THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction

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THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
THE ART
  OF SEEING
     THINGS
DIFFERENTLY
  Annual Review 2015

                          VIEW
                        CONTENTS

    Above all, it’s about people
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
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                                                                                                         CONTENTS
                                                                                                         2015 At a Glance                                            04
                                                                                                         Chairman’s Welcome                                          06
                                                                                                         Chief Executive’s Review                                    08
                                                                                                         Reshaping Tomorrow                                          10
                                                                                                         Safety, Health and Environment                               12
                                                                                                         Our People                                                  14
                                                                                                         Environment                                                 16
                                                                                                         Communities                                                 18
                                                                                                         Wates Giving                                                20

                                                                                                         WATES CONSTRUCTION                                          24
                                                                                                         The London Business School, London                          26
                                                                                                         Little Ilford Secondary School, Newham                      27
                                                                                                         Central Square, Leeds                                       28
                                                                                                         Home at First Street, Manchester                            29
                                                                                                         Advanced Manufacturing Training Centre, Coventry            30
                                                                                                         Signature Care Homes, Camberley and Sunninghill              31

                                                                                                         SES ENGINEERING SERVICES                                    32
                                                                                                         Queensferry Crossing, Scotland                              34
                                                                                                         National Biologics Manufacturing Centre, Darlington         36
                                                                                                         Stephenson Quarter, Newcastle                               36
                                                                                                         RNAS Yeovilton, Somerset                                    37
                                                                                                         King’s Cross P1 – The Plimsoll Building, London             38
                                                                                                         Sheffield Custody Suites, Sheffield                         39
                                                                                                         PRISM                                                       40
                                                                                                         BIM                                                          41

                                                                                                         WATES RESIDENTIAL DEVELOPMENTS GROUP                        42
                                                                                                         Worthing, West Sussex                                       44
                                                                                                         Imber Court, Surrey                                         46
                                                                                                         Southwater, West Sussex                                     46
                                                                                                         Manchester Housing Improvement Fund, Manchester             47
                                                                                                         Erith Park Phase 1, Kent                                    48
                                                                                                         Hull Extra Care PFI, Hull                                   50
                                                                                                         Waylands House, London                                       51

                                                                                                         WATES LIVING SPACE MAINTENANCE                              52
                                                                                                         Wolverhampton Strategic Partnership, Wolverhampton          54
                                                                                                         Circle Housing, London and West Midlands                    55
                                                                                                         Newlon Housing Trust, London                                56
                                                                                                         Notting Hill Housing Trust, London                          57

                                                                                                         WATES SMARTSPACE                                            58
                                                                                                         Royal Hospital for Neuro-disability, London                 60
                                                                                                         Marks & Spencer, Nationwide                                 62
                                                                                                         The Knowledge Transfer Partnership Project                  63
                                                                                                         Royal Mail, Nationwide                                      64
                                                                                                         The Association of Chartered Certified Accountants (ACCA)   65

                                                                                                         NEEDSPACE?                                                  66

                                                                                                         Wates Group Board                                           70
                                                                                                         Wates Executive Committee                                   72
                                                                                                         2015 Corporate Governance                                   74
                                                                                                         Summary Accounts                                            76
                                                                                                         Addresses                                                   78

Wates Annual Review 2015   Project Alto, Wembley, awarded in 2015 and due for completion in late 2017.                                                               2/3
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
2015 At a Glance

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2015 AT
A GLANCE
WATES CONSTRUCTION                             WATES LIVING SPACE HOMES
£613M TURNOVER                                 £148M TURNOVER
Wates Construction focuses on designing and
building projects for Government and public
                                               Wates Living Space Homes is working as a
                                               strategic development partner with housing
                                                                                               £1.27BN                 21%   £1.3M
                                                                                               GROUP TURNOVER                SPENT WITH THE SOCIAL
sector, education and commercial customers.    association and local authorities to address                                  ENTERPRISE SECTOR
As much as 75% of our business is from         the UK’s urgent need to deliver more homes
repeat customers and, operating nationally     for affordable rent and sale. We are experts    £30.3M                  26%
                                                                                                                             69%
through a network of strategically placed      in large-scale, mixed-use developments that     PROFIT (PBT)
local offices, we have delivered some of       provide homes for both public and private                                     PARTNERS (OVER £1M)
                                                                                                                             ARE MEMBERS OF SUPPLY CHAIN
the UK’s most notable buildings.               sector rent or sale.
                                                                                               £4BN                          SUSTAINABILITY SCHOOL (SCSS)
                                                                                               FORWARD ORDER BOOK
SES ENGINEERING SERVICES                       WATES LIVING SPACE MAINTENANCE
£30M (TURNOVER FOR THREE                       £272M TURNOVER                                                                74
MONTHS OF OWNERSHIP)                           Wates Living Space Maintenance is a             £93M                7.9%      PROJECTS COMPLETED AND
                                                                                                                             4,700 HOURS VOLUNTEERED
SES Engineering Services (SES) is the UK’s     leading national provider of maintenance,       GROUP NET ASSETS              DURING WATES COMMUNITY
pre-eminent design-led M&E provider,           refurbishment and energy retrofit services.                                   WEEK
delivering for our customers in a wide range   We deliver a broad range of solutions for
                                                                                               3,703
of environments. We operate an exceptional
level of technical authority and deliver
                                               local authority and housing association
                                               partners, supporting the regeneration of        PEOPLE
                                                                                               (at 31 December 2015)
                                                                                                                             £1M
bespoke solutions optimised for the whole      disadvantaged communities and improving                                       PROVIDED BY WATES GIVING
                                                                                                                             TO SUPPORT 258 CAUSES
construction team, maximising off-site         standards of living for residents by renewing
                                                                                               1,160
                                                                                                                             ACROSS THE UK
manufacture in our production facility         existing housing stock through planned and
SES PRISM. We recently became the first        responsive maintenance programmes.
                                                                                                                             £105,000
                                                                                               NEW EMPLOYEES
Mechanical, Electrical and Public Health                                                       (incl. Shepherd)
Services (MEP) contractor to achieve BRE       WATES SMARTSPACE                                                              RAISED TO DATE FOR THE PRINCE’S
BIM Level 2 Certification.                     £131M TURNOVER
                                               Wates Smartspace delivers high quality
                                                                                               88                            TRUST, OUR CHARITY PARTNER

                                                                                                                             92%
                                                                                               APPRENTICES
WATES DEVELOPMENTS                             fit-out, refurbishment and maintenance
£78M TURNOVER
Wates Developments is expert in land,
                                               solutions nationally, which are designed
                                               to optimise our customers’ operating            GOLD                          BUSINESS IN THE COMMUNITY
                                                                                                                             CORPORATE RESPONSIBILITY
                                                                                                                             INDEX SCORE (3.5 STARS)
planning and joint ventures for residential    environments. Our customers include             INVESTORS IN PEOPLE GOLD
                                                                                               AWARD RE-ACCREDITATION
developments throughout Southern England.      commercial offices, retail, airports,
Our financial strength, corporate stability    developers, public sector, distribution
                                                                                                                             131
and commitment to residential development
make us a strong and attractive purchaser or
                                               centres and banks.
                                                                                               40%                           YOUNG PEOPLE BENEFITTED
                                                                                                                             FROM OUR BUILDING
                                                                                               IMPROVEMENT IN ONE
partner for both land owners and developers.                                                                                 FUTURES PROGRAMME
                                               NEEDSPACE?                                      DAY PLUS ACCIDENT
                                               £2.3M TURNOVER                                  FREQUENCY RATE (AFR)
                                                                                               (2014-2015)
                                               Needspace? provides quality managed

                                                                                               40
                                               workspace to the growing number of small
                                               businesses in Greater London and the South
                                               East. We offer a range of office, workshop      CCS WATES AVERAGE SCORE
                                               and studio units to small businesses
                                               looking to grow in an entrepreneurial
                                               environment. Our aim is to provide a series     97.2%
                                                                                               WASTE DIVERTED FROM
                                               of entrepreneurial communities that
                                                                                               LANDFILL
                                               encourage businesses to network,
                                               thrive and support each other.

