Water and Effluent Treatment Magazine
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8 Leaders 2016 The LeADeRS 2016 Taking advantage of a 'perfect storm' A reshuffle means Galliford Try's infrastructure business is now sector- driven. Net margin % Galliford Try Infrastructure 39.5 Dawson-Wam 30.0 Stonbury 11.6 J Browne Construction 8.2 Peter Duffy 7.7 Amey 6.3 PN Daly 6.3 MWH UK 6.3 Lewis Civil Engineering 5.4 Claret 4.9 Operating margin % Galliford Try Infrastructure 42.2 Dawson-Wam 27.8 Stonbury 11.5 J Browne Construction 8.1 Mott MacDonald 8.0 Peter Duffy 7.7 MWH UK 7.3 PN Daly 6.7 Lewis Civil Engineering 5.2 Amey 4.9 "Before, we were a bit of a hybrid of regional busi- nesses and sector-driven businesses. Now, we're much more sector-driven focused" " The demise of a joint venture partner is generally very painful, and we have scars from previous experience," says Ian Jones, managing director of Galliford Try's water and waste activities. "Imtech [Water, Waste & Energy] going under was major for us but it's been quite interesting in that it almost created the perfect storm for us. "We have long considered the option of creating our own MEICA capability partly to give ourselves a more rounded offering, and partly to make sure we are less at risk with our joint venture partners going belly up. It's a governance issue about being less reliant on MEICA partners." Imtech WWE was a key partner with Galliford Try on Southern Water's AMP6 work, and Jones says working with MEICA partners since privatisation has been a successful business model, taking a collaborative JV approach. But he says Imtech's demise amplifies that the UK market for process contractors is narrowing all the time. That combined with the opportunity to acquire some of the Imtech personnel, Galliford Try has established its own "small but capable team" looking at MEICA. "That has enabled us to go forward with Southern Water just as Galliford Try. It's now an internal Galliford Try MEICA capability, and that's something we're looking to grow. It's exciting in that respect. "It created the perfect storm in that there was the opportunity to forma team out of individuals that we already knew at a time that they were all coming free to the market place at a time when we had the workload to immediately feed that team. Jones emphasises the aim is not to turn into a process contractor overnight but to be a contractor with a process capability. Galliford Try's water and waste activities are one of six operating units within Galliford Try Infrastructure Sectors that make up the group's infrastructure division. A reshuffle 12 months ago means Galliford Try is now more sector-driven in highways, rail and aviation, power and security, Scotland, internal divisional services, and environmental (waterways, flood defence, coastal protection). "Before, we were a bit of a hybrid of regional businesses and sector-driven businesses. Now, we're much more sector-driven focused. The impact of that reshuffle on my business unit was relatively small because we Galliford Try Infrastructure Wolvey, Hinckley, Leicestershire LE10 3JH. www.gallifordtry.co.uk Ian Jones