WET News

LEADERS 2018 13 Black & Veatch rebuilds profits BLACK & VEATCH 60 High Street Redhill Surrey RH1 1SH Tel: 01737 774155 www.bv.com THE LEADERS 2018 Black & Veatch's UK-based operation finally returned to profitability in 2017 aer a difficult period.The UK business, which works across power, water and telecoms, reported gross profit of £17.2 million aer a £10.3 million loss last year, while operating profit came in at £4.4 million aer several loss-making years, including last year's £22.2 million loss. A company statement had put the operating loss down in 2016 to "a short-term, project- related challenge" and even then there had been signs of a revival, with revenue growing for the first time since 2012. That growth had been just 1.1 per cent to £137.7 million, though, while 2017's figures show an 18 per cent increase to £163.1 million. It had sought to focus more on energy and transport as the result of its struggles, driven by a desire to counter a reliance on water that had been hit by a lack of major AMP6 frameworks. Black & Veatch's Mat Fairfax said last year that the company had been "a little slow to react to the market shi from individual company tendering to alliance frameworks", adding: "We missed out on some key contracts, most notably the Thames Water framework we had supported for many years." However, Black & Veatch did secure design-and-build frameworks with Scottish Water and Yorkshire Water for AMP6, and eventually returned to Thames Water's £3 billion eight2O alliance in late 2016 when Veolia dropped out. The water sector remains vital to Black & Veatch, with revenue of £154.9 million in 2017, compared to £8.2 million from energy. While noting "competitive pressure" ahead of AMP7, its directors say the company's considerable financial resources and long-term contracts across different industries leave it "well placed to manage" risks successfully. www.rescue2.co.uk Call 01903 871105 INDUSTRY RESCUE FOR THE TEAMS WATER ● Teams of Emergency Service and Rescue Specialists - with real life experiences ● Years of experience - we are approved suppliers to many Tier 1 and Tier 2 contractors across the utility sectors ● Full support, including site visits and consultancy. We provide valuable early guidance and entry advice ● Solutions for safe systems of work and contractor management ● Dynamic and interactive service and advice - we are not just a 'stand by rescue team' ● Technical rope rescue and eyebolting provision - providing access and solutions for more complex entries ● Paramedic and Fire Safety cover Rescue 2 provide a dynamic and interactive service in Con ned Space Safety and Rescue throughout the UK. Image courtesy of Southern Water THE NUMBERS 2013 2014 2015 2016 2017 % change Sales £m 226.5 190.1 136.2 137.7 163.1 18 Gross profit £m 5.9 13.6 9.6 -10.3 17.2 n/a Operating profit £m -7.5 -0.5 -1.0 -22.2 4.4 n/a Pre-tax profit £m -7.5 7.0 -1.6 -24.6 4.7 n/a Staff 1,012 780 598 613 597 -3 Net assets £m 37.6 41.1 42.3 14.4 20.8 44 THE RATIOS 2013 2014 2015 2016 2017 % change Return on capital % -20.0 17.0 -3.8 -171.2 22.5 n/a Gross margin % 2.6 7.2 7.0 -7.5 10.6 n/a Operating margin % -3.3 -0.3 -0.7 -16.1 2.7 n/a Net margin % -3.3 3.7 -1.2 -17.9 2.9 n/a Sales/employee £k 223.8 243.7 227.7 224.7 273.2 22

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