THE ART OF SEEING THINGS DIFFERENTLY Annual Review 2015
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Above all, it’s about people CLICK ON CONTENT LISTED BELOW TO NAVIGATE DIRECTLY TO PAGE
CONTENTS
2015 At a Glance 04 Chairman’s Welcome 06 Chief Executive’s Review 08 Reshaping Tomorrow 10 Safety, Health and Environment 12 Our People 14 Environment 16 Communities 18 Wates Giving 20
WATES CONSTRUCTION 24 The London Business School, London 26 Little Ilford Secondary School, Newham 27 Central Square, Leeds 28 Home at First Street, Manchester 29 Advanced Manufacturing Training Centre, Coventry 30 Signature Care Homes, Camberley and Sunninghill 31
SES ENGINEERING SERVICES 32 Queensferry Crossing, Scotland 34 National Biologics Manufacturing Centre, Darlington 36 Stephenson Quarter, Newcastle 36 RNAS Yeovilton, Somerset 37 King’s Cross P1 – The Plimsoll Building, London 38 Sheffield Custody Suites, Sheffield 39 PRISM 40 BIM 41
WATES RESIDENTIAL DEVELOPMENTS GROUP 42 Worthing, West Sussex 44 Imber Court, Surrey 46 Southwater, West Sussex 46 Manchester Housing Improvement Fund, Manchester 47 Erith Park Phase 1, Kent 48 Hull Extra Care PFI, Hull 50 Waylands House, London 51
WATES LIVING SPACE MAINTENANCE 52 Wolverhampton Strategic Partnership, Wolverhampton 54 Circle Housing, London and West Midlands 55 Newlon Housing Trust, London 56 Notting Hill Housing Trust, London 57
WATES SMARTSPACE 58 Royal Hospital for Neuro-disability, London 60 Marks & Spencer, Nationwide 62 The Knowledge Transfer Partnership Project 63 Royal Mail, Nationwide 64 The Association of Chartered Certified Accountants (ACCA) 65
NEEDSPACE? 66
Wates Group Board 70 Wates Executive Committee 72 2015 Corporate Governance 74 Summary Accounts 76 Addresses 78
Wates Annual Review 2015 Project Alto, Wembley, awarded in 2015 and due for completion in late 2017. 2/3 2015 At a Glance
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2015 AT A GLANCE
WATES CONSTRUCTION WATES LIVING SPACE HOMES £613M TURNOVER £148M TURNOVER Wates Construction focuses on designing and Wates Living Space Homes is working as a £1.27BN 21% £1.3M building projects for Government and public strategic development partner with housing GROUP TURNOVER SPENT WITH THE SOCIAL sector, education and commercial customers. association and local authorities to address ENTERPRISE SECTOR As much as 75% of our business is from the UK’s urgent need to deliver more homes repeat customers and, operating nationally for affordable rent and sale. We are experts £30.3M 26% through a network of strategically placed in large-scale, mixed-use developments that PROFIT (PBT) 69% local offices, we have delivered some of provide homes for both public and private PARTNERS (OVER £1M) ARE MEMBERS OF SUPPLY CHAIN the UK’s most notable buildings. sector rent or sale. £4BN SUSTAINABILITY SCHOOL (SCSS) FORWARD ORDER BOOK SES ENGINEERING SERVICES WATES LIVING SPACE MAINTENANCE £30M (TURNOVER FOR THREE £272M TURNOVER 74 MONTHS OF OWNERSHIP) PROJECTS COMPLETED AND Wates Living Space Maintenance is a £93M 7.9% 4,700 HOURS VOLUNTEERED SES Engineering Services (SES) is the UK’s leading national provider of maintenance, GROUP NET ASSETS DURING WATES COMMUNITY pre-eminent design-led M&E provider, refurbishment and energy retrofit services. WEEK delivering for our customers in a wide range We deliver a broad range of solutions for of environments. We operate an exceptional local authority and housing association 3,703 level of technical authority and deliver partners, supporting the regeneration of PEOPLE £1M (at 31 December 2015) bespoke solutions optimised for the whole disadvantaged communities and improving PROVIDED BY WATES GIVING TO SUPPORT 258 CAUSES construction team, maximising off-site standards of living for residents by renewing ACROSS THE UK manufacture in our production facility existing housing stock through planned and 1,160 SES PRISM. We recently became the first responsive maintenance programmes. NEW EMPLOYEES Mechanical, Electrical and Public Health (incl. Shepherd) £105,000 Services (MEP) contractor to achieve BRE WATES SMARTSPACE RAISED TO DATE FOR THE PRINCE’S BIM Level 2 Certification. £131M TURNOVER 88 TRUST, OUR CHARITY PARTNER Wates Smartspace delivers high quality APPRENTICES WATES DEVELOPMENTS fit-out, refurbishment and maintenance 92% £78M TURNOVER solutions nationally, which are designed BUSINESS IN THE COMMUNITY Wates Developments is expert in land, to optimise our customers’ operating GOLD CORPORATE RESPONSIBILITY INDEX SCORE (3.5 STARS) planning and joint ventures for residential environments. Our customers include INVESTORS IN PEOPLE GOLD developments throughout Southern England. commercial offices, retail, airports, AWARD RE-ACCREDITATION Our financial strength, corporate stability developers, public sector, distribution 131 and commitment to residential development centres and banks. 40% YOUNG PEOPLE BENEFITTED make us a strong and attractive purchaser or IMPROVEMENT IN ONE FROM OUR BUILDING partner for both land owners and developers. NEEDSPACE? DAY PLUS ACCIDENT FUTURES PROGRAMME £2.3M TURNOVER FREQUENCY RATE (AFR) (2014-2015) Needspace? provides quality managed workspace to the growing number of small businesses in Greater London and the South 40 East. We offer a range of office, workshop CCS WATES AVERAGE SCORE and studio units to small businesses looking to grow in an entrepreneurial environment. Our aim is to provide a series 97.2% of entrepreneurial communities that WASTE DIVERTED FROM LANDFILL encourage businesses to network, thrive and support each other.
Mark Thornhill Construction Manager Wates Living Space Homes 4/5 Chairman’s Welcome
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I am pleased to report that 2015 was We continue to invest in our people through marked by a very strong performance for training, development, and other opportunities CHAIRMAN’S the Wates Group. – making good on our saying that ‘Above all, it’s about people’. We continue to work hard Once again, we achieved solid growth during to maintain our Gold Investors in People WELCOME the year, both organically and through accreditation. Investors in People Assessor acquisition. Performance has been strong across Bob Morrison said of us: “The achievement all of our businesses throughout the year. of two successive Investors in People Gold accreditations is outstanding and well We welcomed 1,208 new colleagues as deserved, placing the Wates Group in the a result of our acquisition of Shepherd top 3% of organisations that have achieved I would like to thank the Group’s Engineering Services Limited including this worldwide. The accolade underlines the Shepherd FM, together with a significant Board of Directors and all of strong and genuine commitment to number of contracts and strategic its employees for their ongoing developing the talents of everyone.” “ frameworks from Shepherd Construction commitment to the Wates Limited. Our investment in acquiring this We have joined the 5% Club, which reflects Group and for their support in highly reputable family-owned construction our commitment to ensure that 5% of our helping to grow and develop the business brings significant growth headcount over the next five years consists of opportunities for us, expands our business for the future. apprentices, sponsored students, or trainees capabilities and opens up new markets. on a formal development programme.
James Wates CBE While the Group grew faster than our sector More recently, in 2016 we have been honoured Chairman generally, there remain challenging market with the prestigious Queen’s Award for ” conditions, including material and cost Enterprise in the Sustainable Development inflation and ongoing shortages of category for the second consecutive time. skilled labour across the industry. We are one of very few companies, regardless of industry or profession, to have achieved Despite these challenges, we performed this. In particular, the Award judges recognised extremely well, generating Group turnover the significant investment and support of £1.27bn. that Wates gives to social enterprise. 2015 was also an exceptional year for As a family-owned business that bears the securing work-in-hand. We entered 2016 family name, our reputation is everything. with a forward order book of £4bn, which is The way we do business, and the impact nearly 35% up on the start of 2015. and legacy we leave in the communities in These achievements are testament to which we work, is reflected in our values the quality and commitment of our people, of integrity, intelligence, performance, the strength of our relationships with our teamwork and respect. customers and delivery partners, and our Finally, on behalf of the shareholders, I would robust financial management. like to thank our Board of Directors and all of Critical to the Group’s future growth – our employees for their ongoing commitment and meeting our target of annual turnover to the Wates Group and for their support of £2bn – is building upon these relationships in helping to grow and develop the business and investments, and recruiting and retaining for the future. the best people to deliver the work.
James Wates CBE Chairman
6/7 Chief Executive’s Review
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The Group has continued to make significant We successfully transitioned the Purchase In 2015, the Group continued its partnership investment to support its growth strategy. Group’s 130-strong workforce to the Wates with The Prince’s Trust to help disadvantaged CHIEF Group in order to grow our responsive young people develop the skills and identify In 2015, we grew the business organically, and planned maintenance business in the opportunities for employment. Through our as well as acquiring the equity in Shepherd Midlands, Wales and the North West. volunteering schemes, our people gave 4,700 EXECUTIVE’S Engineering Services Limited including hours across 74 projects to support Wates Shepherd FM and the trade and assets of In addition to investment to support Community Week. Through Wates Giving, a number of construction projects from business growth directly, our stable financial £1m was donated to charity. REVIEW Shepherd Construction Limited. position enables the company to continue to invest in our people, systems, capabilities We celebrated 10 years of delivering our This acquisition has ensured that we have a (including BIM) and the evolution of our Building Futures Programme, which aims to more geographically balanced construction brand identity, with the launch of a new engage with over 20,000 people to make business, strengthened our mechanical and fresh look across the Group. positive changes to their lives through 2015 has been a successful electrical engineering capability, opened up employability programmes including our opportunities within new markets and sectors, and exciting year for the Wates THE JOURNEY TO ZERO HARM new school engagement programme Build and enhanced our non-domestic property Yourself. During the year we continued Keeping people safe from harm and creating Group. The business has grown services offering. to invest in Building Futures, as well as in “ a healthy and safe environment wherever significantly during this time industry campaigns such as Go Construct. The priorities for 2016 and beyond are to Wates operates remains the number one and we entered 2016 with 3,703 ensure that we successfully integrate our new priority and we continue our steadfast people and a forward order businesses, putting the right systems, processes drive towards Zero Harm. 2016 AND BEYOND book of £4bn. and people in place to secure our long-term With a forward order book of £4bn, growth strategy on a sustainable basis. In 2015 the Group‘s RIDDOR AFR was flat a strong and stable financial position and at 0.114, but there was a 40% reduction in a clear strategy for growth, the Wates Group Andrew Davies one day plus AFR to 0.126. Chief Executive STRONG PERFORMANCE is positioned well for the future. ” The Wates Group turnover, including its The Group deeply regrets that it suffered Our strategy for 2016 and beyond sets share of joint ventures’ and associates’ its first fatality for more than ten years in out a clear vision to be the most trusted turnover, was £1.27bn in 2015. This is a 21.2% 2015. In a separate incident, an individual was partner in the built environment to deliver increase year-on-year. seriously injured in 2015. He subsequently high quality services and products passed away in early 2016. and investments safely on time and on Profit before tax was 25.9% up on 2014 budget, every time. at £30.3m. The Group’s gross cash increased Both of these incidents were subject to a by 45.9% to £127.4m, despite investment in thorough investigation and we are focused Our mission is to become an even more acquisitions, residential developments and firmly on addressing and mitigating all of our sustainably profitable business by continuing our Needspace? business. health and safety risks, and on ensuring that to build a balanced portfolio of work across we operate a continuous process of learning the markets in which we operate. Despite challenging market conditions, and improvement in this area. the consistency of our performance demonstrates our excellent capabilities, BUILDING COMMUNITIES resilience and determination to deliver for our customers. The Group’s corporate responsibility agenda, Reshaping Tomorrow, and Delivering the Promise programme, underpinned by INVESTING FOR THE FUTURE our Operating Framework, ensure that we In 2015, in addition to acquiring the equity deliver consistently for our customers to Andrew Davies in Shepherd Engineering Services Limited the highest standards of quality and safety, Chief Executive and the trade and assets of a number of whilst developing a sustainable tomorrow. construction projects from Shepherd Construction Limited, the Group also Wates has a deep commitment to the successfully completed the integration communities in which it works. Our financial of the Purchase Group, which it acquired stability, family ownership and long-term in November 2014. commitment to the construction industry enable us to make a tangible and positive difference to the environment and to the communities in which we work, both now and for future generations.