Mark Thornhill
Construction Manager
Wates Living Space Homes                                                                                                                                 4/5
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Chairman’s Welcome

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    CHAIRMAN’S
                                        I am pleased to report that 2015 was              We continue to invest in our people through
                                        marked by a very strong performance for           training, development, and other opportunities
                                        the Wates Group.                                  – making good on our saying that ‘Above all,

    WELCOME
                                                                                          it’s about people’. We continue to work hard
                                        Once again, we achieved solid growth during       to maintain our Gold Investors in People
                                        the year, both organically and through            accreditation. Investors in People Assessor
                                        acquisition. Performance has been strong across   Bob Morrison said of us: “The achievement
                                        all of our businesses throughout the year.        of two successive Investors in People Gold
                                                                                          accreditations is outstanding and well

“
                                        We welcomed 1,208 new colleagues as
                                                                                          deserved, placing the Wates Group in the
                                        a result of our acquisition of Shepherd
    I would like to thank the Group’s                                                     top 3% of organisations that have achieved
                                        Engineering Services Limited including
                                                                                          this worldwide. The accolade underlines the
    Board of Directors and all of       Shepherd FM, together with a significant
                                                                                          strong and genuine commitment to
                                        number of contracts and strategic
    its employees for their ongoing                                                       developing the talents of everyone.”
                                        frameworks from Shepherd Construction
    commitment to the Wates             Limited. Our investment in acquiring this         We have joined the 5% Club, which reflects
    Group and for their support in      highly reputable family-owned construction        our commitment to ensure that 5% of our
    helping to grow and develop the     business brings significant growth                headcount over the next five years consists of

                           ”
                                        opportunities for us, expands our                 apprentices, sponsored students, or trainees
    business for the future.            capabilities and opens up new markets.            on a formal development programme.
    James Wates CBE                     While the Group grew faster than our sector       More recently, in 2016 we have been honoured
    Chairman                            generally, there remain challenging market        with the prestigious Queen’s Award for
                                        conditions, including material and cost           Enterprise in the Sustainable Development
                                        inflation and ongoing shortages of                category for the second consecutive time.
                                        skilled labour across the industry.               We are one of very few companies, regardless
                                                                                          of industry or profession, to have achieved
                                        Despite these challenges, we performed
                                                                                          this. In particular, the Award judges recognised
                                        extremely well, generating Group turnover
                                                                                          the significant investment and support
                                        of £1.27bn.
                                                                                          that Wates gives to social enterprise.
                                        2015 was also an exceptional year for
                                                                                          As a family-owned business that bears the
                                        securing work-in-hand. We entered 2016
                                                                                          family name, our reputation is everything.
                                        with a forward order book of £4bn, which is
                                                                                          The way we do business, and the impact
                                        nearly 35% up on the start of 2015.
                                                                                          and legacy we leave in the communities in
                                        These achievements are testament to               which we work, is reflected in our values
                                        the quality and commitment of our people,         of integrity, intelligence, performance,
                                        the strength of our relationships with our        teamwork and respect.
                                        customers and delivery partners, and our
                                                                                          Finally, on behalf of the shareholders, I would
                                        robust financial management.
                                                                                          like to thank our Board of Directors and all of
                                        Critical to the Group’s future growth –           our employees for their ongoing commitment
                                        and meeting our target of annual turnover         to the Wates Group and for their support
                                        of £2bn – is building upon these relationships    in helping to grow and develop the business
                                        and investments, and recruiting and retaining     for the future.
                                        the best people to deliver the work.

                                                                                          James Wates CBE
                                                                                          Chairman

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THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Chief Executive’s Review

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CHIEF                                 The Group has continued to make significant
                                      investment to support its growth strategy.
                                                                                         We successfully transitioned the Purchase
                                                                                         Group’s 130-strong workforce to the Wates
                                                                                         Group in order to grow our responsive
                                                                                                                                           In 2015, the Group continued its partnership
                                                                                                                                           with The Prince’s Trust to help disadvantaged
                                                                                                                                           young people develop the skills and identify

EXECUTIVE’S
                                      In 2015, we grew the business organically,         and planned maintenance business in the           opportunities for employment. Through our
                                      as well as acquiring the equity in Shepherd        Midlands, Wales and the North West.               volunteering schemes, our people gave 4,700
                                      Engineering Services Limited including                                                               hours across 74 projects to support Wates

REVIEW                                Shepherd FM and the trade and assets of
                                      a number of construction projects from
                                      Shepherd Construction Limited.
                                                                                         In addition to investment to support
                                                                                         business growth directly, our stable financial
                                                                                         position enables the company to continue
                                                                                         to invest in our people, systems, capabilities
                                                                                                                                           Community Week. Through Wates Giving,
                                                                                                                                           £1m was donated to charity.

                                                                                                                                           We celebrated 10 years of delivering our
                                      This acquisition has ensured that we have a        (including BIM) and the evolution of our          Building Futures Programme, which aims to
                                      more geographically balanced construction          brand identity, with the launch of a new          engage with over 20,000 people to make

“
                                      business, strengthened our mechanical and          fresh look across the Group.                      positive changes to their lives through
    2015 has been a successful        electrical engineering capability, opened up                                                         employability programmes including our
                                      opportunities within new markets and sectors,                                                        new school engagement programme Build
    and exciting year for the Wates   and enhanced our non-domestic property
                                                                                         THE JOURNEY TO ZERO HARM
                                                                                                                                           Yourself. During the year we continued
    Group. The business has grown     services offering.                                 Keeping people safe from harm and creating
                                                                                                                                           to invest in Building Futures, as well as in
                                                                                         a healthy and safe environment wherever
    significantly during this time                                                                                                         industry campaigns such as Go Construct.
                                      The priorities for 2016 and beyond are to          Wates operates remains the number one
    and we entered 2016 with 3,703    ensure that we successfully integrate our new      priority and we continue our steadfast
    people and a forward order        businesses, putting the right systems, processes   drive towards Zero Harm.                          2016 AND BEYOND

                      ”
    book of £4bn.                     and people in place to secure our long-term                                                          With a forward order book of £4bn,
                                      growth strategy on a sustainable basis.            In 2015 the Group‘s RIDDOR AFR was flat           a strong and stable financial position and
                                                                                         at 0.114, but there was a 40% reduction in        a clear strategy for growth, the Wates Group
    Andrew Davies
                                                                                         one day plus AFR to 0.126.                        is positioned well for the future.
    Chief Executive                   STRONG PERFORMANCE
                                      The Wates Group turnover, including its            The Group deeply regrets that it suffered         Our strategy for 2016 and beyond sets
                                      share of joint ventures’ and associates’           its first fatality for more than ten years in     out a clear vision to be the most trusted
                                      turnover, was £1.27bn in 2015. This is a 21.2%     2015. In a separate incident, an individual was   partner in the built environment to deliver
                                      increase year-on-year.                             seriously injured in 2015. He subsequently        high quality services and products
                                                                                         passed away in early 2016.                        and investments safely on time and on
                                      Profit before tax was 25.9% up on 2014
                                                                                                                                           budget, every time.
                                      at £30.3m. The Group’s gross cash increased        Both of these incidents were subject to a
                                      by 45.9% to £127.4m, despite investment in         thorough investigation and we are focused         Our mission is to become an even more
                                      acquisitions, residential developments and         firmly on addressing and mitigating all of our    sustainably profitable business by continuing
                                      our Needspace? business.                           health and safety risks, and on ensuring that     to build a balanced portfolio of work across
                                                                                         we operate a continuous process of learning       the markets in which we operate.
                                      Despite challenging market conditions,             and improvement in this area.
                                      the consistency of our performance
                                      demonstrates our excellent capabilities,
                                                                                         BUILDING COMMUNITIES
                                      resilience and determination to deliver
                                      for our customers.                                 The Group’s corporate responsibility
                                                                                         agenda, Reshaping Tomorrow, and Delivering
                                                                                         the Promise programme, underpinned by
                                      INVESTING FOR THE FUTURE
                                                                                         our Operating Framework, ensure that we
                                      In 2015, in addition to acquiring the equity       deliver consistently for our customers to
                                      in Shepherd Engineering Services Limited                                                             Andrew Davies
                                                                                         the highest standards of quality and safety,
                                      and the trade and assets of a number of                                                              Chief Executive
                                                                                         whilst developing a sustainable tomorrow.
                                      construction projects from Shepherd
                                      Construction Limited, the Group also               Wates has a deep commitment to the
                                      successfully completed the integration             communities in which it works. Our financial
                                      of the Purchase Group, which it acquired           stability, family ownership and long-term
                                      in November 2014.                                  commitment to the construction industry
                                                                                         enable us to make a tangible and positive
                                                                                         difference to the environment and to the
                                                                                         communities in which we work, both now
                                                                                         and for future generations.

