WET News

leaders 2017 21 Affordability blamed for lower activity levels Framework renewals boosts optimism Galliford Try Wolvey Hinckley leicestershire lE10 3JH T: 01455 222753 www.gallifordtry.co.uk GEorGE lEsliE Blackbyres road Barrhead Glasgow G78 1dU Tel: 0141 881 9131 www.georgeleslie.co.uk the LeADeRS 2017 In the past year, Galliford Try's water activity levels have been well below expectation overall, says Ian Jones, managing director of Galliford Try Water, Waste & Security. The big issue has been affordability, he says. "We're currently heavily involved in ECI work to find solutions and, over the last quarter, have seen some improve- ments in getting programmes moving beyond the afford- ability phase. "The main challenge then will become George Leslie's principal activity is civil engineering construction mainly focusing on the water, wastewater, marine and energy sectors. According to John McNaught, director, the group has experienced an increased level of activity and the secured forward workload meant a further rise in overall turnover was expected in its latest financial year. Success in the renewal of frameworks gives cause for optimism for the medium- to longer-term workload. McNaught says the company will continue with the strategy of pursuing opportunities where its resources, experience and expertise can add value to the successful delivery of projects for its key clients. The strategy also extends to making positive contributions in the community, which the company has been developing employment opportunities for Modern Apprentices to securing sufficient quality and quantity of resource both in terms of labour, staff and the supply chain." A key consequence of affordability issues, says Jones, has been to push the "work bow wave" towards the end of the five-year AMP and six-year Q&S investment periods. "For instance, the volume of work we do for Scottish Water is likely to double in year four compared to year three. In England and Wales, we anticipate a spike in orders in years three and develop a career in construction industry. During the year, George Leslie continued its investment in essential plant, machinery and transport required for its core operations. George Leslie is a privately- owned civil engineering contractor working in Scotland for key customers comprising councils, water companies and private clients. George Leslie has also been working on Scottish four before the usual tail-off in year five." However, Jones does not think the tail-off will be as pronounced as in previous AMPs because of the delays experienced progressing work at the start. Jones expects a continued focus on capital maintenance as opposed to quality management programmes. Clients are considering more schemes aimed at providing greater capacity to take account of the housing development boom, he adds. Water's £3.4M scheme to improve infrastructure in the Greater Glasgow area as part of an ongoing £250M five-year programme of environmental improvements, first announced in February 2013. The work is designed to protect homes and businesses from flooding and improve water quality in the River Clyde and its tributaries. More new projects were added for the scheme towards the end of last year involving the installation of new infrastructure. THE NUMBErs 13/14 14/15 15/16 % cHaNGE Sales £M 355.3 359.6 451.0 25 Gross profit £M 21.0 24.7 18.6 -25 Operating profit £M 1.8 2.6 -1.4 n/a Pre-tax profit £M 2.4 3.5 -0.9 n/a Staff 1,084 1,005 1,253 25 Net assets £M 41.7 45.1 44.5 -1 THE raTios 13/14 14/15 15/16 % cHaNGE 5yr aVE. Return on capital % 5.9 7.8 -2.0 n/a 4.7 Gross margin % 5.9 6.9 4.1 -40 5.4 Operating margin % 0.5 0.7 -0.3 n/a 0.3 Net margin % 0.7 1.0 -0.2 n/a 0.5 Sales/employee £K 327.8 357.8 360.0 1 321.2 THE NUMBErs 13/14 14/15 15/16 % cHaNGE Sales £M 40.8 34.8 44.8 29 Gross profit £M 8.3 11.4 13.7 20 Operating profit £M 0.6 0.9 1.7 97 Pre-tax profit £M 0.7 0.9 1.8 98 Staff 172 174 193 11 Net assets £M 4.9 6.1 7.8 27 THE raTios 13/14 14/15 15/16 % cHaNGE 5yr aVE. Return on capital % 13.7 15.2 23.5 55 15.3 Gross margin % 20.4 32.6 30.5 -6 29.1 Operating margin % 1.5 2.5 3.9 53 2.1 Net margin % 1.6 2.7 4.1 54 2.2 Sales/employee £K 237.2 200.1 232.0 16 223.3 Liverpool WTW, one of the projects Galliford Try has been involved with

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