WET News

leaders 2015 17 Amey parent expects election impact Bam Nuttall reorganises following review Amey The Sherard Building edmund Halley Road Oxford OX4 4DQ T: 01865 713100 BAm NuTTAll St James House Knoll Road Camberley Surrey Gu15 3XW T: 01276 63484 www.bamnuttall.co.uk the LeADeRS 2015 Amey's Spanish parent, Ferrovial, expects to see a slight downturn in the volume of contracts tendered in the UK this year as a result of the General Election. However, it remains optimis- tic for the coming year due to the success recorded in 2013 and in 2014. Also, Ferrovial says the merger of Amey and Enter- prise will be completed. Public and regulated services provider Amey is the design and build partner providing developer services for Severn Trent Water as part of a five-year deal. The company is also the sole provider of the water company's meter installation, repair and maintenance for a further three years. There is an option to extend for a further three years. The two deals are worth £100M in total. The company has also won Affinity Water's Network BAM Nuttall, the UK civil engineering arm of Dutch giant Royal Bam Group (RBG), reported a 41% fall in pre-tax profit, despite a 4% rise in revenue. Accounts filed report a pre-tax profit of £10.7M for 2013, down from £18M the previous year. Revenue was up at £756M. A reduced margin was blamed on the difficult trading conditions experi- enced during 2013. However, the accounts showed Bam Nuttall grew revenue in all its regions. The company has now restructured having carried out a detailed review of its future markets and potential workloads. Chief executive Steve Fox says the new structure consists of seven operational business units – Highways, Scotland and the North, Wales and the South, Major Projects, Rail, London and BAM Ritchies. "This structure will improve our focus and approach to major highways customers, in particular Highways England with their Infrastructure Maintenance Agreement. The five-year contract is worth £129M, and involves Amey delivering metering installations as well as planned and reactive maintenance for Affinity Water. Amey has worked with Affinity Water for the past ten years providing a range of clean water services including mains renewal, new supply connections to the network, substantially increased budgets from the Highways Agency post 1st April 2015. "We also anticipate that the larger regions will provide better resource and knowl- edge sharing for the remain- ing workloads." The company's joint venture, BMB, is a preferred bidder for the Thames Tideway Tunnel project, and another joint venture, this time with Mott MacDonald, won the £23M Leeds flood protection contract, awarded by Leeds City Council. BAM Nuttall, in a joint venture with Nomenca, has mains cleaning schemes as well as installing around 70km of new water mains every year. In the first quarter of this year, Ferrovial says its Services division, which includes Amey, maintained growth in all geographies and key figures. Revenues expanded by 12.5%, while turnover in Spain increased by 6.7% due to new contracts obtained in the fourth quarter of 2014. just been awarded an AMP6 framework by South East Water. The multimillion- pound deal is for delivery of the water company's non-infrastructure major works for the next five years with an option to extend. For 2014, RBG says that group civil engineering revenue slipped by 1% to €3,949M. Within this figure, there were increases in the UK, up by €92M, of which €71M was currency effect, and Ireland reflecting BAM's strong market position. Lower revenue was recorded in Belgium and the Netherlands. THe NumBeRS 2011 2012 2013 % CHANGe Sales £M 1,093.6 1,146.0 1,761.5 54 Gross profit £M 165.2 168.6 202.2 20 Operating profit £M 83.3 83.1 98.9 19 Pre-tax profit £M 84.3 79.3 78.7 -1 Staff 10,739 10,964 17,347 58 Net assets £M 359 383.9 435 13 THe RATIOS 2011 2012 2013 % CHANGe Return on capital % 23.5 20.7 18.1 -12 Gross margin % 15.1 14.7 11.5 -22 Operating margin % 7.6 7.2 5.6 -23 Net margin % 7.7 6.9 4.5 -35 Sales/employee £K 101.8 104.5 101.5 -3 THe NumBeRS 2011 2012 2013 % CHANGe Sales £M 808.7 730.1 756.0 4 Gross profit £M 159.2 167.7 169.5 1 Operating profit £M 10.8 15.9 8.6 -46 Pre-tax profit £M 14.8 18.1 10.7 -41 Staff 3,073 2,993 3,060 2 Net assets £M 82.8 84.6 102.4 21 THe RATIOS 2011 2012 2013 % CHANGe Return on capital % 17.9 21.3 10.4 -51 Gross margin % 19.7 23 22.4 -2 Operating margin % 1.3 2.2 1.1 -48 Net margin % 1.8 2.5 1.4 -43 Sales/employee £K 263.2 243.9 247.1 1

• Cover