WET News

Eric Wright Water stays focused on extending frameworks ERIC WRIGHT WATER Sceptre House Sceptre Way Bamber Bridge Preston Lancashire PR5 6AW Tel: 01772 698 822 www.ericwright.co.uk THE LEADERS 2019 Eric Wright Water – a multi- disciplinary engineering and construction company working across the civils and MEICA spectrum – has made clear that its ambitions for AMP7 centre on retaining its framework contracts. For AMP6, the company secured frameworks with United Utilities, Yorkshire Water, Scottish Water and Severn Trent, as well as serving as the M&E supply chain partner for the C2V+ joint venture for UU. "Our aim is to maintain our position on these frameworks and, although we have a solid reputation, we are in a competitive field and work hard to secure the works," Eric Wright Water managing director Neal Whittle said last year. He added that the company would seek to "explore other opportunities" in the water sector as well as ancillary industrial engineering clients that can make use of its Galliford Try plc was able to report a pre-tax profit of £143.7 million for the financial year ending 30 June 2018, boosted by the performance of Linden Homes and its Partnerships & Regeneration division. Its infrastructure business – which focuses on transport, water and flood alleviation – made a pre-tax loss of £68.2 million, although a sizeable part of that owed to an exceptional charge, totalling £65 million for the year, that resulted from the liquidation of Aberdeen Western Relief Road joint venture partner Carillion. Galliford Try Infrastructure finance director Malcolm Capstick stressed that the "underlying business continues to perform well", highlighting some significant contract successes in aviation and highways, and said the company has taken steps to avoid a repeat of the Carillion troubles, introducing "new procedures to ensure a more disciplined approach to project selection" and shi¢ing away from "larger infrastructure mechanical and electrical skillset. Eric Wright Group chairman Eric Wright noted that the water business "achieved record levels of activity as it continued to expand its geographical spread" in 2017, adding that the build-up to AMP7 will "require positioning of the business to ensure it is a preferred contractor for the new generation of frameworks". As part of that process, the company implemented an improvement plan last year to enhance its working practices projects on fixed price, all-risk contracts". In March, Galliford Try announced the appointment of Graham Prothero as its new chief executive, with Peter Truscott having departed to join housebuilding company Crest Nicholson. Prothero, who has been a member of the board since 2013, has been tasked with maintaining progress on the group's 'Strategy to 2021', which involves driving operating efficiencies by streamlining operations to increase margins, maintaining capital discipline, and operating sustainably to hit its and drive greater efficiency. Eric Wright Water said it expected revenue to stabilise in 2018 following a period of expansion, although margins were expected to grow. Earlier this year, the company won an ICE North West Civil Engineering Awards in the Small Project category for its work on United Utilities' Crosshill Service Reservoir, which involved the adoption of what judges called a "cutting-edge digital solution" to futureproof the structure and maintain water quality. targets. For the construction division, that involves raising the operating profit margin to at least 2 per cent from its current 0.9 per cent. In the water sector, the company has a productive contract until 2021 for Scottish Water as part of the ESD joint venture with Black & Veatch and MWH Treatment, while it has secured regular work on the AMP6 frameworks with Yorkshire Water and Southern Water. In March, the MGJV joint venture with Morrison Utility Services secured a £14.6 million contract with Southern to lay a 10km pipeline in West Sussex. THE NUMBERS 2013 2014 2015 2016 2017 % change Sales £m 9.2 9.6 11.5 37.5 44.5 19 Gross profit £m 2.0 1.4 2.0 3.5 3.4 -3 Operating profit £m -0.8 -0.2 0.1 0.3 0.3 13 Pre-tax profit £m -0.7 -0.2 0.1 0.3 0.3 13 Staff 96 78 95 180 215 19 Net assets £m -0.5 -0.7 -0.6 -0.3 -0.1 n/a THE RATIOS 2013 2014 2015 2016 2017 % change Return on capital % 140.6 29.4 -8.5 -82.3 -486.4 n/a Gross margin % 22.0 14.3 17.0 9.3 7.6 -18.3 Operating margin % -8.4 -2.0 0.5 0.8 0.7 -5 Net margin % -7.1 -2.1 0.5 0.8 0.7 -5 Sales/employee £k 95.4 122.8 120.9 208.1 206.9 -1 THE NUMBERS 13/14 14/15 15/16 16/17 17/18 % change Sales £m 355.3 359.6 451.0 482.9 603.0 25 Gross profit £m 21.0 24.7 18.6 -59.3 -40.6 n/a Operating profit £m 1.8 2.6 -1.4 -82.5 -62.5 n/a Pre-tax profit £m 2.4 3.5 -0.9 -83.3 -68.2 n/a Staff 1,084 1,005 1,253 1,311 1,189 -9 Net assets £m 41.7 45.1 44.5 48.2 38.0 -21 THE RATIOS 13/14 14/15 15/16 16/17 17/18 % change Return on capital % 5.9 7.8 -2.0 -172.9 -179.4 n/a Gross margin % 5.9 6.9 4.1 -12.3 -6.7 n/a Operating margin % 0.5 0.7 -0.3 -17.1 -10.4 n/a Net margin % 0.7 1.0 -0.2 -17.3 -11.3 n/a Sales/employee £k 327.8 357.8 360.0 368.4 507.2 38 Galliford Try seeks to continue progress under new leadership GALLIFORD TRY INFRASTRUCTURE Cowley Business Park Cowley Uxbridge Middlesex UB8 2AL Tel: 01895 855 000 www.gallifordtry.co.uk LEADERS 2019 15

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