Willmott Dixon is targeting a £1.5bn construction business, up from £1.03bn of turnover last year, with defence and healthcare expected to spearhead the expansion. The contractor said the growth would be built on work already secured after it banked £747m of new work in the first half, close to £750m, and converted most of it into main contracts.
Order book supports revenue visibility to 2027
Chief executive Graham Dundas said the priority this year had been to turn a record level of preconstruction appointments into main contracts. By the end of July, Willmott Dixon had secured £747m of new work, 89% of it under main contract, giving it secure and visible revenue for 2027 and beyond, he said. 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.
The figures distinguish between work already contracted, identified workload and the wider pipeline. Willmott Dixon is presenting the main-contract mix as the basis for revenue growth from 2027, rather than treating the full £5bn pipeline as secured turnover.
Education and frameworks lead awards
Education delivered the biggest contract wins, led by 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.
Frameworks remain the main engine of orders, generating around 90% of new work. The pipeline therefore leans heavily on pre-agreed routes to market as well as individual project wins.
Profit rises as revenue edges lower
Group pre-tax profit climbed 15% to £11.5m in the six months to June, despite revenue edging down to £545m from £548m as major starts took time to come through. The group also strengthened its cash position to £127m, with no debt and record shareholders' funds of £190m.
The results show profit growth alongside slightly lower revenue, a combination the company attributes to the timing of major starts. Its cash position, debt-free balance sheet and record shareholders' funds give it financial headroom as it pursues defence and healthcare expansion.
Cost pressure and development plans
Dundas warned that cost pressures were still squeezing customers and suppliers. He said global conflicts continued to push up energy, fuel and material costs, adding that financial resilience and a proven delivery record mattered more than ever when customers chose who to work with.
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.