Business

Construction giant Wates labels sector crackdown “predictable”

The boss of one of Britain’s biggest construction groups has said it is “predictable” that a spotlight has been shone on Britain's outsourcing sector.

Wates interim CEO David Allen told City A.M.he was pleased with the firm’s steady annual revenue growth given the sector has “experienced a degree of turbulence” in the wake of Carillion’s failure in mid-January.

“And it’s not only Carillionbut Laing O’Rourke, Interserve, Mitie,” he said.

Allen added recent corporate announcements – such as large contract write-downs – make it “reasonably fair” sector norms should be challenged.

Wates, which employs around 4,000 people, today announced annual revenue of £1.62bn up £90m on 2016. The firm’s order book stands at a record £5.1bn.

“We have been prudent in how we accounted for everything,” said Allen.

Read more: Is Laing O'Rourke another contractor we should be concerned about?

Wates last year completed the historic extension of the Victoria & Albert Museum and won a landmark facilities management contract with the Houses of Parliament. In January chair James Wates was selected to spearhead the government’s new corporate governance code for private companies.

Allen took on the interim chief exec role after Andrew Davies stood down early in October having been headhunted to be Carillion’s CEO. What was Britain’s second-largest contractor collapsed before Davies could take over from industry veteran Keith Cochrane.

“We are not alone but we are in quite a minority in doing as well as we are,” Allen said.

I think it is very important that the companies that take on the work on behalf of the public sector always deliver on their promises.

Wates took the “Contractor of the Year” award in 2017. The firm’s workforce delivered an aggregate of 34m hours across 2,000 projects during the year.

Read more: Learning from Carillion? MP inquiries must shed more light than heat

Original Article

[contf] [contfnew]

CityAM

[contfnewc] [contfnewc]

Related Articles

Business

Pressed by COVID-19 and low oil prices, Nigeria slips into recession

africanews– Nigeria, Africa’s biggest economy, entered recession for the second time in...

Business

EU Reeling From Yellow Vest Protests. What Happens if There Is a Debt Crisis?

There is a lot of talk about which economic bubble will burst...

Business

EU Reeling From Yellow Vest Protests. What Happens if There Is a Debt Crisis?

There is a lot of talk about which economic bubble will burst...

Business

Till Trump do they part: Top tech firms cut ties with Huawei following US trade blacklisting

Last week, US President Donald Trump signed an executive order aimed at...