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THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Reshaping Tomorrow

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RESHAPING                                        WORKING IN PARTNERSHIP
                                                 TO ACHIEVE OUR GOALS
                                                                                                     SUPPORTING THE PRINCE’S TRUST
                                                                                                     Wates Giving, the charitable programme
                                                                                                                                                     OUR RESHAPING
                                                                                                                                                     TOMORROW PILLARS

TOMORROW
                                                 Reshaping Tomorrow is about growing                 run by the Wates Family Enterprise Trust,
                                                 our business responsibly by understanding           is one of our key partners in supporting
                                                 and supporting our customers, suppliers             Reshaping Tomorrow. Among the many
                                                 and communities; bringing about systemic            partnerships supported by Wates Giving
                                                 behaviour change and driving new solutions.         in 2015 was our long term work with The
                                                                                                                                                     Improving our health and safety
                                                 It is based on our heritage as a company            Prince’s Trust in which funding was provided
Sustainability was very much on the              whose values are firmly rooted in the way           to support the Built Environment Leadership
                                                                                                                                                     performance with the right behaviours
                                                                                                                                                     to achieve a Zero Harm culture.
global agenda in 2015 with the launch            we do business and we have worked hard to           Group (BELG), which James Wates Chairs.
                                                 achieve the targets we set. Partnership with
of the 2030 World Business Council               employees, customers, suppliers and others          The BELG promotes the Trust’s ‘Get into
Sustainable Development Goals and                is critical to delivery, through cross sector       Construction’ programme designed to help
                                                                                                     young people build a career in construction.
the Paris COP21, where 200 nations               collaborations, influencing government
                                                                                                     The Prince’s Trust is also Wates’ current
                                                 policy and adopting a stewardship role.
signed up to tackle climate change.                                                                  charitable partner and in 2015 we raised        Creating a positive impact on the
                                                                                                                                                     environment through our work.
Decisions made at this level have an             UNLOCKING SOCIAL VALUE
                                                                                                     over £75K, which has supported The Trust’s
                                                                                                     TEAM programme – a 13 week personal
impact on the construction industry              During 2015 a range of leadership activities were   development course for young people.
and 2015 saw a step change for us                delivered, which continued to position Wates        Together with other construction companies,
                                                 as a leader, particularly around the social value
when we launched our new five year               agenda. Work included a follow-on study to our
                                                                                                     we are also delighted to be part of the
                                                                                                     Million Pound Challenge that will
strategy Reshaping Tomorrow 2020.                thought leadership Communities Count Phase 2        help more than 1,000 disadvantaged
                                                                                                                                                     Working in partnership to enable
                                                 report – ‘A Practical Guide to Unlocking Social                                                     local communities to prosper.
                                                                                                     young people who are not in education,
                                                 Value’ – with partners Social Enterprise UK,        training or employment.
                                                 the Chartered Institute of Housing (CIH),
                                                 PwC and the Orbit Group. This provided
                                                                                                     OUR COMMITMENT
                                                 commissioners with practical tools to embed
                                                                                                     TO DRIVING CHANGE
                                                 and measure social value within procurement
                                                 and shared a number of examples of best             Our Reshaping Tomorrow framework is             Ensuring we have the right team
                                                 practice. In addition, we continued to              about making a real difference throughout       with the right skills and behaviours
                                                 benchmark our performance in this area,             our business. From training, employment         to do the job regardless of background.
                                                 using the Business in the Community Corporate       and the health and safety of people working
                                                 Responsibility Index and were awarded a score       on our sites through to promoting positive
                                                 of 94% achieving 3.5 stars – an improvement         environmental practices and challenging the
                                                 from 2014.                                          way buildings are built, we are committed
                                                                                                     to working with colleagues, customers,
                                                                                                     partners, suppliers and communities to drive    Working with others to influence
                                                 “Responsible business                               the change that’s needed. It builds upon our    sustainable building design.
                                                 behaviour drives prosperity.                        core values of performance, intelligence,
                                                 Wates understands this, and is                      teamwork, integrity and respect for people
                                                                                                     and communities. Our ultimate aim is to
                                                 committed to making a positive
                                                                                                     continue to strive to leave a positive legacy
                                                 impact on local communities and                     for future generations: our actions today
                                                 economies, showing leadership                       impact everyone’s tomorrow.
                                                 and commitment on issues such as
                                                 trust, employment, education and
                                                 skills. Through its involvement in
                                                 campaigns such as the CBI’s Great
                                                 Business Debate, it has worked
                                                 hard to show how the sector
                                                 continues to thrive and how
                                                 business can be a force for good.”
                                  Cara Palmer
                        Sustainability Manager   John Foster
                               Group Services    Head of the Great Business Debate, CBI

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THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Safety Health and Environment

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KEEPING PEOPLE
SAFE FROM HARM
                                                                                                  2020 HEALTH AND SAFETY                                                                                 LEADING BEHAVIOURAL
                                                                                                  STRATEGY                                                                                               SAFETY BY EXAMPLE
                                                                                                                                                                                                         In addition to the Safety, Health and                     KEY HIGHLIGHTS
                                                                                                  Wates family shareholders, the Board of
                                                                                                                                                                                                         Environment e-learning programme,

                                                                                                                                                                                                                                                                   100,000+
                                                                                                  Directors, and the Executive Committee have
                                                                                                                                                                                                         we are making a significant investment
                                                                                                  signed up to a long-term strategy that aims to
                                                                                                                                                                                                         in the development of our employees
                                                                                                  achieve a Zero Harm culture across the Wates
                                                                                                                                                                                                         through a new behavioural safety leadership
                                                                                                  Group by 2020. Our Safety, Health and                                                                                                                            HEALTH AND SAFETY
                                                                                                                                                                                                         programme. The aim of the programme                       OBSERVATIONS REGISTERED
                                                                                                  Environment strategy has six defined paths,
                                                                                                                                                                                                         is to equip our leadership teams with the
                                                                                                  or instruments for change.
                                                                                                                                                                                                         skills to champion good safety behaviours
                                                                                                                                                         OUR COMMITMENT TO ZERO                          with a view to giving our people the skills

                                                                                                                                                                                                                                                                   1,400
                                                                                                  1.	Lead: Every leader commits to
                                                                                                      Zero Harm and inspires their people to             HARM: WE’RE SAFER TOGETHER                      and knowledge required to create the right
                                                                                                      make it happen                                                                                     environment to achieve Zero Harm.
                                                                                                                                                         Underpinning this strategy for Zero Harm
                                                                                                                                                         is our ‘We’re Safer Together’ campaign,                                                                   PEOPLE UNDERWENT
                                                                                                  2.	Simplify: We make sure our systems and
                                                                                                                                                         which comprises a simple message that                                                                     HEALTH AND SAFETY TRAINING
                                                                                                      processes help people, not get in the way
                                                                                                                                                         summarises our belief that everyone
                                                                                                  3.	Re-think: We take a look at what we do             has a vital role to play in ensuring the

                                                                                                                                                                                                                                                                   8%
                                                                                                      with fresh eyes and we challenge the               safety and wellbeing of one another.
                                                                                                                                                                                                                                                                               REDUCTION IN
                                                                                                      status quo. We re-engineer how we do                                                                                                                                     DANGEROUS
                                                                                                                                                         How we define Zero Harm:                                                                                              INCIDENTS (2014-2015)
                                                                                                      things to eliminate risk
                                                                                                                                                         • Zero fatalities to workers or third parties
SAFETY, HEALTH AND ENVIRONMENT                   FOCUS ON OCCUPATIONAL                            4.	Involve: We engage everyone who works
IS AT THE FOREFRONT OF                           HEALTH AND SAFETY                                                                                       • Zero permanent disabling injuries

                                                                                                                                                                                                                                                                   40%
                                                                                                      for us, contributing to Zero Harm in
EVERYTHING WE DO                                 In 2015 we began monitoring employee                 everything they do                                 •	Zero new cases of long term harm             MAKING OUR OFFICES
The health and safety of our colleagues,         health referrals, which identified that 50%                                                                to health                                    AND SITES SAFER
supply chain operatives and the people           of referrals relate to mental health and         5.	Learn: We seek out and share what works
                                                                                                                                                         •	Eliminating the realistic likelihood         Our new safety observation programme                       REDUCTION ON ONE DAY
within the communities we work, including        musculoskeletal disorders. As a result, we are       well, we adapt it for our own environment,                                                                                                                    PLUS INJURY AFR (2014-2015)
                                                                                                                                                            of serious harm                              was introduced in 2015 to help us make
our customers and the users of our buildings     now placing emphasis on occupational health          then make it what we do
and services, is our number one priority.        and are developing a health strategy to tackle                                                          •	Our sites are as safe as an office           the workplace safer and to support our
                                                 these issues in 2016 and beyond.                 6.	Track: We identify where we can improve,              environment                                  Zero Harm objectives. A system of ‘Stop’,

