WET News

LEADERS 2018 25 THE LEADERS 2018 LANES GROUP 17 Parkside Lane Leeds LS11 5TD Tel: 0800 526488 www.lanesgroup.com Wastewater services provider Lanes Group is best known for its work as a drainage and sewer maintenance contractor that includes a long-term, multimil- lion pound partnership with Thames Water, the UK's biggest water company; it also works for Severn Trent, Northumbrian, Anglian and Scottish Water, as well as carrying out commercial drainage work for non-regulated businesses nationwide. It recently topped £200 million in turnover and its 2016/17 accounts show healthy gross profits of £56.5 million, up 16 per cent, while pre-tax profit increased 21 per cent to £5.3 million. The company has been boosted by contract wins and a full year of trading from UKDN Waterflow following its acquisition. It has earned plaudits for its hi-tech and innovative approach to workforce management, training and customer service. It recently installed a 3D virtual reality training facility, the Igloo, at its Slough office, where its workforce can walk through an immersive experience simulating work in the field; it also made Lanes targets rther growth clever use of apps to monitor and manage its mobile workforce. In March, Lanes notched a notable contract win as Anglian Water has awarded it a deal, initially until 2020, to deliver non-routine first-time resolution sewer unblocking services. Last year it made strides in the business drainage segment with the award of a contract to provide wastewater maintenance services for Business Stream; the contract covers wastewater pipe lining, service inspection, and cleaning services. Richard Leigh, Lanes Group business development director, said: "Recent sales focus has been into existing markets to secure additional growth. This has delivered further contract wins in traditional markets that Lanes has always had a strong presence in, such as local authority, retail, insurance, social housing and energy. Alignment of UKDN Waterflow into the Lanes business model has generated substantial benefits to the business and our customers. "As part of our continued five-year ongoing development strategy during 18/19, Lanes will be positioning the business in the utility and transportation sectors to support their new investment periods." LAING O'ROURKE Bridge Place 1&2 Anchor Boulevard Crossways Dartford Kent DA2 6SN Tel: 01322 296200 www.laingorourke.com Laing sees revenue boost Laing O'Rourke said this spring that its managed revenue had increased by a fižh in its most recent accounts. The Dartford-headquartered firm, which also has offices in Canada, Australasia, the Middle East and Hong Kong, posted managed revenue of £3.8 billion in the year to 31 March 2017. It said income was up in the UK, driven by the construction business. Margins were said to be up in the UK business as it moved away from legacy projects. Laing O'Rourke said restructuring and refinancing its UK business had helped it "face up to the challenges encountered in its 2016 financial year". The group arranged a £13.7 million bank facility secured over a UK property on 23 February 2018. Former president of the Royal Academy of Engineering Sir John Parker was named as chairman of the firm in November. Laing O'Rourke's LIMA trading brand, set up to work for United Utilities, secured £165 million of work with the client in early 2018. These contracts cover projects in Blackburn, east Manchester, Nantwich and Crewe. They also include a water framework directive project, which features a number of jobs in upland moor areas to enhance the environmental amenity of water courses as fish breeding habitats. The company worked on the £40 million Ambergate reservoir replacement project for Severn Trent, which completed recently. This included modernising the site and increasing capacity. Laing O'Rourke said in its most recent accounts that its European hub's engineering enterprise model was based on long-term partnerships and early engagement. "The European business is also at the forefront of innovation and continues to challenge traditional approaches to key sector drivers," the report said. "Our approach has produced tangible results with successful project wins across building and infrastructure during the year producing a strong order book." THE NUMBERS 12/13 13/14 14/15 15/16 16/17 % change Sales £m 1,133.0 1,254.7 1,024.3 1,114.3 1,468.5 32 Gross profit £m 74.1 54.8 -15.1 -41.3 5.1 n/a Operating profit £m 27.5 7.0 -59.5 -141.4 -56.8 n/a Pre-tax profit £m 27.6 7.1 -59.4 -141.3 -56.8 n/a Staff 0 0 0 0 0 n/a Net assets £m 277.4 271.0 223.6 110.2 58.1 -47 THE RATIOS 12/13 13/14 14/15 15/16 16/17 % change Return on capital % 10.0 2.6 -26.6 -128.2 -97.7 -24 Gross margin % 6.5 4.4 -1.5 -3.7 0.3 n/a Operating margin % 2.4 0.6 -5.8 -12.7 -3.9 n/a Net margin % 2.4 0.6 -5.8 -12.7 -3.9 n/a Sales/employee £k n/a n/a n/a n/a n/a n/a THE NUMBERS 12/13 13/14 14/15 15/16 16/17 % change Sales £m 101.1 102.1 128.5 165.1 197.9 20 Gross profit £m 26.8 30.0 34.8 48.7 56.5 16 Operating profit £m 4.4 5.5 7.1 7.3 8.7 19 Pre-tax profit £m 3.1 3.5 4.6 4.4 5.3 21 Staff 976 1,033 1,170 1,806 1,994 10 Net assets £m 12.9 13.4 16.4 19.5 23.6 21 THE RATIOS 12/13 13/14 14/15 15/16 16/17 % change Return on capital % 24.1 26.2 28.3 22.7 22.6 -0 Gross margin % 26.5 29.4 27.1 29.5 28.5 -3 Operating margin % 4.3 5.4 5.5 4.4 4.4 -1 Net margin % 3.1 3.4 3.6 2.7 2.7 1 Sales/employee £k 103.6 98.9 109.8 91.4 99.3 9

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