WET News

WET NEWS WATER AND EFFLUENT TREATMENT NEWS News+ An updated code of practice for confi ned space entry highlights the dangers of accessing unventilated areas but could utilities do more to share best practice, p7 Onsite: Pre-construction surveying We reveal why preparations for a new 22km pipeline in the Yorkshire Dales National Park have got o• to a flying start, p10, 12 Insight: Odour control Nuisance odours are very much on higher on water companies agendas as residents become less tolerant, p20-21 Infrastructure group suspends † nal dividend and cancels £200M share buyback plan as it falls into the red. But water business order book brings some good news. "problem" construction projects. However, in tackling the cultural change required to ensure these issues are behind us, we face major short-term challenges. The key is that we are determined to address this through self-help. Our transformation programme, Build to Last, is gaining rapid traction and we are driving initial improvements of £200 million cash in, £100 million cost out over 24 months. In addition, our Investments portfolio will provide the … nancial † exibility of both reliable income and the sale of maturing assets into a strong market." Quinn said Balfour Beatty had "some fantastic strengths" but he warned that the group's transformation is going to be complex. "It is like turning an oil tanker - it's going to be slow but it's going to be deliberate." One of the areas providing good news for Balfour Beatty has been in its water business, where B alfour Beatty's new chief executive, Leo Quinn, has warned of 'major short- term challenges' as the group announced an £80M underlying pre-tax loss last year, compared with a pro… t of £131M in 2013. Underlying turnover was down from £8.5B in 2013 to £8.4B last year. Describing the 2014 results "pretty horrid", Quinn said the … nal dividend had been suspended for 12 months "because there are some very large cash calls on the company". He added that the group had also cancelled a proposed £200M share buyback plan and changed pension fund payments to shore up the balance sheet. Quinn said the results had exposed underlying weaknesses in the group, namely poor control as well as a lack of cash and cost management. He said: "Over the next two years we should work through the severe legacy of Balfour Beatty boss gets tough a er 'horrid' results transportation orders books. The group's support services division, which includes the water, power and transportation activities, reported a 1% rise in revenue to £1.3B while pro… t from operations was down 9% to £50M. the order book has bene… ted from new contracts tendered for AMP6. Balfour Beatty highlighted the £115M of work with Anglian Water; the £125M deal with United Utilities; and its involvement in a three- way joint venture with Thames Water. However, Balfour Beatty said the increase in the 'water' business had been more than oœ set by the expected contraction on the power and APRIL 2015 Volume 21 • Issue 04 Turn to the experts in emergency,turnkey pump and power rental solutions. Call: 0800 146 763 / Email: info@sldpumpspower.co.uk / Visit: www.sldpumpspower.co.uk Your complete rental solution... SLD provides market leading, specialist pump and generator rental equipment and services. Get in touch today to fi nd out more... ...when you need it most − Diesel Pumps − Specialist High Head Pumps − Electric & Hydraulic Submersibles − Wellpoint Dewatering − Generators − Heating & Cooling Solutions REALITY CHECK Balfour Beatty rejected Carillion's merger advances back in the summer Balfour Beatty has warned shareholders that it could breach banking covenants if the £820M sale of Parsons Brinckerho• to WSP Global is not approved Brinckerho• to WSP Global is not approved Parsons Brinckerho• was one of Balfour Beatty's few pro† table units KPMG carried out a detailed review of the CSUK contract portfolio Matchtech recruits for Southern E ngineering recruitment specialist Matchtech has won a competitive tender to search for permanent and contract staœ for Southern Wa- ter, which is developing a cen- tre for water engineering excel- lence within the business. Matchtech is providing Southern with candidates from all experience levels as part of a six-year contract to support the growth of a new engineering capability, including an engi- neering division. The division is around 40 strong, with plans to double its size in the next year. Stuart Minchin, head of Water & Environment at Matchtech, said: "We are de- lighted to be working in part- nership with Southern Water, especially at such an exciting time for both the industry and Southern itself, which is bring- ing engineering expertise back in house. Although it is key to capture the quality of people already experienced in the in- dustry, we will also look to en- gage with engineers from vari- ous industry sectors who have skills applicable to the water and wastewater sector and can be successfully transferred." F our companies, Claret Civil Engineering, Danaher & Walsh, Clancy Docwra, and Public Sewer Services, have signed contracts worth more than £200M over the next 15 years with Anglian Water. The companies are the … nal partners making up Anglian's IMR alliance, one of four consortia carrying out the utili- ty's AMP6 capital delivery programme. The IMR alliance is divided into two specialist areas cover- ing water and water recycling work. The four companies have now joined Clancy Docwra and Kier MG, which signed deals in November to carry out the water infrastructure mainte- nance work. Jason Tucker, head of Capital Delivery and Supply Chain Man- agement at Anglian, said: "Con- … rming our partners for the … nal alliances brings our tier one AMP6 procurement process to its conclusion. We're con… dent the carefully selected partners, across all four of our alliances, are the best suited to meet our targets..." Anglian Water adds four more to IMR alliance "It's like turning an oil tanker – it's going to be slow but it's going to be deliberate." Leo Quinn "I'm joining the group at a great time where it's back on its hind legs again" John Abraham, Veolia, p8 WET www.utilityweeklive.co.uk Register NOW!

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