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Wates Annual Review 2017

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Wates Annual Review 2017 WATES ANNUAL REVIEW 2017 SAFER. BETTER. STRONGER. ANNUAL REVIEW | 2017 Above all, it’s about people wates.co.uk WATES ANNUAL REVIEW 2017 CONTENTS INTRODUCTION OUR BUSINESSES CORPORATE GOVERNANCE LOCATIONS 38 CHAIRMAN’S STATEMENT 4 WATES CONSTRUCTION 14 WATES GROUP BOARD 30 SOME OF OUR KEY CLIENTS CHIEF EXECUTIVE’S REVIEW 5 SES ENGINEERING SERVICES 18 WATES EXECUTIVE COMMITTEE 32 AND PARTNERS 39 OUR PEOPLE 7 WATES LIVING SPACE 20 RESHAPING TOMORROW 8 WATES SMARTSPACE 22 GOVERNANCE AND ACCOUNTS 2017 CORPORATE GOVERNANCE 34 INTRODUCTION WATES GIVING 12 WATES RESIDENTIAL DEVELOPMENTS GROUP 25 CONSOLIDATED PROFIT AND LOSS ACCOUNT 36 NEEDSPACE? 28 2017 IN FOCUS CONSOLIDATED BALANCE SHEET 37 The Wates Group, established in 1897, were named Contractor is one of the leading privately-owned, of the Year. We retained our Investors construction, development and in People Gold accreditation for the property services companies in the third successive time and were also UK. We employ around 3,900 people, named Organisation of the Year at the Over 5,000 OUR BUSINESSES working with a range of clients and inaugural UK Social Mobility Awards 34 million partners from across the public and in recognition of our commitment hours worked new homes private sectors. In 2017 we reported to advancing social mobility in all the built in 2017 Average increased turnover and profit and communities in which we work. on 2,000 CCS score projects 41 40.98 Facilities Considerate Constructors’ managed at 3,863 Awards over 500 people commercial (December 2017) RECORD premises GOVERNANCE CORPORATE EBITDA ORDER BOOK Over 100th 500,000 Building Futures programme delivered to help adults £47.2m £5.1bn homes back into work PROFIT 3.8% maintained (2016: £45.5m) 41.7% 190 in the social housing BEFORE TAX (2016: £3.6bn) management sector Schools outreach £169.5m trainees and programmes involved £35.7m CASH apprentices 41% 3,000 AND ACCOUNTS GOVERNANCE 0.7% reduction in lost students (2016: £35.5m) NET time injury rate ASSETS 93 £2.65m community projects £119.4m spent with 22% completed and 10,718 GROUP 71 Social reduction in accident hours volunteered TURNOVER 68.9% Enterprises frequency rate (AFR) through Reshaping £1.62bn (2016: £70.7m) Tomorrow Week 5.9% (2016: £1.53bn) 2 wates.co.uk 3 WATES ANNUAL REVIEW 2017 BUILDING COMMUNITIES CHAIRMAN’S CHIEF EXECUTIVE’S The Group’s award-winning sustainability programme, Reshaping Tomorrow, and its Delivering the Promise programme, STATEMENT REVIEW underpinned by its Operating Framework, INTRODUCTION ensure that it consistently delivers the highest standards of quality and safety, 2017 was another positive year for the Wates Group, not just in improve the diversity of its workforce. DELIVERING ON OUR STRATEGY STRONG PERFORMANCE while ensuring the actions it takes today If it is to respond to the sector’s skills impact positively on tomorrow. The 2017 was another strong year for Wates Group turnover, including the Group’s terms of strong financial performance but also for its continued shortages – which are likely to deteriorate Group’s financial stability, family ownership Group. The business grew by almost 6% share of joint ventures’ and associates’ investment in its people and its relationships with important with Brexit – it has to make Wates – and long-term commitment to the from 2016 and enters 2018 with 3,863 turnover, increased by 5.9% to £1.62bn. and the industry – a more attractive construction industry enable it to make stakeholders, which reflect its commitment to a long-term people and a forward order book of £5.1bn. Profit before tax, and before taxation of career proposition for people and groups a tangible and positive difference to the This success has come during one of the joint ventures and associates, was 0.7% up view of success. who have not traditionally worked in the environment and to the communities most turbulent and challenging years for on 2016 at £35.7m. Net assets increased sector. The Group is determined to do in which it works. It was recognised as our industry. The tragedy of Grenfell by 68.9% to £119.4m. Despite challenging everything it can to foster an inclusive Organisation of the Year at the 2017 UK The Group continued to demonstrate All this took place in one of the most Tower will continue to be felt for many market conditions, the consistency of workplace. By being truly inclusive, Social Mobility Awards, for its work resilience in the face of market uncertainty, turbulent years the industry has ever seen. years. 