Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/507429
28 Leaders 2015 Kier buys Mouchel for cash Kier Tempsford Hall Sandy Bedfordshire SG19 2BD T: 01767 35500 www.kier.co.uk The LeADeRS 2015 As The Leaders was going to press, news was emerging that Kier was adding Mouchel to its portfolio. The £265M all-cash acquisition will create a sector leader in the growing UK highways maintenance and management market. Haydn Mursell, chief executive of Kier, says: "Over the last three years, Mouchel has been transformed into a strong business with market leading positions. The combination of Kier and Mouchel, particularly in the provision of UK highways maintenance services, creates a leader in a growing marketplace. The acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value to shareholders." Kier is funding the acquisition through a £340M rights issue, the proceeds of which will repay Mouchel's net debt at the time of the takeover. The addition of Mouchel comes nearly two years a‰er Kier bought May Gurney for around £220M. Multimillion-pound AMP6 contracts with Bristol Water, Anglian Water and Severn Trent Water helped contribute to 'robust' operating margins last year for Kier. Its water activities contributed to the Services division's order book of £3.7bn, excluding potential contract extensions of more than £2bn. John Wilkinson, Kier executive director, Services division, says: "I want to double the service side of our services business and there will invariably be elements of organic growth through just the way the market shapes up and the natural cycle that my businesses operate. But if we find the right acquisition that would be margin-enhancing and gives us further delivery penetration, it would be stupid not to look at them." Global leaders in flexible couplings, drainage & plumbing systems. www.flexseal.co.uk 01226 340 888 | sales@flexseal.co.uk Darren Green, Fabrication Department Team Leader My job is different every day. All of the products that I produce are bespoke to the customer's requirements. Here at Flexseal, we understand that every customer has different requirements and we pride ourselves on delivering a flexible and bespoke service. Our dedicated Fabrication Department works tirelessly to produce bespoke products for specific site requirements. Bespoke manufacturing THe NUMBerS 11/12 12/13 13/14 % cHaNGe Sales £M 2,030.5 1,943 2,954.3 52 Gross profit £M 212.2 193.8 251.3 30 Operating profit £M 67.4 49.3 35 -29 Pre-tax profit £M 63 43 14.8 -66 Staff 10,777 10,455 15,335 47 Net assets £M 152.3 155.8 306.7 97 THe raTiOS 11/12 12/13 13/14 % cHaNGe Return on capital % 41.4 27.6 4.8 -83 Gross margin % 10.5 10 8.5 -15 Operating margin % 3.3 2.5 1.2 -53 Net margin % 3.1 2.2 0.5 -77 Sales/employee £K 188.4 185.8 192.7 4