Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/670687
18 Leaders 2016 Tendering scrutiny and selectivity pays off BAM NuttAll St James House Knoll Road Camberley Surrey Gu15 3XW t: 01276 63484 www.bamnuttall.co.uk The LeADeRS 2016 Bam Nuttall's increased scrutiny and selectivity of tendering and contract management led to strengthened performance across the business, said chief executive Stephen Fox. Turnover rose to £774M, although it did make a trading loss of £20M as a result of an "extremely challenging contract". Fox said the contract was now under control was expected to be substantially completed in BAM Nuttall's current financial year. During the year, BAM Nuttall was selected to work on the West contract for the Tideway Tunnel with BMB joint venture partners Morgan Sindall and Balfour Beatty. Fox added that investment in infrastructure continues to have a healthy outlook with government commitment to supporting longer term infrastructure improvements of all kinds. BAM Nuttall, part of Dutch group Royal BAM (RBG), was also appointed to a multimillion-pound AMP6 framework with South East Water (SEW) in joint venture with Nomenca during the year. The deal entails delivering SEW's non-infrastructure major works for the next five years, with an option to extend for a further ten years. The latest framework sees the continuation and development of the current collaborative client and contractor working partnership. The Leaders 2015 reported that BAM Nuttall had undergone a restructure following a detailed review of its future markets and potential workloads. Fox said the seven business unit structure had simplified significantly reporting and coordination. For 2014, RBG says that group civil engineering revenue slipped by 1% to €3,949M. Within this figure, there were increases at the UK, up by €92M, of which €71M was currency effect, and Ireland reflecting BAM's strong market position. tHE NuMBERS 2012 2013 2014 % CHANGE Sales £M 730.1 756.0 774.1 2 Gross profit £M 167.7 169.5 144.9 -15 Operating profit £M 15.9 8.6 -25.7 n/a Pre-tax profit £M 18.1 10.7 -20.2 n/a Staff 2,993 3,060 3,122 2 Net assets £M 84.6 102.4 78.5 -23 tHE RAtIOS 2012 2013 2014 % CHANGE Return on capital % 21.3 10.4 -25.7 -346 Gross margin % 23.0 22.4 18.7 -17 Operating margin % 2.2 1.1 -3.3 n/a Net margin % 2.5 1.4 -2.6 n/a Sales/employee £K 243.9 247.1 247.9 0 Planned NIP projects on the rise AMEy the Sherard Building Edmund Halley Road Oxford OX4 4DQ t: 01865 713100 Amey's Spanish parent, Ferrovial, is expecting activity within the UK construction division to increase as a result of the planned projects in the government's infrastructure plan (NIP). Plus, Amey has won the Systems Integration contract for the Thames Tideway Tunnel 'super sewer' project, where it is responsible for providing process control and communication equipment and so¢ware systems. 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, with 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 Infrastructure Maintenance Agreement. The five-year contract, worth £129M involves Amey delivering metering installations and planned and reactive maintenance for Affinity. 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, mains cleaning schemes as well as installing around 70km of new water mains every year. Ferrovial said that in the UK, revenues last year were 14.2% higher than in December 2014. This growth was mainly due to sterling appreciation against the euro. Excluding this impact, revenue growth would have been +3%. Amey's results last year reflected a negative EBITDA contribution of EUR110M on the infrastructure maintenance contract for Birmingham. This negative impact included the losses incurred from the contract during 2015 (EUR34M). tHE NuMBERS 2012 2013 2014 % CHANGE Sales £M 1,146.0 1,761.5 2,167.9 23 Gross profit £M 168.6 202.2 263.9 31 Operating profit £M 83.1 98.9 136.9 38 Pre-tax profit £M 79.3 78.7 106.7 36 Staff 10,964 17,347 18,659 8 Net assets £M 383.9 435.0 482.1 11 tHE RAtIOS 2012 2013 2014 % CHANGE Return on capital % 20.7 18.1 22.1 22 Gross margin % 14.7 11.5 12.2 6 Operating margin % 7.2 5.6 6.3 12 Net margin % 6.9 4.5 4.9 10 Sales/employee £K 104.5 101.5 116.2 14