Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/670687
28 Leaders 2016 Laing O'ROuRke Bridge Place 1&2anchor Boulevard Crossways Dartford kent Da2 6Sn T: 01322 296200 www.laingorourke.com the LeADeRS 2016 Laing O'Rourke has endured "a challenging two years" having worked through the portfolio of projects secured in recessionary times, which are being delivered in a period of acute skills shortage and resource cost inflation. The group's financial results have been impacted by its continuing programme of investments. Despite a marginal decline in infrastructure output of 1% in 2014, Laing O'Rourke continued to build its presence in sectors such as power, rail and water, which it considers all have good long-term growth prospects. As construction volumes pick up, Laing O'Rourke said there are clear signs of cost inflation in the supply chain and shortages in some key trades, especially bricklaying, joinery, electrical and roofing However, it said its direct delivery model and its Design for Manufacture and THe nuMBeRS 12/13 13/14 14/15 % CHange Sales £M 1,133.0 1,254.7 1,024.3 -18 Gross profit £M 74.1 54.8 -15.1 -127 Operating profit £M 27.5 7.0 -59.5 -955 Pre-tax profit £M 27.6 7.1 -59.4 -943 Staff 0 0 0 n/a Net assets £M 277.4 271.0 223.6 -17 THe RaTiOS 12/13 13/14 14/15 % CHange Return on capital % 10.0 2.6 -26.6 -1,121 Gross margin % 6.5 4.4 -1.5 -134 Operating margin % 2.4 0.6 -5.8 -1,147 Net margin % 2.4 0.6 -5.8 -1,132 Sales/employee £K n/a n/a n/a n/a DfMA will help combat skills shortage Assembly (DfMA) approach should help to mitigate the impact of this, although it is continuing to closely monitor input and output prices. Key projects secured during the year include Thames Tideway Tunnel and the Northern Line Extension, which reflect the success of this strategy. The group has also welcomed the government's commitment to long-term infrastructure investment, in addition to election pledges around High Speed 3 and various major road improvement opportunities. Infrastructure projects such as Hinkley Point C, Crossrail, High Speed 2 and the Northern Line Extension represent opportunities for growth in this area for Laing O'Rourke. For London's Tideway sewer, Laing O'Rourke is part of the FLO joint venture with Ferrovial Agroman working on the tunnel's central section.