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Our People, Our Stories

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Our People, Our Stories OUR PEOPLE, OUR STORIES CONSTRUCTION PROPERTY SERVICES PROPERTY DEVELOPMENT Above all, it’s about people WATES 2014 REVIEW CONTENTS CHAIRMAN’S WELCOME Chairman’s Welcome 3 Chief Executive’s Review 4 2014 At a Glance 8 Safety 9 Our People 10 CONSTRUCTION 12 PROPERTY SERVICES 24 PROPERTY DEVELOPMENT 34 “THESE ACHIEVEMENTS Design 38 ARE TESTAMENT TO THE QUALITY AND COMMITMENT OF CORPORATE RESPONSIBILITY OUR PEOPLE...” Reshaping Tomorrow 40 Community 42 Wates Giving 46 I am pleased to introduce our 2014 Wates performed well, resulting in a It underpins our belief that ‘Above all, business review and performance Group turnover (including the Group’s it’s about people’. highlights. 2014 was a very significant, share of joint ventures’ and associates’ As a family-owned business that bears and exciting, year for the Wates Group. turnover) of £1.05bn; an increase of Shareholders, Directors & ExCo 48 our name, our reputation is everything. 12.8% on 2013. 2014 was also an Corporate Governance 52 We welcomed a new Chief Executive, The way we do business, the impact and exceptional year for work-winning; Andrew Davies, we have invested over legacy we leave in the communities in Summary Accounts 56 adding £0.6bn to our forward order £30m in securing future growth for our which we work, and how we use business book which now stands at £3.0bn. business and we will continue to invest as a force for good, are all reflected in in 2015 and beyond. These achievements are testament to the our values of integrity, intelligence, quality and commitment of our people, performance, teamwork, and respect. As part of our long-term business the strength of our relationships with our development strategy, we welcomed As we look forward, ensuring longevity clients and delivery partners, our robust over 400 new colleagues, including through innovation and investment financial management, and the quality of 130 people as a result of our acquisition will remain our focus for continuous our investment portfolio. of Midlands-based Purchase Group. improvement and growth. We will Our investment in acquiring this highly As the industry returns to growth, continue to invest in, adapt to, and reputable family owned maintenance building upon these relationships and shape, market opportunities, and to provider brings significant growth investments, and recruiting and build an evermore sustainable business. opportunities for our responsive and retaining the best people to deliver our Finally, on behalf of our shareholders, planned maintenance business within work are critical to our ambition to I thank our Board of Directors and the affordable housing sector in the become a £2bn turnover organisation. all our employees for their on-going Midlands and in the North. We continue to invest in our people, commitment to the Wates Group, and As the markets emerged from the new systems, training, and employment. for their support in helping to shape our prolonged recession, our strategic In 2014, in recognition of this, we were business for the future. focus meant that the Wates Group delighted to be awarded, once again, was well positioned to capitalise on the a Gold Investors in People. This is an opportunities the emerging economic Award which means a great deal to us recovery afforded us. as a business and as family shareholders. James Wates , CBE 3 WATES 2014 REVIEW CHIEF EXECUTIVE’S REVIEW “ WHILST 2014 REMAINED CHALLENGING, OUR 2014 has been a BUSINESSES PERFORMED WELL. GROUP TURNOVER challenging, yet WAS UP 12.8% ON 2013 AT rewarding, year for the £1.05BN AND WE RETURNED A £22.6M PROFIT.” Wates Group as the industry began its long-anticipated return to growth. The economic recovery meant there 2014 – A YEAR OF GROWTH were more work-winning opportunities Whilst 2014 remained challenging, our and our solid and stable financial businesses performed well. Group platform enabled us to make long-term turnover (including the Group’s share of strategic investment decisions. joint ventures’ and associates’ turnover) Leading the business through 2014 and was up 12.8% on 2013 at £1.05bn and into 2015 and beyond, the priority is to we achieved a £22.6m profit. ensure we have the right systems, Importantly our cash balances processes, and people in place to ensure remained strong at £86.6m (2013: our long-term growth strategy is both £103.1m) after investing over £30m in achievable and sustainable; and that we an acquisition, residential developments gain full benefit from those strategic and the Needspace? business. investments made in 2014 to position Despite the still demanding trading ourselves for the future. conditions, the consistency of our performance demonstrates our excellent capabilities, resilience, and delivery within our core sectors. 