WET News

THE LEADERS 2019 LANES GROUP 17 Parkside Lane Parkside Industrial Estate Leeds LS11 5TD Tel: 0113 385 8484 www.lanesgroup.com Wastewater services provider Lanes Group described its financial performance in the year to 31 July 2018 as "solid", with a 2 per cent increase in revenue to £202 million. Profits before tax rose to £8.1 million, which financial director David Nutton said represented "a good result given the difficult economic conditions in which the group has been trading", adding: "Lanes Group has strengthened its position within the utility sector and the future prospects look extremely positive." Nutton said Lanes had continued to invest in new capital assets of £22.4 million during the financial year to meet clients' needs, enabling it to fulfil its obligations directly and reduce third-party support, aiding profitability. He reported less positive news on Lanes' subsidiary UKDN Waterflow (LG) Ltd, which endured an "extremely disappointing" year, but said further restructuring work is being carried out to reverse the trend. Lanes Group prospects 'extremely positive' aer solid year Lanes Group is setting its sights on increasing geographical coverage and market share where opportunities allow. It has AMP6 frameworks with Severn Trent, Northumbrian Water, Anglian Water and Scottish Water but has attracted most attention for its wastewater network service contract with Thames Water, which began in 2013. Lanes shares a 'Customer Solutions Centre' with Thames in Berkshire, which has proved a hub of digital and safety innovation. This year, for example, the company pioneered the development of the world's first interactive Igloo, successfully adding an Oculus Riœ virtual reality component to the existing 360-degree theatre. "We are committed to invest further in our most important assets: our people," Lanes Group director Andy Brierley tells The Leaders 2019. "A major focus over the next two years will be continued development of training, competency, and workplace culture, so our teams have the necessary mindset, maturity and resilience to deliver safe and world-class customer service." THE NUMBERS 13/14 14/15 15/16 16/17 17/18 % change Sales £m 1,254.7 1,024.3 1,114.3 1,468.5 1,542.5 5 Gross profit £m 54.8 -15.1 -41.3 5.1 64.3 1,163 Operating profit £m 7.0 -59.5 -141.4 -56.8 -8.0 n/a Pre-tax profit £m 7.1 -59.4 -141.3 -56.8 -7.9 n/a Staff 0 0 0 0 0 n/a Net assets £m 271.0 223.6 110.2 58.1 53.6 -8 THE RATIOS 13/14 14/15 15/16 16/17 16/17 % change Return on capital % 2.6 -26.6 -128.2 -97.7 -14.8 n/a Gross margin % 4.4 -1.5 -3.7 0.3 4.2 1,102 Operating margin % 0.6 -5.8 -12.7 -3.9 -0.5 n/a Net margin % 0.6 -5.8 -12.7 -3.9 -0.5 n/a Sales/employee £k n/a n/a n/a n/a n/a n/a LAING O'ROURKE Bridge Place 1 & 2 Anchor Boulevard Admirals Park Crossways Dartford Kent DA2 6SN Tel: 01322 296 200 www.laingorourke.com Laing O'Rourke optimistic aer refinancing deal Having completed a refinancing deal in February that secured new banking facilities for its UK business until 2022, Laing O'Rourke is optimistic it can withstand "volatile markets" and look to a brighter future. The company confirmed a third straight year of losses with the publication of its annual accounts for the year ending 31 March 2018, but they fell to £46.5 million aœer tax from £60.6 million in 2017 and £219.9 million a year earlier. Group chief executive Ray O'Rourke said the company is on course to produce a profit based on EBIT in its Europe Hub and an underlying profit in its global operations. "Getting to this point has not been easy, and we have no doubt that the road ahead will be no less challenging," he added. The company sought to embed a new vision based on innovation in 2017, making use of design for manufacture and assembly and digital engineering to improve productivity and profitability, and said its focus on targeting specific, complex projects where it can provide the market with a competitive edge is paying dividends. Sir John Parker, who became Laing O'Rourke chairman in November 2017, said he had "experienced first-hand the mounting challenges to the construction industry" during his first year in the role and added: "I am confident that Laing O'Rourke will continue to exemplify the benefits of adopting best practices learned from other industries – notably aviation and automotive manufacturing – to change the fabric and the face of construction. "Perhaps never before has our leadership been needed as much as it is needed now. We look forward to that challenge in the year ahead." Laing O'Rourke operates through two major geographic hubs, Europe and Australia, with the Europe Hub comprising its operations in key building and infrastructure sectors in the UK, United Arab Emirates, Saudi Arabia and Canada. THE NUMBERS 13/14 14/15 15/16 16/17 17/18 % change Sales £m 102.1 128.5 165.1 197.9 202.0 2 Gross profit £m 30.0 34.8 48.7 50.1 50.8 1 Operating profit £m 5.5 7.1 7.3 8.7 8.4 -4 Pre-tax profit £m 3.5 4.6 4.4 5.3 8.1 52 Staff 1,033 1,170 1,806 1,994 2,077 4 Net assets £m 13.4 16.4 19.5 23.9 30.8 29 THE RATIOS 13/14 14/15 15/16 16/17 17/18 % change Return on capital % 26.2 28.3 22.7 22.4 26.4 18 Gross margin % 29.4 27.1 29.5 25.3 25.2 -1 Operating margin % 5.4 5.5 4.4 4.4 4.2 -6 Net margin % 3.4 3.6 2.7 2.7 4.0 49 Sales/employee £k 98.9 109.8 91.4 99.3 97.2 -2 20 LEADERS 2019

• Cover