Pre-tax profit at VolkerWessels UK was up 39% to 37.7m (2021: £27.1m) in the year to 31st December 2022, on revenue up 17% to £1,349m (2021: (£1,152m).
The profit margin – at both operating and pre-tax levels – improved from 2.4% in 2021 to 2.8% in 2022.
The secured order book was worth £1,732m at year-end, down slightly from £1,769m at the start of the year.
All parts of the company saw growth in the year, said chief executive Richard Offord, who took over from Alan Robertson during the year, on 1st August 2022. Alan Robertson is now chairman.
Growth in the rail sector was driven by VolkerRail’s work on HS2, the East West Rail project and the Barking Riverside overland extension in London.
VolkerFitzpatrick is part of a joint venture putting in new infrastructure to prepare RAF Lakenheath to become the new European home of the US Air Force F-35 fighter jet. Its work includes upgrading 58 protective aircraft shelters, of which 18 have been completed so far.
“Throughout this difficult trading period, we have continued to focus on building on the value we add to our clients, bringing innovation to the fore,” Richard Offord wrote in the annual report.
“Our excellent reputation, supported by a strong heritage and consistent, dependable quality of work has continued to build amongst our clients, in the wider marketplace and within the industry. The group has again strengthened its market position in the period under review by securing, extending and renewing a number of long-term contracts. These contracts provide visibility and stability in the order book for our companies.”