Last updated January 8th 2023
Willmott Dixon
Willmott Dixon is one of the top three privately-owned UK construction groups with major operations in construction, housing, regeneration and support services. The group employs just over 2,000 people and had a turnover of £1.1 billion in 2021.
Led by chief executive Rick Willmott – the fifth generation of the Willmott family to lead the business – and chairman Colin Enticknap, the group is based at Letchworth in Herts.
During 2017, the firm opened a new local construction office in Farnborough and merged its residential contracting arm with its construction division. It has also opened new offices in central Birmingham and has been targeting expansion in the West Midlands. New offices in Chelmsford in Essex and Crawley in Sussex have also been opened in recent years.
Today, the group is focusing on its contracting and fit-out business, having integrated its residential contracting business within its general construction operation and de-merged both a housing development operation, Be-Living, and an asset managment business, Fortem.
Wilmott Dixon stands to benefit from the government’s push to increase public housing spending, as well as increased investment in energy efficiency and higher Levelling up Funding on town centre and renewal.
In 2021, the group’s turnover was split between construction (£946 million) and interiors (£156 million) business and around 75% of its turnover comes from frameworks. Around 60% of its 2022 orders were expected to be repeat business.
The group has places on a wide range of frameworks such as Scape and Procurement Hub and others including Be First, Catalyst Housing, the Education and Skills Agency, Homes England, LHC, NHS Building for Wales, the North East Procurement Organisation, Pocabo, Procure North West, Sanctuary Housing and SCF.
Brexit, the consequences of the Grenfell Tower fire – which left with group with a £35.9 million provision in 2021 against re-cladding a large project to reflect new building regs – and Covid have all impacted Willmott Dixon.
But in the group”s latest annual report published in summer 2022, the group also highlighted a £1.4 billion order book. Chief executive Rick Willmott said: “…our hopes and aspirations for our company remain strong and positive.”
Financials
To see the financials for Willmott Dixon Holdings Ltd visit Companies House and use Company ID 00198032
Willmott Dixon”s financial results for 2021 reflect its recovery from lockdown as well as extra costs linked to cladding and fire protection. Turnover dipped to £1.1 billion from £1.19 billion previously but its underlying trading performance as shown by profit before tax and goodwill amortisation jumped to £24 million from £14.2 million previously. However after exceptional items of £10.8 million pre tax profits for 2021 stood at £11.2 million, compared to a loss of £13.1 million previously. But cash flow remained healthy; cash & equivalents at the year-end stood at £113 million up from £98.8 million previously and the group had no debt.
Construction
Led by COO John Waterman, the group”s construction arm ‘treaded water’ in 2021 with a turnover 8% lower at £946 million in 2021 although the division generated a pre-tax profit of £31 million, giving a margin of 3.3% and up from £20.6 million last time.
Today the group has an ambition to grow its market share – which it puts at around 1% of the UK construction market – helped by added efficiency and through greater control of projects at primary design stage.
The division has focused on repeat business (60% of its new contracts) and some 85% of its workload is through public sector customers either directly or through frameworks.
During 2021, the group won a place on the fifth version of the Scape framework covering projects in the £7.5 – £75 million range across England and Wales and giving it access to a potential £5 billion of public sector projects. Its presence on other national frameworks was strengthened when it secured places last year (with a potential £1bn pa of contracts) on: Homes England DPP4 residential; Procurement HUB operated by Places for People; Procure 23 for NHS facilities in alliance with Mace; Crown Commercial Services; DFE schools and further education programme and Pagabo Developer-led.
Wilmott Dixon’s construction arm works through six regions Central South (based at Farnborough); London & East (Hitchin with a Chelmsford local delivery office), London & South (Weybridge, offices in Crawley and Dartford); Midlands (Coleshill and Birmingham with offices in Oxford, MK and Nottingham); North (Oldham with local offices in Leeds and Newcastle) and Wales & West (Cardiff with local offices in Bristol, Plymouth and Exeter).
In the regeneration sector, the group is involved in the design and build of various mixed-use developments to boost growth in regional towns including Rotherham, Caerphilly, Telford & Wrekin, Rochdale, Oldham and Stockport.
