Wilmott Dixon has announced that it is splitting the company into three distinct “sister businesses” to give its residential and support services divisions greater independence.
The company said that with the Residential subsidiary as well as its Fortem supports services business having made “good operational and strategic progress,” it will now “implement plans to strengthen both companies further by allowing each to benefit from greater independence to pursue their individual, and different, growth plans.”
“In 2017 this will see them move out from under the Willmott Dixon umbrella to become ‘sister’ rather than ‘subsidiary’ businesses to Willmott Dixon, whilst remaining owned and controlled by the family.”
The three sister companies will be Willmott Dixon Holdings (including subsidiaries Willmott Dixon Construction and Willmott Dixon Interiors), Willmott Residential (subsidiaries Prime Place, Be:here and Willmott Partnership Homes) and Wimpole Equity Holdings (containing Fortem).
The contractor published its accounts for the six months to 30 June 2016, announcing profit up by £4m on 2015 to £12m, and a “secured and probable” forward order book of £1.15bn including 7,500 homes in the pipeline.
Group chief executive Rick Willmott commented on the new structure:
“This very much recognises each company’s specialisms and it gives senior management greater freedom and flexibility to shape their businesses to pursue specific growth agendas for their markets.” He added there would be “strong cultural, leadership and ownership continuity,” and said “top management in each of our three core businesses will have a more direct share in their company.”
“This supports our core belief that sustainable growth is secured by focusing on those specialisms and an obsession with procuring ‘quality’ ahead of ‘quantity’ of workload.”