WET News

12 LEADERS 2017 AECOM Wentworth Industrial Park Tankersley Barnsley S75 3DL T: 01226 224466 www.aecom.com the LeADeRS 2017 AECOM's water business in the UK and Ireland is primarily focused on delivering professional consultancy services to the water sector. Over the past year, AECOM has continued to grow this part of the business and it is working on some of the UK's flagship water projects, including Tideway and Deephams WwTW. Marc Barone, AECOM managing director, says: "... we have significantly increased the range of professional services we offer, which has led to our decision to focus on the delivery of higher value add services to our clients. We remain part of a number of joint ventures to deliver existing contracts and will continue to evaluate new opportunities where we can team with high quality partners and deliver risk mitigated excellence to our clients." However, Barone says the focus of AECOM's AECOM takes a selective stance water business is shiŠing to the delivery of higher value add consultancy services "where we see UK and global contractors as a key customer base". "In the coming 12 months, we will continue to grow our water business and are actively recruiting to increase the consultancy and asset management services we offer to our water sector clients." Barone says the company is "being more selective in the type of work we pursue" in AMP6, focusing on specialist consultancy services and partnering with mainstream contractors to deliver work. "A lot of our recent growth has been achieved outside the AMP process through our work on major, nationally- significant water projects," he explains. "As the sector moves towards AMP7 we will continue to be selective, focusing on services that will support water companies as they prepare for the sector's next Price Review (PR19). THE NUMBERS 12/13 13/14 14/15 % CHANgE Sales £M 61 51.5 34.7 -33 Gross profit £M 9.2 4 -9.5 -337 Operating profit £M 0.5 0.6 -18.3 -3,089 Pre-tax profit £M 0.5 0.7 -18 -2,615 Staff 159 173 114 -34 Net assets £M 6.9 4.3 -18.6 -530 THE RATIOS 12/13 13/14 14/15 % CHANgE 5yr AVE. Return on capital % 7.9 16.5 96.7 485 25.4 Gross margin % 15.1 7.8 -27.4 -452 15.5 Operating margin % 0.9 1.2 -52.9 -4,542 -10.4 Net margin % 0.9 1.4 -51.9 -3,838 -9.7 Sales/employee £K 383.8 297.7 303.9 2 297 AMEC FOSTER WHEELER 4th Floor Old Change House 128 Queen Victoria Street London EC4V 4BJ Tel: 020 7429 7500 www.amecfw.com Amec Foster Wheeler's (AFW) environment and infrastruc- ture markets have shown steady growth in recent years and this is forecast to continue. The group's Environment & Infrastructure business consists of the water; transportation; civil infrastructure; government; and industrial and pharma- ceutical sectors. The group says that environmental consulting spend worldwide is predicted to grow at around 2% a year over the five years ending 2020, double the rate in the preceding five years. In addition, many countries have an urgent need to upgrade their critical infrastructure, particularly in areas such as transport. In North America, for example, transport capex is forecast to grow at 3% per annum in the five years to 2020, with investment in roads making up the vast majority of this spend. Globally, the infrastructure market is expected to grow even more AFW expects growth in infrastruc- ture quickly than this, with a forecast growth rate of 4% to 7% a year to 2025. Amec says its priority is to increase market share by bringing together the entire skills of Amec Foster Wheeler to deliver customer specific solutions. It has identified growth opportunities including expanding its environmental liability and asset management services, especially for large firms, with significant legacy reserves and decommissioning duties. It also plans to take advantage of growing infrastructure spend in the US and beyond by pursuing new customers and expanding through its main geographic hubs; and enhancing its capability and scale in the UK and Europe, combining its existing positions with its extensive North American expertise and capabilities. Amec will continue to offer environmental consulting and engineering services across its other markets, where closer cooperation with business development and engineering teams can generate additional project work. THE NUMBERS 2013 2014 2015 % CHANgE Sales £M 3,974.0 3,993.0 5,455.0 37 Gross profit £M 543.0 518.0 668.0 29 Operating profit £M 228.0 148.0 -205.0 -239 Pre-tax profit £M 255.0 155.0 -235.0 -252 Staff 23,572 24,225 34,013 40 Net assets £M 1,122.0 1,974.0 1,599.0 -19 THE RATIOS 2013 2014 2015 % CHANgE 5yr AVE. Return on capital % 22.7 7.9 -14.7 -287 11.7 Gross margin % 13.7 13.0 12.2 -6 13.3 Operating margin % 5.7 3.7 -3.8 -201 3.4 Net margin % 6.4 3.9 -4.3 -211 4.0 Sales/employee £K 168.6 164.8 160.4 -3 164.2

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