Willmott Dixon is aiming to grow its construction business to £1.5bn, with defence and healthcare expected to lead expansion and revenue growth anticipated from 2027. The contractor is seeking to build on £1.03bn of construction turnover last year.
The company said it had secured £747m of new work by the end of July, 89% of it under main contract. It said this provided secure and visible revenue for 2027 and beyond. The company linked the figure to its effort to convert a record level of preconstruction appointments into main contracts.
Profit and revenue
In the six months to June, group pre-tax profit rose 15% to £11.5m. Revenue edged down to £545m from £548m, which the group attributed to major starts taking time to come through.
Willmott Dixon reported a £1.37bn secured order book and more than £3.5bn of identified workload. Together, these take its total pipeline to around £5bn. Frameworks remain the main source of orders, generating about 90% of new work.
Sector wins
Education delivered the largest contract wins. They were led by the £93m College of North West London campus at Wembley and the £58m Mosslands secondary school. The group also secured £28m of affordable homes at Princes Gate in Oldham for Muse, Portsmouth’s £22m Bransbury Park Leisure Centre and the £16m Bath Fire Station.
The group strengthened its cash position to £127m. It reported no debt and record shareholders’ funds of £190m.
Cost pressures
Chief executive Graham Dundas said the priority this year had been to convert preconstruction appointments into main contracts. He warned that cost pressures were still squeezing customers and suppliers. According to Dundas, global conflicts continue to push up energy, fuel and material costs, and customers and supply chain partners are feeling the pressure.
He added that financial resilience and a proven delivery record matter more than ever when customers choose who to work with. The comments underline the importance the company places on financial strength and delivery record in winning work.
Development arm
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.
The update drew a distinction between the group’s first-half results and the forward order position. While revenue in the six months to June was slightly below the prior-year level, the £747m of work secured by late July had largely been converted into main contracts. That shift is central to the company’s expectation of growth from 2027.
The contract wins span education, housing, leisure and emergency services. The £93m college campus and £58m school were the largest named education projects, while the Oldham housing scheme, Portsmouth leisure centre and Bath fire station add further public-sector work to the order book.