Building - the UK's top magazine for building professionals

Building - the UK's top magazine for building professionals: "Drechsler turns round Wates with healthy set of results
Private contractor proves it is out of the doldrums, recording a sharp rise in profit to �10.6m
21 April, 2006

By Angela Monaghan
Private contractor Wates has reported an impressive set of results for 2005. Pre-tax profit rose from �3.5m to �10.6m, while turnover increased 6% to �670m, reflecting better margins.
The biggest contributor to profit was Wates Living Space, the new-build and refurbishment business. Pre-tax profit increased 28% to �9.1m and the business had an order book of �444m at year-end.
The best improvement in performance was at Wates Construction, which works on public and commercial projects. Pre-tax profit rose 88% to �4.9m, after �150m of education projects.
Wates Retail, which is focused on retail fit-out and refurbishment, also showed strong growth, with a 38% increase in pre-tax profit to �3.6m.
Margins in construction overall increased to 3.1% from 2.6%. When Paul Drechsler joined the company as chief executive 18 months ago he said that one of his main aims was to push up margins because he did not see why the construction industry should accept low ones.
Drechsler said of the results: 'They did come after a difficult year in 2004. We implemented a much more focused business after completing the review.'
The group is split into five parts. There are four construction businesses in affordable housing, office fit-out and refurbishment, retail fit-out and refurbishment and public sector and commercial sector work. The fifth business is development, which is now focused on land management after Wates completed its exit from the executive homes market.
Wates chairman, Andrew Wates, has retired from the company and will be"