WET News

Leaders 2016

Water and Effluent Treatment Magazine

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leaders 2016 5 & Energy (WWE) which went into administration late last summer putting nearly 70 jobs at risk. Slow project start- ups were also blamed. Of course, the company's fate was sealed a•er a buyout of Imtech UK from collapsed Dutch group Royal Imtech did not include Imtech WWE. Could the company have survived if it had not been for Royal Imtech's demise? There are mixed views but its demise was a shock in the contractor world Innovation Total operating expenditure (totex) is still a talking point moving forward, and the opportunities it will present. Establishing the correct balance between capital expenditure the operating costs for customers will be a fundamentally new approach for many companies but it will also drive more innovation than seen during AMP5. The introduction of AMP6 has seen a move away from new build and more of a focus on asset optimisation and capital maintenance of existing assets, largely because of a move to totex, rather than applying a capex / opex system. This has led to MEICA frameworks being seen as a growth area, and contractors such as Barhale and Galliford Try Infrastructure which have added this driven by capital delivery investment. The first year of AMP6 has not been all it was cracked up to be but there is a feeling that the sector will kick-start at some point in year two. For some, that cannot happen too soon. *We used the most up-to-date account information available at Companies House at the time of writing. capability to their respective service offerings. Looking at future trends, greater importance is being placed on asset management, thanks mainly to totex. Questions are being raised as to whether existing treatment facilities, for instance, can be upgraded to meet future demands rather than build new works. Building information modelling (BIM) can also playing a part here, rather than being More contractors are unwilling to take on risk, and ensuring growth is sustainable The Leaders exclusive index illustrates contractors total combined sales, net profit, net assets and return on capital patterns for the five years from 2010 [P4 5 – Analysis index] 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 2010 2011 2012 2013 2014 Five year industry trend: indexed to 100 in 2010 Sales Pre-tax profit Net assets Return on capital The LeADeRS 2016

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