WET News

28 Leaders 2014 Interserve's UK division turnover falls interserve construction interserve House, ruscombe Park twyford, reading, Berkshire, rG10 9Ju t: 0118 932 0123 www.interserve.com the LeADeRS 2014 Interserve Construction, part of the Interserve Group, provides construction-related services worldwide. The division's UK turnover was £721.5M in 2012, down from the £733.8M reported for 2011. Group chairman Lord Blackwell says 2013 was an important year for Interserve "in which we made both significant strategic as well as operational progress". During the year, Interserve completed a number of acquisitions that increased its exposure to growth markets, to reduce further its pension deficit and to position the group with the necessary resources to continue its growth. "Our strategy remains focused on developing the strength of our three main business streams, while also finding additional growth opportunities where we can gain competitive advantage by applying the core skills from these businesses in adjacent markets and geographies," says Lord Blackwell. Interserve's UK Support Services business, says Lord Blackwell, continued to grow organically, mobilising new, innovative projects and continuing to win new business with organisations such as the BBC and the University of Sussex. Interserve can offer a full turnkey capability to design, construct, procure, install and commission all process types of municipal wastewater, wastewater treatment plants, pumping stations, sludge treatment plants and combined storm overflows and sewerage pipelines. The group's municipal potable water work includes potable water treatment plants, reservoir construction, pipelines and emergency works. Spend levels remain high, says Murphy J murPHy & sons Hiview House, Highgate road London, nW5 1tn t: 020 7267 4366 www.murphygroup.co.uk The past year has been another positive one for J Murphy & Sons, with its water turnover having increased to £135M and joint venture frameworks with United Utilities and Thames Water continuing to perform well. Steve Webber, Murphy's Water & Wastewater Business Development manager, says spend levels in the past year of AMP5 remain high partly as a result of a relatively slow start to the investment cycle. In 2013, the company acquired key elements of the Land & Marine business, and the strong fit between the two companies will enhance the offering of both Land & Marine and Murphy in the sector, says Webber. Major wins for Murphy included the £170M upgrade of Deephams WwTW for Thames Water in joint venture with our partners Kier and AECOM, and its appointment as a delivery partner for the National Metering Contract by Irish Water. Webber says: "Outcome- tHe numBers 10 11 12 % cHanGe Sales £M 740 733.8 721.5 -2 Gross profit £M 56.1 49.2 43.9 -11 Operating profit £M 16.4 9.5 7 -26 Pre-tax profit £M 22.7 15.9 12.9 -19 Staff 2,766 2,693 2,160 -20 Net assets £M 38.44 41.83 43.14 3 tHe ratios 10 11 12 % cHanGe Return on capital % 59 38 29.9 -21 Gross margin % 7.6 6.7 6.1 -9 Operating margin % 2.2 1.3 1 -25 Net margin % 3.1 2.2 1.8 -17 Sales/employee £K 268 272 334 23 tHe numBers 10 11 12 % cHanGe Sales £M 460.7 485.3 568.5 17 Gross profit £M 21.9 23.2 17.2 -26 Operating profit £M 21.9 26 22.3 -14 Pre-tax profit £M 23.5 26.4 21.9 -17 Staff 2,915 2,979 3,471 17 Net assets £M 173.3 187.3 203.5 9 tHe ratios 10 11 12 % cHanGe Return on capital % 13.5 14.1 10.8 -24 Gross margin % 4.8 4.8 3 -11 Operating margin % 4.8 5.4 3.9 -27 Net margin % 5.1 5.4 3.9 -29 Sales/employee £K 158.0 162.9 163.8 1 based Regulation in AMP6 will significantly alter the approach needed for capital investment and the customer, the environ- ment and collaboration are all featuring very strongly in the procurement processes that we are engaged in. "Our behavioural character- istics are also being tested by clients to ensure that collabora- tion with them, our partners and the supply chain will take place to add value and deliver successful outcomes. "Requests for early contractor engagement are increasing which tend to be largely at a strategic and technical advisory level. "AMP6 will be characterised by smaller, more discrete works that will require a far higher degree of planning, control and innovation. "With a workforce that really understands customer engagement and commitment we believe we have just the right operating model to meet these challenges and are looking forward to playing our part in delivering the AMP6 programme for many of the UK water companies," says Webber. leaders 2104 29 kier group Tempsford Hall, Sandy, Bedfordshire, Sg19 2BD T: 01767 355000 www.kier.co.uk L A N D I A C H O P P E R P U M P S W I T H K N I F E S Y S T E M F L O W M A K E R S M I X E R S C H O P P E R P U M P S Pump (and chop) without expensive break downs Eliminate clogging problems with your pump or piping and prevent costly breakdowns. We solve the toughest problems when pumping difficult to handle liquids with high solid contents. Landia's unique chopping system reduces solid particles while pumping. CHOPPER pumps are operating in: • effluent treatment • slaughterhouses • paper mills • food industry and much more… With more than 70 years of experience we have just the right solution for your next pumping or mixing job. Call us today and discover what difference the right choice can make. Waymills Industrial Estate Whitchurch, Shropshire SY13 1TT Tel.: (01948) 661 200 Fax: (01948) 661 201 e-mail: info@landia.co.uk www.landia.co.uk Kier pleased with May Gurney Kier reported a £1.4B turnover following its July 2013 acquisition of May Gurney. It also says there was an exceptional charge relating to the takeover. Chief executive Paul Sheffield says the group is "pleased with the perform- ance" of the May Gurney business, which is operating in line with expectations. The acquisition has consolidated the Kier's position in support services, he adds He says the integration of May Gurney remains on course, with good customer retention, new extended contracts and revenue synergies. "We are on track to deliver the anticipated £5M cost savings in this financial year." Kier's Construction and Property divisions continue to strengthen, and the acquisi- tion of May Gurney has transformed the scale and diversity of the Services business, creating a division that now has annual revenue of more than £1B. In the first six months, the division has leveraged its position in key market sectors such as utilities, highways and water while both cost and revenue synergies were also achieved. All customer contracts were retained and multiple small value extension contracts were awarded. Kier has secured new work totalling more than £450M, underpinning the £3.6B order book, and reflecting the seasonality of awards. A key element of Kier's strategy is to be diverse and market-leading in its chosen businesses: Construction, Services and Property. Its aim is to have strong, stand-alone businesses that can excel in strong markets and be resilient when sectors are weak. The significant expansion of the Services business has been another key element of its strategy. The acquisition of May Gurney has not only doubled the size of Kier's Services offering, but also adds additional, significant businesses to the group, allowing us to offer more services to more customers. The scale of the business will also create opportunities for greater efficiency. THe NuMBerS 10-11 11-12 12-13 % cHaNge Sales £M 2,123 2,030.5 1,943 -4 Gross profit £M 178 212.2 193.8 -9 Operating profit £M 73 67.4 49.3 -27 Pre-tax profit £M 72.5 63 43 -32 Staff 10,685 10,777 10,455 -3 Net assets £M 101.8 70.5 84.6 20 THe raTioS 10-11 11-12 12-13 % cHaNge Return on capital % 71.2 89.3 50.8 -43 Gross margin % 8.4 10.5 10 -5 Operating margin % 3.4 3.3 2.5 -24 Net margin % 3.4 3.1 2.2 -29 Sales/employee £K 198.7 188.4 185.8 -1 Sales/employee £K n/a n/a n/a n/a

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