VolkerWessels reported a significant increase in pre-tax profits, driven by key infrastructure and entertainment projects.
- The company highlighted the role of VolkerFitzpatrick in contributing nearly half of its revenue through major construction projects.
- Challenges such as global geopolitical tensions and inflationary pressures were acknowledged by VolkerWessels as impacting its operations.
- VolkerRail’s significant contributions from critical rail projects underpinned its revenue and gross margin achievements.
- VolkerWessels continues to show resilience amid economic difficulties, citing strong performances from its specialised divisions.
VolkerWessels, a key player in the construction industry, has reported an increase in pre-tax profits to £38.6 million for the year ending 31 December 2023, up from £37.7 million the previous year. Despite facing economic challenges that include inflation and global instabilities, the group achieved a commendable performance in 2023. This success underscores the resilience and adaptability of its business operations.
Central to this financial success is VolkerFitzpatrick’s involvement in substantial infrastructure projects, such as HS2 and significant projects in Dagenham and Corby. These ventures underline VolkerFitzpatrick’s strategic importance, as it accounts for almost half of VolkerWessels’ income. The involvement in these critical projects, particularly the Align joint venture’s impressive work on the HS2, including the Colne Valley Viaduct and the twin-bore tunnel, highlights the company’s robust industry presence.
VolkerRail also demonstrated strong performance, significantly contributing to the group’s revenue through its key role in phase two of the £6.6 billion East West Rail project. This project remains a cornerstone of both revenue and profitability for VolkerRail. Additionally, the firm’s engagement with the TransPennine Route Upgrade and the Hope Valley rail upgrade further cements its position as a leader in rail infrastructure.
Despite the strong operational performance, VolkerWessels acknowledged several external challenges impacting its business environment. The ongoing Russian invasion of Ukraine and the Middle Eastern conflict influence market stability, affecting borrowing costs and investor sentiments. Furthermore, supply chain issues, specifically the availability and cost of materials and labour, have been persistent hurdles, exacerbated by inflation and governmental fiscal pressures delaying project commencements.
VolkerWessels emphasises the significant roles played by its specialised divisions, such as VolkerStevin and VolkerHighways, which focus on marine, energy, and environmental infrastructure projects, as well as highways. These divisions have ensured continued diversification of services, enabling the company to navigate through an economically turbulent landscape.
VolkerWessels continues to demonstrate a resilient financial position amidst global and economic challenges.
