The firm reported unchanged half-year profits of £1.8m this morning on steady revenue of £46m but said it remained optimistic of a return to growth next year.
Nick Taylor, chief executive said: “Waterman continues to deliver a consistent performance in more challenging markets than experienced in recent years. The UK markets remain at the heart of our business, generating 87% of group revenue.”
“The board remains committed to its aspiration to increase the group’s adjusted operating profit margin towards 6% by June 2019 from the current level of 4.1%.”
He said that growth in infrastructure & environment activities had offset a slight decline in property post Brexit.
“While commercial activity is flat with tenants sitting on their hands, in 12-18 months time there will be a shortage in the flow of new buildings coming to market and we expect to see an uptick in projects coming forward.
“The residential market is London is like a doughtnut with central very quiet, but demand for properties of £600 sq ft on the outskirts is strong.
He added that Waterman’s was seeing growth in the highways and schools pipeline with several major retail schemes like Brent Cross in London progressing.
Waterman expects a solid project pipeline to support revenue growth and margin enhancement from 2018.
In the property segment, robust activity in the retail and residential markets should continue to offset any softness in commercial.
In the infrastructure and environment area, government spending on projects such as HS2, schools, hospitals, roads and highways were expected to support further growth.
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