8/9 Reshaping Tomorrow
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WORKING IN PARTNERSHIP SUPPORTING THE PRINCE’S TRUST OUR RESHAPING RESHAPING TO ACHIEVE OUR GOALS Wates Giving, the charitable programme TOMORROW PILLARS Reshaping Tomorrow is about growing run by the Wates Family Enterprise Trust, our business responsibly by understanding is one of our key partners in supporting TOMORROW and supporting our customers, suppliers Reshaping Tomorrow. Among the many and communities; bringing about systemic partnerships supported by Wates Giving behaviour change and driving new solutions. in 2015 was our long term work with The Improving our health and safety It is based on our heritage as a company Prince’s Trust in which funding was provided performance with the right behaviours Sustainability was very much on the whose values are firmly rooted in the way to support the Built Environment Leadership to achieve a Zero Harm culture. global agenda in 2015 with the launch we do business and we have worked hard to Group (BELG), which James Wates Chairs. achieve the targets we set. Partnership with of the 2030 World Business Council employees, customers, suppliers and others The BELG promotes the Trust’s ‘Get into Sustainable Development Goals and is critical to delivery, through cross sector Construction’ programme designed to help the Paris COP21, where 200 nations collaborations, influencing government young people build a career in construction. policy and adopting a stewardship role. The Prince’s Trust is also Wates’ current signed up to tackle climate change. charitable partner and in 2015 we raised Creating a positive impact on the over £75K, which has supported The Trust’s environment through our work. Decisions made at this level have an UNLOCKING SOCIAL VALUE TEAM programme – a 13 week personal impact on the construction industry During 2015 a range of leadership activities were development course for young people. and 2015 saw a step change for us delivered, which continued to position Wates Together with other construction companies, when we launched our new five year as a leader, particularly around the social value we are also delighted to be part of the agenda. Work included a follow-on study to our Million Pound Challenge that will Working in partnership to enable strategy Reshaping Tomorrow 2020. thought leadership Communities Count Phase 2 help more than 1,000 disadvantaged local communities to prosper. report – ‘A Practical Guide to Unlocking Social young people who are not in education, Value’ – with partners Social Enterprise UK, training or employment. the Chartered Institute of Housing (CIH), PwC and the Orbit Group. This provided OUR COMMITMENT commissioners with practical tools to embed TO DRIVING CHANGE and measure social value within procurement and shared a number of examples of best Our Reshaping Tomorrow framework is Ensuring we have the right team practice. In addition, we continued to about making a real difference throughout with the right skills and behaviours benchmark our performance in this area, our business. From training, employment to do the job regardless of background. using the Business in the Community Corporate and the health and safety of people working Responsibility Index and were awarded a score on our sites through to promoting positive of 94% achieving 3.5 stars – an improvement environmental practices and challenging the from 2014. way buildings are built, we are committed to working with colleagues, customers, partners, suppliers and communities to drive Working with others to influence “Responsible business the change that’s needed. It builds upon our sustainable building design. behaviour drives prosperity. core values of performance, intelligence, Wates understands this, and is teamwork, integrity and respect for people committed to making a positive and communities. Our ultimate aim is to continue to strive to leave a positive legacy impact on local communities and for future generations: our actions today economies, showing leadership impact everyone’s tomorrow. and commitment on issues such as trust, employment, education and skills. Through its involvement in campaigns such as the CBI’s Great Business Debate, it has worked hard to show how the sector continues to thrive and how business can be a force for good.” Cara Palmer Sustainability Manager John Foster Group Services Head of the Great Business Debate, CBI 10/11 Safety Health and Environment
RETURN TO CONTENTS KEEPING PEOPLE SAFE FROM HARM
2020 HEALTH AND SAFETY LEADING BEHAVIOURAL STRATEGY SAFETY BY EXAMPLE In addition to the Safety, Health and KEY HIGHLIGHTS Wates family shareholders, the Board of Environment e-learning programme, Directors, and the Executive Committee have we are making a significant investment signed up to a long-term strategy that aims to in the development of our employees achieve a Zero Harm culture across the Wates 100,000+ through a new behavioural safety leadership Group by 2020. Our Safety, Health and HEALTH AND SAFETY programme. The aim of the programme Environment strategy has six defined paths, OBSERVATIONS REGISTERED is to equip our leadership teams with the or instruments for change. skills to champion good safety behaviours 1. Lead: Every leader commits to OUR COMMITMENT TO ZERO with a view to giving our people the skills Zero Harm and inspires their people to HARM: WE’RE SAFER TOGETHER and knowledge required to create the right environment to achieve Zero Harm. make it happen Underpinning this strategy for Zero Harm 1,400 is our ‘We’re Safer Together’ campaign, 2. Simplify: We make sure our systems and PEOPLE UNDERWENT which comprises a simple message that HEALTH AND SAFETY TRAINING processes help people, not get in the way summarises our belief that everyone 3. Re-think: We take a look at what we do has a vital role to play in ensuring the safety and wellbeing of one another. with fresh eyes and we challenge the REDUCTION IN status quo. We re-engineer how we do DANGEROUS How we define Zero Harm: things to eliminate risk 8% INCIDENTS (2014-2015) • Zero fatalities to workers or third parties SAFETY, HEALTH AND ENVIRONMENT FOCUS ON OCCUPATIONAL 4. Involve: We engage everyone who works • Zero permanent disabling injuries IS AT THE FOREFRONT OF HEALTH AND SAFETY for us, contributing to Zero Harm in EVERYTHING WE DO In 2015 we began monitoring employee everything they do • Zero new cases of long term harm MAKING OUR OFFICES The health and safety of our colleagues, health referrals, which identified that 50% to health AND SITES SAFER 40% supply chain operatives and the people of referrals relate to mental health and 5. Learn: We seek out and share what works • Eliminating the realistic likelihood REDUCTION ON ONE DAY within the communities we work, including musculoskeletal disorders. As a result, we are well, we adapt it for our own environment, Our new safety observation programme of serious harm PLUS INJURY AFR (2014-2015) our customers and the users of our buildings now placing emphasis on occupational health then make it what we do was introduced in 2015 to help us make and services, is our number one priority. and are developing a health strategy to tackle • Our sites are as safe as an office the workplace safer and to support our these issues in 2016 and beyond. 6. Track: We identify where we can improve, environment Zero Harm objectives. A system of ‘Stop’, Our mission is to achieve Zero Harm through how to close the gap ‘Go’ and ‘Near Miss’ cards are designed to • A ceiling LTIR of 0.10 across the Group a programme of continuous improvement highlight safety issues and situations that that addresses behaviours and embeds best could result in harm and promote positive 23% WATES AWARDED GOLD ROSPA A full suite of campaign materials, as well practice across the Wates Group. We aim to as all Wates PPE and hoardings now carry safety habits and behaviours. In time, the REDUCTION IN LOST create a culture where people are engaged In August 2015, Wates was recognised with a programme will help provide better data TIME INJURY RATE (LTIR) our ‘We’re Safer Together’ badge. (2014-2015) and empowered to look out for one another Gold award in the RoSPA (Royal Society for “We are committed to our analysis, which is essential in tracking by promoting and championing the right the Prevention of Accidents) Occupational vision of being leaders in safety, trends and mitigating risks. Health and Safety Awards 2015. behaviours to keep people safe, and the health and welfare. Our 2020 confidence to challenge when they are not. MAKING SAFETY, HEALTH AND Judges praised Wates’ commitment strategy for Zero Harm is a sure ENVIRONMENT TRAINING EASIER 2015 was another strong year for Wates’ to accident and ill-health prevention, step forward towards meeting AND MORE ACCESSIBLE Safety, Health and Environment initiatives, recognising the company’s continuous Training plays a key part in keeping our which were recognised with a Gold Award improvement in its occupational health and our goal. By working together colleagues and supply chain partners from RoSPA (Royal Society for the Prevention safety management systems, and its excellent we are stronger and smarter. informed about the risks they potentially of Accidents). leadership and workforce involvement. Together we are safer.” face on site and in our office environments. Over 1,400 people underwent Wates health We recognise there are a number of John Dunne ways to take on new skills, including a and safety training and over 100,000 health Wates Group, Health, Safety and Environment Director and safety observations were registered. blended learning approach. To support our We achieved an 8% reduction in dangerous ‘We’re Safer Together’ campaign, we have incidents, a 23% reduction in Lost Time Injury launched a new suite of Safety, Health Rate (LTIR), and a 40% reduction on One Day and Environment e-learning modules to Plus injury AFR compared to 2014. complement our established health and safety training assets. These modules cover a variety of topics, ranging from manual handling and electrical safety through to stress management.
Wates Annual Review 2015 12/13 Our People
RETURN TO CONTENTS ABOVE ALL, IT’S ABOUT PEOPLE
Our people make all the OUR COMMITMENT TO EQUALITY GROWING OUR BUSINESS IN LINE DEVELOPING OUR RECRUITMENT DRIVE difference to our customers We believe that everyone should be employed WITH OUR ASPIRATIONS PEOPLE AND TRAINING AND FORWARD STRATEGY and promoted on the basis of their personal The Wates Group has set an ambitious but Developing our people is crucial for growth Attracting new talent into the construction KEY HIGHLIGHTS and the communities in which merit and contribution. Under our Tomorrow’s clear target to become a £2bn company. and we continue to make a substantial sector is a particular focus for Wates. we work. We want to grow People umbrella – part of our strategic Key to this growth is the recruitment and investment in building skills for the future. In 2015 we appointed an apprentice manager every part of our business Reshaping Tomorrow programme – we are development of our people. In 2015 the Group invested around £1m in who joined our early careers team to build 3,703 committed to eliminating discrimination from learning and development, addressed over our pipeline of school leavers, apprentices HEADCOUNT AT and it is vital that we attract, our workforce and to treating everyone with In 2015, over 484 new recruits joined Wates 5,200 individual training needs and launched and higher level entrants. THE END OF 2015 develop and retain the best fairness and respect. including several key senior appointments new initiatives to further enhance our across the Group who are now supporting We recruited 43 new trainees who help talent; not just in the industry leadership development, behavioural, safety, In 2015, we set out clear plans and targets to our business plans to deliver our target. and specific technical skills training. make up the 76 people now on the Wates but within the professions that ensure that equality, diversity and inclusion trainee programme. This cohort of rising support our business too. are at the heart of what we do and the way In addition, in October 2015, we acquired As we grow, our people strategy will enable talent is receiving comprehensive training and 1,208 various parts and assets of the Shepherd we operate. As a result of our efforts we were us to attract and retain the best people experience across our business to build their NEW EMPLOYEES VIA awarded with the C2E Gold Diversity Assured Group, a great strategic fit for Wates, bringing both within the industry and within the careers and position them to help deliver ACQUISITION OF PARTS OF Accreditation. With a growing skills issue a further 1,208 people into our business. professions required to support the business. our strategy. We also continued to support THE SHEPHERD GROUP within the built environment, we need to think Our learning and development strategy will the recruitment and development of 88 differently about the way we attract, recruit INVESTORS IN PEOPLE GOLD AWARD support this by a continued investment of apprentices through our various framework and retain the best people regardless of their Our investment in our people was recognised over £1m to ensure we are best positioned for commitments and our dedicated Wates background. Our Junior Board, the future leaders by our second consecutive Investors in People both business and personal growth. Apprenticeship Training Agency (WATA). of our business, helped us think through some of Gold Status accreditation. This is testament to 484 these issues by undertaking a gap analysis on our how robust our core values are and how well NEW RECRUITS projects. Their recommendations are now part our culture of excellence has been maintained of our 2016 delivery plans. by everyone in the business. “Outstanding people management based upon strong values and inspirational leadership at all levels is clearly built into the DNA of the Wates Group, ensuring everyone shares a passion TRAINEES for quality and high performance.” 43
Bob Morrison Investors in People Assessor 88 APPRENTICESHIPS
SPENT ON LEARNING AND £1M DEVELOPMENT
Wates Annual Review 2015 14/15 Environment
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A POSITIVE IMPACT ON THE ENVIRONMENT
Supporting and engaging our This multi-award winning initiative is a over 90 representatives from the housing unique collaboration of over 40 partners industry and its supply chain. This initiative supply chain on sustainability designed to develop sustainability was led by Wates Living Space and was an KEY HIGHLIGHTS is one of our key 2020 competence via an online platform, which industry-first for the housing sector. OUR £167M PROJECT AT objectives as without them provides resources in 10 sustainability GREENWICH PENINSULA SECURED subject areas. It is a free resource available The syllabus has been developed to help AN OUTSTANDING SCORE OF we can only achieve so to any supplier and is part of our continued support the house building supply chain in 45 ON THREE CCS SITE VISITS. 40 much. One of the ways we commitment to lead the industry into a delivering the Government’s ambitious target WATES AVERAGE CCS SCORE to build one million homes by 2020. AGAINST AN INDUSTRY work towards achieving this brighter, more sustainable future. “The site teams at ASSOCIATE MEMBERSHIP This requires a significant jump in sector SCORE OF 38.4 AND is through our partnership SCSS covers a range of sustainability topics, output of almost 50% per annum and Greenwich are thrilled INDUSTRY AVERAGE OF 35.6 with The Supply Chain ranging from carbon, to the sourcing of the Homes School aims to ensure that with our latest CCS materials, ethics and social values, together sustainability, efficiency and quality are firmly Sustainability School (SCSS). with supplier development days and positioned at the heart of this commitment. assessment, especially workshops where best practice is shared. as it is the third time we CCS AWARDS During the year we further embedded the WON ACROSS have achieved the 42 THE GROUP Wates is a partner sitting on the SCSS by hosting four supplier events which SCSS leadership group that helps to were attended by over 200 Wates supply excellent score of 45!” steer the direction and development of chain companies and funded by Wates the school. The initial focus was on the Giving. 69% of the sub-contractors with Phil Whitby Project Director at Greenwich Peninsula construction sector, with dedicated whom we trade over £1m are now members Wates Construction London 97.2% schools for infrastructure and facilities of the SCSS and we will continue to extend management. 2015 saw the launch of this across our supply chain and see the WASTE DIVERTED the Homes School at the Royal Institute of benefits that a collaborative approach can FROM LANDFILL British Architects, which was attended by bring to the built environment.
