16 | Leaders 2013 Holistic viewpoint required for AMP6
AECOM DESIGN BUILD Westworth Business Park Tankersley Barnsley S75 3DL
T: 01226 224466
www.aecom.com
AECOM reports turnover up and increased market share, geographic footprint and staff numbers from its activity in the water sector. “We expect further growth through continuing AMP5 work and early start activity for AMP6. However, AMP6 procurement is commencing earlier in the cycle for this periodic review which will tie up some of our people.”
THE NUMBERS Sales £M
Gross profit £M
09-10 22.3 n/a
Operating profit £M -1.5 Pre-tax profit £M Staff
Net assets £M THE RATIOS
Return on capital % -9.9 Gross margin %
n/a
Operating margin % -6.8 Net margin %
-5.9 Sales/employee £K 133.7
-1.3 167 13.2
09-10
10-11 33.6 n/a -0.9 -0.4 131 11.1
10-11 -3.8 n/a -2.8 -1.3
256.1
11-12 35.8 n/a 0.6 0.9
147 8.9
11-12 9.7 n/a 1.7 2.4
%change 7
n/a 162 305 12 20
%change 357 n/a 159 293
243.5 5
The company says: “We anticipate reduced activity associated with AMP5 overall. However, we have existing activity associated with PR14 business planning. A far more holistic view to outcomes will be required with the move to totex in AMP6.
“Like much of the industry we are waiting for guidance on how totex will apply. Project level whole life costing is just the start, the impact of outcome-based solutions will impact and we expect it will take more than a single AMP cycle before totex is truly demonstrated in the regulatory model.”
AECOM is well placed to take this holistic viewpoint through its master planning, design, build and operating capability, the company says. It expects a drop in high-value capex water infrastructure projects but expects to see a significant increase in maintenance projects, which are likely to be clustered into larger sub programmes for innovative delivery.
“For those organisations working within frameworks and alliances the solutions will be a blend of hard and soft engineering with significantly more capital maintenance schemes of a smaller project nature. Good ideas and a focus on the outcomes will be highly valued and will drive the bottom line.
“We will be recruiting staff and anticipate far more challenge and innovation within the tender and delivery activities. Water engineers will transform to a blend of hard and soft solutions over the next AMP period. “There will definitely be an increased number of alliances forming and we expect to see the emergence of differing skill sets in organisations involved in the sector.
“Affordability will be the key issue for the industry going forwards. Retail price competition will impact on investment decisions and brand and reputation will become increasingly important.”
A supplement to WET News and WWT
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