Willmott Dixon bounces back into profit in first half
Good news for our former client Willmott Dixon as they bounce back into the black in the first six months of the year with better profits than expected and a record order book .
Chief executive officer Graham Dundas believes ISG and Building Safety Act will be a tipping point for the industry Chief executive officer Graham Dundas said Willmott Dixon enjoyed a ‘prompt and healthy return to profit’ after what had been a difficult 2023 when it suffered a £14m pre-tax loss due partly to the insolvency of an M&E subcontractor.
“While market conditions remain competitive, both profit and turnover are ahead of our forecasts, underlining my confidence in our ability to deliver profitable long-term growth,” he said.
Each of the privately-owned contractor’s subsidiary operations contributed to the £10m pre-tax profit in the first six months to June 2023, with revenue stable at £561m (HY23: £589m).
Dundas, who took up the chief executive role six months ago from Rick Willmott, predicted the demise of ISG and requirements of the Building Safety Act would now see a further shift in customer mindset from ‘lowest bid’ to ‘best quality’, with additional scrutiny placed on bidder financial robustness.
Willmott Dixon agreed over £1bn of new orders by August and 98% of budgeted workload for 2024 is now contracted.
Race to land £900m London towers job set to start this month
The race to price one of the biggest construction contracts set to be let in London in the next few years is set to begin later this month with firms asked to send in expressions of interest for a huge towers scheme at Blackfriars.
The job at 18 Blackfriars, which is expected to be at least £900m, will be let as a two-stage design and build job, with main construction work set to start early next year and finish in 2029.
The job, designed by Foster & Partners, is being run by US developer Hines and will see the construction of a 45-storey office plus two residential buildings of 40 and 22 storeys all rising from a four-storey podium.
Lipton Rogers, the firm behind 22 Bishopsgate, is development manager on the project, which includes 100,000 sq m of office space and 433 homes, with others on the team so far including engineer Arup and QS T&T Alinea. G&T is the QS for the residential part.
According to Building Magazine, the job could be split between the commercial and residential elements with Multiplex, Mace and Sir Robert McAlpine understood to be interested in the former with residential tower builders such as JRL focussing on the latter.
Several firms, including McGee, Keltbray and Expanded, are looking at piling and basement works at the site ahead of main construction starting next year. The entire scheme is set to take four years to build.
Meanwhile, Multiplex, Mace and McAlpine are waiting to find out who was the £200m scheme to bring a 20-year-old building in the City of London up to date.
The job at 65 Gresham Street for JP Morgan is being described as one of the largest building reuse projects in the Square Mile.
ISG jobs head off to rivals as others asked to run rule over schemes stalled by collapse
Rivals have picked up more ISG jobs nearly three weeks after the firm went into administration. Mace is fitting out new offices for law firm Addleshaw Goddard at 41 Lothbury, while Wates is upgrading the grade II listed building.
Mace has also taken over ISG’s fit-out projects at the Bloomberg South building and 200 Grays Inn Road for Great Portland Estates. Structure Tone is favored for the Google headquarters at King’s Cross, which ISG won last summer, as Mace and Overbury have ruled themselves out. Matt Blowers, former ISG CEO, has joined Structure Tone and secured the Linklaters job at 20 Ropemaker.
Multiplex is set to take on ISG’s stalled project at King’s Cross, the £80m Regent’s Quarter scheme, for Nan Fung Group. They plan to complete the project as a construction management scheme, retaining 11 former ISG staff. About £20m of work has been completed, with the rest due in 18 months.
Sisk is also eyeing ISG’s vaccine manufacturing facility for Fujifilm Diosynth on Teesside, with a formal announcement expected soon. They’re also looking at a data center project in Slough for Vantage. Additionally, Wates’ M&E subsidiary SES has recently hired several ISG staff.
Two-year-old Henry tower needs ‘extensive’ remediation
A south London skyscraper built by the collapsed Henry Construction requires “extensive” remediation to address a leaking roof just two years after its completion.
The Fold, a 35-storey residential tower in Croydon, was finished in July 2022, shortly before the contractor went into administration. The building, part of the Queen’s Quarter development, has 251 flats.
Residents reported significant leaks, leading to water ingress, damp, and mold. Management company Urban Bubble is working with specialists and insurers to identify the cause, with initial surveys already completed.
Building owner Legal & General noted that issues with build quality emerged after Henry’s collapse. They conducted a multi-day investigation into the leak and are taking steps to resolve the defects promptly.
The spokesperson added: “As owner of the property, we are deeply concerned that our residents have been affected by these issues.”
The firm that managed the development, HUB, said it worked with Legal & General throughout construction and all parties were satisfied with building quality upon completion in July 2022, at which point it handed over building management to Urban Bubble.
Mace construction head steps down
Mace CEO for Construction Andrew Jackson has unexpectedly left the company for personal reasons, just three months after his promotion. Previously the chief operating officer, Jackson joined Mace in 2015 after 26 years at Laing O’Rourke.
In the interim, Group Deputy CEO Jason Millett will oversee the construction division while Mace searches for a successor. The company stated that Millett will combine this role with his current position, and his planned transition to Group Chief Executive will continue in January.
Mace Group Chairman Mark Reynolds expressed gratitude for Jackson’s contributions over the past nine years, highlighting his positive impact and significant legacy within the company.
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