BEING A GOOD NEIGHBOUR In 2015, a total of 201 Wates sites were 69% Wherever we work, we want to ensure we monitored by CCS and we achieved an average score of 40 compared to the PARTNERS (OVER £1M) have a positive impact on the area around ARE MEMBERS OF SUPPLY CHAIN us. Being an Associate Member, of the average Associate Member score of 38.4 and SUSTAINABILITY SCHOOL the industry average of 35.6. Over 60% of “Every now and again Considerate Constructor Scheme (CCS), gives us the opportunity to demonstrate projects achieved a score of 40 or more. something comes along our commitment to work safely within In 2015, 42 of our projects were recognised a neighbourhood with consideration for that is a game-changer. with a CCS award with one site achieving people and the environment. We believe that the Supply National Runner Up, which is an exceptional 2,368 WATES MANAGERS AND SUPPLY Chain Sustainability School The CCS is a non-profit-making, independent achievement. These awards recognise sites that have made the greatest CHAIN SUPERVISORS PASSED SITE is just that in the field of organisation founded in 1997 by the ENVIRONMENTAL AWARENESS contribution towards improving the sustainable development. It construction industry to improve its image TRAINING SCHEME (SEATS) and encourage best practice above and image of construction and have raised TRAINING IN 2015 has already made a significant beyond basic statutory requirements. It is the bar for considerate construction. a voluntary scheme that focuses on the contribution to sustainability We place great value on the CCS and the impact that construction activity may have at Jackson and many of our standards it helps set and maintain for our on the general public, the workforce and industry and we are fully committed to core supply chain partners. the environment. The code covers five core improving our performance and scores areas: improving the image of construction, The school is practical, even further in the years to come. professional and effective.” protecting the environment, respecting the local community, ensuring everyone’s safety, and caring for the workforce. Stephen Livingstone Environmental Manager, Jackson Civils
Wates Annual Review 2015 16/17 Communities
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TOMORROW’S COMMUNITIES
We recognise the wider role that Wates has to play as a responsible contractor and we are committed to leaving a positive and lasting KEY HIGHLIGHTS legacy in the communities in which we work. £1.3M DRIVING CHANGE IN INCORPORATING SOCIAL Trading directly with social enterprises TRADE WITH SOCIAL OUR COMMUNITIES ENTERPRISES INTO OUR helps us procure locally and deliver social ENTERPRISE SECTOR IN 2015 We believe that good business, done well, SUPPLY CHAIN value with our customers in the communities is a force for good and our key priorities Working with our national partner, where we work. In our 2014 Communities are to help to raise the aspirations of young Social Enterprise UK (SEUK), we continued Count report, produced in partnership with people and increase training and employment to drive our ambition to build an innovative, the Chartered Institute of Housing, SEUK, £6.6M PwC and Orbit Group, 90% of the 200 INVESTED IN THE ENTERPRISE opportunities for those marginalised from the diverse and responsible supply chain by SECTOR SECTOR SINCE 2010 workplace. We meet this commitment in a procuring a social enterprise business on Local Authorities and Housing Associations number of ways including trading with social every Wates construction project. This was consulted stated that SEs are the route-way enterprises, delivering our own employability supported by our bespoke Social Enterprise to unlocking social value. programme ‘Building Futures’ and working with Brokerage (SEB) – an online directory of In 2015 Wates traded over £1.3m with the BUILDING FUTURES training and a route into a career within the £20M others such as The Prince’s Trust on their ‘Get approved social enterprise suppliers to SE sector and 65% of our construction IN CONSTRUCTION sector for new entrants and those returning into Construction’ and TEAM programmes. Wates: an industry first. TARGET INVESTMENT projects have integrated SEs into their Building Futures is our flagship and to work. Adult retraining initiatives are WITH THE SOCIAL ENTERPRISE SECTOR BY 2020 supply chain. This brings our total investment award winning employability programme particularly important in helping to address BUILDING A SUSTAINABLE short term skills gaps. Building Futures will also “Wates is widely recognised since 2010 to £6.6m. Wates Giving also developed by Wates and designed to create SUPPLY CHAIN contributed £124,500 in 2015, bringing their play an important role in contributing towards by the social enterprise opportunities for adults not in employment, One of our Reshaping Tomorrow 2020 total investment to £532,657, helping to education or training to join the construction fulfilling the 182,000 new construction jobs targets is to create employment and training community as a leader in the build capacity within the social enterprise sector. The unique two week Qualifications that will be created over the next three years. 65% opportunities through a £20m cumulative field of working and trading sector and enabling greater impact on and Credit Framework (QCF) accredited PROJECTS INTEGRATED ENTERPRISE In 2015 we delivered 13 programmes and SECTOR IN SUPPLY CHAIN investment into the social enterprise sector. communities across the UK. Our work in vocational training programme provides with social enterprises. When up-skilled 131 unemployed adults who had Social Enterprises (SE) trade to tackle social this area was awarded Highly Commended basic construction training underpinned been distanced from the labour market, problems, support communities, increase SEUK are asked who is setting in the Enterprise Growth category at the with return to work or training skills. with 54% moving into employment or training. people’s life chances or improve the 2015 BiTC Responsible Business Awards, the benchmark for other The programme also forms an important part environment. They make their money by recognising our contribution towards helping The programme is delivered by Wates £124,500 companies we point to Wates.” of Wates being awarded the BiTC Community selling goods and services in the open market, this sector fulfil its purpose. employees in a national partnership with IN ENTERPRISE SECTOR GRANTS Mark, an accreditation for excellence in but they reinvest their profits back into the Ixion Holdings. It was launched in 2005 FROM WATES GIVING IN 2015 Peter Holbrook community investment. 2015 was the 10th business or the local community – so when We are also delighted to be amongst when we recognised the role business CEO, SEUK anniversary of Building Futures and we they profit, society profits. the founding members of the Buy Social has to play in addressing the issues of Corporate Challenge initiative, which brings marked this by conducting a social return BUILDING FUTURES worklessness within the communities in PROGRAMMES together a group of high profile businesses which we work – including many areas on investment (SROI) analysis with NEF 13 DELIVERED with the joint aim of spending £1bn with of high deprivation. It is funded by Ixion Consulting. SROI is a cost-benefit study social enterprises by 2020. The challenge is Holdings leveraging annual funds from the to understand an initiative’s social and UNEMPLOYED ADULTS led by SEUK in partnership with the Cabinet Skills Funding Agency and Wates Giving environmental value. The results concluded that the programme generates £1.83 of UP-SKILLED WITH Office and is designed to help generate (which awarded £40K in 2015, bringing their 54% MOVING INTO real support for this very important sector, total donation to £349K since 2008). social value for every £1 invested. Other 131 EMPLOYMENT OR which employs 70,000 people in the UK benefits included a 28% increase in unskilled TRAINING and contributes £24bn to the economy. Building Futures is designed to showcase construction employment compared with It is also a fantastic platform for working careers within the construction industry and a baseline of 8% for similar construction with like-minded businesses to support the provide the basic qualifications required to initiatives. Our ambition is to continue social enterprise sector to grow, to employ work on a UK construction site. There are growing and improving Building Futures so we £1.8 more people, to develop new markets, currently 1.75m unemployed adults in the can help provide more people with the skills OF SOCIAL VALUE FOR and to contribute to the sustainable UK, and Building Futures is helping to grow they need to prosper and to make a valuable EVERY £1 INVESTED growth of the UK economy. the future workforce by offering entry level contribution to their communities.
Wates Annual Review 2015 18/19 Wates Giving
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MEASURING SOCIAL RETURN COMMUNITY DAY ON INVESTMENT 2015 marked the 10th anniversary of the As mentioned on page 19, in 2015 Wates Giving Wates Community Day and was once again WATES GIVING KEY HIGHLIGHTS introduced SROI analysis. SROI measures strongly supported throughout the Wates investments on the full range of social and Group. More than 2,000 Wates employees 151 NEW AWARDS TOTALLING economic benefits they create. Conducted volunteered 4,700 hours to tackle over by the New Economics Foundation, SROI will 70 local community projects from Cornwall We believe firmly that business has £1,060,613 enable us to judge more fully spend versus to Scotland. As well as time volunteered a key role to play in the community impact. We take great pleasure in supporting by employees, Wates Giving awarded a by blending wealth creation with a wide range of philanthropic activities and total of £30,000 to a range of local projects “ are looking forward to continuing our work including transforming community centres, 107 AWARDS IN SUPPORT social responsibility. Wates Giving with the people, charities and causes that are the renovation of scout huts, business skills OF EMPLOYEE CHARITABLE is a charitable programme that helping to build a better future. training for charities and CV workshops for ENDEAVOURS, TOTAL RAISED provides the means for the Wates school leavers. family to make a positive impact by A YEAR OF GIVING BACK £124,000 GENEROUSLY GIVE AS YOU EARN empowering social initiatives in the Wates Giving works closely with the Wates Through Wates Giving, the family owners communities where the Wates Group Group in the development of its corporate of the Wates Group also back the charities 33 AWARDS TOTALLING works. We want Wates Giving to be responsibility strategy – Reshaping Tomorrow that our people support through the Wates a model example of how 21st century – and helps financially to enable its delivery Give As You Earn scheme. This boosts in the key areas of people, community and employees’ personal giving as they choose £47,671 businesses can harness philanthropic environment. In 2015 the Trust made 151 new to make regular donations from their salary. IN SUPPORT OF EMPLOYEE resources for the benefit of our awards to the value of £1,060,613 across a range In 2015 Wates Giving added £16,368 to COMMUNITY INVOLVEMENT communities and we are delighted of social initiatives, investing in the futures of our five-year total of almost £140,000 disadvantaged people in local communities for a wide variety of employee charities that the many successes and and in supporting Wates employees’ individual throughout the UK, demonstrating our desire achievements of 2015 have helped to charitable efforts. to help Wates employees give something further reinforce this ambition. back to the community. £30,000 EMPLOYEE PROJECTS AWARDED TO LOCAL Wates Giving makes awards in support of PRINCE’S TRUST CHARITIES IN SUPPORT OF charitable endeavours initiated by Wates The Prince’s Trust is Wates Group’s current WATES COMMUNITY WEEK ” employees. In 2015 we made 107 awards to Charity of the Year, while Wates is also part Tim Wates match funds raised by Wates employees of The Trust’s Built Environment Leadership Director for their own personal charity work by Group. We continued our support in 2015 undertaking, amongst other things, sponsored with a grant of £15,000 to The Trust’s ‘Get runs, climbs, raffles and catering events. into Construction’ programme, which is £16,368 This boosted charitable funds raised to over designed to help young people build a career VIA GIVE AS YOU EARN £124,000 in 2015. We made 33 awards with a in the construction industry. Our investment (£140,000 FIVE YEAR TOTAL) value of £47,671 to support Wates employees over nearly nine years has contributed to who work in their local communities as the support of more than 4,500 young trustees, governors or in other volunteer roles people through 415 courses. Some 32% such as fundraisers, sports coaches or general of participants have subsequently gained helpers. Support to local youth soccer and employment and a further 17% moved on £15,000 rugby teams was high on the list for 2015 to education or learning programmes. GRANT AWARDED TO THE and school and other memorial gardens were PRINCE’S TRUST ‘GET INTO also popular causes. CONSTRUCTION’ PROGRAMME
20/21 RETURN TO CONTENTS
OUR BUSINESSES
Wates Annual Review 2015 22/23 Wates Construction
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GROWING OUR BUSINESS COMMERCIAL, MANUFACTURING Having successfully completed the acquisition AND SENIOR LIVING SECTORS WATES CONSTRUCTION WATES of projects and people from Shepherd The business continues to perform well for our Construction Limited (SCL), we now have blue chip and commercial customers across KEY HIGHLIGHTS a stronger foothold in the North and are the country with continued growth in the CONSTRUCTION well-positioned for further growth in the manufacturing and senior living sectors. TURNOVER region, providing a truly national business. Our internal M&E delivery capability, We have secured our first project with Jaguar Wates Construction continued Wates Building Services, continues to go Land Rover following our success in delivering £613M other manufacturing facilities as for Haribo. INCL. £30M FROM SCL to enjoy strong growth in 2015. from strength-to-strength, enabling us to ACQUIRED CONTRACTS protect margins and offer a flexible, fast and We have also been appointed on multiple With a turnover of £613m repeatable service to our customers. schemes with Signature Care Homes and (incl. £30m from contracts Audley Retirement, in what is becoming a significant sector for our business. AVERAGE CCS SCORE acquired from Shepherd BALANCING A DIVERSE PORTFOLIO Construction) and new business With over 400 new colleagues welcomed into Other key appointments include Kingdom the construction business in 2015, our team Street for British Land, a £61m commercial and 40.7 worth over £1bn already secured, continues to expand. We also promoted 76 retail scheme, and a £48m redevelopment of we’re in a strong position to hit employees and celebrated 56 people reaching the old post office site at 148 Old Street for our 2016 and 2017 targets. 25 years’ service. Great Portland Estates. Forecasting the UK economy remains a CCS AWARDS LOOKING NORTH 19 challenge and our focus in 2015 was to serve a balance of public and private sector customers As our flagship £50m commercial scheme in key areas including: at Central Square in Leeds looks toward completion in 2016, our work continues along SOCIAL ENTERPRISE SPEND • Public sector frameworks (we’re on 80% Wellington Street with a £15m scheme at 5 of major regional frameworks) Wellington Place (transferred from Shepherd • National Defence Infrastructure Organisation Construction) due to complete later in 2016. £284,863 (DIO), Ministry of Justice and Education Funding Agency frameworks DELIVERING EXCELLENCE IN EDUCATION • Private sector inner-city residential APPRENTICES programmes In the public sector our strong education 12 credentials continue to feed our pipeline • Blue chip commercial developers and 2015 saw Wates appointed as the main • Senior living and student accommodation contractor for three schools under the Barking, sectors Dagenham and Newham Priority School WASTE DIVERTED Building Programme (PSBP) batch and 98% FROM LANDFILL three University Technical Colleges under FOCUS ON RESIDENTIAL the London UTC batch for the Education Our residential focus includes a £130m, Funding Agency. 362 unit, residential design and build SUPPLY CHAIN SCHOOL apartment project for Quintain at Wembley, MEMBERSHIP OF SUPPLIERS MAKING A DIFFERENCE WITH >£1M IN TRADING: with completion scheduled for late 2017 IN THE COMMUNITY (see project Alto image on pages 2/3). Our commitment to the communities in In addition, following the successful delivery which we work is key to the way we do 72% of plots 114 and 115 on the Greenwich business and, as a result, we have spent nearly Peninsula, we were appointed on another £285k with social enterprises and achieved an significant residential project with Knight average CCS score of 40.7 in 2015, including Dragon at plot 104. The £76m project will see two gold awards. This is a testament to how Wates Construction build a 32-storey tower, we are delivering our promises to the local Ramzies Dacres the tallest we have ever built. communities in which we work. Commercial Manager Wates Construction 24/25 Wates Construction
RETURN TO CONTENTS REFURBISHMENT AND MODERNISATION DELIVERING EXCELLENCE OF MAJOR MARYLEBONE LANDMARK IN EDUCATION FOR THE FOR HIGHER LEARNING EDUCATION FUNDING AGENCY
THE LONDON The 11,469m² development will expand the “From the tender submission NO. APPRENTICES NO. TRAINEES BUSINESS SCHOOL London Business School’s teaching facilities date in early October 2014, Wates Construction was appointed by the and will be an integral part of the campus, creating a triangle of educational facilities there were six weeks to 2 3 London Business School in 2015 to restore the Old Marylebone Town Hall building. between Sussex Place, the Taunton Centre complete a comprehensive value and Old Marylebone Town Hall. Works to a full state of repair. The £54m project engineering exercise to drive down LOCAL LABOUR USED CCS SCORE include the part-demolition and restructuring will create a modern learning environment costs without compromising within within the historic premises, and includes of the former Westminster Council House 60% 20 miles 41 the careful conservation of early twentieth and annexe buildings, plus the construction quality. Wates performed well century period features. of new auditoriums, seminar rooms, a library, and working closely with the offices, faculty spaces and a student lounge WASTE DIVERTED FROM LANDFILL all with state-of-the-art AV and IT facilities. client delivered a proposal that 98.9% enabled the contract to be Through Wates Giving, we are providing an award signed and work to proceed of £21,000 over three years without significant delay.”
to 2017 to fund Masters in Business Canterbury Primary School, part of the PSBP East 1 Batch, was completed in 2015. Image copyright: Fotohaus Management bursaries. Jonathan Buckingham Development Manager The London Business School
Wates has a longstanding relationship with the Education Funding Agency (EFA) creating quality schools across England. We are currently providing construction services on two national and five regional frameworks. Since the EFA launched its PSBP programme, we have been appointed as main contractor to deliver over £150m of new and refurbished school buildings. This includes 19 PSBP schools in Coventry, the North West, East of England, Kent and London.
