WET News

26 LEADERS 2018 THE LEADERS 2018 MORGAN SINDALL Corporation Street Rugby CV21 2DW Tel: 01788 534500 www.morgansindall.com Construction and infrastructure company Morgan Sindall, which has its national headquarters in Rugby, counts Yorkshire Water and Welsh Water as framework partners for AMP6 and offers its water-sector customers a range of services covering civil engineering, utility services, tunnelling, and mechanical and electrical design and installation. Through its work in water, highways, rail, aviation, nuclear and energy, Morgan Sindall Group plc reported positive financial results for the year ending 31 December 2017, with adjusted operating profit up 41 per cent to £68.6 million on revenues of £2,793 million, which represented a 9 per cent rise on the previous year. The group's order book was also up 6 per cent to £3.8 billion. The company, which was part of the group that delivered the £635 million Lee Tunnel project for Thames Water in 2016, is also working on the west section of the Thames Tideway Tunnel with BAM Promising growth in profits for Morgan Sindall Nuttall and Balfour Beatty, valued at around £500 million to the three-way joint venture. In its frameworks with Yorkshire Water and Welsh Water, which represent a continuation of agreements with Morgan Sindall in AMP5, work includes clean water and wastewater projects ranging in value from c£100,000 to £35 million. For Yorkshire Water, Morgan Sindall completed a c£18 million scheme to improve performance and efficiency at Saltend wastewater treatment works in 2017, while a £17 million modernisation plan for Irton water treatment works and a £20 million improvement project for Langsett reservoir were also announced last year. A project to replace the 18th century valves in the Victorian tower at Wentwood reservoir and bring it up to current working standards was completed for Welsh Water last year, while Morgan Sindall's tunnelling expertise has been put to use as part of the RainScape project, which Welsh Water initiated to manage the amount of surface water entering its sewers. MACE 155 Moorgate London EC2M 6XB Tel: 020 3522 3000 www.macegroup.com Mace held back by problematic projects Mace grew group revenue by 14 per cent to £1.97 billion in the year ended 31 December 2016. But the firm – which works as a developer, contractor and consultant in a range of sectors including utilities – recorded a 70 per cent slump in pre-tax profit on ordinary activities to £10.7 million. Chief executive Mark Reynolds said in the annual report, published last summer, that a "very small number of projects … significantly impacted on the overall group performance". Executive chairman Stephen Pycro¡ added that the firm had won "significant new work" in the infrastructure sector. Mandy Willis joined the Mace Group board on New Year's Day 2018 as director for corporate strategy. Formerly an external advisor to the firm, Willis was handed responsibility for advising on joint ventures and acquisitions among other areas. Chief operating officer for international Marcus Burley stepped down from the group board at the end of 2017 a¡er almost 20 years at Mace. Jason Millett assumed international responsibilities. Overseas turnover at Mace more than doubled from £208 million in 2015 to £517 million in 2016. Mace is working through a 10-year cost and commercial management deal with Severn Trent Water that will take it into AMP7. It is also a delivery partner for Affinity Water's AMP6 programme. Pycro¡ said in the annual report published last summer: "Despite the small number of difficult projects, Mace continues to strengthen its position as one of the most respected and trusted consultancy and construction companies in the world. "Although the future is more uncertain, our plans going forward are simple: to continue to grow in a controlled and sustainable way so that our talented people can further develop their careers and continue to work on some of the world's most iconic projects and programmes." THE NUMBERS 2012 2013 2014 2015 2016 % change Sales £m 1,092.2 1,181.1 1,486.5 1,727.3 1,965.8 14 Gross profit £m 122.3 137.6 128.6 133.1 118.0 -11 Operating profit £m 27.9 30.5 32.2 19.1 9.4 -51 Pre-tax profit £m 28.3 32.4 34.6 36.2 10.7 -70 Staff 3,327 3,806 4,160 4,401 4,431 1 Net assets £m 20.2 25.7 52.5 66.3 61.4 -7 THE RATIOS 2012 2013 2014 2015 2016 % change Return on capital % 140.0 125.9 65.8 54.6 17.5 -68 Gross margin % 11.2 11.6 8.6 7.7 6.0 -22 Operating margin % 2.6 2.6 2.2 1.1 0.5 -57 Net margin % 2.6 2.7 2.3 2.1 0.5 -74 Sales/employee £k 328.3 310.3 357.3 392.5 443.7 13 THE NUMBERS 2012 2013 2014 2015 2016 % change Sales £m 2,047.1 2,094.9 2,219.8 2,384.7 2,561.6 7 Gross profit £m 186.7 156.6 181.0 166.3 243.7 47 Operating profit £m 35.2 16.2 26.5 -10.3 47.4 n/a Pre-tax profit £m 34.2 13.9 22.8 -14.8 43.9 n/a Staff 6,384 5,752 5,750 5,828 5,982 3 Net assets £m 249.7 257.5 268.5 249.7 277.2 11 THE RATIOS 2012 2013 2014 2015 2016 % change Return on capital % 13.7 5.4 8.5 -5.9 15.8 n/a Gross margin % 9.1 7.5 8.2 7.0 9.5 36 Operating margin % 1.7 0.8 1.2 -0.4 1.9 n/a Net margin % 1.7 0.7 1.0 -0.6 1.7 n/a Sales/employee £k 320.7 364.2 386.1 409.2 428.2 5

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