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THE ART of SEEING THINGS DIFFERENTLY Annual Review 2015

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THE ART of SEEING THINGS DIFFERENTLY Annual Review 2015 THE ART OF SEEING THINGS DIFFERENTLY Annual Review 2015 VIEW CONTENTS 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 RETURN TO CONTENTS 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 RETURN TO CONTENTS 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 RETURN TO CONTENTS 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
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