Turnover at the family-owned construction group was up 13% to £1,117m, but profit before tax fell to £40.1m (2010: £43.5m).
Wates ended the year with a forward order book of £2bn (the same as it started the year with) and £132.1m of cash in the bank.
Chairman and chief executive Paul Drechsler said: “In what has been another difficult year for the construction industry and with some operational challenges, the kind of resilience we demonstrate derives from our long-term commitment to the industry and close collaboration with our customers, supply chain partners and people. As a family-owned business now in its fourth generation, we understand the importance of making a lasting difference, and our strong financial position reflects our focus on legacy, responsibility and sustainability, as well as our ongoing investment in staff development and training.
“With margins under pressure across the sector, we have continued to win more high-quality projects and grow market share. We have also been quick to adapt to the changing needs of our customers, as demonstrated by our successful acquisition of Linbrook Services Ltd in 2011, which means that we now offer a full range of services to the affordable housing market.
“Our financial stability gives clients the confidence to know that they are working with a secure, responsible partner who is here for the long-term. However, we are not complacent and are still recognising an environment of economic uncertainty and a fiercely competitive marketplace that will demand we focus and strengthen our operational model to enable us to work even more effectively for customers.
“We will continue to explore further opportunities in education, social housing, commercial and retail markets where we aim to consistently deliver excellent projects.”
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