WET News

24 Leaders 2015 Galliford Try racks up the AMP6 deals Plenty of work for George Leslie Galliford Try Wolvey, Hinckley leicestershire lE10 3JH T: 01455 222753 GEorGE lEsliE Blackbyres road, Barrhead Glasgow G78 1dU T: 0141 881 9131 www.georgeleslie.co.uk the LeADeRS 2015 According to Galliford Try, the UK construction market has remained challenging during its last financial year, although it is seeing opportunities nationwide and an improving outlook. In the water sector, Galliford Try has seen "strong competition from new entrants" for work on AMP6 delivery programmes, which the group says has led to significant pressure on prices. During the year, Galliford Try's infrastructure business' George Leslie is a privately- owned civil engineering contractor working in Scotland for key customers comprising councils, water companies and private clients. The company has been involved with upgrading parts of the 45km-long aqueduct used to supply most of Edinburgh's drinking water. The Talla Aqueduct, built in Victorian times, takes water from the Talla and Fruid reservoirs in the Scottish Borders to Glencorse water treatment works, which opened in 2012. The £2.6M upgrade involved repairs to bridges and some structural repairs to the aqueduct, as well as the installation of new valves and flooring in its chambers, helping to safeguard its future and the security of the water supply to customers in the capital. Before the project started, joint venture with AECOM Design Build, Earthtech Morrison, was appointed by Yorkshire Water to continue as a contractor for its AMP6 framework. The framework, which is worth at least £110M to Galliford Try over the AMP6 period, is similar in value and scope to the current AMP5 deal. The infrastructure business also won its first contract in the airport sector, for Manchester Airports Group. The £80M contract is part of the client's £500M capital delivery programme, which Galliford Try was investigations took place to identify sections of the aqueduct that could benefit from being upgraded. Glasgow-based George Leslie has also been working on Scottish Water's £3.4M scheme to improve infrastructure in the Greater Glasgow area as part of the water company's ongoing £250M five-year programme of environmental improvements, first announced in February 2013. appointed to in June 2013. Galliford Try, through its ESD alliance with MWH and Black & Veatch, has just been appointed the preferred bidder for Scottish Water to provide water and wastewater treatment services throughout Scotland. Also, Galliford Try has picked up two frameworks with Southern Water, one as part of a joint venture with Imtech and Atkins, and the other with an alliance comprising Morrison Utility Services. The figures below are for Galliford Try Infrastructure. The work is designed to protect homes and businesses from flooding and improve water quality in the River Clyde and its tributaries. The company has completed several projects to the wastewater network in the south of Glasgow and in Cambuslang. More new projects were added for the scheme towards the end of last year involving the installation of new infrastructure. THE NUMBErs 11/12 12/13 13/14 % cHaNGE Sales £M 34.7 37.1 40.8 10 Gross profit £M 8.3 10.7 10.9 3 Operating profit £M 0.1 0.9 0.6 -29 Pre-tax profit £M 0.1 0.9 0.7 -26 Staff 155 166 172 4 Net assets £M 4.1 4.3 4.9 13 THE raTios 11/12 12/13 13/14 % cHaNGE Return on capital % 3.2 21 13.7 -35 Gross margin % 23.9 28.8 26.8 -7 Operating margin % 0.3 2.4 1.5 -35 Net margin % 0.4 2.4 1.6 -33 Sales/employee £K 224 223.3 237.2 6 THE NUMBErs 11/12 12/13 13/14 % cHaNGE Sales £M 447.6 386.8 355.3 -8 Gross profit £M 21.8 21.2 21 -1 Operating profit £M -0.3 3.4 1.8 -45 Pre-tax profit £M 0.3 4.3 2.4 -43 Staff 1,446 1,541 1,084 -30 Net assets £M 36.2 39.8 41.7 5 THE raTios 11/12 12/13 13/14 % cHaNGE Return on capital % 0.9 10.8 5.9 -46 Gross margin % 4.9 5.5 5.9 8 Operating margin % -0.1 0.9 0.5 -41 Net margin % 0.1 1.1 0.7 -38 Sales/employee £K 309.6 251 327.8 31

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