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18 | Leaders 2013 Another record year for Black & Veatch


Successful strategy, combined with strong project execution, made 2012 the second record- setting year in succession for BLACK & VEATCH, the company says. The UK water business’ most recent turnover figure was £255M. Year 3 of AMP5 included “significant levels of activity on the major design-and-build and professional services work”. Projects included: • Reappointed to Anglian


THE NUMBERS Sales £M


Gross profit £M 09


276.4 27.4


Operating profit £M 14.3 Pre-tax profit £M Staff


13.4


Net assets £M THE RATIOS


1,430 53.8 09


Return on capital % 24.8 Gross margin %


9.9


Operating margin % 5.2 Net margin %


4.8 Sales/employee £K 193.3 10


233.0 3.0


-13.3 -12.8 1,172 40.9 10


-31.3 1.3


-5.7 -5.5


198.8 11


255.2 7.8


-9.5 -9.3


1,093 28.4 11


-33.0 3.0


-3.7 -3.7


233.5


%change 9.6


156.8 -28.9 -26.9 -6.7


-30.6


%change 5.3


134.4 -35.1 -33.3 17.5


Water’s AMP5 Special Projects Programme


• Completed Scottish Water projects at Campbeltown WwTW and Glencorse WTW • Engaged to undertake ma- jor upgrade of Thames Water’s Walthamstow WTW • Opening of nation’s largest inland flood defence scheme at Nottingham (pictured) • Chosen by Yorkshire Water to help advance carbon reduc- tion strategy


Black & Veatch expects growth in projects to unlock


Downsizing pays off for Carillion


CARILLION UTILITY SERVICES 24 Birch Street Wolverhampton West Midlands WV1 4HY


T: 01902 422431 www.carillionplc.com


For CARILLION a decision to downsize its UK construction operation in 2010 has paid off handsomely.


It has become much more selective about the projects it takes on so, while turnover in UK construction fell 31% last year to £1.28bn, underlying operating profit jumped 25% to £72.4m as margins grew from 3.1% to 5.6%. Significantly, support ser- vices accounted for 48% of the


THE NUMBERS Sales £M


Gross profit £M 09


192.3 8.8


Operating profit £M -6.5 Pre-tax profit £M Staff


-8.6


Net assets £M THE RATIOS


1,268 -51.4 09


Return on capital % 16.7 Gross margin %


4.6


Operating margin % -3.4 Net margin %


-4.5 Sales/employee £K 151.7 10


265.6 9.9


-10.0 27.7


1,432 -20.3 10


-136.3 3.7


-3.8 10.4


185.5 A supplement to WET News and WWT 11


292.1 3.5


-15.4 16.7 939 -7.7 11


-216.3 1.2


-5.3 5.7


311.1


%change 10.0 -64.2 53.6 -39.6 -34.4 -61.9


%change 58.7 -67.4 39.6 -45.0 67.7


bottom line. By expanding into the Middle East and Canada, the group has built up an £18B order book, and a pipeline of contract opportunities worth £35B.


But investor sentiment appears to be focused on the state of the UK construction sector alone, which has left Carillion trading on a forward PE ratio of just six while sport- ing a dividend yield of 6.4%. UK construction work will


remain weak in 2013, but Carillion’s earnings visibility is already at 75%, and the group remains on target to double revenue from Canada and the Middle East to around £1B each by 2015.


Chief executive Richard Howson says the group’s ro- bust performance in challeng- ing market conditions reflects “the success of our strategy” in creating a resilient UK and international business mix.


BLACK & VEATCH Grosvenor House 69 London Road Redhill Surrey


RH1 1LQ


T: 01737 774155 www.bc.com


assets’ potential for renewable energy. “Many of our current frameworks have an element of capital maintenance. In coming spending cycles we anticipate this will grow, and asset creation decrease. “We have taken a proactive approach to meet our clients’ expectation for collaboration. “Through closer supply chain integration we continue to develop even stronger rela- tionships in order to encour- age and embrace innovation, improve efficiency, support sustainability and ultimately improve the value we bring to clients and their customers.”


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