Willmott aims to hit £1bn turnover
- Published: 22 July 2008 15:07
- Author: David Rogers
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- Last Updated: 22 July 2008 15:07
Turnover at Willmott Dixon is set to double this year and break the £1 billion barrier in two years' time.
Chief executive Rick Willmott said it was on course to pass the £800 million mark by the end of 2008 and added: "A £1 billion turnover is a realistic target by 2010. Shareholders should rest assured that growth will be controlled, and not at the expense of margin."
The growth is being fuelled by booming workloads at its construction arm and its social housing arm Inpsace, which it bought back earlier this year after floating the business on AIM in May 2005.
The firm said that all but £1 million of its turnover in 2007 – which grew 6 per cent to £380 million – was from its construction arm, whose most high-profile contract is a £25 million deal to redevelop the grandstand at Epsom Downs racecourse in Surrey.
Mr Willmott said: "Construction remains on track for substantial and controlled organic growth over the next three year period."
The division, which carries out a lot of framework contracts, is on course for a £500 million turnover this year.
Like-for-like pre-tax profits at the Hertfordshire-based contractor hit £10.1 million in 2007, up 14 per cent from last time.
Real profits actually declined from the 2006 figure of £48.2 million but this was helped by the one-off exceptional £39.3 million profit it made from the sale of its housing arm Widacre to Inspace two years ago.
Inspace has just signed off its final accounts and is due to bring in around £320 million worth of revenue to the business this year.
Explaining the decision to bring it back under the Willmott Dixon umbrella, Mr Willmott said: "The board believed that Inspace's future would be better served away from the stock market and fully re-integrated with this company.
"I believe the ongoing unpredictably in the credit and equities markets worldwide ser ves to confirm that assessment."
Last year the firm launched a PPP investment business called Rock which will concentrate on accommodation, health and schools work.
The number of employees at the group was down 12 per cent to just over 700, lopping £1.5 million off its payroll.
The salary of the highest-paid director, who is not named, more than halved from £1.9 million to £817,000 last year.