LITTLE ILFORD SCHOOL “When I walked into the corridor As well as Canterbury Primary School (pictured on the ground floor I had an above), in 2015 we were appointed as main emotional moment as I realised contractor for Little Ilford Secondary School, the first of three schools to be developed as that our new school was coming part of the Barking, Dagenham and Newham and it was going to be great.” PSBP batch. The £22.8m, 1,525 place, four- storey secondary school is designed by CPMG Ian Wilson Headteacher, Little Ilford School Architects and will incorporate a 25 place autistic spectrum disorder unit. Works include the fitting out of internal space for teaching REPEAT and administration support offices, new CUSTOMER BREEAM CCS SCORE kitchen and associated facilities, and a multi- VERY use games area. GOOD 38
The new school has been designed utilising SOCIAL NO. APPRENTICES our component-based design solution for ENTERPRISE SPEND schools (Adapt) which offers significant time £5,304 and cost efficiencies in the delivery of new 2 school buildings. WASTE DIVERTED FROM LANDFILL 100%
Wates Annual Review 2015 26/27 Wates Construction
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A NEW HOME FOR THE ARTS IN MANCHESTER
CENTRAL SQUARE, LEEDS Central Square has already attracted HOME AT FIRST STREET, “HOME is incredibly excited AWARDS WON FLAGSHIP A flagship project for Wates Construction a substantial letting from professional MANCHESTER RICS NW Awards Tourism and Leisure services firm PwC, who are set to locate 700 and proud to receive a RIBA North West Awards in the North East, the £50m Central Square Wates Construction completed the £25m substantial grant award development in Leeds for Roydhouse employees across the seventh and eighth development of HOME at First Street in SCHEME IN NO. APPRENTICES Properties comprises 11-storeys of floors, occupying 55,000 sq ft. We have been Manchester in 2015, a centre for international from Wates Giving. It is selected to deliver their £5m interior fit-out BREEAM predominantly Grade A office space, contemporary visual art, theatre and film. really important to us VERY LEEDS CITY package, which boasts high specification GOOD with retail provision on the ground floor The new purpose-built complex is England’s as an organisation to 11 plus a fully glazed winter garden with powered movable glazed walls and state of largest multi-art form centre outside London. CENTRE the art audio visual systems. Along with the provide sustainable training leisure facilities. It features an attractive It boasts a 500-seat theatre, 150-seat flexible LOCAL LABOUR USED adjacent projects at Wellington Place that sky garden on the ninth floor, providing studio space, 500m² gallery, five cinema opportunities for young and within within have transferred from SCL, Central Square entertaining opportunities and fantastic screens, digital production and broadcast emerging talent, and the grant 80% 20 miles 50% 10 miles views across the city. demonstrates that Wates is truly committed facilities, and a café, bar and restaurants. to our customers in the heart of Leeds. HOME was procured through the North West is a significant contribution WASTE DIVERTED FROM LANDFILL CCS SCORE Construction Hub (NWCH) framework. that will allow us to provide “There’s a growing demand APPRENTICE unique opportunities for 100% 42 for quality office space across WEEKS In addition to our construction apprentices, interns and Yorkshire and with building 100+ work, Wates Giving provided HOME with a £30,000 grant to volunteers alike.” work at Central Square CCS SCORE fund ongoing creation of sustainable training BREEAM currently ahead of schedule, EXCELLENT opportunities for the arts. Dave Moutrey we are confident that this 41 Director and Chief Executive, Home exceptional scheme will take pride of place in Leeds’ expanding commercial market.”
Richard Bland Partner, Marrico LLP Wates Annual Review 2015 28/29 Wates Construction
RETURN TO CONTENTS PROVIDING WORLD CLASS DELIVERING TRAINING FACILITIES IN COVENTRY OUTSTANDING SENIOR LIVING IN THE SOUTH ADVANCED MANUFACTURING Off-site prefabrication was extensively REPEAT “The development of the AMTC TRAINING CENTRE, ANSTY PARK used to guarantee improved quality control CUSTOMER on Ansty Park in Coventry is and increase the speed of construction to Wates Construction was appointed as main a huge demonstration of the contractor in 2015 for the £18m Lloyds Bank achieve the critical sectional completion Advanced Manufacturing Training Centre date. The new training centre revolutionises growing confidence in the (AMTC) at Ansty Park, Coventry. This project engineering training and also makes a industrial and manufacturing significant contribution towards solving the BREEAM involved the design and build of a three- EXCELLENT sectors in the Midlands and storey training centre comprising workshops, skills shortages that have been prevalent in classrooms and lecture theatres, research the manufacturing industry. Our appointment the MTC’s expansion will areas, catering facilities, breakout space, office follows the successful delivery of the state- substantially bolster the accommodation and a conference suite. of-the-art £13m Aerospace Research Centre for the Manufacturing Technology Centre campus’ prominence both in (MTC) on the same campus. the UK and globally.”
Phil Harrison Managing Director, Wates Construction, Midlands and North
SIGNATURE CARE HOMES, “Wates has engaged CAMBERLEY AND SUNNINGHILL with Signature to make Wates Construction was appointed as main contractor in 2015 for two these two projects work new-build care home schemes at Camberley by using their internal and Sunninghill. With a combined project resources and expertise value of £34m, the care homes will offer to generate some value 92 and 96 apartments respectively, including provision for specialist dementia care. engineering opportunities The two-stage design and build schemes and straightforward cost will feature cinema rooms, hair salons, savings which have then therapy rooms, plus a Signature bistro and restaurant with private dining facilities. enabled the projects to move forward. Our appointment follows the successful completion of Bentley House in Hertford for Signature Care Homes. I am delighted to be working with Wates as we seek to improve the REPEAT NO. APPRENTICES CUSTOMER product and how 3 it is delivered.” Ian Webb CCS SCORE WASTE DIVERTED Head of Construction, FROM LANDFILL Signature Senior Lifestyle 45 95%
Wates Annual Review 2015 30/31 SES Engineering Services
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STRATEGY FOR GROWTH • Project Capella – a £79m research facility Exceptional progress has been made in for the University of Cambridge SES KEY HIGHLIGHTS SES terms of integration with Wates and aligned • Margam Green Energy Plant – a £160m reporting and a common language are already wood-fired power station in Port Talbot in place. More importantly, SES’s people are TURNOVER ENGINEERING now firmly ensconced in our new environment with our new colleagues. A FIRST IN BIM LEVEL 2 £30M SES is also proud to have become the first SERVICES The most significant objective for SES is FOR THREE MONTHS Mechanical and Electrical (M&E) specialist OF OWNERSHIP to realise the potential of our business contractor in the UK to achieve the going forward. Current market conditions Government’s Level 2 BIM accreditation, 2015 was a year of change for are favourable and our competitive and which is a clear external validation of our differentiated offering to customers is differentiation in technical ingenuity. SES Engineering Services (SES) with second to none. No.1 As a digitally enabled business, innovation service to our customers remaining THE FIRST BIM LEVEL 2 MEP An ambitious 2020 growth strategy has and improvement have been fundamental to SPECIALIST CONTRACTOR our key focus as we transitioned been formulated to allow us to realise our revolutionising the way we work. A number successfully into the Wates Group. potential, whilst meeting the aspirations of unique and complex projects in 2015 have During a busy acquisition and and needs of all of our stakeholders. allowed us to develop our BIM-led off-site manufacturing strategy via PRISM, our off-site HOURS integration period, trading remained WORKED FOCUS ON MAJOR CONTRACTS manufacturing and assembly facility in York 7M RIDDOR FREE positive and stable as the business We have a balanced portfolio of which is set to double its output in 2016. completed its first quarter under significant ongoing major contracts across the country. This includes the following CUSTOMER FOCUSED new ownership. MONTH ROLLING highly complex projects: Our focus on fostering the earliest 12 AFR OF 0.00 possible engagement with our customers • Queensferry Crossing – a major and our progress in securing a number of infrastructure project for Scotland significant strategic projects underpin UTILISING PRISM TOOK • Defence and National Rehabilitation our strategy. Our forward order book is Centre – providing a new facility for growing and we are looking confidently the rehabilitation of wounded armed toward 2016 and beyond. 130,000 forces personnel in Leicestershire MAN HOURS OFF SITE • King’s Cross – Building S2 and the Gasholder Triplets with long-standing customers Argent and Carillion COMPLETED PROJECTS IN 2015 BIM Level 2 Business Systems Certification Scheme 30 • Centre for Food and Health, Norwich – building a new 14,055m² laboratory Certificate Number BIM10007 research complex on the Norwich Research Park 37 APPRENTICES
OF OFFICE WASTE DIVERTED 98% FROM LANDFILL
Nathan Lutz Engineering Manager 32/33 SES Engineering Services SES Engineering Services
RETURN TO A NEW ICON CONTENTS “The Queensferry Crossing represents ACROSS THE leading edge, 21st century civil engineering. It is a rare opportunity for all of us involved FIRTH OF FORTH to build a major new infrastructure project of international significance. FCBC and all our subcontractors and suppliers are immensely QUEENSFERRY CROSSING proud to be a part of this project.” Queensferry Crossing is a major infrastructure project for Scotland, designed to safeguard a vital David Watt connection in the country’s transport network and is Communications Manager, Forth Crossing Bridge Constructors Scotland’s biggest transport infrastructure project in a generation. Transport Scotland has employed Forth Crossing Bridge Constructors (FCBC) consortium which consists of HOCHTIEF Solutions AG, American Bridge International, Dragados S.A and Morrison Construction, to undertake the works.
This new iconic structure being constructed over the Firth of Forth, linking Fife and Edinburgh. It will be the longest three tower cable-stayed bridge in the world and will also be the largest to feature cables which cross mid-span. The bridge has been designed to complement the existing road and rail crossings.
SES’s work on this project will ensure the future of a vital element of Scotland’s transport network. Our scope consists of the MEP installation for the cable stayed bridge sections, towers, north and south approach viaducts and the abutment buildings situated at the north and south of the bridge.
Our main delivery strategy is to maximise the amount of M&E services that can be installed within the individual CSB deck sections whilst remaining on-shore. In order to achieve this goal, we have set up a local PRISM off-site manufacturing and assembly facility in Rosyth to manufacture the containment and pipework service modules.
Image courtesy of Transport Scotland
LOCAL LABOUR USED MAN HOURS SAVED within 100% 50 miles 32,500
TONNES OF STEEL 30,000
TONNES OF CONCRETE POURED 150,000
MILES OF CABLING 23,000
Wates Annual Review 2015 34/35 SES Engineering Services
RETURN TO CONTENTS NATIONAL BIOLOGICS SUPPORTING THE MOD IN MANUFACTURING CENTRE THE DELIVERY OF ARMED FORCES INFRASTRUCTURE NATIONAL BIOLOGICS Demonstrating our technical authority MANUFACTURING CENTRE on the project, the site team, PRISM and 2015 saw the official launch of the £38m SES’s BIM team worked tirelessly to deliver National Biologics Manufacturing Centre an inspiring world-class building with much in Darlington, which is developed and of the construction being carried out managed by the Centre for Process off-site.This allowed thousands of hours Innovation. This new centre will provide to be taken off the programme’s critical companies with open access facilities and path and minimised road transportation expertise to help them develop, prove and and site congestion. commercialise new and improved processes and technologies for biologics manufacture. NO. APPRENTICES HOURS SAVED SES was appointed to provide M&E 3,950 services to this highly complex and 3 technical project to deliver a new three-storey laboratory facility with both LOCAL LOCAL SUPPLY LABOUR USED CHAIN USED HVAC and Process Installations providing within within flexible testing facilities for new process 70% 50 miles 60% 50 miles and technology development. RNAS YEOVILTON We are currently undertaking works to deliver Also referred to as HMS Heron, Royal Naval a new build squadron HQ, the refurbishment Air Station (RNAS) Yeovilton is one of the of and alterations to existing squadron Royal Navy’s two principal air bases, and one accommodation, an armoury facility, of the busiest military airfields in Europe. and the new video fire detection systems. REPEAT NO. APPRENTICES Infrastructure works to various aircraft CUSTOMER SES is working in partnership with Carillion hangars and an extension to the existing fuel INNOVATION THROUGH OFF-SITE on four major developments at RNAS to tanker park are also planned. Project Winfra 6 facilitate the co-location of the Royal Navy is scheduled to complete later in 2016. MANUFACTURING FOR LANDMARK and Army Air Corps Wildcat helicopter AWARDS WON forces. Code-named ‘Project Winfra’ by the SCHEME IN NEWCASTLE-UPON-TYNE H&V News Award 2015 Ministry of Defence (MoD), the £80m (£17m “We are enjoying this BIM Initiative of the Year M&E value) project will deliver operating exceptional opportunity of and maintenance efficiencies as a Central working with the MoD and Operating Base for the combined force. BREEAM ZERO Carillion to use our extensive STEPHENSON QUARTER VERY ACCIDENTS GOOD REPORTED Our initial involvement began in 2014, and skills and experience to help Stephenson Quarter is a mixed-use in March 2015 we delivered the first building deliver the first-class facilities development in the heart of Newcastle- for the Commando Helicopter Force (CHF), upon-Tyne, which will create 2,000 jobs which operates the Merlin helicopters at this principal air base deserves.” and add £100m per annum to the regional Yeovilton. This included the full design and “We are delighted that we Robert Doherty economy. Delivery of the first phase of this have reached completion installation of all M&E services for a Regional Director for Bristol and South West landmark £200m (£7m M&E value) master new three-storey building, incorporating plan in 2015 was an extremely rewarding of phase 1 of Stephenson a squadron office and training rooms to experience for SES. Quarter, where we have had ensure the CHF team are able to train REPEAT ZERO for deployment. CUSTOMER SES’s BIM and PRISM capabilities were to overcome a number of ACCIDENTS REPORTED crucial to the successful co-ordination complex challenges. We are In November 2015 we completed and of the complex M&E services for the now enjoying being open for handed over the associated upgrade of all Stephenson Quarter scheme. Together the business having created a new site infrastructure to accommodate the teams delivered a series of innovative off- new build Quartermaster’s Store, Motor STUDENT ENGINEERS site solutions which significantly reduced and valuable gateway site for Transport Workshop, new build Covered 3 4 NO. APPRENTICES costs as well as creating a safer working the city of Newcastle.” Troop Command Parking, new Command environment on the project, which saw a Helicopter Force open parking and B559 close collaboration with principal contractor Michelle Percy crèche alteration. Galliford Try and developer Clouston Group. Managing Director for Stephenson Hotel Ltd and Commercial Director, Clouston Group
Wates Annual Review 2015 36/37 SES Engineering Services
RETURN TO CONTENTS OFF-SITE MANUFACTURING MAXIMISING EFFICIENCY FOR EFFICIENT DELIVERY IN THROUGH BIM TO KING’S CROSS, LONDON DELIVER CUSTOMER SUSTAINABILITY GOALS
KING’S CROSS P1 – In addition, SES has secured the contract to “Both SES and CCL’s THE PLIMSOLL BUILDING design, deliver and install M&E works for three pioneering circular residential buildings on the approach from day one 2015 saw the culmination of SES’s M&E was to have trust in each contract on an £80m 67-acre landmark King’s Cross Gasholders project. development in King’s Cross central London. other, succeed in every P1 is a showcase for the latest off-site Working alongside long-standing customer, manufacturing techniques and has attracted task and enjoy doing it. Carillion Construction Limited (CCL) and widespread praise from the engineering industry. The early engagement developer Argent, SES successfully provided Through our pioneering and award-winning full design and build M&E services to more and commitment of the BIM2MOSAIC technology, we were able to than 255 apartments across 13 floors of develop our revolutionary ‘box of wonders’ – prefabrication provided The Plimsoll Building (P1) and two new essentially a utility cupboard – one for each early benefits with the schools including the Frank Barnes School apartment incorporating all of its essential for children who are hard of hearing. basement substantially M&E plant and equipment. completed months ahead of Created off-site, these units would otherwise programme and the quality have required multiple trades on site working in of the service cupboards a congested area: a major logistical and health and safety risk. By modularising these services were exemplar and used as we were able to dramatically reduce the number the way forward on future of hours on site by 14,600, helping to ensure the King’s Cross projects.” project was delivered on time.
