Willmott Dixon is targeting a £1.5bn construction business, with defence and healthcare expected to lead an expansion of its construction division from £1.03bn of turnover last year. The contractor said it had secured £747m of new work by the end of July, 89% of it under main contract, providing visibility for revenue growth from 2027.
Chief executive Graham Dundas said the company’s priority this year had been converting a record level of preconstruction appointments into main contracts. He said the work secured by the end of July gave Willmott Dixon secure and visible revenue for 2027 and beyond.
Growth target and order book
The £1.5bn ambition compares with £1.03bn of turnover in the construction division last year. Defence and healthcare are expected to spearhead the expansion, while education has already produced the largest individual contract wins in the current order book.
The group now has a £1.37bn secured order book and more than £3.5bn of identified workload, taking its total pipeline to around £5bn. Frameworks remain the main source of orders, generating about 90% of new work.
Education produced the largest contract wins. These included the £93m College of North West London campus at Wembley and the £58m Mosslands secondary school. Other secured 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.
First-half results
Group pre-tax profit rose 15% to £11.5m in the six months to June, even though revenue slipped to £545m from £548m as major starts took time to come through. The profit and revenue figures cover that six-month period, while the £747m new-work total runs to the end of July.
The company also reported a stronger cash position of £127m, no debt and record shareholders’ funds of £190m.
Cost pressures persist
Dundas warned that cost pressures were still affecting customers and suppliers. He said global conflicts continued to push up energy, fuel and material costs, and that financial resilience and a proven delivery record were becoming more important when customers chose contractors.
Developments arm
The relaunched Willmott Dixon Developments business is also seeking growth through public sector regeneration partnerships. It most recently secured the £100m Baytree Shopping Centre scheme in Brentwood with Milligan.
The figures indicate that Willmott Dixon is entering 2027 with a substantial forward workload. Its growth plans still depend on converting identified pipeline into signed work while managing cost inflation across the supply chain.