WET News

20 Leaders 2016 Water remains core for Clancy Black & Veatch Grosvenor house 69 london Road Redhill Surrey Rh1 1lQ tel: 01737 774155 www.bv.com clancy DocwRa clare house coppermill lane Harefield Middlesex UB9 6hZ tel: 01895 823711 the LeADeRS 2016 Engineering, consulting, construction and operations company Black & Veatch reported a 16% drop in turnover for its UK operations compared with the previous year. The company blamed "a client-driven shi of work into 2015" for the decrease in revenue. However, the UK operation did return to profit – just over £7M – having recorded a £7.5M pre-tax loss in 2013. During the year, Black & Veatch gained a number of new contracts including one with Affinity Water to investigate technologies to manage levels of pesticides, particularly metaldehyde, at one of its treatment works in Hertfordshire. The key objective of the project is to gather the data necessary to make a technology selection for an innovative treatment process. Conceptual and then detailed design will follow, resulting in a planning application for the new-build phase of the project. Black & Veatch also won a The water sector continues to be a core business for Clancy Docwra, according to Kevin Clancy, joint chairman of The Clancy Group. It has undertaken schemes with Wessex Water, Portsmouth Water and Sembcorp Bournemouth Water, as well as secured new contract awards with Anglian Water, Southern Water and Thames Water for AMP6 and potentially for the next ten to 15 years. Clancy said group strategy has been to retain its position in the water sector, whilst expanding its client base in the energy and transportation sectors. He said there had been "a consistent performance" from the water business, a developing contribution from the energy activities and to a lesser extent the rail sector. He said: "…we have been heavily committed to work winning activities that will place on the Welsh government's construction consultancy framework where it will operate in two areas. It will focus mainly on flood alleviation (Lot 6), mostly for Natural Resources Wales (NRW), and also undertake site supervision including environmental and landscaping clerk-of-work roles that come under Lot 9. The company also linked up with MWH Treatment in a joint venture to carry out an £87M waste-to-energy project in Cheshire. MBV Energy Recovery will deliver a renewable energy plant developed by CoGen UK define the business over the next ten to 15 years. Performance in this regard has been good, we have to date retained all key clients. With these new contract awards we have a strong order book, which together with a clearly defined and targeted vision we remain confident in our medium and long-term prospects." Anglian Water, Southern Water and Thames Water are just some of the capital delivery programmes that at Ince Park Resource Recovery Centre. The plant will export 21.5MW of clean, affordable power utilising more than 150,000 tonnes of material that would otherwise go to landfill. New investment entity Bioenergy Infrastructure Group is providing funding for the project. MBV will deliver the Ince plant on an engineer, procure, construct (EPC) basis. Ince is the first win for the commercial alliance, which expects to gain several similar wins between now and spring 2016, saying the UK market for small-scale, waste-to- energy plants is strong. Clancy Docwra has accumulated for the next five years and beyond. At Anglian, Clancy Docwra is one of the members of the utility's Integrated Maintenance and Repair (IMR) alliance for potentially the next 15 years. The alliance will carry out around 40,000 jobs a year such as repairing burst mains, finding and fixing leaks and replacing lead pipes. The contract is worth around £140M between now 2015 and 2020. the nUMBeRS 12/13 13/14 14/15 % chanGe Sales £M 232.7 262.4 278.5 6 Gross profit £M 11.2 14.0 17.8 27 Operating profit £M 0.9 3.2 4.3 32 Pre-tax profit £M 0.7 3.0 4.0 33 Staff 1,793 1,786 2,078 16 Net assets £M 13.2 15.6 18.7 20 the RatIoS 12/13 13/14 14/15 % chanGe Return on capital % 5.1 19.3 21.4 11 Gross margin % 4.8 5.3 6.4 20 Operating margin % 0.4 1.2 1.5 25 Net margin % 0.3 1.1 1.4 25 Sales/employee £K 129.8 146.9 134.0 -9 the nUMBeRS 2012 2013 2014 % chanGe Sales £M 267.6 226.5 190.1 -16 Gross profit £M 21.6 5.9 13.6 132 Operating profit £M 4.3 -7.5 -0.5 n/a Pre-tax profit £M 3.6 -7.5 7.0 n/a Staff 1,075 1,012 780 -23 Net assets £M 43.8 37.6 41.1 9 the RatIoS 2012 2013 2014 % chanGe Return on capital % 8.1 -20.0 17.0 -185 Gross margin % 8.1 2.6 7.2 177 Operating margin % 1.6 -3.3 -0.3 n/a Net margin % 1.3 -3.3 3.7 n/a Sales/employee £K 248.9 223.8 243.7 9 Black & Veatch returns to profit

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