Ian Cordery Project Director, CCL SHEFFIELD CUSTODY SUITES “One of the stand-out aspects SES was appointed by Willmott Dixon in 2015 of this collaboration was the level HOURS SAVED to replace three outdated and inefficient of accountability and inherent custody suites in Sheffield and deliver a new £19m custodial accommodation (£2.7m M&E honesty. Easy information flow 14,600 value) for up to 50 offenders and incorporate and quick warning system has four cell wings and a two-storey office block. been a game changing experience ADDITIONAL An intelligent, inventive and practical space, PROJECT PHASES the custody suites are the first of their kind in for the force, by breaking down 2 SECURED the UK to generate up to 50kW using photo barriers of communication, voltaic technologies and will be a UK police we had a true sense of trust.” force flagship project. WEEKS SAVED BY PREFABRICATED Paula Ibberson 22 ELEMENTS BIM was an intrinsic part of the integrated Custody Estates Project Manager, South Yorkshire Police project delivery approach. A fully co- ordinated model was established for all high level services, risers and plantrooms. This allowed the project team to validate 2 WEEKS the design early, to reduce operations and EARLY HANDOVER OF M&E WORKS maximise efficiency. The team worked closely with the entire supply chain to reduce cost and waste and improve efficiency. DEFECT FREE AT HANDOVER CAT A SUPPLY CHAIN PARTNER FOR OUR CUSTOMER UPON COMPLETION OF PROJECT
Wates Annual Review 2015 38/39 SES Engineering Services
RETURN TO CONTENTS PRISM: REALISING THE BENEFITS OF BIM: PROVIDING A PRACTICAL, OFF-SITE CONSTRUCTION AND COMMERCIAL AND COLLABORATIVE INTEGRATED BUILD SOLUTIONS APPROACH TO THE MANAGEMENT FOR OUR CUSTOMERS OF OUR PROJECTS
SES PRISM is a leader in its industry sector SOLUTION EXAMPLES: KEY BENEFITS OF PRISM ARE for off-site construction engineering services • 2D and 3D service modules (incorporating IMPROVED QUALITY CONTROL and integrated build solutions. It offers fire, acoustic and wall solutions) AND SAFETY customers a collaborative, innovative and In 2015 the use of PRISM solutions • Fully packaged plantrooms (incorporating forward-thinking solution that presents an contributed to SES’s exemplary safety fully tested mechanical, electrical and accurate and affordable option to labour- record in achieving zero harm across controls services) intensive, time consuming, on-site a record 365 incident-free days. production and assembly. • Fully serviced risers Other benefits of off-site manufacture are: Our bespoke solutions can be designed and • Plantroom skids adapted to fit individual buildings. • Improved quality control • Prefabricated brackets • Improved safety • Residential utility cupboards • Less site congestion • Wiring solutions • Minimal waste • Bespoke project requirements identified • Reduced programme risk through collaborative workshops and pre-construction process • Reduction of hours worked on site
Linked to the success of SES PRISM, In 2016, Wates’ journey towards BIM adoption “Being the first MEP company and a critical focus for Wates, is its in all areas of its business is a key focus; to achieve BIM business utilisation of BIM. ensuring that the Group is able to scale its BIM services to suit the varying requirements certification represents a BIM is a key component of the SES of its customers across all sectors, creating great achievement for SES, pre-construction strategy and has proved opportunities to improve the design, quality we hope their positive action invaluable in the delivery of many projects and efficiency of the business’ operations. over the past five years. will encourage others to follow their lead and keep In 2016, SES became the first mechanical, electrical and public health services (MEP) pace with this business critical contractor to achieve BRE Accredited BIM industry development.” Level 2 Business Certification, and did so
ahead of the Government’s public sector BIM Level 2 Business Systems Certification Scheme Guy Hammersley project compliance deadline. Certificate Number BIM10007 BRE Director, BIM
Wates Annual Review 2015 40/41 Wates Residential Developments Group
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RESPONDING TO DEMAND SUSTAINABLE GROWTH The residential sector continues to The Wates Residential Developments WATES WATES DEVELOPMENTS be a critical and attractive market for Group and its businesses have grown KEY HIGHLIGHTS the company and is one where we are significantly over recent years. Wates RESIDENTIAL extremely well positioned to respond to Developments controls a large and TURNOVER the UK’s housing challenge; to provide exceptional land portfolio and maintains more homes of all types for our growing a wide range of active joint ventures DEVELOPMENTS population. Over recent years we have with leading housebuilders. This business £78M witnessed significant changes to the sector. has gone from strength-to-strength These concern a scale and structure of and reports another impressive year of GROUP housebuilders, a significant shift within the profitability in 2015. planning environment, the terms on which £100M INVESTED CAPITAL the Housing Association sector is supported The business continues to grow in both and the expectations placed upon Local scale and quality of returns, maintaining its Wates has been building homes since Authorities to become true enablers of focus on London and Southern UK land, the business was first established. development for their communities. planning and residential markets. With over £100m in invested capital, Wates >9,000 Nearly 120 years on, we remain Developments has grown its potential PLOTS CONTROLLED A NEW STRATEGY FOR DELIVERY passionate about creating exceptional development pipeline to over 9,000 plots, residential developments of all tenures At the end of 2015 we established a new two thirds of this either has planning or is strategic alignment in response to these identified for development in emerging local IN LOCAL for people to live and thrive in. changes and to make Wates stronger plans. 536 units were consented in the year >6,000 PLANS Today our residential businesses, and better connected to the full sphere on eight sites in excellent market locations. of activity encompassed in the word our investments, our partnerships, The business’ joint venture development ‘development’. We have now formed the investment has grown to 1,317 units with HOMES Wates Residential Developments Group that IN JOINT our schemes and our customers annual home completions of 287 in the year. VENTURES span the whole of the UK. comprises both Wates Developments and 1,300+ Wates Living Space Homes. Wates Living Space Homes is a leading contractor and development partner to the This group now spans public and private Housing Association and Local Authority WATES LIVING SPACE HOMES land and greenfield and brownfield sites. sectors, and is growing its operations and KEY HIGHLIGHTS The depth of expertise within these relationships year on year. The business has businesses connects our land promotion, added sole development and joint ventures TURNOVER masterplanning and placemaking to our to its contracting and development services exceptional planning capability and design propositions. In 2015, we secured development ethos. Our experience in front line residential £148M opportunities for 1,800 homes in Manchester, contracting, development services and Cardiff, London and Birmingham and will be construction activities is mirrored by our delivering new homes sales from 2016. extensive joint venture activities with AVERAGE CCS SCORE housebuilders and united by a close focus The business achieved a turnover of £148m 39.4 on our markets, product and customer in 2015 from both construction and home experience. From conception to completion, sales and built 700 properties. we span the entire development framework, CCS AWARDS working and partnering with a wide range of The Wates Residential Developments 8 stakeholders who share a vision to provide Group brings Wates’ principal investment quality homes that people aspire to live in. activities under one leadership team and underpins our commitment to NEW housing in the UK. 700 HOMES BUILT
SOCIAL ENTERPRISE SPEND £365,598
Emily Bloor Senior Land Manager Wates Developments 42/43 Wates Residential Developments Group
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DEVELOPING NEW COMMUNITIES WITH BARRATT HOMES (SOUTHERN) ACROSS TWO SITES IN WEST SUSSEX
WORTHING In 2011 Wates Developments entered into a joint venture with house builder Barratt Homes (Southern) for two new sites in the large seaside town of Worthing in West Sussex.
The first site, The Fieldings (2.6 acres), is now complete and fully sold while the second, Cissbury Chase (15 acres), is being built on the original Worthing College campus.
Completing in 2018, Cissbury Chase features a superior collection of two, three and four bedroom properties, providing much needed homes in Worthing.
Wates and Barratt Homes, who have worked in partnership on previous sites, acquired the land and secured the planning. Crucially, the purchase of both sites was conditional on obtaining planning permission for 296 homes. It was also necessary for Worthing College to be able to obtain planning permission to relocate to the existing Aviva commercial building, which was part of the wider local scheme.
This joint venture with Barratt Homes has sold 68 market properties and is an example of excellent performance in sales, quality and delivery.
Wates Annual Review 2015 44/45 Wates Residential Developments Group
RETURN TO SECURING COMMUNITY SUPPORT CONTENTS FOR OUR DEVELOPMENTS BUILDING HOMES THROUGH THE HOUSING IMBER COURT “Working with Wates Developments has proved to be Wates Developments was granted outline a text book example of how a joint venture should and AND COMMUNITIES planning permission in December 2015 for up can work. We have been particularly impressed with their to 95 new homes, to include 40% affordable AGENCY DELIVERY housing, to replace the 7.5 acre Imber Court ability to drive planning consents through to produce industrial and warehouse estate in the leafy some exceptional development opportunities.” residential suburb of East Molesey, Surrey. PARTNER PANEL The sensitive site is adjacent to green belt Ian Menham and an inlet from the River Thames. Managing Director, Barratt and David Wilson Homes Southern Counties
This consent followed six years of community engagement with local people who assisted Wates Developments in securing the release of the site from its commercial property planning allocation. Local people recognised the benefits of the scheme and improvements planned for the wider environment as a result of the development coming forward.
This success will now allow Wates Developments to bring forward much needed and well designed homes on this very sustainable site. This is a prime example of a well executed site promotion strategy on behalf of a landowner partner.
MANCHESTER HOUSING Manchester businesses received a £12m boost REPEAT NO. APPRENTICES PROVIDING INVESTMENT FUND as a result of the project and 45 unemployed CUSTOMER As main contractor appointed through the local people secured work and training. QUALITY HOMES Homes and Communities Agency (HCA) We also invested £141,377 into community 20 Delivery Partner Panel, Wates Living Space regeneration projects and charitable grants, AWARDS WON Homes successfully completed work on the investing £45,930 into social enterprises. ACROSS 26 ACRES BUILDER AND ENGINEER AWARDS 2015 £24m Manchester Housing Investment Fund Supporting our customer HOUSE BUILDER OF THE YEAR project in 2015. We were responsible for the Manchester City Council, BUILDER AND ENGINEER AWARDS 2015 IN WEST SUSSEX master planning and delivery of the new RISING STAR (JESSICA DILLON) as part of the BBC’s DIY SOS build residential scheme across five sites, initiative, Wates Giving provided an award providing 240 family homes for sale and SOUTHWATER Thanks to a collaborative approach and of £20,000 to Walking With the Wounded, BUILDING FUTURES “We are extremely confident high quality market rent. In 2013 the business secured a contract to effective engagement with local residents, which is helping Manchester Veterans to stakeholders and the planning authority, with Wates Developments as act on behalf of landowners in Southwater, Funding for the scheme was secured as part overcome barriers to employment. 2 24 this was achieved within two years of a joint venture partner and we West Sussex, for the promotion of a 26 acre of a joint venture between Manchester City PROGRAMMES CANDIDATES entering into the land agreement and is a greenfield site for residential development. are really looking forward to Council and the Greater Manchester Pension great example of the business’ expertise in ‘The Housing Investment ENTERING INTO The site is within the jurisdiction of Horsham working with them on a number Fund, showcasing a new and innovative EMPLOYMENT OR planning, land and joint venture development Fund was designed to District Council, to whom Wates submitted of developments over the partnership model. Our unique offer included 71% TRAINING an application for 193 homes to include 40% counteract a much-reduced Work on site will commence in Autumn 2016 Wates Assured Homes, our BIM-designed affordable housing. coming years, where together, as part of a number of new joint ventures affordable house types, which helped us rate in home building and the LOCAL LOCAL we can build some great places achieve a start on site within twelve months. LABOUR SUPPLY The development scheme will consist of with Miller Homes and is expected to be fully result was a completely new, USED 60% CHAIN USED 67% predominantly two-storey family housing complete by 2020. for people to live.” innovative and pro-active and offer open space and a play area, with approach to managing our a country trail through retained ancient Tracey Lee Regional Operations Director, Miller Homes woodland. It will also provide an improved residential growth.’ approach to the village of Southwater. Councillor Bernard Priest Deputy Leader, Manchester City Council Wates Annual Review 2015 46/47 Wates Residential Developments Group
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COMPLETION OF PHASE 1 AND ONGOING WORKS AT ERITH PARK
ERITH PARK PHASE 1 The proposals adopt a ‘fabric-first’ Wates Living Space Homes completed Erith approach to low-energy construction and Park Phase 1 in 2015. Designed by Broadway will achieve Code for Sustainable Homes Malyan Architects, this £120m regeneration (CfSH) Level 4. All units were designed to programme incorporates the demolition meet Secured by Design, Lifetime Homes of five 1960s tower blocks to make way for and the London Housing Design Guide. 343 new low to medium-rise apartments The five-year scheme (across two phases) and family homes. We acted as developer will completely regenerate the former partner for Orbit Group, investing and run-down Larner Road Estate, creating taking responsibility for the development’s almost 600 new homes for affordable rent, 20% market sale element, as well as the private sale and low cost home ownership. role of design and build contractor for the Phase 2 will complete in 2018. affordable housing element.
