Wates has reported a fall in turnover and a 17% drop in its pre-tax profit, for the year to 31 December 2009.
Profit stood at £38.9m, while turnover was £945.3m, a decrease of 7% on 2008’s figure of £1.02bn.
The construction business was the most successful area of the Wates Group, reporting operating profit up 36% at £42.5m.Its order book is up 15% at £2.3bn.
The residential development business recorded a loss of £0.9m, after making a profit of £11.2m in 2008.
Its residential landbank increased by 7% to 2,614 acres.
Wates is cash rich, with £178.9 million cash in the bank, an increase of 6% on the previous year.
The group’s staff numbers fell by more than 200, dropping to 2,118 from 2,323 the prior year, but the average wage increased to £52,608 to £51,589.
Chairman and chief executive Paul Drechsler said: “2009 was a challenging year, with the UK economy in recession and demand for construction services in decline.
“Wates’ strong balance sheet, highly-engaged employees, track record for delivery, excellent reputation for social responsibility and long-term family ownership remain a very attractive proposition for customers.
“Against a background of an even more challenging economic environment in 2010, the Board is confident that the company has the strategy, the customers and the people to continue to deliver value for all its stakeholders.”
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