                                                                                                                                                                                                                                                                   23%
Our mission is to achieve Zero Harm through                                                           how to close the gap                                                                               ‘Go’ and ‘Near Miss’ cards are designed to
                                                                                                                                                         •	A ceiling LTIR of 0.10 across the Group
a programme of continuous improvement                                                                                                                                                                    highlight safety issues and situations that
that addresses behaviours and embeds best                                                                                                                A full suite of campaign materials, as well     could result in harm and promote positive
                                                 WATES AWARDED GOLD ROSPA                                                                                                                                safety habits and behaviours. In time, the                REDUCTION IN LOST
practice across the Wates Group. We aim to                                                                                                               as all Wates PPE and hoardings now carry
create a culture where people are engaged        In August 2015, Wates was recognised with a                                                                                                             programme will help provide better data                   TIME INJURY RATE (LTIR)
                                                                                                                                                         our ‘We’re Safer Together’ badge.                                                                         (2014-2015)
and empowered to look out for one another        Gold award in the RoSPA (Royal Society for       “We are committed to our                                                                               analysis, which is essential in tracking
                                                 the Prevention of Accidents) Occupational                                                                                                               trends and mitigating risks.
by promoting and championing the right
                                                 Health and Safety Awards 2015.
                                                                                                  vision of being leaders in safety,
behaviours to keep people safe, and the
confidence to challenge when they are not.
                                                                                                  health and welfare. Our 2020                           MAKING SAFETY, HEALTH AND
                                                 Judges praised Wates’ commitment                 strategy for Zero Harm is a sure                       ENVIRONMENT TRAINING EASIER
                                                 to accident and ill-health prevention,
2015 was another strong year for Wates’                                                           step forward towards meeting                           AND MORE ACCESSIBLE
Safety, Health and Environment initiatives,      recognising the company’s continuous
which were recognised with a Gold Award          improvement in its occupational health and       our goal. By working together                          Training plays a key part in keeping our
                                                                                                                                                         colleagues and supply chain partners
from RoSPA (Royal Society for the Prevention     safety management systems, and its excellent     we are stronger and smarter.                           informed about the risks they potentially
                                                 leadership and workforce involvement.
of Accidents).                                                                                    Together we are safer.”                                face on site and in our office environments.
Over 1,400 people underwent Wates health                                                                                                                 We recognise there are a number of
and safety training and over 100,000 health
                                                                                                  John Dunne                                             ways to take on new skills, including a
                                                                                                  Wates Group, Health, Safety and Environment Director   blended learning approach. To support our
and safety observations were registered.
We achieved an 8% reduction in dangerous                                                                                                                 ‘We’re Safer Together’ campaign, we have
incidents, a 23% reduction in Lost Time Injury                                                                                                           launched a new suite of Safety, Health
Rate (LTIR), and a 40% reduction on One Day                                                                                                              and Environment e-learning modules to
Plus injury AFR compared to 2014.                                                                                                                        complement our established health and
                                                                                                                                                         safety training assets. These modules cover
                                                                                                                                                         a variety of topics, ranging from manual
                                                                                                                                                         handling and electrical safety through to
                                                                                                                                                         stress management.
Wates Annual Review 2015                                                                                                                                                                                                                                                                     12/13
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Our People

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                                                                                                                                          CONTENTS           PAGE        PAGE

ABOVE ALL, IT’S ABOUT PEOPLE
Our people make all the            OUR COMMITMENT TO EQUALITY                          GROWING OUR BUSINESS IN LINE                       DEVELOPING OUR                                  RECRUITMENT DRIVE
                                                                                       WITH OUR ASPIRATIONS                               PEOPLE AND TRAINING                             AND FORWARD STRATEGY
difference to our customers        We believe that everyone should be employed
                                                                                                                                                                                                                                           KEY HIGHLIGHTS
                                   and promoted on the basis of their personal         The Wates Group has set an ambitious but           Developing our people is crucial for growth     Attracting new talent into the construction
and the communities in which
                                                                                                                                                                                                                                           3,703
                                   merit and contribution. Under our Tomorrow’s        clear target to become a £2bn company.             and we continue to make a substantial           sector is a particular focus for Wates.
we work. We want to grow           People umbrella – part of our strategic             Key to this growth is the recruitment and          investment in building skills for the future.   In 2015 we appointed an apprentice manager
every part of our business         Reshaping Tomorrow programme – we are               development of our people.                         In 2015 the Group invested around £1m in        who joined our early careers team to build
                                   committed to eliminating discrimination from                                                           learning and development, addressed over        our pipeline of school leavers, apprentices      HEADCOUNT AT
and it is vital that we attract,   our workforce and to treating everyone with         In 2015, over 484 new recruits joined Wates        5,200 individual training needs and launched    and higher level entrants.                       THE END OF 2015
develop and retain the best        fairness and respect.                               including several key senior appointments          new initiatives to further enhance our
                                                                                       across the Group who are now supporting            leadership development, behavioural, safety,    We recruited 43 new trainees who help
talent; not just in the industry

                                                                                                                                                                                                                                           1,208
                                   In 2015, we set out clear plans and targets to       our business plans to deliver our target.         and specific technical skills training.         make up the 76 people now on the Wates
but within the professions that    ensure that equality, diversity and inclusion                                                                                                          trainee programme. This cohort of rising
                                   are at the heart of what we do and the way          In addition, in October 2015, we acquired          As we grow, our people strategy will enable     talent is receiving comprehensive training and
support our business too.                                                              various parts and assets of the Shepherd
                                   we operate. As a result of our efforts we were                                                         us to attract and retain the best people        experience across our business to build their    NEW EMPLOYEES VIA
                                   awarded with the C2E Gold Diversity Assured         Group, a great strategic fit for Wates, bringing   both within the industry and within the         careers and position them to help deliver        ACQUISITION OF PARTS OF
                                   Accreditation. With a growing skills issue          a further 1,208 people into our business.          professions required to support the business.   our strategy. We also continued to support       THE SHEPHERD GROUP
                                   within the built environment, we need to think                                                         Our learning and development strategy will      the recruitment and development of 88
                                   differently about the way we attract, recruit       INVESTORS IN PEOPLE GOLD AWARD                     support this by a continued investment of       apprentices through our various framework

                                                                                                                                                                                                                                           484
                                   and retain the best people regardless of their      Our investment in our people was recognised        over £1m to ensure we are best positioned for   commitments and our dedicated Wates
                                   background. Our Junior Board, the future leaders    by our second consecutive Investors in People      both business and personal growth.              Apprenticeship Training Agency (WATA).
                                   of our business, helped us think through some of    Gold Status accreditation. This is testament to
                                   these issues by undertaking a gap analysis on our   how robust our core values are and how well                                                                                                         NEW RECRUITS
                                   projects. Their recommendations are now part        our culture of excellence has been maintained
                                   of our 2016 delivery plans.                         by everyone in the business.                       “Outstanding people management based upon strong values

                                                                                                                                                                                                                                           43
                                                                                                                                          and inspirational leadership at all levels is clearly built into the
                                                                                                                                          DNA of the Wates Group, ensuring everyone shares a passion                                               TRAINEES
                                                                                                                                          for quality and high performance.”

                                                                                                                                                                                                                                           88
                                                                                                                                          Bob Morrison
                                                                                                                                          Investors in People Assessor
                                                                                                                                                                                                                                                    APPRENTICESHIPS

                                                                                                                                                                                                                                           £1M
                                                                                                                                                                                                                                                             SPENT ON
                                                                                                                                                                                                                                                             LEARNING AND
                                                                                                                                                                                                                                                             DEVELOPMENT

Wates Annual Review 2015                                                                                                                                                                                                                                          14/15
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Environment

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A POSITIVE IMPACT ON
THE ENVIRONMENT
Supporting and engaging our             This multi-award winning initiative is a         over 90 representatives from the housing
                                        unique collaboration of over 40 partners         industry and its supply chain. This initiative
supply chain on sustainability          designed to develop sustainability               was led by Wates Living Space and was an                                                                                                         KEY HIGHLIGHTS
is one of our key 2020                  competence via an online platform, which         industry-first for the housing sector.              OUR £167M PROJECT AT
objectives as without them
we can only achieve so
                                        provides resources in 10 sustainability
                                        subject areas. It is a free resource available
                                        to any supplier and is part of our continued
                                                                                         The syllabus has been developed to help
                                                                                         support the house building supply chain in
                                                                                                                                             GREENWICH PENINSULA SECURED
                                                                                                                                             AN OUTSTANDING SCORE OF
                                                                                                                                             45 ON THREE CCS SITE VISITS.
                                                                                                                                                                                                                                          40
                                                                                                                                                                                                                                          WATES AVERAGE CCS SCORE
much. One of the ways we                commitment to lead the industry into a           delivering the Government’s ambitious target
                                                                                                                                                                                                                                          AGAINST AN INDUSTRY
                                        brighter, more sustainable future.               to build one million homes by 2020.
work towards achieving this                                                              This requires a significant jump in sector          “The site teams at                                                                           ASSOCIATE MEMBERSHIP
                                                                                                                                                                                                                                          SCORE OF 38.4 AND
is through our partnership              SCSS covers a range of sustainability topics,    output of almost 50% per annum and                  Greenwich are thrilled                                                                       INDUSTRY AVERAGE OF 35.6
with The Supply Chain                   ranging from carbon, to the sourcing of          the Homes School aims to ensure that                with our latest CCS
                                        materials, ethics and social values, together    sustainability, efficiency and quality are firmly
Sustainability School (SCSS).                                                                                                                assessment, especially

