Willmott Dixon is aiming to build a £1.5bn construction business, with revenue growth expected from 2027, after banking nearly £750m of new work in the first half of the year.
The contractor's construction division turned over £1.03bn last year and is targeting a step up in turnover, with defence and healthcare expected to spearhead the expansion.
Chief executive Graham Dundas said the priority for the year had been to convert a record level of preconstruction appointments into main contracts. By the end of July the group had secured £747m of new work, 89% of it under main contract, which he said gives the business "secure and visible revenue for 2027 and beyond".
Group pre-tax profit climbed 15% to £11.5m in the six months to June. Revenue edged down to £545m from £548m, which the company attributed to major starts taking time to come through.
Order book and pipeline
Willmott Dixon finished the period with a £1.37bn secured order book and more than £3.5bn of identified workload, taking its total pipeline to around £5bn. The company said the work banked in the first half laid the foundations for revenue growth from 2027.
Education delivered the biggest wins, led by the £93m College of North West London campus at Wembley and the £58m Mosslands secondary school. Other jobs in the order book include £28m of affordable homes at Princes Gate in Oldham for Muse, Portsmouth's £22m Bransbury Park Leisure Centre and the £16m Bath Fire Station.
Frameworks remain the main engine of orders for the group, generating around 90% of new work.
Cash position and cost pressure
The group strengthened its cash position to £127m, with no debt and record shareholders' funds of £190m.
Dundas warned, however, that cost pressures were still squeezing customers and suppliers. He said global conflicts continue to push up energy, fuel and material costs, and that customers and supply chain partners were feeling the pressure. When customers choose who to work with, he added, financial resilience and a proven delivery record matter more than ever.
The relaunched Willmott Dixon Developments arm is also hunting growth through public sector regeneration partnerships. It most recently secured the £100m Baytree Shopping Centre scheme in Brentwood with Milligan.