WET News

12 LEADERS 2018 THE LEADERS 2018 BARHALE Bescot Crescent Walsall WS1 4NN Tel: 0844 736 0090 www.barhale.co.uk Walsall-based civil engineering and infrastructure special- ists Barhale had a positive 2016/17 financial year, with sales up by 51 per cent and operating profits up 23 per cent before tax. Return on capital was also its best since 2014 while it also took on over 130 new staff. Improved revenue from water frameworks was part of the reason for the recovery in fortunes, and there are further reasons for optimism, according to chief executive Matthew Behan. "The forward order book remains healthy and, with a number of major UK infrastructure projects due to commence, turnover is expected to further improve in 2017/18," Behan said. "The gross profit was consistent with tender expectations and increased in line with turnover. "2017 represented a year of improved performance, as we continue to deliver for our clients within the AMP6 frameworks. Yorkshire Water and Anglian Water frameworks increased markedly in line with their Barhale upbeat on prospects spending plans." The only fly in the ointment was the company's joint venture BTU, which delivers work for Southern Water. Behan said it had a "disappointing year" with volumes of work lower than anticipated. The company expects this to improve in 2017/18 in line with Southern's expected regulated spending profile. "The group continues to pursue opportunities arising from major long-term civil engineering projects and blue-chip client organisations such as Thames Tideway, HS2 and Midland Metro," Behan added. Barhale's high-profile water industry projects include the raw water element of Severn Trent's £300 million Birmingham Resilience Project, which is seeing the firm construct a 25km long new pipeline and intake pumping station as part of plans to develop a new water source for England's second city. Along with Glan Agua Farrans JV, Barhale was recently appointed by Affinity Water to carry out network modifications needed to make way for the construction of the HS2 rail project across its territories. The five-year programme of work is worth around £26 million. THE NUMBERS 2012 2013 2014 2015 2016 % change Sales £m 730.1 756.0 770.1 787.1 637.0 -19 Gross profit £m 167.7 169.5 144.9 n/a n/a n/a Operating profit £m 15.9 8.6 -20.2 17.4 12.7 -27 Pre-tax profit £m 18.1 10.7 -18.3 18.2 14.3 -21 Staff 2,993 3,060 3,122 3,053 2,803 -8 Net assets £m 84.6 102.4 82.6 101.8 95.8 -6 THE RATIOS 2012 2013 2014 2015 2016 % change Return on capital % 21.3 10.4 -22.1 17.9 14.9 -16 Gross margin % 23.0 22.4 18.8 n/a n/a n/a Operating margin % 2.2 1.1 -2.6 2.2 2.0 -10 Net margin % 2.5 1.4 -2.4 2.3 2.2 -3 Sales/employee £k 243.9 247.1 246.7 257.8 227.3 -12 BAM NUTTALL St James House Knoll Road Camberley Surrey GU15 3XW Tel: 01276 63484 www.bamnuttall.co.uk Flood and waste work drives BAM Nuttall BAM Nuttall's turnover was down by £150 million to £637 million in the 12 months to 31 December 2016, its most recent annual report shows. The firm's pre-tax profit dropped by a fi¢h to £14.3 million. Its construction work in hand fell from £925 million at the start of 2016 to £716 million at the end of the year. Bam Nuttall – the Surrey- based UK infrastructure arm of Dutch parent company Royal Bam Group – said its focus in 2016 had been "securing good quality order intake". The firm said its waste and environment deal with the Environment Agency continued to offer "a steady work stream with awards across the whole of England". Bam Nuttall's turnover continued to be heavily reliant on the UK, with just £3.2 million of work in 2016 from elsewhere in Europe and a further £9.2 million from the rest of the world. This was up slightly from £2.3 million and £6 million the prior year. Staff costs decreased slightly from £161.4 million in 2015 to £152.9 million in 2016. Bam Nuttall said it had continued to develop its business in 2016 in "a number of key sectors" including flood alleviation and its work was spread widely across the UK. A joint venture of Bam Nuttall and Mott MacDonald is to deliver the Humber Estuary flood defence scheme a¢er the £42 million project received the green light earlier this year. This scheme will focus on a 19km stretch of tidal flood defences to better protect homes and businesses in Hull. Bam Nuttall will also work alongside Bam International in a partnership with Atkins and IMC Worldwide on a project to rehabilitate water supply in Freetown in Sierra Leone. The project includes work on Guma Valley water treatment works and the main water transmission network to the west of Freetown. The consortium will target reducing leakage on the distribution network from 40 per cent to 25 per cent. THE NUMBERS 2013 2014 14/15 15/16 16/17 % change Sales £m 124.5 60.2 95.2 80.9 121.8 51 Gross profit £m 6.5 6.4 8.4 9.9 12.2 23 Operating profit £m -2.7 2.2 0.8 0.7 2.4 238 Pre-tax profit £m -3.0 2.0 1.0 0.2 2.2 1,275 Staff 867 778 654 578 710 23 Net assets £m 5.9 7.5 7.7 7.7 9.4 23 THE RATIOS 2013 2014 14/15 15/16 16/17 % change Return on capital % -50.4 26.5 12.9 2.0 22.9 1,022 Gross margin % 5.2 10.7 8.8 12.3 10.0 -18 Operating margin % -2.1 3.6 0.8 0.9 2.0 125 Net margin % -2.4 3.3 1.1 0.2 1.8 814 Sales/employee £k 143.6 77.3 145.5 140.0 171.5 23

• Cover