                                                                                                                                                                                                                                          42
                                        with supplier development days and               positioned at the heart of this commitment.
                                        workshops where best practice is shared.                                                             as it is the third time we                                                                             CCS AWARDS
                                                                                         During the year we further embedded the                                                                                                                    WON ACROSS
                                                                                                                                             have achieved the                                                                                      THE GROUP
                                        Wates is a partner sitting on the                SCSS by hosting four supplier events which
                                        SCSS leadership group that helps to              were attended by over 200 Wates supply              excellent score of 45!”
                                        steer the direction and development of           chain companies and funded by Wates

                                                                                                                                                                                                                                          97.2%
                                        the school. The initial focus was on the         Giving. 69% of the sub-contractors with             Phil Whitby
                                                                                                                                             Project Director at Greenwich Peninsula
                                        construction sector, with dedicated              whom we trade over £1m are now members              Wates Construction London
                                        schools for infrastructure and facilities        of the SCSS and we will continue to extend
                                        management. 2015 saw the launch of               this across our supply chain and see the                                                                                                         WASTE DIVERTED
                                        the Homes School at the Royal Institute of       benefits that a collaborative approach can                                                                                                       FROM LANDFILL
                                        British Architects, which was attended by        bring to the built environment.

                                                                                                                                             BEING A GOOD NEIGHBOUR
                                                                                                                                             Wherever we work, we want to ensure we
                                                                                                                                                                                            In 2015, a total of 201 Wates sites were
                                                                                                                                                                                            monitored by CCS and we achieved an
                                                                                                                                                                                                                                          69%
                                                                                                                                                                                                                                          PARTNERS (OVER £1M)
                                                                                                                                             have a positive impact on the area around      average score of 40 compared to the
                                                                                                                                                                                                                                          ARE MEMBERS OF SUPPLY CHAIN
                                                                                                                                             us. Being an Associate Member, of the          average Associate Member score of 38.4 and    SUSTAINABILITY SCHOOL
                                                                                                                                             Considerate Constructor Scheme (CCS),          the industry average of 35.6. Over 60% of
“Every now and again                                                                                                                                                                        projects achieved a score of 40 or more.
                                                                                                                                             gives us the opportunity to demonstrate
something comes along
                                                                                                                                                                                                                                          2,368
                                                                                                                                             our commitment to work safely within
                                                                                                                                                                                            In 2015, 42 of our projects were recognised
that is a game-changer.                                                                                                                      a neighbourhood with consideration for
                                                                                                                                                                                            with a CCS award with one site achieving
We believe that the Supply                                                                                                                   people and the environment.
                                                                                                                                                                                            National Runner Up, which is an exceptional
Chain Sustainability School                                                                                                                                                                 achievement. These awards recognise           WATES MANAGERS AND SUPPLY
                                                                                                                                             The CCS is a non-profit-making, independent                                                  CHAIN SUPERVISORS PASSED SITE
                                                                                                                                                                                            sites that have made the greatest
is just that in the field of                                                                                                                 organisation founded in 1997 by the
                                                                                                                                                                                            contribution towards improving the
                                                                                                                                                                                                                                          ENVIRONMENTAL AWARENESS
                                                                                                                                             construction industry to improve its image                                                   TRAINING SCHEME (SEATS)
sustainable development. It                                                                                                                  and encourage best practice above and          image of construction and have raised         TRAINING IN 2015
has already made a significant                                                                                                               beyond basic statutory requirements. It is     the bar for considerate construction.
contribution to sustainability                                                                                                               a voluntary scheme that focuses on the
                                                                                                                                                                                            We place great value on the CCS and the
                                                                                                                                             impact that construction activity may have
at Jackson and many of our                                                                                                                                                                  standards it helps set and maintain for our
                                                                                                                                             on the general public, the workforce and
core supply chain partners.                                                                                                                  the environment. The code covers five core
                                                                                                                                                                                            industry and we are fully committed to
                                                                                                                                                                                            improving our performance and scores
The school is practical,                                                                                                                     areas: improving the image of construction,
                                                                                                                                                                                            even further in the years to come.
professional and effective.”                                                                                                                 protecting the environment, respecting the
                                                                                                                                             local community, ensuring everyone’s safety,
Stephen Livingstone
                                                                                                                                             and caring for the workforce.
Environmental Manager, Jackson Civils

Wates Annual Review 2015                                                                                                                                                                                                                                      16/17
THE ART OF SEEING THINGS DIFFERENTLY - Annual Review 2015 - Above all, it's about people - Wates Construction
Communities

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TOMORROW’S COMMUNITIES
We recognise the wider role that Wates has to play as a responsible
contractor and we are committed to leaving a positive and lasting                                                                                                                                                                                        KEY HIGHLIGHTS
legacy in the communities in which we work.

DRIVING CHANGE IN                                 INCORPORATING SOCIAL                            Trading directly with social enterprises
                                                                                                                                                                                                                                                             £1.3M
                                                                                                                                                                                                                                                             TRADE WITH SOCIAL
OUR COMMUNITIES                                   ENTERPRISES INTO OUR                            helps us procure locally and deliver social                                                                                                                ENTERPRISE SECTOR IN 2015
We believe that good business, done well,         SUPPLY CHAIN                                    value with our customers in the communities

                                                                                                                                                                                                                                                             £6.6M
is a force for good and our key priorities        Working with our national partner,              where we work. In our 2014 Communities
are to help to raise the aspirations of young     Social Enterprise UK (SEUK), we continued       Count report, produced in partnership with
people and increase training and employment       to drive our ambition to build an innovative,   the Chartered Institute of Housing, SEUK,
opportunities for those marginalised from the     diverse and responsible supply chain by         PwC and Orbit Group, 90% of the 200                                                                                                                        INVESTED IN THE ENTERPRISE
                                                                                                  Local Authorities and Housing Associations                                                                                                                 SECTOR SECTOR SINCE 2010
workplace. We meet this commitment in a           procuring a social enterprise business on
number of ways including trading with social      every Wates construction project. This was      consulted stated that SEs are the route-way

                                                                                                                                                                                                                                                             £20M
enterprises, delivering our own employability     supported by our bespoke Social Enterprise      to unlocking social value.
programme ‘Building Futures’ and working with     Brokerage (SEB) – an online directory of
                                                                                                  In 2015 Wates traded over £1.3m with the         BUILDING FUTURES                                 training and a route into a career within the
others such as The Prince’s Trust on their ‘Get   approved social enterprise suppliers to
                                                                                                  SE sector and 65% of our construction            IN CONSTRUCTION                                  sector for new entrants and those returning              TARGET INVESTMENT
into Construction’ and TEAM programmes.           Wates: an industry first.                                                                                                                         to work. Adult retraining initiatives are
                                                                                                  projects have integrated SEs into their          Building Futures is our flagship and                                                                      WITH THE SOCIAL ENTERPRISE
                                                                                                  supply chain. This brings our total investment                                                    particularly important in helping to address             SECTOR BY 2020
                                                                                                                                                   award winning employability programme
BUILDING A SUSTAINABLE                                                                            since 2010 to £6.6m. Wates Giving also                                                            short term skills gaps. Building Futures will also
                                                  “Wates is widely recognised                                                                      developed by Wates and designed to create

