Wates Group, one of Britain’s leading family-owned construction firms, has reported its highest-ever turnover – despite grappling with economic headwinds that squeezed profits.
The company’s 2024 turnover rose by nearly 10% to a record £2.4 billion (2023: £2.18 billion), thanks to robust performance across key sectors including construction, engineering, and property services. However, pre-tax profits dropped significantly to £2.6 million, down from £44.9 million the previous year.
Stripping out exceptional costs, underlying profit before tax stood at £31.4 million – still a sizeable fall from 2023. Operating profit also took a hit, with the group posting a small loss of £300,000 compared to a £44.6 million profit the year before.
Despite the squeeze on profit margins, Wates remains bullish about the future. Its forward order book has surged to £8.64 billion, with year-end cash reserves up £57.6 million to £195.6 million – a strong platform for continued, sustainable growth.
A major driver of both growth and expansion was the acquisition of Liberty Group, a move that added around 1,100 employees and boosted Wates’ total workforce to nearly 6,000. As a result, Wates now maintains around 600,000 social homes – equating to one in seven across England.
The company’s profitability was dented by several factors, including higher administrative expenses driven by a major pension fund restructure. In 2024, Wates transferred members’ defined benefits to specialist Clara-Pensions, a move aimed at providing long-term financial security while de-risking the group’s pension liabilities.
Chief Financial Officer Philip Wainwright said:
“For the 25th consecutive year, Wates Group has delivered a profit before tax – a major achievement given the headwinds we faced. The pension transfer was a landmark step for the business and a key contributor to this year’s exceptional items.”
The group’s solid turnover performance was underpinned by large-scale private and public-sector construction projects, SES Engineering Services, fit-out and refurbishment work through Smartspace, and significant growth within Property Services.
However, a sharp rise in administrative costs – up £46.7 million – and increased losses from joint venture projects placed pressure on margins. A quieter year for land sales and some loss-making project closures also contributed to the dip in profitability.
Still, Wainwright highlighted that gross profit rose by £32 million, with strong performances from SES, Smartspace and Property Services helping to cushion the impact.
Chief Executive Eoghan O’Lionaird added:
“We are performing well overall, with positive headline results: record turnover, a record order book, and 25 years of profit. 2024 was a year of progress and consolidation – and we’re well positioned to accelerate in 2025.”
The company celebrated a number of high-profile contract wins in 2024. These include a major regeneration scheme in Gresham, Middlesbrough; the Victoria House life science hubs for Oxford Properties in London; and Ministry of Justice fit-out projects. Work also began on expanding HMP Highpoint in Suffolk, delivering 741 new prison places.
Wates’ Property Services division had a standout year, increasing turnover by 30% to £547.2 million and expanding its forward order book to £2.7 billion – bolstered further by the Liberty Group acquisition. The division also secured work with the Peabody housing association, London Borough of Brent, and A2 Dominion through the Social Housing Decarbonisation Fund.
Meanwhile, SES notched up record wins across a range of sectors including sport, education, commercial, and life sciences – reinforcing Wates’ position as a go-to partner for complex, high-spec projects.
Building, Design & Construction Magazine | The Choice of Industry Professionals
