Willmott Dixon has reported a loss in its latest financial results as the business was hit by a number of supply chain partner insolvencies in 2023. 

Loss before tax, goodwill and exceptional items was £5.2m to the year ending December 31, compared to a £0.8m profit in 2022.

But the company said it was “confident of a swift return to profit in 2024” adding that “last year’s performance was disproportionately impacted by a small number of significant supply chain partner insolvencies”.

It said the affected projects were now either finished or close to completion, allowing the company to quickly return to profit in 2024. 

Annual turnover was £1.172bn compared to £1.147bn in 2022.

Its construction business reported a turnover of £1.043bn (2022: £1.014bn) with its interiors business reporting turnover of £130.9m (2022: £133.4m).

Willmott Dixon said it had made a strong start to 2024, securing £700m of new orders since December 2023, including £230m in April alone. 

This new work, a mix of full contract awards and preconstruction orders, takes its identified orderbook to more than £3bn for the first time, which is says provides a “solid platform for a quick return to profitability and sustainable, targeted growth in 2024 and beyond”.

It added 85.2% of projected work for 2024 was now secured (as of April 2024).

Willmott Dixon said 67% of turnover was procured via long-term frameworks and more than 50% of turnover was with repeat customers.

Chief executive Graham Dundas said: “We are delighted by the strong start that Willmott Dixon has made to 2024, with our Q1 profit and turnover already ahead of our budgeted forecasts and a record pipeline of over £3bn. 

“I’m particularly encouraged by the way in which the business has responded to a difficult 2023, when certain projects were materially impacted by the industry-wide problem of significant inflation, as well as key supply chain failures at critical times. 

“With inflation easing and a strong pipeline of high-quality work, our resilient balance sheet and a healthy mix of long-term revenues means that Willmott Dixon is well-positioned to prosper in 2024.”