                                                                                                                                                                                                                                                             65%
SUPPLY CHAIN                                                                                      contributed £124,500 in 2015, bringing their     opportunities for adults not in employment,      play an important role in contributing towards
One of our Reshaping Tomorrow 2020
                                                  by the social enterprise                        total investment to £532,657, helping to                                                          fulfilling the 182,000 new construction jobs
                                                                                                                                                   education or training to join the construction
targets is to create employment and training      community as a leader in the                    build capacity within the social enterprise      sector. The unique two week Qualifications       that will be created over the next three years.
opportunities through a £20m cumulative           field of working and trading                    sector and enabling greater impact on            and Credit Framework (QCF) accredited                                                                     PROJECTS INTEGRATED ENTERPRISE
                                                                                                  communities across the UK. Our work in                                                            In 2015 we delivered 13 programmes and                   SECTOR IN SUPPLY CHAIN
investment into the social enterprise sector.                                                                                                      vocational training programme provides
                                                  with social enterprises. When                   this area was awarded Highly Commended                                                            up-skilled 131 unemployed adults who had
Social Enterprises (SE) trade to tackle social                                                                                                     basic construction training underpinned
                                                  SEUK are asked who is setting
                                                                                                                                                                                                                                                             £124,500
                                                                                                  in the Enterprise Growth category at the                                                          been distanced from the labour market,
problems, support communities, increase                                                                                                            with return to work or training skills.
                                                                                                                                                                                                    with 54% moving into employment or training.
people’s life chances or improve the              the benchmark for other                         2015 BiTC Responsible Business Awards,
                                                                                                                                                                                                    The programme also forms an important part
environment. They make their money by                                                             recognising our contribution towards helping     The programme is delivered by Wates
                                                  companies we point to Wates.”                   this sector fulfil its purpose.                  employees in a national partnership with         of Wates being awarded the BiTC Community
selling goods and services in the open market,                                                                                                                                                                                                               IN ENTERPRISE SECTOR GRANTS
                                                                                                                                                   Ixion Holdings. It was launched in 2005          Mark, an accreditation for excellence in                 FROM WATES GIVING IN 2015
but they reinvest their profits back into the
                                                  Peter Holbrook                                  We are also delighted to be amongst              when we recognised the role business             community investment. 2015 was the 10th
business or the local community – so when         CEO, SEUK
                                                                                                  the founding members of the Buy Social                                                            anniversary of Building Futures and we

                                                                                                                                                                                                                                                             13
they profit, society profits.                                                                                                                      has to play in addressing the issues of
                                                                                                  Corporate Challenge initiative, which brings                                                      marked this by conducting a social return                             BUILDING FUTURES
                                                                                                                                                   worklessness within the communities in                                                                                 PROGRAMMES
                                                                                                  together a group of high profile businesses      which we work – including many areas             on investment (SROI) analysis with NEF                                DELIVERED
                                                                                                  with the joint aim of spending £1bn with         of high deprivation. It is funded by Ixion       Consulting. SROI is a cost-benefit study
                                                                                                  social enterprises by 2020. The challenge is     Holdings leveraging annual funds from the        to understand an initiative’s social and

                                                                                                                                                                                                                                                             131
                                                                                                  led by SEUK in partnership with the Cabinet                                                       environmental value. The results concluded                            UNEMPLOYED ADULTS
                                                                                                                                                   Skills Funding Agency and Wates Giving                                                                                 UP-SKILLED WITH
                                                                                                  Office and is designed to help generate          (which awarded £40K in 2015, bringing their      that the programme generates £1.83 of
                                                                                                                                                                                                                                                                          54% MOVING INTO
                                                                                                  real support for this very important sector,     total donation to £349K since 2008).             social value for every £1 invested. Other                             EMPLOYMENT OR
                                                                                                  which employs 70,000 people in the UK                                                             benefits included a 28% increase in unskilled                         TRAINING
                                                                                                  and contributes £24bn to the economy.            Building Futures is designed to showcase         construction employment compared with

                                                                                                                                                                                                                                                             £1.8
                                                                                                  It is also a fantastic platform for working      careers within the construction industry and     a baseline of 8% for similar construction
                                                                                                  with like-minded businesses to support the       provide the basic qualifications required to     initiatives. Our ambition is to continue
                                                                                                  social enterprise sector to grow, to employ      work on a UK construction site. There are        growing and improving Building Futures so we
                                                                                                  more people, to develop new markets,             currently 1.75m unemployed adults in the         can help provide more people with the skills             OF SOCIAL VALUE FOR
                                                                                                  and to contribute to the sustainable             UK, and Building Futures is helping to grow      they need to prosper and to make a valuable              EVERY £1 INVESTED
                                                                                                  growth of the UK economy.                        the future workforce by offering entry level     contribution to their communities.

Wates Annual Review 2015                                                                                                                                                                                                                                                           18/19
Wates Giving

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                                           MEASURING SOCIAL RETURN                              COMMUNITY DAY
                                           ON INVESTMENT                                        2015 marked the 10th anniversary of the
                                           As mentioned on page 19, in 2015 Wates Giving        Wates Community Day and was once again          WATES GIVING KEY HIGHLIGHTS
                                           introduced SROI analysis. SROI measures              strongly supported throughout the Wates
                                           investments on the full range of social and          Group. More than 2,000 Wates employees               151 NEW AWARDS TOTALLING

                                                                                                                                                     £1,060,613
“
                                           economic benefits they create. Conducted             volunteered 4,700 hours to tackle over
                                           by the New Economics Foundation, SROI will           70 local community projects from Cornwall
    We believe firmly that business has    enable us to judge more fully spend versus           to Scotland. As well as time volunteered
    a key role to play in the community    impact. We take great pleasure in supporting         by employees, Wates Giving awarded a
                                           a wide range of philanthropic activities and         total of £30,000 to a range of local projects
    by blending wealth creation with
                                           are looking forward to continuing our work           including transforming community centres,            107 AWARDS IN SUPPORT
    social responsibility. Wates Giving    with the people, charities and causes that are       the renovation of scout huts, business skills        OF EMPLOYEE CHARITABLE
                                                                                                                                                     ENDEAVOURS, TOTAL RAISED
    is a charitable programme that         helping to build a better future.                    training for charities and CV workshops for
    provides the means for the Wates
    family to make a positive impact by    A YEAR OF GIVING BACK
                                           GENEROUSLY
                                                                                                school leavers.

                                                                                                GIVE AS YOU EARN
                                                                                                                                                     £124,000
    empowering social initiatives in the
                                           Wates Giving works closely with the Wates            Through Wates Giving, the family owners
    communities where the Wates Group      Group in the development of its corporate            of the Wates Group also back the charities           33 AWARDS TOTALLING
    works. We want Wates Giving to be
                                                                                                                                                     £47,671
                                           responsibility strategy – Reshaping Tomorrow         that our people support through the Wates
    a model example of how 21st century    – and helps financially to enable its delivery       Give As You Earn scheme. This boosts
                                           in the key areas of people, community and            employees’ personal giving as they choose
    businesses can harness philanthropic   environment. In 2015 the Trust made 151 new          to make regular donations from their salary.
                                                                                                                                                     IN SUPPORT OF EMPLOYEE
    resources for the benefit of our       awards to the value of £1,060,613 across a range     In 2015 Wates Giving added £16,368 to                COMMUNITY INVOLVEMENT
    communities and we are delighted       of social initiatives, investing in the futures of   our five-year total of almost £140,000
                                           disadvantaged people in local communities            for a wide variety of employee charities
    that the many successes and

                                                                                                                                                     £30,000
                                           and in supporting Wates employees’ individual        throughout the UK, demonstrating our desire
    achievements of 2015 have helped to    charitable efforts.                                  to help Wates employees give something

                                 ”
    further reinforce this ambition.                                                            back to the community.
                                           EMPLOYEE PROJECTS                                                                                         AWARDED TO LOCAL
                                           Wates Giving makes awards in support of              PRINCE’S TRUST                                       CHARITIES IN SUPPORT OF
                                           charitable endeavours initiated by Wates             The Prince’s Trust is Wates Group’s current
                                                                                                                                                     WATES COMMUNITY WEEK
                                           employees. In 2015 we made 107 awards to             Charity of the Year, while Wates is also part
    Tim Wates                              match funds raised by Wates employees                of The Trust’s Built Environment Leadership

                                                                                                                                                     £16,368
    Director                               for their own personal charity work by               Group. We continued our support in 2015
                                           undertaking, amongst other things, sponsored         with a grant of £15,000 to The Trust’s ‘Get
                                           runs, climbs, raffles and catering events.           into Construction’ programme, which is
                                           This boosted charitable funds raised to over         designed to help young people build a career         VIA GIVE AS YOU EARN
                                           £124,000 in 2015. We made 33 awards with a           in the construction industry. Our investment         (£140,000 FIVE YEAR TOTAL)
                                           value of £47,671 to support Wates employees          over nearly nine years has contributed to
                                           who work in their local communities as               the support of more than 4,500 young

                                                                                                                                                     £15,000
                                           trustees, governors or in other volunteer roles      people through 415 courses. Some 32%
                                           such as fundraisers, sports coaches or general       of participants have subsequently gained
                                           helpers. Support to local youth soccer and           employment and a further 17% moved on
                                           rugby teams was high on the list for 2015            to education or learning programmes.                 GRANT AWARDED TO THE
                                           and school and other memorial gardens were                                                                PRINCE’S TRUST ‘GET INTO
                                           also popular causes.                                                                                      CONSTRUCTION’ PROGRAMME