2017 also saw a number of key the Group’s performance is evidence of diversity will follow, leading to a workforce supporting communities and particularly OUR BUSINESSES with growth reported across all business competitors suffer substantial losses and its excellent capabilities, resilience and As a family-owned business, the Group who will challenge the norm, foster its support for Social Enterprises (SEs). units, contributing to performance the ultimate collapse of Carillion. Against success in delivering for our customers has always maintained a long-term innovation, and facilitate better With spend of £2.65m the Group exceeding our expectations. The Group that background, Wates’ determination and partners. delivered 2,000 projects across its business, perspective, ensuring that it acts as a working practices. exceeded its target for the year for responsible corporate citizen, in the to focus on long-term sustainability, to spending with SEs. The Group extended working 34 million hours, and all with an BUSINESS BUILT ON PARTNERSHIP interests of all stakeholders – its Finally, on behalf of the shareholders, invest in the continued development of its partnership with The Prince’s Trust for industry-leading health and safety record. its people and to build collaborative client employees, the communities it serves, I would like to thank the Group’s Board Nearly 80% of turnover is derived from another year, helping disadvantaged relationships, has enabled us to outperform The Group continued implementing its clients and its supply chain. These of Directors and its Executive Committee frameworks and partnerships and in 2017 young people develop skills and identify the market. Results across all business its strategy of focusing on construction, principles are integrated in the way the particularly, who have maintained the Group was appointed to two major opportunities for employment. Through units were encouraging. Our priorities for property services and residential business is managed and reinforced by consistent performance in the months public sector frameworks, for Scape Procure donations from our people and support 2018 and beyond stay true to our long developments, with the goal of becoming the Group’s commitment to a set of following the resignation of Chief and for the Education and Skills Funding from Wates Giving, over £360,000 was term strategic goals, putting the right the most trusted partner in the built core values, helping to sustain its Executive Andrew Davies and were Agency. Both appointments supported donated over a four-year partnership. systems, processes and people in place environment. long-term perspective. able to manage that transition with our goal of growing a balanced portfolio Reshaping Tomorrow Week was another to allow us to serve all our customers on confidence. Thanks are due, as always, of public and private sector clients and success, with Wates people volunteering The strong financial results described in a sustainable basis. to all employees for their hard work will contribute to our pipeline of work in 10,700 hours across 93 community this report are testament to the quality and “The Group’s commitment to and continued commitment to the 2018 and beyond. projects. The Wates Family Enterprise GOVERNANCE CORPORATE commitment of its people, the strength of THE JOURNEY TO ZERO HARM excellence was reflected in its Group’s values of integrity, intelligence, Trust also made grants to fund many its relationships with clients and partners, performance, teamwork and respect. Keeping people safe from harm and INVESTING IN OUR PEOPLE of these activities. The 100th Building and its robust financial management. winning the Investors in People creating a healthy and safe environment Futures Programme, supporting adults The excellence of its management team Gold accreditation for the third People are at the heart of the Group’s wherever the Group operates remains furthest from the labour market into was also reflected in Construction News’ consecutive time. This was a success. We remain committed to Wates’ number one priority. Since the employment, training or education took recognition of the Wates Group as great accomplishment of which investing in our people’s continued introduction of a Group-wide Zero Harm place in 2017. Over 150 people were Contractor of the Year and winner of all employees should be proud.” professional development. This was campaign in 2016, there has been a marked supported, with over 50% moving into the Judges’ Supreme Award. recognised by the award of Investors in reduction in incidents. In 2017 the RIDDOR education, employment or training. James Wates CBE People Gold accreditation for the third The Group’s commitment to excellence Accident Frequency Rate was down 22% The Group pioneered an industry/school Investment in the workforce of the future Chairman successive, three-year period, heralded was illustrated in its winning the from 2016 at 0.047. We achieved a 41% engagement programme #ThinkBuild, is paramount if the Group is to continue as a ‘remarkable achievement’ by the Investors in People Gold accreditation reduction in Lost Time Injuries Reported in partnership with Career Ready and to prosper, and as well as ensuring more IIP assessors. Arcadis, reaching over 3,000 students for the third consecutive time. This was young people enter the industry, it must and our health and safety performance led a great accomplishment of which all the industry, with an accident incidence through Insight Days, work experience INVESTING IN NEW HOMES AND ACCOUNTS GOVERNANCE employees should be proud.
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