WET News

28 LEADERS 2017 MWH Gregge House Gregge Street Heywood Lancashire OL10 2DX T: 01706 367555 www.mwhglobal.com the LeADeRS 2017 MWH has maintained its top consultant position in the water sector and intends to maintain that position, Catherine Schefer, UK chief executive, emphasises. And, Schefer is also targeting a top five position in the energy sector. She says the company has continued to invest in research and development and is important for the success of the business. Growth will be mainly through targeted organic growth. In May last year, MWH Global was acquired by Canadian-based international engineering and consultancy firm Stantec for about £425M. Along with its global network of staff, MWH brings capabilities that are new to Stantec, including its Engineering and Technical Services group, which provide water-related design services to key hydro-power, oil and MWH wants to stay at the top gas, mining, and industrial clients. MWH further contributes construction management, programme management, and management consulting business services related to water infrastructure. Within the construction field, MWH has a range of capabilities, with the majority being construction management at-risk performed on water-related projects in the US and UK. MWH has supported some of the world's most technically significant water and natural resource infrastructure projects, including being lead designer on the Panama Canal Third Set of Locks Project, serving as construction manager for the Austin Water Treatment Plant No.4 in Texas, and is a key alliance partner in Thames Water's AMP6 work. THE NUMBERS 2013 2014 2015 % cHaNGE Sales £M 98.9 92.3 104.0 13 Gross profit £M 32.3 31.5 39.5 25 Operating profit £M 4.6 5.8 12.6 117 Pre-tax profit £M 4.8 6.2 13.0 110 Staff 1,086 1,032 989 -4 Net assets £M 27.7 29.3 39.9 36 THE RaTIOS 2013 2014 2015 % cHaNGE 5yr aVE. Return on capital % 17.2 21.1 32.6 55 24.1 Gross margin % 32.6 34.1 38.0 11 33.8 Operating margin % 4.6 6.3 12.1 93 7.3 Net margin % 4.8 6.7 12.5 87 7.6 Sales/employee £K 91.1 89.4 105.1 18 91.3 NORTH MIDLaND cONSTRUcTION Nunn close The county Estate Huthwaite Sutton-in-Ashfield Nottinghamshire NG17 2HW Tel: 01623 515008 www.northmid.co.uk North Midland Construction (NM Group) more than doubled its profits in 2016, with a strong performance from its water industry division NMCNomenca on delivering major projects. NM Group's operating profit went up to £2.24M in 2016 from £847,000 in 2015, an increase of 164.6%, while revenue rose 15% to £250.5M. The company has six main operational divisions – Building, Civil Engineering, Highways, NMCNomenca, Nomenca and Utilities. It said it "continues to maintain its strong position of market leadership in the water sector" with both turnover and margin growth in the sector and "great potential for further progress." The group's most significant water sector customers are Severn Trent Water, United Utilities, South West Water and Yorkshire Water. Notable projects carried out in the last period include the Elan Valley tunnel and the Ambergate reservoir, both for Severn Trent. The group's NM Group doubles its profits work with Severn Trent has grown following the recent £100M contract award to DNM Alliance (the NMGroup and Doosan Enpure partnership) for the design and construction of a new water treatment plant at Frankley. Investment is being made in its design capability, off-site manufacture and product supply offering. Preparations are also underway for the AMP7 renewal cycle which will come to the market in the next two years. John Homer, NM Group chief executive, says: "Progress has been made and continues to be made to strengthen the quality of the service that we provide to our customers and we are receiving positive feedback on our operational performance from across our stakeholder base." "Our strategy is focused on realising the potential that exists for us to prosper through the careful selection and execution of the work that we take on. There are positive signs of continued growth in our chosen market sectors and our forward order book is at £225M which is 80% of this year's budgeted turnover." THE NUMBERS 2013 2014 2015 % cHaNGE Sales £M 177.6 193.2 217.6 13 Gross profit £M 45.8 51.6 60.1 16 Operating profit £M -5.9 -2.8 0.8 n/a Pre-tax profit £M -6.0 -3.0 0.6 n/a Staff 1,067 1,149 1,183 3 Net assets £M 12.0 9.0 10.2 14 THE RaTIOS 2013 2014 2015 % cHaNGE 5yr aVE. Return on capital % -49.9 -33.1 5.9 n/a -15.5 Gross margin % 25.8 26.7 27.6 3 26.2 Operating margin % -3.3 -1.5 0.4 n/a -0.9 Net margin % -3.4 -1.5 0.3 n/a -0.9 Sales/employee £K 166.4 168.1 183.9 9 170.9

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