                                                                                                                                                                           20/21
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                                                         OUR BUSINESSES

Wates Annual Review 2015                                             22/23
Wates Construction

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WATES
                                    GROWING OUR BUSINESS                              COMMERCIAL, MANUFACTURING
                                    Having successfully completed the acquisition     AND SENIOR LIVING SECTORS
                                    of projects and people from Shepherd              The business continues to perform well for our
                                                                                                                                        WATES CONSTRUCTION

CONSTRUCTION                        Construction Limited (SCL), we now have           blue chip and commercial customers across
                                                                                                                                        KEY HIGHLIGHTS
                                    a stronger foothold in the North and are          the country with continued growth in the
                                    well-positioned for further growth in the         manufacturing and senior living sectors.              TURNOVER

Wates Construction continued
                                    region, providing a truly national business.
                                    Our internal M&E delivery capability,
                                    Wates Building Services, continues to go
                                                                                      We have secured our first project with Jaguar
                                                                                      Land Rover following our success in delivering
                                                                                      other manufacturing facilities as for Haribo.
                                                                                                                                            £613M
                                                                                                                                            INCL. £30M FROM SCL
                                    from strength-to-strength, enabling us to
to enjoy strong growth in 2015.                                                       We have also been appointed on multiple
                                                                                                                                            ACQUIRED CONTRACTS
                                    protect margins and offer a flexible, fast and
With a turnover of £613m            repeatable service to our customers.              schemes with Signature Care Homes and
(incl. £30m from contracts                                                            Audley Retirement, in what is becoming a
                                                                                      significant sector for our business.                  AVERAGE CCS SCORE
acquired from Shepherd              BALANCING A DIVERSE PORTFOLIO
Construction) and new business
worth over £1bn already secured,
                                    With over 400 new colleagues welcomed into
                                    the construction business in 2015, our team
                                    continues to expand. We also promoted 76
                                                                                      Other key appointments include Kingdom
                                                                                      Street for British Land, a £61m commercial and
                                                                                      retail scheme, and a £48m redevelopment of
                                                                                                                                            40.7
we’re in a strong position to hit   employees and celebrated 56 people reaching       the old post office site at 148 Old Street for

                                                                                                                                            19
                                    25 years’ service.                                Great Portland Estates.
our 2016 and 2017 targets.
                                    Forecasting the UK economy remains a                                                                           CCS AWARDS
                                                                                      LOOKING NORTH
                                    challenge and our focus in 2015 was to serve a
                                    balance of public and private sector customers    As our flagship £50m commercial scheme
                                    in key areas including:                           at Central Square in Leeds looks toward
                                                                                      completion in 2016, our work continues along          SOCIAL ENTERPRISE SPEND

                                                                                                                                            £284,863
                                    •	Public sector frameworks (we’re on 80%         Wellington Street with a £15m scheme at 5
                                       of major regional frameworks)                  Wellington Place (transferred from Shepherd
                                    •	National Defence Infrastructure Organisation   Construction) due to complete later in 2016.
                                       (DIO), Ministry of Justice and Education
                                       Funding Agency frameworks                      DELIVERING EXCELLENCE
                                    •	Private sector inner-city residential
                                       programmes
                                    •	Blue chip commercial developers
                                                                                      IN EDUCATION
                                                                                      In the public sector our strong education
                                                                                      credentials continue to feed our pipeline
                                                                                                                                            12      APPRENTICES

                                                                                      and 2015 saw Wates appointed as the main
                                                                                      contractor for three schools under the Barking,

                                                                                                                                            98%
                                    •	Senior living and student accommodation
                                       sectors                                        Dagenham and Newham Priority School                                 WASTE DIVERTED
                                                                                      Building Programme (PSBP) batch and                                 FROM LANDFILL
                                                                                      three University Technical Colleges under
                                    FOCUS ON RESIDENTIAL                              the London UTC batch for the Education
                                    Our residential focus includes a £130m,           Funding Agency.
                                    362 unit, residential design and build                                                                  SUPPLY CHAIN SCHOOL
                                    apartment project for Quintain at Wembley,                                                              MEMBERSHIP OF SUPPLIERS
                                                                                      MAKING A DIFFERENCE                                   WITH >£1M IN TRADING:
                                    with completion scheduled for late 2017
                                                                                      IN THE COMMUNITY

                                                                                                                                            72%
                                    (see project Alto image on pages 2/3).
                                                                                      Our commitment to the communities in
                                    In addition, following the successful delivery    which we work is key to the way we do
                                    of plots 114 and 115 on the Greenwich             business and, as a result, we have spent nearly
                                    Peninsula, we were appointed on another           £285k with social enterprises and achieved an
                                    significant residential project with Knight       average CCS score of 40.7 in 2015, including
                                    Dragon at plot 104. The £76m project will see     two gold awards. This is a testament to how
                                    Wates Construction build a 32-storey tower,       we are delivering our promises to the local
Ramzies Dacres                      the tallest we have ever built.                   communities in which we work.
Commercial Manager
Wates Construction                                                                                                                                                24/25
Wates Construction

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REFURBISHMENT AND MODERNISATION                                                                                                                                               DELIVERING EXCELLENCE
OF MAJOR MARYLEBONE LANDMARK                                                                                                                                                  IN EDUCATION FOR THE
FOR HIGHER LEARNING                                                                                                                                                           EDUCATION FUNDING AGENCY
THE LONDON                                    The 11,469m² development will expand the          “From the tender submission          NO. APPRENTICES     NO. TRAINEES

                                                                                                                                               2                        3
BUSINESS SCHOOL                               London Business School’s teaching facilities
                                                                                                date in early October 2014,
Wates Construction was appointed by the       and will be an integral part of the campus,
London Business School in 2015 to restore     creating a triangle of educational facilities     there were six weeks to
the Old Marylebone Town Hall building.        between Sussex Place, the Taunton Centre          complete a comprehensive value
                                              and Old Marylebone Town Hall. Works
to a full state of repair. The £54m project
                                              include the part-demolition and restructuring
                                                                                                engineering exercise to drive down         LOCAL LABOUR USED      CCS SCORE
will create a modern learning environment
within the historic premises, and includes    of the former Westminster Council House           costs without compromising                 60%      within
                                                                                                                                                    20 miles            41
the careful conservation of early twentieth   and annexe buildings, plus the construction       quality. Wates performed well
                                              of new auditoriums, seminar rooms, a library,
century period features.                                                                        and working closely with the               WASTE DIVERTED FROM LANDFILL
                                              offices, faculty spaces and a student lounge
                                              all with state-of-the-art AV and IT facilities.   client delivered a proposal that           98.9%
                                                                                                enabled the contract to be
                                                           Through Wates Giving,
                                                           we are providing an award
                                                                                                signed and work to proceed
                                                           of £21,000 over three years          without significant delay.”
                                              to 2017 to fund Masters in Business                                                                                                 Canterbury Primary School, part of the PSBP East 1 Batch, was completed in 2015. Image copyright: Fotohaus
                                              Management bursaries.                             Jonathan Buckingham
                                                                                                Development Manager
                                                                                                The London Business School

                                                                                                                                                                              Wates has a longstanding relationship with the Education Funding Agency (EFA) creating quality
                                                                                                                                                                              schools across England. We are currently providing construction services on two national and
                                                                                                                                                                              five regional frameworks. Since the EFA launched its PSBP programme, we have been appointed
                                                                                                                                                                              as main contractor to deliver over £150m of new and refurbished school buildings. This includes
                                                                                                                                                                              19 PSBP schools in Coventry, the North West, East of England, Kent and London.