In late 2022, Willmott Dixon won a £23.7m contract for Medway Council for a leisure scheme ‘Splashes’ at Rainham in Kent involving swimming pools, gym, fitness studio and cafe.
In the schools sector , Willmott Dixon won an £8.8 million contract from Milton Keynes Council in early summer 2022 for a 630-place primary school and nursery as part of its Western Expansion Area.
The firm’s significant housing business received a boost in autumn 2022 when it won a £30 million contract for 55 new affordable homes and two community centres for the London Borough of Brent; the £17.3m Brent Indian Centre project and the nearby £13.6m Learie Constantine Community Centre project.
Meanwhile, Mace Construct and Willmott Dixon Construction have launched a consortium to jointly target construction work in UK healthcare. The alliance, MWD Healthcare, won its first major contract under NHS ProCure 23 in autumn 2022, a major £126 million urgent and emergency care centre facility at University Hospitals Plymouth.
Willmott Dixon also works widely on capital programmes for the emergency services and has launched CODE, a standardised custody suite product for police forces.
The firm is also working for High Speed 2 having won contracts to build colleges for high speed rail in Birmingham and Doncaster and an hq for HS2 in Birmingham.
Interiors
The group”s interiors business had a steady year in 2021; turnover dipped to £156 million, from £167 million previously but the division has a healthy order book.
The division has three teams focused on major projects, frameworks and projects below £3 million. Much of its work is in London and the South East although the firm works for the Department for Health and Social Care in Leeds and it has set up a growing office in Birmingham. The division has repeat orders from long-term customers such as the Metropolitan Police, Travelodge and the Dept. of Health.
Today the business sees growing potential from re-purposing commercial space as more people work from home and in decarbonising existing properties. In late summer 2022, property investment firm FORE Partnership awarded Willmott Dixon a £50m contract to transform an out-of-date 1990s office building next to Tower Bridge, creating 110,000 sq ft of sustainable space.
Key opportunities include health, where the division has won hospital upgrades in Brighton, Cambridge and Epsom and commercial where the firm is involved in re-fits at Birmingham’s Brindley Place and the Dept. of Health’s base in Leeds. Civic leisure and repeat framework volumes also offer opportunities.
Glenigan Data
Willmott Dixon was ranked 7th in a recent Glenigan national contractors league table, having won 130 major contracts with a combined value of £1,242.9 million during the year to December 2022. Building work accounted for £1,172.4 million of the contracts and civils work £70.5million. Glenigan data also shows Willmott Dixon ranked as the 2nd largest contractor in the East of England (with 10 major contracts worth £269.9 million), the 7th largest in the South East (with 21 contracts, worth £159.8 millon), the fourth largest in the South West (with 14 contracts worth £163.5 millon), the fourth largest in Wales (with 9 contracts worth £91.5 million) and the eighth largest in Yorkshire ( with 9 contracts worth £73.8 million).
Conclusion: Solid order book with frameworks providing resilience
Having de-merged its housing development and asset businesses to focus on the contracting and fit-out sectors, Willmott Dixon is well-placed to prosper in uncertain times. The group”s strong presence on public sector frameworks and significant support services business are providing resilience whilst its position in markets such as education, health and the ”blue light” services offer significant potential for growth. In common with other major contractors, the group has faced heavy provisions against potential re-cladding costs but its blue chip client list and its appetite for new markets in the regions suggests that it will remain a major player in the sector.
Winning work with Willmott Dixon
The group spends £3.2 million a day on goods, works and services and the group”s capital works division invites all top-tier sub-contractors to an annual supply chain conference; the group spends 80% of its turnover with its top tier suppliers. Details on the group”s approach to procurement are available on its website here
Key Contacts:
James Welch Procurement Director, Willmott Dixon Construction, based at Hitchin.
Email james.welch@willmottdixon.co.uk
Tel: 01462 442200
Dave Pennock, Supply Chain Manager, Willmott Dixon Construction, Northern Region, Leeds.
Tel: 0113 238 3283
Email Manchester.supplychain@willmottdixon.co.uk
For Willmott Dixon Interiors,
Jon Meeks Head of Supply Chain
Tel: 02076349600
Email: Jon.Meeks@willmottdixon.co.uk