Wates blames Brexit for fall in construction turnover

Wates has blamed the lingering effects of the Brexit referendum for a drop in turnover at its construction business last year.

In its financial results for the year ending 31 December 2018, Wates’ construction business posted turnover of £849m – a 9% dip on its 2017 figure.

The contractor said the reduction was “a residual effect of the deceleration in the market in the quarters before and after the EU referendum”.

The firm said its turnover across the whole business sat at £1.6bn - within 1% of the £1.62bn recorded in 2017.

It said it had been helped by growth in its residential development and property services divisions on the back of key contract wins in regeneration and social housing.

The firm, which posted a pre-tax profit of £35.9m, said it had a pipeline of £5.4bn heading into 2019.

From a construction perspective Wates said it had secured contracts from a number of key clients, including the Parliamentary Estates, who handed the firm the £500m Northern Estate Programme job.

Wates also highlighted its spot on Scape’s construction framework, which was responsible for the contractor scoring the £50m contract to build the aquatic centre for the 2022 Commonwealth Games.