Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/844437
leaders 2017 23 Imtech WW&E demise hits Laing's margins Laing O'ROuRke Bridge Place 1&2 anchor Boulevard Crossways Dartford kent Da2 6Sn Tel: 01322 296200 www.laingorourke.com Laing O'Rourke says its UK contracting division's margins were "negatively impacted" following the collapse of joint venture partner Imtech Water, Waste & Energy (WW&E) in 2015. United Utilities appointed the Laing O'Rourke Imtech jv on the £170M Davyhulme Wastewater Treatment Works modern- isation programme in Manchester in March that year. However, Imtech's Dutch parent company, Royal Imtech, went into administ- ration that August but while Imtech UK and Ireland continued to trade normally, the water, energy and waste division was not part of the rescue deal. Laing O'Rourke reveals: "UK margins were also negatively impacted by a £24.8M margin deterioration due to the failure of one of the group's joint venture partners and the subsequent consequences of delivering a new water treatment plant in UK." The UK contracting division made a total pre-tax loss of £141.3M during the year. Following the successful completion of the group strategic review, Laing O'Rourke has developed a new five-year business strategy and operating plan. The group is just over a year into the plan, which has entailed a new approach to the group consolidating its position as a leading major projects and strategic frameworks delivery partner. A revised organisational structure has been put in place, which streamlines the operations and processes and delivers a reduction in overheads in accordance with group focus on improving the cost efficiency in the core business activities. Laing O'Rouke says this has enabled it to maximise productivity. The LeADeRS 2017 THe nuMBeRS 2013 2014 2015 % CHange Sales £M 1,254.7 1,024.3 1,114.3 9 Gross profit £M 54.8 -15.1 -67.9 n/a Operating profit £M 7.0 -59.5 -141.4 n/a Pre-tax profit £M 7.1 -59.4 -141.3 n/a Staff 0 0 0 n/a Net assets £M 271.0 223.6 110.2 -51 THe RaTiOS 2013 2014 2015 % CHange 5yr aVe. Return on capital % 2.6 -26.6 -128.2 383 -25.7 Gross margin % 4.4 -1.5 -6.1 n/a 2.2 Operating margin % 0.6 -5.8 -12.7 n/a -2.4 Net margin % 0.6 -5.8 -12.7 n/a -2.4 Sales/employee £K n/a n/a n/a n/a n/a A wastewater partner that delivers UK-leading operational effectiveness Award winning health and safety Leaders in digital innovation www.lanesfordrains.co.uk/utilities Tel: 0800 526 488