REPEAT NO. APPRENTICES CUSTOMER “Other major house SUPPORTED builders told us our project THROUGHOUT 31 PHASE ONE timescale (imposed by
AWARDS WON funding restrictions) was GOLD CCS NATIONAL SITE AWARD impossible. Wates were WINNER 2015 the potential partners who RICS REGENERATION AWARD were both prepared to BUILDING FUTURES accept the challenge and gave us confidence that 1 17 they understood what PROGRAMME CANDIDATES this entailed.” ENTERING INTO EMPLOYMENT OR Caroline Field TRAINING 41% Regeneration Manager, Orbit Group
SOCIAL ENTERPRISE CCS SCORE SPEND £20K 44
WASTE DIVERTED FROM LANDFILL CODE FOR SUSTAINABLE 97% HOMES LEVEL 4
Wates Annual Review 2015 48/49 Wates Residential Developments Group
RETURN TO CONTENTS HELPING FACILITATE INDEPENDENT LIVING ACROSS THREE SITES IN HULL
HULL EXTRA CARE LIVING PFI In August 2015, Futureworks We are delighted to be starting Wates Living Space Homes is working in (Yorkshire) Ltd were awarded a grant of £20,000 from work on Hull’s very first Extra partnership with Riverside to deliver a Care housing scheme. This flagship extra care housing project for Wates Giving to assist with skills and training Hull City Council, the first scheme of for job seekers in Hull. The aim was to create scheme will bring care, support its kind in the city. sustainable employment for residents long and housing together under after construction of the Hull PFI was Divided across three individual sites, complete. To date, 14 new jobs and 12 one roof and will give resident’s the project will provide housing for people volunteer opportunities have been created greater choice, comfort and with special care needs, which could include and 59 training courses have been delivered. independence in their own older people, working age adults with disabilities, those with mental health needs homes. This major investment NO. APPRENTICES NEW APARTMENTS or those with dementia. It has been designed into the area also provides so residents can live independently in training and job opportunities vibrant communities with the security and 48 316 for local people, which is access to care and support if needed. paramount to the programme.” In total, 316 apartments will be built by SPENT TO DATE Wates Living Space Homes. The project WITH LOCALLY £5.4M BASED BUSINESSES Councillor John Black will be completed in 2017 and thanks to Portfolio Holder for Council Infrastructure, the major investment that it has brought Hull City Council to the area, is providing a significant number of training and employment opportunities for the local community.
“The Wayland House site is COMPLETION OF A NEW held as an exemplar site within our portfolio both in terms 20-STOREY TOWER AS PART of its management and the OF THE STOCKWELL PARK organisation and site set up that is employed. The site team REGENERATION are professional and show an acute attention to detail WAYLAND HOUSE and quality which is essential Wates Living Space Homes successfully 20 159 within this 20-storey build, and completed a £28m programme of works STOREY BLOCK APARTMENTS the flagship project for our at Wayland House for Network Housing Group in 2015. organisation. The ‘Delivering 50% CCS SCORE the Promise’ programme has Designed by PRP Architects, the re- AFFORDABLE HOUSING helped focus minds across development comprises 159 apartments and 44 replaces a dated 1960s structure with high the organisation towards BUILDING FUTURES quality new homes for affordable rent and completion of the project.” sale (50% will be private sale units and 50% affordable housing). Works included the 1 14 Tom Dewey demolition of an existing 15-storey tower PROGRAMME CANDIDATES Regeneration Project Manager, Network Housing block and the design and construction of a ENTERING INTO new 20-storey mixed tenure residential tower. EMPLOYMENT OR 86% TRAINING Wates Annual Review 2015 50/51 Wates Living Space Maintenance
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SUPPORTING THE REGENERATION This market-leading capability was recognised OF OUR COMMUNITIES in 2015 by Birmingham City Council WATES LIVING SPACE WATES As a leading national provider of planned who appointed us to deliver the largest MAINTENANCE KEY HIGHLIGHTS and responsive maintenance, we now maintenance contract in Europe. The flagship programme commenced in April 2016 and is maintain in excess of 475,000 properties, TURNOVER LIVING SPACE supporting the regeneration of communities worth £50m per annum for up to eight years. by renewing existing housing stock and This will see us undertake over 90,000 repairs improving residents’ living standards. and planned maintenance for over 30,000 £272M MAINTENANCE properties, in addition to bringing 2,300 void properties back to full use across Birmingham DELIVERING QUALITY SERVICES TO City Council’s West, Central and East districts. AVERAGE CCS SCORE Wates Living Space Maintenance OUR CUSTOMERS In 2015 we delivered a number of significant Our growth is enhanced by a commitment to enjoyed continued growth in programmes for our customers, including: leaving a lasting legacy in the communities 39.4 2015, increasing turnover to £272m where we work. • Hackney Homes – a £30m planned and securing strategic customer maintenance contract MAKING A DIFFERENCE IN CCS AWARDS relationships in support of the business’ OUR COMMUNITIES 7 • Thurrock Council – a five year ambitious growth plans over the next Transforming Homes programme to In 2015 we published two significant reports. four years and beyond. upgrade over 10,300 properties to A practical toolkit called ‘Communities PROPERTIES BEING MAINTAINED Decent Homes standards Count’ was developed to equip housing professionals with a means to embed lasting • City of London Corporation – a three year social value across their communities. >475,000 planned maintenance programme across This report was developed with a funding three residential housing estates contribution from Wates Giving, produced SOCIAL ENTERPRISE SPEND by Social Enterprise UK and printed by the • Charnwood Borough Council – a five year Royal British Legion’s social enterprise RBL improvement works contract covering Industries. We also developed a best practice £625,862 nearly 1,000 homes Leaseholder Engagement Guide for local authorities, leaseholders and social landlords • St. Ledger Homes, Doncaster – an £8.3m in partnership with the Tenant Participation upgrade of over 7,000 properties APPRENTICES Advisory Service (TPAS). 24 • Walsall Housing Group – the completion Living Space Maintenance is well placed of a 12 year maintenance contract resulting to continue to grow in 2016, as we look BUILDING FUTURES in over 11,000 kitchen installations, 11,000 to support and retain key customers and bathrooms, 3,500 re-wires and 2,500 enter relationships with new customers, heating upgrades. through the excellent service that we deliver 6 53 consistently in a highly competitive market. PROGRAMMES CANDIDATES PROVIDING NATIONAL COVERAGE Our responsive maintenance service also ENTERING INTO continues to grow, following the acquisition EMPLOYMENT 64% OR TRAINING of Purchase Group in 2014. The business has now been fully re-branded to Wates Living Space Maintenance, expanding our offer to SUPPLY CHAIN SCHOOL customers to provide nationwide coverage MEMBERSHIP OF SUPPLIERS WITH >£1M IN TRADING for all their maintenance needs. 42%
Ben DeSanges Commercial Director Wates Living Space Maintenance 52/53 Wates Living Space Maintenance
RETURN TO CONTENTS EXCEEDING CUSTOMER EXPECTATIONS THROUGH OUR DEDICATED MAINTENANCE PROGRAMME
CIRCLE HOUSING By working collaboratively and co-locating NO. APPRENTICES Since our appointment to deliver an 18 offices with Circle, our operatives have month interim responsive repairs and void achieved a seamless transition in service. 10 DAY MOBILISATION property contract for Circle Housing in We now maintain 16,800 properties for Circle 5 2015, Wates Living Space Maintenance has 33 in London and 3,349 properties for Mercian delivered an exceptional turnaround in in the West Midlands. Due to the urgent 20 - 25 customer satisfaction and service levels nature of the tender process, our contract EMERGENCY JOBS COMPLETED EVERY DAY across all key performance indicators. was mobilised in just 10 days and from day one, our team has consistently delivered 100% of all emergency jobs and 99.3% a market-leading repairs and maintenance 3,500 - 4,000 of all urgent jobs were completed on service for Circle’s customers. RESPONSIVE JOBS time between June and September 2015, COMPLETED PER MONTH exceeding a sector benchmark of 89%. As part of our commitment to In addition, 95.1% of routine jobs have the communities in which we work, OF WORKS ARE DELIVERED we are also providing apprenticeships for USING DIRECTLY been completed on time and 99.5% of all EMPLOYED LABOUR five local people in a range of trades customer appointments kept, surpassing 90% (41 OPERATIVES) customer expectations. including electrics, plumbing, carpentry and administration.
“Performance in all of the key areas has significantly DEVELOPING LOCAL SME THROUGH improved upon that delivered by the previous provider OUR HOUSING REFURBISHMENT and, in the case of customer complaints, improved to ‘best PROGRAMME IN WOLVERHAMPTON ever’ levels. This is down to Wates’ philosophy of delivering good customer service above WOLVERHAMPTON STRATEGIC “Wates has played a key SOCIAL NO. APPRENTICES ENTERPRISE SPEND their commercial interests.” PARTNERSHIP role in transforming the Wates Living Space Maintenance is working homes and lives of thousands £19,000 18 Jon Dowell with Wolverhampton Homes, which Head of Reactive Repairs, Circle Housing manages over 23,000 properties on behalf of tenants across the city. of Wolverhampton City Council, on a £104m, We’re looking forward to the £9.6M 15 year housing refurbishment programme. future with Wates, continuing LOCAL SPEND IN COMMUNITY The programme of works includes kitchens, bathrooms, external, environmental to improve tenants’ homes, and structural improvements, property HOURS INVESTED IN providing opportunities 14,000 LOCAL COMMUNITY remodelling, roofing and high-rise internal for local apprentices and and external refurbishment. making a positive impact By partnering with Tenant Participation in communities.” Advisory Service (TPAS), we were able to develop an accreditation course for our local Shaun Aldis SME subcontractors, making them the UK’s Director of Property Services first TPAS-accredited subcontractors working Wolverhampton Homes in residents’ homes across Wolverhampton.
Wates Annual Review 2015 54/55 Wates Living Space Maintenance
RETURN TO CONTENTS DELIVERING REPAIRS AND REAPPOINTMENT TO DELIVER A SEVEN MAINTENANCE SERVICES ACROSS YEAR MAINTENANCE AND REPAIRS 13 LONDON BOROUGHS CONTRACT ACROSS 14,800 PROPERTIES
NOTTING HILL HOUSING TRUST Our approach to delivering these works REPEAT CUSTOMER Following the successful three year is informed by Notting Hill’s Altogether delivery of responsive repairs and Better initiative. Developed using 14,800 PROPERTIES maintenance services for the Notting information submitted through tenant Hill Housing Trust, Wates Living Space surveys, case studies and interviews, Maintenance was reappointed in 2015 to the initiative encourages the formation deliver a seven year contract through a of positive working relationships based on mutual respect and trust between £7.5M WORKS PER ANNUM Responsive Repairs, Minor Works, Voids and Planned Maintenance Framework. the maintenance provider, Notting Hill’s This includes the delivery of planned and housing officers and local residents. responsive maintenance services across the As a result, our recent customer satisfaction APPOINTMENTS south, north east and outer west areas of levels are consistently over 93%, with 96% KEPT Notting Hill until March 2022. We are now over 96% of all appointments kept and very responsible for managing a customer budget few occasions on which we were unable to access properties on the arranged basis. of £7.5m per annum – £5m responsive and CUSTOMER SURVEY £2.5m planned – across 14,800 properties, 93% SATISFACTION with an estimated 36,000 repairs and 840 voids undertaken per annum. 36,000 840 REPAIRS VOIDS PER ANNUM
“Since my initial experience with Wates. I have never used NEWLON HOUSING TRUST We are also actively supporting Newlon’s local employment and training programmes, another contractor to complete Newlon Housing Trust is one of London’s NO. APPRENTICES which aim to help residents further their 15 the works on my properties. key developers of new affordable housing stock and manages around 8,000 affordable career prospects through a range of The team’s expertise and ability homes across a mix of affordable tenures apprenticeships and community initiatives. This includes our commitment to provide FULLY to deliver results has had a real in the capital. In 2015, Wates Living Space MANAGED impact on my team. Before I Maintenance was appointed by Newlon 15 apprenticeships, work experience, pre- 6,739 PROPERTIES and a selection of its residents to deliver employment workshops, careers fairs, site started working with Wates an initial five year responsive repairs and visits for young people and 100 places on one my voids were always over planned maintenance contract, extending of our Building Futures courses for long term unemployed residents. LEASEHOLD target – now I have a zero day across properties in 13 boroughs in North 1,664 PROPERTIES and East London. turnaround. As such, our team is In partnership with Wates the best performing for voids in For the first two years, we will solely provide Giving, we secured a grant of a programme of responsive repairs (including £5,000 to support Newlon our region. This would not have voids). This will cover 6,739 fully-managed Fusion, one of Newlon’s local initiatives, been possible without Wates properties and 1,664 leasehold properties. which promotes fitness and healthy living in and its fantastic operatives.” Planned works will then commence in 2017. Hackney. We also provided a grant of £7,000 to provide a bespoke Building Futures Retail and Hospitality course in 2016. Jasmine Smith Many of the properties we maintain house Housing Officer – Hammersmith and Fulham, vulnerable residents. Our customer liaison Notting Hill Housing Trust manager is partnering with Outward, Newlon’s care and support partner, to provide specialist care for the elderly, disabled and those with learning difficulties while repairs are being co-ordinated.
Wates Annual Review 2015 56/57 Wates Smartspace
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DELIVERING OVER 1,500 ADDITION OF FACILITIES PROJECTS NATIONALLY MANAGEMENT SOLUTIONS WATES We significantly strengthened our business’ As part of the acquisition of Shepherd WATES SMARTSPACE KEY HIGHLIGHTS operational capability in 2015, enabling us to FM in October 2015, we welcomed 250 deliver more than 1,500 projects nationwide new colleagues who now operate under TURNOVER SMARTSPACE for an impressive customer base including the Wates Smartspace brand. They bring Royal Mail, the Ministry of Justice, BBC, with them a quality customer base including British Land, The Co-operative and Standard Chartered, TNT and the Rugby £131M Wates Smartspace delivered American Express. Football Union (RFU). INCL. £7M SFM a strong performance in 2015, The FM team’s outstanding reputation for FOCUS ON FRAMEWORKS excellent delivery was recognised formerly at enjoying growth of 20% and an AND NEW CUSTOMERS increase in turnover to £131m the 2015 Premises and Facilities Management AVERAGE Our national delivery capability, Awards, where they won the Partnership CCS SCORE (including £7m from contracts commitment to a consistent supply chain, Award for their work for Mercedes AMG 39.4 acquired with Shepherd FM). and diversity of skills helped us to win 70% High Performance Powertrains. of our contracts in 2015 through frameworks, £65m came from new customers. allowing the business to secure a robust DEVELOPING OUR PEOPLE pipeline of future work, with over 80% of CCS AWARDS our customers being repeat customers. We are committed to ensuring continued 8 development opportunities for our people. Frameworks secured in 2015 include a In 2015 we promoted 28 members of our number of key banking customers including: team, met 339 training needs and celebrated SOCIAL ENTERPRISE SPEND two Wates Smartspace winners at the Wates • Lloyds – appointed as one of two Group Chairman’s Awards for the second contractors to deliver work for the consecutive year. By the end of 2015, £26,408 high street bank until 2022 following the Wates Smartspace team comprised a retender of the Lloyds Framework 385 colleagues, all of whom underpin our success in delivering for our customers • TSB – appointed as one of two WASTE DIVERTED and the business’ continued growth. contractors to deliver work over the 97% FROM LANDFILL next five years OUR MISSION • Nationwide – appointed as one of Wates Smartspace is a national provider three contractors to deliver the branch of high quality fit-out, refurbishment, SUPPLY CHAIN SUSTAINABILITY network refurbishment programme SCHOOL MEMBERSHIP OF maintenance and facilities management SUPPLIER >£1M TRADING being undertaken in 2016 solutions. We develop smart solutions that are tailored to our customers’ needs. Our delivery teams specialise in creating 63% spaces that maximise our customers’ property portfolios, with a focus on overcoming difficult issues in logistically challenging environments, maintaining seamless customer service 24/7, and delivering within critical, secure, live and occupied environments to the highest standards of quality and safety.
