VolkerWessels boosts profit as marine and water sectors boom

Profit soared at VolkerWessels after a slowdown in work in the commercial sector was offset by big contracts in the marine, water and highways sectors.

VolkerWessels chief financial officer Anita Harris said her firm had delivered a “strong performance” in 2024 “despite the economic challenges facing the country, which is a credit to the resilience of our businesses”.

The contractor – the 13^th biggest in the UK – reported a pre-tax profit of £48.1m in the year to 31 December 2024, up from £38.6m in the year prior. Turnover was also up at £1.5bn, from £1.4bn the year before.

Harris said VolkerWessels’ “overall aim” was to achieve growth by focusing on high quality operational delivery. She said the directors were “pleased” with the firm’s performance, which was “the product of a robust and effective long-term business strategy”.

Cash was also up to £171.9m from £148.1m.

VolkerWessels operates across all parts of the construction sector, and saw its biggest revenue boom in the marine, water, environment and energy sectors. There, turnover was up by more than a third to £340.5m, offsetting a 57.6 per cent dropoff in turnover in the commercial, industrial and education sectors.

VolkerStevin is its major subsidiary in the marine, water and environment sectors. Last year it completed “significant works” at the Royal Navy base at the Clyde, in Scotland, while also finishing the urban regeneration project at the Wear Footbridge in Sunderland (pictured).

VolkerWessels’ biggest activity was in the rail infrastructure sector – primarily thanks to its major subsidiaries VolkerFitzpatrick and VolkerRail. Revenue there was up 11.3 per cent to £547.2m, after VolkerRail continued work on the East West Rail phase 2 and the Transpennine Route Upgrade, which it started last July.

The contractor also posted a higher turnover in the highways and airport infrastructure sector, as VolkerFitzpatrick completed projects on the A27 and A31 “to time and budget”. VolkerFitzpatrick is also delivering early works on a £280m improvement scheme, in conjunction with Balfour Beatty, at junction 9 of the M3 motorway, and is set to start upgrading junction 10 of the M27.

Provisions were up substantially, from £6.5m to £18.2m, with the vast majority relating to contract provisions. Those more than tripled from £4.6m to £16.2m, and cover the losses VolkerWessels expects to see on some contracts.

A spokesperson for VolkerWessels said the higher provision was in relation to “closing out an onerous contract in the rail sector and the cost of defect remediation which is subject to a future insurance claim”.

Looking ahead, VolkerWessels said it would invest in the expansion of its major projects division to underpin its strategic growth.

Its order book was up to £1.5bn, in comparison to £1.3bn, which VolkerWessels put down to a £1bn job it scooped last March on the Southern Renewals Enterprise (SRE). That will see VolkerFitzpatrick deliver maintenance to railway buildings and infrastructure in Kent, Sussex and Wessex over the next 10 years. Octavius Infrastructure, AtkinsRéalis, VolkerRail and Network Rail Works Delivery are also involved in the SRE.