Willmott Dixon is aiming to build a £1.5bn construction business, with defence and healthcare expected to lead expansion as the contractor turns a strong flow of early-stage appointments into signed main contracts.
The company secured £747m of new work by the end of July, 89% of it under main contract. Chief executive Graham Dundas said the priority had been to convert record preconstruction appointments into main contracts, giving the business visible revenue for 2027 and beyond.
The construction division is targeting turnover of £1.5bn, up from £1.03bn last year, with revenue growth from 2027. Defence and healthcare will spearhead the expansion, according to the company.
Group pre-tax profit rose 15% to £11.5m in the six months to June, even as revenue slipped to £545m from £548m. Willmott Dixon said major starts took time to come through. The group ended the period with a £1.37bn secured order book and more than £3.5bn of identified workload, taking its total pipeline to around £5bn. Cash rose to £127m, the group had no debt and shareholders’ funds reached a record £190m.
Education leads work wins
Education produced the largest contract wins. They included:
- a £93m campus for the College of North West London at Wembley;
- the £58m Mosslands secondary school;
- £28m of affordable homes at Princes Gate in Oldham for Muse;
- Portsmouth’s £22m Bransbury Park Leisure Centre;
- the £16m Bath Fire Station.
Frameworks remain the main engine of orders, generating around 90% of new work, the company said.
Cost pressure persists
Dundas warned that cost pressures were still squeezing customers and suppliers. Global conflicts continue to push up energy, fuel and material costs, he said, and customers and supply chain partners are feeling the pressure. When customers choose who to work with, financial resilience and a proven delivery record matter more than ever, he added.
The relaunched Willmott Dixon Developments arm is also seeking growth through public sector regeneration partnerships. Its most recent win is the £100m Baytree Shopping Centre scheme in Brentwood with Milligan.
The £1.37bn secured order book and £5bn total pipeline provide the base for the £1.5bn ambition, but the company’s commentary points to continued conversion of preconstruction work into main contracts and resilience against cost inflation. That conversion matters because main contracts carry secured revenue for 2027 and beyond. Education and frameworks currently supply much of the visible workload, while defence and healthcare are positioned as the next growth areas.