A construction company has announced it has successfully recovered millions in remediation costs from third-party contractors
The legacy cladding remediation costs amount to more than £20 million, which Willmott Dixon said it was able to recover in 2024.
Posting an update on its accounts for the 12 months to 31 December 2024, the construction company said it had made a “solid profit” for the year, with pre-tax profits of £28.6m following a loss in the previous financial year (2023: £14.4 million loss).
The privately-owned business reported: “Prior losses partly owed to the significant provisions made for legacy cladding remediation works.
“The company secured net recoveries from third parties of over £20.0m against those historic provisions during the year, with this exceptional additional income taking 2024’s total profit before tax and goodwill amortisation to £48.8m.”
As reported by Building Magazine, some of the recovered costs are believed to include part of the £250 million Woolwich Central Scheme that is currently in dispute. In early 2023, the company filed a suit for damages against five companies involved in the London-based development scheme, with £47 million being sought in cladding remediation costs. The claim related to alleged defects in the design and construction.
With these recovered costs, the group revenue has remained steady at £1.2 billion, with the company stating: “The positioning of projects as design-complete and procurement-ready before work starts on site is already proving successful in delivering more consistent and predictable project margins.”
Commenting on the company’s “strong start” to 2025, Chief Executive Officer Graham Dundas said: “We’re delighted to have returned to profit as we expected in 2024, responding strongly to a difficult economic environment in 2023, and adding a record £1.3bn of new contract awards to our high-quality order book.”