4 5 WATES 2014 REVIEW CHIEF EXECUTIVE’S REVIEW CHIEF EXECUTIVE’S REVIEW BUILDING COMMUNITIES Our corporate responsibility agenda prioritises the development of sustainable communities through employment, training and education. Wates has a deep commitment to the communities in which we work, and our financial stability, family ownership and long-term commitment to the construction industry enable us to focus on making a tangible and positive difference to the environment and communities around us, now and for future generations. INVESTING FOR GROWTH In 2014 we were delighted to once OUR JOURNEY TO ZERO-HARM OUTLOOK In 2014 we partnered with The Prince’s again receive the Investors in People Trust to help disadvantaged young In November 2014 the Wates Group Keeping people safe from harm and As the markets return we have Gold accreditation in recognition of our people find the skills and opportunities completed the acquisition of the providing a healthy and safe environment identified the right sectors for learning and development programmes for employment. Through our employee Purchase Group - a highly respected in which to deliver our work remains our growth matched to our capabilities, and HR practices. We also introduced an volunteering schemes and Wates Giving business which focuses on the provision number one priority. As we continue our and we have the right strategy to Operating Framework which sets out a our people gave many hours and of responsive and planned maintenance focus and drive to zero-harm, 2014 saw support this. consistent approach as to how we do £177,000 was donated to community services to housing associations and a 35% improvement in our RIDDOR AFR business across the Wates Group. This However, the upturn in the market is and charitable causes, including local authority clients in the affordable to 0.115, with a 17% improvement in Operating Framework provides clarity seeing demand outstripping capacity. supporting The Prince’s Trust, in 2014. housing sector. Through its 130-strong 1 day+ AFR to 0.204. on policies, roles and responsibilities, As the supply chain recovers from workforce, the Purchase Group brings shares best practice, and promotes Our programme of continuous the recession, we will continue to face the the footprint and operational capability our corporate culture and identity. improvement includes a pro-active industry-wide challenge of skills shortages to grow our responsive and planned Underpinned by our Code of Conduct workforce engagement plan that and supply chain capacity. The industry 2015 AND BEYOND maintenance business in the Midlands, and supported by our values and focuses on educating and engaging will remain challenging for contractors Wales and the North, within our We have entered 2015 with a forward behaviours, the framework plays a our site operatives on safety and and we anticipate continuing pressures property services sector. order book up 21% at £3.0bn which, pivotal role in our success in achieving occupational health issues. In 2014, as on margins as work-winning remains coupled with our financial stability We also continued our investment our growth potential. part of our drive to address the wider highly competitive. and strategy for growth, positions us programme in Partnership Housing of health agenda, we launched ‘Bin the Our strategy for 2015 and beyond well for future investment. £8m, capital employed increased by Broom’ – an industry-leading initiative is built around developing a £17m in Wates Developments, and we that is having a positive impact on our Our strategy for 2015 and beyond sets sustainable business. We will remain invested £5m in our Needspace? sites, reducing airborne dust. out a clear route to grow the Wates highly selective as to what work we business to boost the opportunities that business and to make it a more resilient bid for to ensure realistic programs the London managed-office rental business in what continues to be a for our customers that meet safe, market affords us. In addition, our stable highly competitive market. on-time and on-cost delivery and financial position enables us to continue to ensure we can return a profit for We will continue to focus on delivering to invest in our people, systems and our shareholders to sustain future excellence and underpin this with capabilities, including BIM. investment for growth. our commitment to, and engagement with, our Reshaping Tomorrow agenda, To deliver our strategy requires the which is our framework for responsible best people, both within the industry business practice. and supporting professions. This is as much about working with the right delivery partners as it is in recruiting and retaining the best employees. Our sustainability programme supports education Andrew Davies and employability and it will continue Chief Executive to play a pivotal role in encouraging and training talent to enter the construction industry. 6 7 WATES 2014 REVIEW 2014 AT A GLANCE SAFETY OUR BUSINESSES BUSINESS Providing PERFORMANCE a healthy Our Construction business comprises Living SMARTSPACE 2,397 EmPLOyEES Space, Construction and Smartspace, each and safe providing construction and / or property £1.05bn environment services to a range of clients across a diverse GROUP TURNOVER * market including education, retail, public in which to sector, affordable housing, residential, Turnover 2014 £1.05bn deliver our industrial and commercial.
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