John Daltrey Project Director Wates Smartspace 58/59 Wates Smartspace
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PROVIDING QUALITY AND COMPASSIONATE SERVICES FOR OUR CUSTOMERS
ROYAL HOSPITAL FOR NEURO-DISABILITY Wates Smartspace is an extension of the team at the Royal Hospital for Neuro- disability (RHN), working in partnership to provide a flawless M&E facilities management service across the entire estate since October 2015.
Founded in 1854, the RHN is one of the oldest independent hospitals and medical charities in London and provides rehabilitation for people with complex neurological disabilities. We place great emphasis on selecting the right people to work on site in this emotionally challenging environment and the programme is centred on providing “Not only have you delivered the most comfortable setting to support the everything promised, but I’m very wellbeing of patients, their families and staff. pleased with the operational Our team has flexibility to amend or delivery. I’ve seen an immediate re-prioritise the services we provide to change in the team’s behaviour to ensure patients receive the best care possible and that the standards required by the Care be more open. We now all behave Quality Commission are met. with a ‘one team’ ethic.”
The Wates Foundation, the charity of the Phil Montague wider Wates family, has supported the RHN Head of Estates, Royal Hospital for Neuro-disability for a number of years between 1997 and 2003 with awards totalling £32,703.
170 PATIENTS ON SITE
Wates Annual Review 2015 60/61 Wates Smartspace
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SUPPORTING THE DEVELOPMENT OF NEW SUSTAINABLE TECHNOLOGIES
Endotherm was the recipient of the CIBSE award for Energy Saving Product of the Year 2016. Image Courtesy of Carmen Valino
THE KNOWLEDGE TRANSFER The trial of one of the selected innovations MAXIMISING VALUE AND BRAND PARTNERSHIP ‘Endotherm’ at the Wates Warrington The Knowledge Transfer Partnership Project office has provided energy savings of EXPERIENCE IN RETAIL FOR LONG TERM is a collaboration between Wates 20%. Wates Smartspace was selected to Smartspace, Innovate UK and Plymouth champion TSB’s ‘Recycling and Sustainability’ University. The project aims to accelerate the initiative based on this framework. Other CUSTOMER MARKS & SPENCER uptake of innovative sustainable technologies customers have expressed strong interest in by using a structured framework to support attending future workshops. The framework the business in selecting and implementing is also considered to be valuable amongst MARKS & SPENCER We also refurbished 29 existing M&S REPEAT CCS SCORE potential solutions to help deliver low academic construction professionals and has CUSTOMER (BEDFORD SITE ONLY) been discussed at a number of conferences Wates Smartspace has a long-standing stores, enabling our customer to maximise carbon buildings. throughout the world. relationship with Marks & Spencer (M&S) the value of its existing outlets and improving and has been working in partnership with the brand experience for their customers. 45 Regular bespoke green Dragons’ Den style This included upgrading all of M&S’ internal workshops are organised and suitable The framework’s positive impact has the retailer for 14 years on a range of fit-out been wide-ranging. It provides a strong and refurbishment projects. During this time and external signage in line with the innovations are screened and presented to a company’s new corporate brand. SIMPLY FOOD STORES Wates Smartspace panel of green dragons who route to market for suppliers and meets we have delivered in excess of 500 projects DELIVERED TO DATE 171 select the finalists. The products and services customer demand for sustainability and across the UK and Ireland. The successful and safe delivery of are then shared within the business to support innovation. It also serves to position the business as a leader and broker of innovation In 2015, we worked in collaboration with all schemes, to an excellent standard the creation of Tomorrow’s Buildings, and are in 2015, resulted in M&S extending YEARS AS A TRUSTED in the construction industry. M&S to deliver nine Simply Food stores on M&S SUPPLIER included in tenders and used to enhance the its current Framework agreement with 14 time, within budget and with an average services we provide to our customers. The Knowledge Transfer Partnership CCS score of 42. Wates Smartspace until the end of 2016. Project was funded in part by a £50,000 Wates Giving grant.
Wates Annual Review 2015 62/63 Wates Smartspace
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MODERNISING SUPPORTING OUR CUSTOMERS’ AND UPGRADING ROYAL RE-LOCATION REQUIREMENTS MAIL’S FACILITIES ACROSS USING TRIED AND TESTED THE NORTH TRANSITION PROCESSES
THE ASSOCIATION OF CHARTERED Supporting the customer throughout, “They have seen this as a CERTIFIED ACCOUNTANTS (ACCA) we completed staff consultations and transferred the incumbent FM providers, partnership with us. There Wates Smartspace was awarded the contract has been a cultural fit and a to deliver a total facilities management identifying training needs and compliance solution for the Association of Chartered activities whilst allowing ACCA to maintain behavioural fit at the same time, Certified Accountants (ACCA) in December ‘business as usual’ without interruption. which makes a huge difference 2015, across sites in London, Dublin and Working in collaboration with key to the way that the services are Glasgow. This four year contract was awarded stakeholders and our customer, we supported during ACCA’s relocation from Lincoln’s Inn delivered right through their the re-location of 300 ACCA employees into Fields to a new global head office in the their new head office. whole structure” Adelphi Building, City of London. It tested our robust transition processes, with the old Jan Lloyd and new sites both mobilising simultaneously. Head of Global Business Support, ACCA
ROYAL MAIL “Wates’ delivery of our Wates Smartspace has delivered more distribution centres was than £100m of work for Royal Mail across an unqualified success: the the UK for over 10 years. In 2014 we were selected as the sole provider of Royal procurement and construction Mail’s Northern Infrastructure Strategy, times were much quicker than a programme seeking to upgrade and a standard approach and the modernise its mail centre network. To date we have delivered four major mail centre fit-out costs were below Royal improvement projects in Aberdeen, Tyneside, Mail’s standard benchmark Birmingham and Chelmsford in support of costs. In addition, everything this strategy. was delivered to time enabling In 2015, we successfully completed a 19,300 the business benefits to be sq ft single-storey delivery office in Blackpool realised as planned.” and completed additional schemes for Royal Mail’s Parcelforce business, upgrading Jon Howard and expanding six distribution centres. Programme Manager, Parcelforce Worldwide This will offer Royal Mail’s customers a faster and Royal Mail International and more effective service and enables Parcelforce to handle 30% more packages a year, removing the need to hire additional REPEAT premises at peak times. CUSTOMER 12 We continue to deliver an agile and WEEKS AVERAGE PROGRAMME flexible service for Royal Mail, providing a range of property services outside of its more traditional refurbishment and £100M upgrade works. As a result, we have a strong OF WORK DELIVERED NATIONALLY OVER 10 YEARS collaborative relationship with this long-term customer, often playing an advisory role in PARCELFORCE shaping its construction delivery DISTRIBUTION and procurement strategy. 18 CENTRES REFURBISHED
Wates Annual Review 2015 64/65 Needspace?
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Needspace? focusses on providing MAKING A MARK IN ISLINGTON office solutions to entrepreneurial businesses St Marks Studios is Needspace?’s fifth and latest and SMEs in the growing business locations acquisition following an investment of £5m of Clapham, Crawley, Earlsfield, Horsham to purchase and transform the Grade ll listed and Islington. former church which is located in the vibrant area of Islington near King’s Cross in London. The recent resurgence of demand for flexible and affordable space in these locations, Its original art deco features were coupled with Needspace?’s customer- sympathetically restored and we are now focused approach, resulted in another good complemented by some striking new performance for the business in 2015. contemporary styling to offer 30 stunning Its profit before tax was ahead of budget office suites. Customers already benefitting on its underlying trading activities and the from the space and excellent central London business also benefitted from a £2.3m upward location include Animas Centre for Coaching, revaluation of its property portfolio. an organisation that provides courses and support to develop life-coaches. Needspace? is part of the The highlight of 2015 was the development Wates Group, operating in and marketing of St Marks Studios in Islington, London. Completed on budget a specialist niche market “Working from St Marks Studios in April 2015, this immaculately refurbished suits our business aspirations as offering flexible office and iconic listed building has already the building is unbelievable, with space, studios and managed achieved over 80% occupancy, generating income for the business ahead of forecast. its statement exterior columns, workspace to over 130 small high ceilings, and plentiful floor businesses across London Further highlights include occupancy of its Clapham North Art Centre averaging 98.6%, space. As a growing company, we and the South East. significantly contributing to the business’ want to feel positive about what total turnover in 2015 of £2.3m. we do and we find the working Its other properties in Horsham, environment at St Marks Studios Crawley and Earlsfield continued to maintain really energising. The property is high levels of occupancy and in 2016 and beyond, the business will continue to invest full of character and gives us the in and optimise its property portfolio. space to connect emotionally It will also continue to consider suitable with our vision.” new acquisitions as the market for high quality flexible office space in the region Nick Bolton, continues to expand. Founder and Director, Animas
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CORPORATE GOVERNANCE
Wates Annual Review 2015 68/69 Corporate Governance
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JAMES WATES CBE James joined Wates Construction in 1983 and the of the CBI, a Trustee of The College of Estate DAVID ALLEN David joined Wates as Group Chief Financial David had joined Crossrail in March Chairman Wates Construction Board as Marketing Director Management, a Member of the government’s Chief Financial Officer and Company Secretary in January 2016. 2009 from Laing O’Rourke, where he in 1994. He was appointed to the Wates Group Apprenticeship Delivery Board and a Non- Officer and He is responsible for the financial affairs of the was Finance Director for its European Board in 1997 and became Chairman in 2013. He Executive Board Director of Argent Services LLP. Company Secretary Group and also has board level responsibility Construction business. is also Chairman of the Nominations Committee. for Information Technology and for the James is also Chairman of The Prince’s Trust Built Needspace? managed workspace business. Prior to entering the construction Outside the Group James is involved with Environment Leadership Group, Vice Chairman industry in 2004, David worked in several industry bodies, reflecting his dedication of the Queen Elizabeth’s Foundation for Disabled Before arriving at Wates, David was Crossrail’s Accenture’s Strategy Consulting practice to promoting the construction sector as well as People, a Governor of the Emanuel School and Finance Director and one of the three Executive and HSBC Investment Bank’s Corporate ensuring access to employment opportunities the University of Westminster, and a Patron of members of the £15bn project’s board. Finance and Advisory Division. for all. He is Chairman of the Construction the Wates Family Enterprise Trust. In January Industry Training Board, Chairman of the BRE 2012 James was awarded the CBE for services to Trust, Past President of the Chartered Institute construction and the charitable sector. of Building, Co-Chairman of Build UK, a Member DAVE SMITH Dave started his career in construction as In 2005, Dave was appointed Managing Chief Operating a surveyor with Sir Robert McAlpine Ltd. Director of the construction business, Officer and He joined Wates in 1985, later leading the taking responsibility for the company’s Managing Director, specialist refurbishment division in London; education, commercial and public sector TIMOTHY WATES Tim started his career at Cazenove & Co. Tim is a UKTI Business Ambassador, Chairman Wates Construction and in 1999 became MD of Wates’ public work. He was appointed to the Wates Director in the City, prior to joining the Wates Group. of the Coast to Capital Local Enterprise sector business. Group Board in October 2009. He re-joined the Board in 2011, having served Partnership and a Non-Executive Director previously from 2006 to 2008, and is a of Tampopo and Pedder Property. Tim is a member of the Audit Committee. He chairs Trustee of various Wates Family charities and Wates Developments and the Wates Pension Director of the Clink Charity. He has an MBA Fund and is Chairman of the Wates Family from the Judge Business School, University Council – the Family Shareholder forum. of Cambridge. DAVID BARCLAY David was appointed Non-Executive Director and Chairman of the Audit Committee. Independent Non- of Wates Group in December 2012 and is the He is former Non-Executive Deputy Executive Director Group’s Senior Independent Director. He is Chairman of the John Lewis Partnership and Chairman of the Remuneration Committee Vice Chairman of Dresdner Kleinwort, the ANDREW WATES Andy joined the Wates Group in 1995 In 2014 Andy was appointed Chairman of and a member of the Audit and Nomination investment bank. Earlier in his career, he spent Director having spent six years gaining experience Construction Youth Trust, as well as a member Committees. He also holds Non-Executive ten years in the UK civil service, including two of the construction industry with Costain of the IFB Policy Committee. In the following positions at The British Library, where he is years as private secretary to the then Prime Construction and John Shreeves & Partners. year Andy was appointed Chair of Wates Deputy Chairman and Wessex Water Services, Minister, Margaret Thatcher. Formerly the Managing Director of Wates Foundation and Chair of IFB South East Region, where he is Senior Independent Director Interiors, Andy was appointed to the Wates along with becoming a Board member of the Group Board in May 2011 and is also a member European Family Businesses. He also holds an of the Remuneration Committee. He is a MBA from Roffey Park Business School. Trustee of the Wates Family Enterprise Trust GRAEME Graeme was appointed Non-Executive Graeme is currently Chairman of the Suttons and chairs the Wates Investment Partnership, MCFAULL Director of the Wates Group in September Group, Chairman of Delin Capital Asset which is the family’s long term investment 2009 and has chaired the Audit Committee Management and chairs the charity, Transaid. Independent Non- portfolio outside of the Group. since July 2011. He is also a member of the He was previously the CEO of Wincanton. Executive Director Wates Remuneration Committee.
CHARLES WATES Charlie is a chartered surveyor with over ten Charlie joined the Wates Group Board in May Director years’ experience in the commercial property 2011 and is a member of the Developments sector. He is founder and joint Managing Executive Committee. He is a member of the Director of Needspace?, the Wates Group British Council for Offices and a Governor of managed workspace division. Dawnay School. DEENA MATTAR Deena was appointed Non-Executive Director and communication technology company Independent Non- of Wates Group in February 2013 and is a RM, which provides IT products and services Executive Director member of the Audit and Remuneration to educational institutions. Deena started Committees. Until its 2014 sale to Schneider her career with KPMG in their property and Electric Deena was a Non-Executive Director construction division, later joining Kier Group of the global technology company Invensys and becoming the Group Finance Director. and Chairman of its Audit Committee. She ANDREW DAVIES Andrew joined Wates in January 2014 as Chief Andrew chairs the Executive Committee and is a Non-Executive Director and Chairman Chief Executive Executive. Prior to joining Wates, Andrew was its Sustainability and CR Committee and of the Audit Committee for the information Managing Director of BAE Systems’ Maritime has overall board level responsibility for our business. Andrew graduated from Sheffield approach to sustainability and CR. University and in his earlier career within BAE worked in the Commercial Aircraft Division, was Managing Director of their Land Systems Division and was Group Strategy Director, sitting on the Executive Committee.
