Wates set for Midlands shake-up as group turnover passes £1bn

Wates is to undergo a shake-up in its Midlands division, as its director Matthew Kennedy is seconded to explore a business case for expanding into the Middle East.

Meanwhile, the contractor has started a consultation on the future of 34 jobs in the region - including 19 in its Interiors business and 15 in its Construction division.

It is thought that Wates will attempt to move workers whose jobs are under threat to its £270m BSF scheme in Luton, which it won in January this year.

No other regions are thought to be affected.

Phil Harrison, currently business unit director of the North East, will take over Kennedy's role in addition to his own.

A spokeswoman for the company said: "Last year we undertook initial research and identified sectors where we believed Wates could deliver value.

"We have now appointed Matthew Kennedy to lead the next level of investigation and bring a business case to the board for approval. A key element of the decision as to whether to proceed with an expansion into the Middle East is that it in no way puts the UK business at risk - either reputationally or operationally."

The news came as Wates unveiled that its turnover exceeded £1bn for the year ended 31 December 2008 for the first time in its 111-year history.

Pre-tax profit increased 25% to £47.1m, taking the group profit margin to 4.2%. The company's forward orderbook stands at £2bn.

2008 turnover by division:

• Construction - £484m
• Living Space - £237m
• Retail - £170m
• Interiors - £96m
• Developments - £18m