WET News

leaders 2017 17 Black & Veatch reports rise in work volumes Contract start-ups 'challenged' profitability Black & Veatch 60 high Street Redhill Surrey Rh1 1Sh t: 01737 774155 www.bv.com clancy DocwRa clare house coppermill lane Harefield Middlesex UB9 6hZ tel: 01895 823711 www.theclancygroup.co.uk the LeADeRS 2017 Alongside its consulting and design/build services Black & Veatch is seeing significant successes from its asset management business and increasing interest in its expertise and tools for gathering and analysing data in real time. At the mid-point of AMP6 the company is seeing increasing volume of work on both water infrastructure and non-infrastructure frameworks, as well as its WEM flood alleviation framework for the Environment Agency; with increasing staff numbers particularly in engineering An increasingly competitive market together with the establishment costs associated with new long- term contracts that have started, 'challenged' Clancy Docwra's profitability, the group reports. It says its strategy has always been to retain its position in the water sector, whilst expanding the client base in energy and transportation sectors. As a result, says Clancy Docwra, there has been a consistent performance from its water business and a developing contribution from the operation in the energy sector and to a lesser extent the rail activity. The company says it expects trading conditions to improve in its current financial year, although it recognised that events including the Brexit result in last year's referendum "may create some uncertainty within certain target markets". and professional services. Clients are trialing, deploying or wanting to know more about how the company supports data and insight- driven service improvements using the ASSET360 tool. This capability was a factor in Black & Veatch being appointed by Yorkshire Water to assist in maintenance optimisation of critical assets and to Thames Water's eight2O alliance. Other successes in the past 12 months include the Bransholme Pumping Station Clancy Docwra has emphasised the importance of retaining key long-term clients in all sectors, and a number of key long-term frameworks were successfully retained. "2015/16 represented the first year for a number of key frameworks secured previously and whilst results in some areas have been challenging it is expected that these will improve during 2016/17." Clancy Docwra says activities during 2016/17 will see the business focus on project for Yorkshire Water winning first place in the Civil Engineering Contractor's Association's 2017 awards, for a contract value above £5M. Strong health and safety performance remains central to Black & Veatch. At the £56M Oldham and Royton wastewater project the company is approaching 340,000 man hours without a RIDDOR. At the Knostrop WwTW upgrade the company has reached 340,000 hours worked without a Lost Time Accident or RIDDOR. enhancing overall perform- ance of its framework deals whilst developing further opportunities with its target markets. In the water sector, Clancy Docwra has long-term relationships with Anglian Water, Southern Water, SES Water, South East Water, Scottish Water and Thames Water (through the Optimise and KCD joint ventures). It secured the framework contract with SES Water to carry out mains renewals, potentially for ten years. the nUMBeRS 2013 2014 2015 % change Sales £M 226.5 190.1 136.2 -28 Gross profit £M 5.9 13.6 9.6 -30 Operating profit £M -7.5 -0.5 -1.0 n/a Pre-tax profit £M -7.5 7.0 -1.6 n/a Staff 1,012 780 598 -23 Net assets £M 37.6 41.1 42.3 3 the RatIoS 2013 2014 2015 % change 5yr aVe. Return on capital % -20.0 17.0 -3.8 n/a -6.3 Gross margin % 2.6 7.2 7.0 -2 5.6 Operating margin % -3.3 -0.3 -0.7 n/a -1.3 Net margin % -3.3 3.7 -1.2 n/a -0.6 Sales/employee £K 223.8 243.7 227.7 -7 235.5 the nUMBeRS 13/14 14/15 15/16 % change Sales £M 262.4 278.5 243.2 -13 Gross profit £M 14.0 17.8 14.8 -17 Operating profit £M 3.2 4.3 3.1 -28 Pre-tax profit £M 3.0 4.0 2.8 -30 Staff 1,786 2,078 2,150 3 Net assets £M 15.6 18.7 20.9 12 the RatIoS 13/14 14/15 15/16 % change 5yr aVe. Return on capital % 19.3 21.4 13.4 -37 16.9 Gross margin % 5.3 6.4 6.1 -5 5.6 Operating margin % 1.2 1.5 1.3 -18 1.1 Net margin % 1.1 1.4 1.2 -20 1.1 Sales/employee £K 146.9 134.0 113.1 -16 134.2 Archimedes screws at the Bransholme pumping station

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