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WATES EXECUTIVE COMMITTEE
Wates Executive Committee is made up of 10 people who are experts in their professions. Together, they are responsible for the day-to-day management of the Group’s business affairs ANDREW DAVIES DAVID ALLEN STUART TOGWELL under the leadership of Chief Executive Chief Financial Officer Group Commercial and Company Secretary Director the Chief Executive. This includes formulating strategy proposals for Board approval and ensuring that the agreed strategy is implemented in a timely and effective manner. DO WE HAVE ANY PHOTOS OF AN ACTUAL WATES BOARD MEETING
DAVE SMITH JOHN HOWELL STEPHEN BEECHEY Chief Operating Officer Group Production Group Strategy Director and Managing Director, Director and Managing Director, Wates Construction Government Affairs
PAUL ROWAN HELEN BUNCH DAVID MORGAN Group HR Director Managing Director, Managing Director, Wates Smartspace Wates Living Space Maintenance
DAVID BROCKLEBANK Managing Director, Wates Residential Developments Group
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2015 CORPORATE GOVERNANCE
UK CORPORATE We maintain a formal schedule of matters BOARD OF DIRECTORS together with reports on operational matters, Internal Audit Group Risk Committee GOVERNANCE CODE reserved for Board approval, including Our Board comprises Chairman, market conditions, sustainability, competitor Reporting to the Audit Committee, Internal The Group operates a Risk Committee to As a private family-owned company the determination of the Group’s strategy and Chief Executive, Chief Financial Officer, environment and corporate responsibility. Audit is an independent objective assurance ensure that inherent and emerging risks in Group is not required to comply with the long-term direction, approval of budgets, Chief Operating Officer, three Independent The Directors have equal voting rights when and advisory function established by the the business are identified and managed in UK Corporate Governance Code 2014 (the capital expenditure, organisation changes, Non-Executive Directors and three making decisions, except the Chairman, who Board to provide assurance on controls a timely manner and at an appropriate level. ‘Code’). However, it has included certain including new business ventures, the family Directors. has a casting vote. All Directors have access and operations. Its primary task is to assist The Committee reviews the organisation’s additional disclosures regarding corporate acquisition or disposal of assets, and changes to the advice and services of the Company the operating businesses accomplish response to specific areas of risk, and governance over and above those it is in key policies. The Board also monitors Jonathan Wates stepped down from the Secretary and may, if they wish, take their objectives by bringing a systematic, approves standards and processes where required to provide, where it is believed these the Group’s systems of internal control, Board on 30 April 2015 and will re-join the professional advice at the Group’s expense. disciplined approach to the evaluation and control weaknesses are considered to exist. disclosures would be helpful to the readers governance and risk management. Board in 2016. On 4 January 2016 Huw Davies improvement of controls, risk management stepped down from the Board and was From time to time, matters arise which of the Annual Accounts and Reports. and asset protection. Reshaping Tomorrow Committee The Board delegates authority for all day- replaced by David Allen as the new Chief require urgent approval prior to the next The Board believes that good business to-day management of the Group’s affairs to Financial Officer of the Group. scheduled Board meeting and in such The Reshaping Tomorrow Committee is External Auditors and sustained performance stems from the Executive Committee. In addition, certain instances approval of all Directors is sought a delegated authority of the Executive good corporate governance and remains governance responsibilities are delegated to Our Directors update their skills, via a telephone conference call. PricewaterhouseCoopers was re-appointed Committee, with the primary purpose of firmly committed to achieving the highest Board committees, which support the Board knowledge and familiarity with the external auditors at the Group’s AGM in providing strategic leadership, direction and standards in the interest of all stakeholders. in carrying out its duties. These committees Company by attending appropriate external BOARD DIVERSITY April 2015. The Committee assesses the oversight and setting the Group’s policy on are made up of Independent Non-Executive seminars and training courses, meeting with effectiveness of its performance every year corporate responsibility. Its scope covers Governance supports open and honest The Group is an equal opportunities Directors, together with Non-Executive senior management and visiting regional after completion of the annual audit plan. environment issues; community investment; business, ensures that we have the right employer and promotes an environment Directors from the Wates family, and provide and divisional operating offices. We have diversity and inclusion. safeguards in place and makes certain that free from discrimination. The Group’s policy the Board with independent oversight. an induction programme for all new every decision we take is underpinned by on diversification extends to the Board. Remuneration Committee Directors, which is tailored to specific the right considerations. New Board appointments are based on a The Committee’s primary objective is to INTERNAL CONTROLS experience and knowledge, and which THE ROLE OF THE CHAIRMAN balance of skills and experience and will set remuneration at a level that will enhance The Board takes ultimate responsibility This approach enables us to protect the provides access to all parts of the business, The Chairman plays a pivotal role by always be objective, free from bias and the Group’s resources by attracting, retaining for the Group’s systems of risk management integrity of our business, meet our strategic including access to shareholders. creating the conditions for overall Board based solely upon relevant experience, and motivating quality senior management and internal control, and for reviewing objectives, create value for our shareholders and individual director effectiveness. knowledge and individual merit. who can deliver the Group’s strategic their effectiveness. and build a long-term sustainable business. The Chairman is responsible for appraising INDEPENDENT DIRECTORS ambitions within a framework aligned For the full 2015 Corporate Governance The Board is clear that by doing the right the Board of all matters affecting the Group The Board is satisfied that the number and COMMITTEES with shareholder interests. Report contact Deborah Hawkes, Company things in the right way we can protect and its performance. He is responsible for calibre of our Independent Non-Executive Secretariat at [email protected] our brand, reputation and relationships effective operation and chairing of the Board, Directors, together with their diverse Audit Committee Nominations Committee ensuring the efficient use of the Board’s backgrounds and experiences, ensures with shareholders, customers, employees, The Board delegates a number of specific The Board operates a Nomination Committee time, that the agenda is forward looking that the principles of the UK Corporate supply chain and the local communities duties to the Audit Committee, in order to to ensure that the Board remains balanced and concentrates on strategy. The Chairman Governance Code are met. The Board in which we work. assist in the discharge of its duties and to and effective, that succession plans are in ensures that sufficient time is allocated to believes that the Independent Non-Executive bring independent oversight to the Group’s place, and that its structure, composition discuss complex or contentious issues, so Directors are wholly independent in that they THE ROLE OF THE BOARD activities. The Committee’s primary concerns and skills remain aligned to the Group’s that decisions are reached in a consensual have no material business or relationships are the integrity of the Group’s financial The Board’s primary responsibility is to strategic objectives. and timely manner, arranging pre-board with the Group that might influence their statements; the effectiveness of internal promote the long-term success of the preparation as necessary, to avoid unrealistic independence or judgement. controls; the performance of the Company by creating and delivering deadlines for decision-making. The Chairman internal audit function; performance Executive Committee sustainable shareholder value. The Board also has responsibility to ensure effective BOARD MEETINGS and independence of the external See page 73. seeks to achieve this by setting out communication with shareholders and that auditors; and compliance with legal its strategy, monitoring performance The Board has a programme of nine principal all Board members are aware of the views and regulatory requirements. against strategic objectives and reviewing of shareholders. meetings every year, plus two additional implementation of the strategy by the days for the annual strategy conference Executive Committee. with the Executive Committee. The Board receives regular and timely information on the financial performance of the business,
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CONSOLIDATED PROFIT CONSOLIDATED BALANCE SHEET AND LOSS ACCOUNT AT 31 DECEMBER 2015 FOR THE YEAR ENDED 31 DECEMBER 2015 2015 2014 2015 2014 £000s £000s £000s £000s Turnover: Fixed assets Group and share of joint ventures and associates 1,272,497 1,050,297 Intangible assets – goodwill 62,953 31,302 Less share of turnover of joint ventures and associates (65,627) (48,124) Tangible assets 34,968 28,101 Investments in joint ventures 66,974 Group turnover 1,206,870 1,002,173 70,389 Other investments 3,509 Cost of sales (1,087,147) (903,734) 3,371 129,886 Gross profit 119,723 98,439 171,681 Administrative expenses (104,801) (82,662) Current assets Stocks 16,451 Net surplus on revaluation of investment properties 2,299 925 8,184 Debtors Profit on sale of investment in joint venture 1,253 - - due within one year 218,020 Group operating profit 18,474 16,702 285,732 - due after one year 25,894 Share of post-tax profit from joint ventures and associates 6,781 3,129 26,499 Total operating profit: Group and share of joint ventures and associates 25,255 19,831 312,231 243,914 Analysed between: Cash at bank and in hand 127,445 87,370 347,735 Total operating profit before interest and tax 31,481 24,732 447,860 (320,867) Net interest payable – joint ventures and associates (4,012) (3,649) Creditors: amounts falling due within one year (450,865) 26,868 Taxation – joint ventures and associates (2,214) (1,252) Net current (liabilities)/assets (3,005) Total assets less current liabilities 168,676 156,754 Net interest receivable 2,832 2,976 Creditors: amounts falling due after more than one year (27,301) (26,820) Profit on ordinary activities before taxation 28,087 22,807 Provisions for liabilities (48,089) (43,477) Analysed between: Net assets 93,286 86,457 Profit before taxation 30,301 24,059 Capital and reserves Taxation – joint ventures and associates (2,214) (1,252) Called up share capital 14,777 14,777 Share premium account 956 956 Taxation on profit on ordinary activities (5,222) (4,295) Capital redemption reserve 17,447 17,447 Profit for the financial year 22,865 18,512 Profit and loss account 60,106 53,277 Shareholders’ funds 93,286 86,457 The above results have been derived from continuing operations.
The financial information set out on pages 76 to 77 of this Annual Review does not constitute the Company’s statutory accounts for the years Approved by the Board of Directors on 10 March 2016 and signed on its behalf by: ended 31 December 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 and 2015 have been delivered to the Registrar of Companies. The auditors have reported on those accounts: their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
James G. M. Wates CBE Chairman
D. O. Allen Chief Financial Officer
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HEAD OFFICE Castle Vale Luton Glasgow Unit D1 Mulberry House Cadell House Wates House Castle Vale Enterprise Park Parkland Square 27 Waterloo Street Station Approach Park Lane 750 Capability Green Glasgow Leatherhead Birmingham Luton LU1 3LU G2 6BZ Surrey KT22 7SW B35 6LJ Tel: 01582 400171 Tel: 0141 221 8800 Tel: 01372 861000 (switchboard) Tel: 0121 7472742 Manchester London Conwy 4th Floor 14th Floor REGIONAL OFFICES Unit 1 Eagles Estate The Royals One Euston Square Eagle Farm Road 353 Altrincham Road London Basingstoke Mochdre Business Park Sharston NW1 2FD Basingstoke Park Mochdre Manchester M22 4BJ Tel: 0207 380 1800 4th Floor Network House Colwyn Bay, LL28 5HF Tel: 0161 946 8800 Basing View Tel: 01492 548624 Manchester Basingstoke North London Southmoor House Hampshire RG21 4HG Darlington Crown Road Southmoor Road Tel: 01256 301750 Maple House Enfield Manchester Tillage Green EN1 1FE M23 9GH Birmingham West Park Village Tel: 020 8804 7777 Tel: 0161 945 5589 Wates House Darlington (Building 5) 11 Ridgeway DL2 2GL Warrington North Shields Quinton Business Park Quinton Tel: 01325 394100 Building 1 Centre for Advanced Industry Birmingham B32 1AF Clearwater Coble Dene Tel: 0121 423 2323 Derby Lingley Mere Business Park Royal Quays Pavilion 5 Warrington North Shields Birmingham Garden Court Cheshire WA5 3UZ NE29 6DE 1st Floor Lockington Hall Tel: 01925 791100 Tel: 0191 258 6627 Bank House Derby DE74 2RH Cherry Street Tel: 0150 967 8963 Wellingborough York (SES PRISM) Birmingham Unit 1 Saxon Court Unit 2 B2 5AL Glasgow Bradfield Close New Lane Tel: 0121 665 6448 Suite 214/215 Finedon Road Industrial Estate Huntington Wright Business Centre Wellingborough York Bloxwich 1 Lonmay Road NN8 4RQ YO32 9PT Unit 8 Glasgow G33 4EL Tel: 01933 222540 Tel: 01904 673272 Reaymer Close Tel: 0141 773 6202 Bloxwich York West Midlands Leeds Frederick House INTERNATIONAL WS2 7QZ Darwin House Fulford Road Tel: 01922 407111 Leeds Valley Park York Wates Construction Leeds LS10 1AB YO10 4EA International LLC Bristol Tel: 0113 205 9200 Tel: 01904 634431 Sultan International Holdings Ground Floor PO Box No 3486 South Wing London 20th Floor, HH Skh.Sultan Bin Equinox North 14th Floor SES ENGINEERING Hamdan Al Nahyan Bldg Great Park Road One Euston Square SERVICES Corniche Road, Abu Dhabi Almondsbury Park London United Arab Emirates Bristol BS32 4QL NW1 2FD York Tel: +971 2 622 4411 Tel: 01454 615561 Tel: 0207 380 1800 Mill Mount York Wates Construction Cambridge London YO24 1GH International LLC Suite 7225, Building 7200 The Peak Tel: 01904 629151 Joint Venture office IQ Cambridge 2nd Floor Suite 702 Beach Drive 5 Wilton Road London Birmingham 7th Floor Waterbeach SW1V 1AN The Podium AL Fara’a Corporate Head Office Cambridge CB25 9TL Tel: 0207 630 4410 Bank House Off Delma Street (Behind Tel: 01223 815666 Cherry Street Commercial Court) Loughborough Birmingham Defence Area, Abu Dhabi Cardiff Unit 19 B2 5AL United Arab Emirates Llanmaes Charnwood Business Park Tel: 0121 6164350 Tel: +971 2 643 1882 Michaelston Road North Road St Fagans Loughborough Bristol Cardiff Leicestershire, LE11 1LE 190 Aztec West CF5 6DU Tel: 01509 237372 Park Avenue Tel: 02920 675200 Bristol BS32 4TP Tel: 01454 627150 FRONT COVER: BACK COVER:
Sarah-Jane Piscotti Fred Sherlock Senior Design Manager Assistant Surveyor Wates Construction Wates Construction
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