit rises 10%

VolkerWessels UK’s order book has reached its highest level for four years as the firm reported increased turnover and profit in its latest results.

The contractor posted a revenue of £876.8m and a pre-tax profit of £22.9m for the year to 31 December 2016, up from £852.1m and £20.8m respectively in 2015.

This boosted VolkerWessels UK’s pre-tax margin to 2.6 per cent from 2.4 per cent the previous year.

The company also reported an order book of £1bn for the first time since 2013, with orders rising from £901m in its previous results.

Three directors have stepped up to the company’s board during the past 12 months to create a new UK management board.

VolkerFitzpatrick MD Richard Offord, VolkerRail MD Steve Cocliff and VolkerStevin MD Rob Coupe have formed the group’s UK leadership team alongside CEO Alan Robertson, chief financial officer Naomi Connell and group commercial director Matt Woods.

In March this year, the company was named as preferred bidder on a £500m project in a JV with Murphy and Siemens to deliver enhancements to the Manchester-to-York railway east of Leeds.

VolkerFitzpatrick and VolkerRail are also working on an £80m train care depot for Hitachi in Doncaster, the fourth depot the firm has delivered for Hitachi’s new Super Express Trains.

VolkerWessels UK previously completed similar facilities at Bristol (pictured) and Swansea in 2016, and redeveloped an existing depot in London in 2014.

The group’s roads business, VolkerHighways, has secured a number of major contracts so far this year, including a 10-year £200m deal to carry out maintenance and upgrade work on Luton’s roads.

In February, VolkerHighways also won a £42m deal to maintain roads across Windsor and Maidenhead for the next seven years.

The contractor’s water and energy arm VolkerStevin has worked on the £2.5bn Thames Tideway Tunnel over the past year, carrying out enabling works and the construction of floating piers at Blackfriars and Victoria Embankment.

VolkerStevin is also carrying out works to upgrade and strengthen Colwyn Bay’s promenade in north Wales.

Net cash at the group fell slightly to £66.7m, down from £76.6m a year earlier, while the company also saw a £10m investment from shareholders through an increase in share capital.

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