Despite modest growth in the UK market, VolkerWessels shows little promise of improvement.
- VolkerRail’s contribution to group revenue reached £162 million, boosting overall performance.
- Pre-tax profits saw a slight rise, ending at £38.6 million compared to £37.7 million the prior year.
- The secured order book’s value declined significantly by 22%, signalling future challenges.
- Net assets marginally decreased, ending the year at £127.3 million.
The financial results for VolkerWessels UK Limited for the year ending 31st December 2023 released modest growth within the UK sector, although future prospects remain bleak. VolkerRail, as a key part of VolkerWessels, reported a noteworthy contribution of £162 million to the group revenue, facilitating an overall revenue increase of 6%, climbing from £1.349 billion in 2022 to £1.433 billion.
In terms of profitability, the company observed a nominal rise in pre-tax profit by 2%, achieving £38.6 million in contrast to the previous year’s £37.7 million. However, a notable concern is the significant 22% decline in the forward secured order book at the year-end, which diminished from £1.732 billion to £1.343 billion.
Liquidity indicators showed stability, with net assets experiencing a slight decrease to £127.3 million, albeit backed by a stable cash and cash equivalent reserve of £148.1 million compared to £147 million the previous year.
Among the subsidiaries, VolkerFitzpatrick showcased a marginal revenue increase to £679 million, supported by projects such as HS2, Eastbrook Studios, and various rail projects. On the other hand, VolkerHighways experienced a decline in revenue to £172 million, primarily due to reductions in local authority funding.
Remarkably, the Dutch parent company extracted £30 million in dividends from its UK operations, representing a significant increase from the £18 million withdrawn the prior year.
Despite the slight upward trends in certain areas, VolkerWessels’ overall outlook remains cautious, given the diminishing future order book.
