Water & Wastewater Treatment

Amey makes progress on reform plan Atkins enjoys central role in industry AMEY The Sherard Building Edmund Halley Road Oxford OX4 4DQ Tel: 0800 521 660 www.amey.co.uk ATKINS Birchwood Park Chadwick House Warrington Road Risley Warrington WA3 6A Tel: 01925 238 000 www.atkinsglobal.com THE LEADERS 2019 Amey's utilities business returned to profit for the first time in three years in 2018. David McLoughlin, who was named utilities MD in March that year, made changes to the management team as well as restructuring the water business to make it more market-focused, working on a regional rather than a contract basis. "A er a transformational year in 2018 for our utilities business, we have continued to make our business more resilient, with a balanced and sustainable portfolio," McLoughlin tells The Leaders 2019. Amey, which agreed a mutual termination for its loss-making contract with Affinity Water in late 2017, continues to deliver clean and wastewater infrastructure services to United Utilities, Severn Trent, Yorkshire Water and Scottish Water and views AMP7 as holding "great potential to expand our business with existing and new clients". It has already enjoyed some Design, engineering and project management consultancy Atkins, which is part of the SNC-Lavalin Group, is a trusted partner to many decision-makers in the UK water industry. The company was recently named an 'assurance partner' for Yorkshire Water, where it will ensure that work done under the water company's asset management plan is compliant with standards, while it has also won a place on Severn Trent's design-and- build framework for AMP7, as part of a joint venture with VolkerStevin. It is a member of Thames Water's eight2O alliance, a support partner for two of Southern Water's capital delivery alliances, and recently won a contract, in collaboration with Black & Veatch and RPS, to carry out modelling and explore options for strategic pipeline schemes for Anglian Water. Atkins' water business came under new leadership last year, with Richard Whale becoming success on that front in 2019, securing a place on Severn Trent's design and build construction framework for 2020-25, as well as prolonging its relationship with United Utilities to the end of AMP7, looking a er the south region of the wastewater network in addition to small projects on water, wastewater and water specialist projects. Last year, Amey earned a place on Thames Water's framework contract as well as a contract for Bristol Water as part of the Meter 66 programme, which runs to 2020. Amey, which works across water market director and Daressa Frodsham appointed as head of UK water. "Every AMP we say this, but I think this time the challenges from all directions are unprecedented – from the climate, Government regulation, environmental imperatives, even politics with nationalisation potentially on the horizon and issues with public opinion and reputation," Frodsham said in a recent interview with WET News. The new challenges will demand change, and Frodsham is confident that Atkins has the forward- water, power, metering and telecoms, is supported by its Consulting business, allowing the company to provide real-time asset analytics, smart planning and design as well as network and asset management capabilities. McLoughlin adds: "We have strengthened customer relationships and secured contract extensions as well as diversifying into new areas of work. We hope to continue this upward trend, building a resilient workforce and using data and new technologies to support our water clients in delivering AMP7." thinking approach required for the task. An accounting change following the acquisition by Canadian company SNC- Lavalin in 2017 means Atkins' most recent results are not directly comparable with previous years, as they only cover a nine-month period. However, when adjusted for this effect, revenue was 6 per cent down on the previous 12 months and operating profit also dipped slightly. Atkins is shortlisted in the category of Consultant of the Year in the forthcoming Water Industry Awards. THE NUMBERS 2013 2014 2015 2016 2017 % change Sales £m 1,761.5 2,167.9 2,230.6 2,232.5 2,198.2 -2 Gross profit £m 202.2 263.9 163.8 112.8 -71.1 n/a Operating profit £m 98.9 136.9 47.1 -15.8 -168.8 n/a Pre-tax profit £m 78.7 106.7 23.6 -43.9 -189.8 n/a Staff 17,347 18,659 20,759 19,301 16,981 -12 Net assets £m 435.0 482.1 509.2 376.8 246.3 -35 THE RATIOS 2013 2014 2015 2016 2017 % change Return on capital % 18.1 22.1 4.6 -11.6 -77.1 n/a Gross margin % 11.5 12.2 7.3 5.1 -3.2 n/a Operating margin % 5.6 6.3 2.1 -0.7 -7.7 n/a Net margin % 4.5 4.9 1.1 -2.0 -8.6 n/a Sales/employee £k 101.5 116.2 107.4 115.7 129.4 12 THE NUMBERS 2013 2014 2015 2016 2017 % change Sales £m 868.9 820.2 856.7 808.7 564.2 n/a Gross profit £m 316.4 319.0 337.1 331.5 219.2 n/a Operating profit £m 44.3 63.8 67.2 75.8 64.8 n/a Pre-tax profit £m 47.9 60.4 60.3 70.7 60.7 n/a Staff 7,349 7,272 7,499 7,268 7,144 -2 Net assets £m 149.4 201.6 244.5 285.6 298.9 5 THE RATIOS 2013 2014 2015 2016 2017 % change Return on capital % 32.1 30.0 24.7 24.8 20.3 -18 Gross margin % 36.4 38.9 39.3 41.0 38.9 -5.2 Operating margin % 5.1 7.8 7.8 9.4 11.5 23 Net margin % 5.5 7.4 7.0 8.7 10.8 23 Sales/employee £k 118.2 112.8 114.2 111.3 79.0 n/a LEADERS 2019 7

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