                                                                                                                                                                              LITTLE ILFORD SCHOOL                                                “When I walked into the corridor
                                                                                                                                                                              As well as Canterbury Primary School (pictured                      on the ground floor I had an
                                                                                                                                                                              above), in 2015 we were appointed as main
                                                                                                                                                                              contractor for Little Ilford Secondary School,
                                                                                                                                                                                                                                                  emotional moment as I realised
                                                                                                                                                                              the first of three schools to be developed as                       that our new school was coming
                                                                                                                                                                              part of the Barking, Dagenham and Newham                            and it was going to be great.”
                                                                                                                                                                              PSBP batch. The £22.8m, 1,525 place, four-
                                                                                                                                                                                                                                                  Ian Wilson
                                                                                                                                                                              storey secondary school is designed by CPMG
                                                                                                                                                                                                                                                  Headteacher, Little Ilford School
                                                                                                                                                                              Architects and will incorporate a 25 place
                                                                                                                                                                              autistic spectrum disorder unit. Works include
                                                                                                                                                                              the fitting out of internal space for teaching                       REPEAT
                                                                                                                                                                              and administration support offices, new                              CUSTOMER                    BREEAM          CCS SCORE
                                                                                                                                                                              kitchen and associated facilities, and a multi-                                                  VERY
                                                                                                                                                                              use games area.                                                                                  GOOD                 38
                                                                                                                                                                              The new school has been designed utilising                                    SOCIAL                         NO. APPRENTICES

                                                                                                                                                                                                                                                                                                   2
                                                                                                                                                                              our component-based design solution for                                       ENTERPRISE SPEND
                                                                                                                                                                              schools (Adapt) which offers significant time
                                                                                                                                                                              and cost efficiencies in the delivery of new
                                                                                                                                                                                                                                                            £5,304
                                                                                                                                                                              school buildings.
                                                                                                                                                                                                                                                            WASTE DIVERTED FROM LANDFILL

                                                                                                                                                                                                                                                            100%

Wates Annual Review 2015                                                                                                                                                                                                                                                                             26/27
Wates Construction

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                                                                                                                                   A NEW HOME FOR THE
                                                                                                                                   ARTS IN MANCHESTER

FLAGSHIP                   CENTRAL SQUARE, LEEDS
                           A flagship project for Wates Construction
                                                                           Central Square has already attracted
                                                                           a substantial letting from professional
                                                                                                                            HOME AT FIRST STREET,
                                                                                                                            MANCHESTER
                                                                                                                                                                              “HOME is incredibly excited
                                                                                                                                                                              and proud to receive a
                                                                                                                                                                                                                         AWARDS WON
                                                                                                                                                                                                                         RICS NW Awards Tourism and Leisure
                                                                                                                                                                                                                         RIBA North West Awards

SCHEME IN                  in the North East, the £50m Central Square      services firm PwC, who are set to locate 700     Wates Construction completed the £25m
                           development in Leeds for Roydhouse              employees across the seventh and eighth          development of HOME at First Street in
                                                                                                                                                                              substantial grant award
                                                                                                                                                                                                                   NO. APPRENTICES
                                                                           floors, occupying 55,000 sq ft. We have been                                                       from Wates Giving. It is
LEEDS CITY
                           Properties comprises 11-storeys of                                                               Manchester in 2015, a centre for international

                                                                                                                                                                                                                            11
                                                                                                                                                                                                                                                      BREEAM
                                                                           selected to deliver their £5m interior fit-out
                           predominantly Grade A office space,
                                                                           package, which boasts high specification
                                                                                                                            contemporary visual art, theatre and film.        really important to us                                                  VERY
                           with retail provision on the ground floor                                                        The new purpose-built complex is England’s                                                                                GOOD
                                                                                                                                                                              as an organisation to
CENTRE                     plus a fully glazed winter garden with
                           leisure facilities. It features an attractive
                                                                           powered movable glazed walls and state of
                                                                           the art audio visual systems. Along with the
                                                                           adjacent projects at Wellington Place that
                                                                                                                            largest multi-art form centre outside London.
                                                                                                                            It boasts a 500-seat theatre, 150-seat flexible   provide sustainable training               LOCAL LABOUR USED
                           sky garden on the ninth floor, providing                                                         studio space, 500m² gallery, five cinema          opportunities for young and
                           entertaining opportunities and fantastic        have transferred from SCL, Central Square        screens, digital production and broadcast         emerging talent, and the grant
                                                                                                                                                                                                                         80% within
                                                                                                                                                                                                                             20 miles 50% 10 miles
                                                                                                                                                                                                                                          within

                           views across the city.                          demonstrates that Wates is truly committed       facilities, and a café, bar and restaurants.
                                                                           to our customers in the heart of Leeds.          HOME was procured through the North West          is a significant contribution        WASTE DIVERTED FROM LANDFILL     CCS SCORE
                                                                                                                            Construction Hub (NWCH) framework.                that will allow us to provide
                           “There’s a growing demand                                                                                                                                                                     100%                                 42
                                                                                                    100+
                                                                           APPRENTICE
                                                                           WEEKS                                                                                              unique opportunities for
                           for quality office space across                                                                              In addition to our construction
                                                                                                                                        work, Wates Giving provided           apprentices, interns and
                           Yorkshire and with building                                                                                  HOME with a £30,000 grant to          volunteers alike.”
                           work at Central Square
                                                                                         41
                                                                            CCS SCORE                                       fund ongoing creation of sustainable training
                                                                                                              BREEAM
                           currently ahead of schedule,                                                       EXCELLENT     opportunities for the arts.                       Dave Moutrey
                                                                                                                                                                              Director and Chief Executive, Home
                           we are confident that this
                           exceptional scheme will
                           take pride of place in Leeds’
                           expanding commercial market.”
                           Richard Bland
                           Partner, Marrico LLP
Wates Annual Review 2015                                                                                                                                                                                                                                      28/29
Wates Construction

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                                                                                                                        CONTENTS          PAGE          PAGE

PROVIDING WORLD CLASS                                                                                                                                            DELIVERING
TRAINING FACILITIES IN COVENTRY                                                                                                                                  OUTSTANDING SENIOR
ADVANCED MANUFACTURING                               Off-site prefabrication was extensively         REPEAT             “The development of the AMTC
                                                                                                                                                                 LIVING IN THE SOUTH
TRAINING CENTRE, ANSTY PARK                          used to guarantee improved quality control      CUSTOMER
                                                                                                                        on Ansty Park in Coventry is
Wates Construction was appointed as main             and increase the speed of construction to
                                                     achieve the critical sectional completion                          a huge demonstration of the
contractor in 2015 for the £18m Lloyds Bank
Advanced Manufacturing Training Centre               date. The new training centre revolutionises                       growing confidence in the
(AMTC) at Ansty Park, Coventry. This project         engineering training and also makes a                              industrial and manufacturing
                                                     significant contribution towards solving the           BREEAM
involved the design and build of a three-
                                                     skills shortages that have been prevalent in           EXCELLENT   sectors in the Midlands and
storey training centre comprising workshops,
classrooms and lecture theatres, research            the manufacturing industry. Our appointment                        the MTC’s expansion will
areas, catering facilities, breakout space, office   follows the successful delivery of the state-                      substantially bolster the
                                                     of-the-art £13m Aerospace Research Centre
accommodation and a conference suite.
                                                     for the Manufacturing Technology Centre
                                                                                                                        campus’ prominence both in
                                                     (MTC) on the same campus.                                          the UK and globally.”
                                                                                                                        Phil Harrison
                                                                                                                        Managing Director, Wates Construction,
                                                                                                                        Midlands and North

                                                                                                                                                                 SIGNATURE CARE HOMES,                           “Wates has engaged
                                                                                                                                                                 CAMBERLEY AND SUNNINGHILL
                                                                                                                                                                                                                 with Signature to make
                                                                                                                                                                 Wates Construction was appointed
                                                                                                                                                                 as main contractor in 2015 for two
                                                                                                                                                                                                                 these two projects work
                                                                                                                                                                 new-build care home schemes at Camberley        by using their internal
                                                                                                                                                                 and Sunninghill. With a combined project        resources and expertise
                                                                                                                                                                 value of £34m, the care homes will offer
                                                                                                                                                                 92 and 96 apartments respectively, including
                                                                                                                                                                                                                 to generate some value
                                                                                                                                                                 provision for specialist dementia care.         engineering opportunities
                                                                                                                                                                 The two-stage design and build schemes          and straightforward cost
                                                                                                                                                                 will feature cinema rooms, hair salons,
                                                                                                                                                                                                                 savings which have then
                                                                                                                                                                 therapy rooms, plus a Signature bistro and
                                                                                                                                                                 restaurant with private dining facilities.      enabled the projects to
                                                                                                                                                                                                                 move forward.
                                                                                                                                                                 Our appointment follows the successful
                                                                                                                                                                 completion of Bentley House in Hertford
                                                                                                                                                                 for Signature Care Homes.                       I am delighted to be
                                                                                                                                                                                                                 working with Wates as
                                                                                                                                                                                                                 we seek to improve the
                                                                                                                                                                 REPEAT
                                                                                                                                                                 CUSTOMER
                                                                                                                                                                                        NO. APPRENTICES
                                                                                                                                                                                                                 product and how

                                                                                                                                                                                                  3              it is delivered.”
                                                                                                                                                                                                                 Ian Webb
                                                                                                                                                                 CCS SCORE               WASTE DIVERTED          Head of Construction,
                                                                                                                                                                                         FROM LANDFILL           Signature Senior Lifestyle

                                                                                                                                                                        45               95%

Wates Annual Review 2015                                                                                                                                                                                                                      30/31
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