Willmott Dixon has set its sights on a £1.5bn construction business after banking nearly £750m of new work in the first half of the year. The contractor said the new work laid the foundations for revenue growth from 2027, with defence and healthcare set to spearhead expansion as its construction division targets a jump from £1.03bn turnover last year.
Chief executive Graham Dundas said the priority for the year had been to convert a record level of preconstruction appointments into main contracts. By the end of July, the company had secured £747m of new work, 89% of it under main contract, which he said gave Willmott Dixon secure and visible revenue for 2027 and beyond.
Group pre-tax profit climbed 15% to £11.5m in the six months to June, despite revenue edging down to £545m from £548m. The company said major starts took time to come through.
Order book and pipeline
Willmott Dixon now has a £1.37bn secured order book and more than £3.5bn of identified workload, taking its total pipeline to around £5bn. Education delivered the biggest wins, led by the £93m College of North West London campus at Wembley and the £58m Mosslands secondary school.
Other jobs include £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 list spans education, affordable housing, leisure and emergency services. Frameworks remain the main engine of orders, generating around 90% of new work, the company said.
The group also strengthened its cash position to £127m, with no debt and record shareholders' funds of £190m.
Cost pressures remain
Dundas warned that cost pressures were still squeezing customers and suppliers. He said global conflicts continued to push up energy, fuel and material costs, and that customers and supply chain partners were feeling the pressure.
He added that when customers choose who to work with, financial resilience and a proven delivery record matter more than ever. The comments came alongside growth targets that rely on converting the pipeline into revenue from 2027.
The relaunched Willmott Dixon Developments arm is also hunting growth through public sector regeneration partnerships. It most recently secured the £100m Baytree Shopping Centre scheme in Brentwood with Milligan.
The first-half figures cover the six months to June, while the revenue growth target is set for 2027 and beyond. Chief executive Graham Dundas said the £747m of new work gave Willmott Dixon secure and visible revenue for that period and beyond.