Water and Effluent Treatment Magazine
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10 Leaders 2017 The LeADeRS 2017 Organic growth helps Carillion's revenues All four of group's divisions are driven by organic growth. Sales/employee £K Carillion Utility Services 492.0 Dawnus Construction Holdings 472.3 Interserve Construction 445.5 Morgan Sindall 409.2 Mace 397.4 Galliford Try Infrastructure 360.0 Volkerstevin 349.6 Costain 315.5 Aecom Design Build 303.9 Balfour Beatty 298.3 C arillion returned to revenue growth in 2015 for the first time in five years, during which its focus was on managing the impacts of the global recession. It has delivered strong rev- enue growth, with total revenue of some £5.2bn, a 14% increase on 2015. This was primarily driven by organic growth in all of our four business seg- ments – Support Services, which includes the utilities business; Public Private Part- nership projects; Middle East construc- tion services; and Construction services (excluding the Middle East). Its priorities for 2017 are to accelerate the rebalancing of its busines into mar- kets and sectors where it can win high- quality contracts and achieve its objec- tives for margins and cash flows, to manage the positions it has in challeng- ing markets and to begin reducing full- year average netborrowing. Carillion says that to accelerate the rebalancing of its business, it will become even more selective when choosing the contracts for which it bids and continues adapting to trends in its geographies and markets in order to focus on new and growing opportunities, such as those it Carillion plc Carillion House,84 Salop Street, Wolverhampton WV3 0SR www.carillionplc.com THE NUMBERS 2013 2014 2015 % CHaNgE Sales £M 271.5 246.3 298.2 21 Gross profit £M 10.8 10.0 26.2 162 Operating profit £M 0.9 2.3 16.7 622 Pre-tax profit £M -3.2 -0.9 14.3 n/a Staff 594 629 606 -4 Net assets £M -18.6 -21.9 -7.6 -65 THE RaTIOS 2013 2014 2015 % CHaNgE 5yr aVE. Return on capital % 17.0 4.0 -186.7 n/a -63.7 Gross margin % 4.0 4.1 8.8 116 4.2 Operating margin % 0.3 0.9 5.6 497 2.1 Net margin % -1.2 -0.4 4.8 n/a 1.0 Sales/employee £K 457.0 391.6 492.0 26 407.2 expects in its infrastructure markets in the UK and Canada. To reduce full-year average net bor- rowing the group will maintain strong cash generation, with an increased focus on managing working capital, and review the allocation of capital and other resources across the business, which will also support the rebalancing of the business. Carillion says the UK infrastructure market is expected to offer significant opportunitiesfor growth for its UK infrastructure services business over the medium tolong term. Fundamentals underpinning this future growth include the £23 billion of investment targeted at some of its key sectors announced by the UK Government as part of its National Productivity Investment, and as the UK National Infrastructure Plan anticipates investment of £483 billion across a variety of sectors over the next few years. The figures below relate to Carrilion Utility Services.