Leaders 2013 | 35 Totex will mean closer collaboration
NMC has 22 frameworks within the industry with 12 water utilities that have seen its operational activities in- crease by 19% in the past year compared to 2011. “Although the AMP5-AMP6 transition period is rapidly approaching, we expect performance in the water sector to grow through 2013,” it says.
NMC does not expect the dramatic cyclical drop that is characteristic with the industry in light of the move to Totex in AMP6.
The company says: “The introduction of Totex in AMP6 ensures that our focus remains on bringing innovation and best value to our clients which means working more closely than ever before.
“The Service Incentive Mechanism (SIM) being introduced by Ofwat to reward good customer service will ensure that this will be the en- tire supply chain’s focus going forward.”
NMC expects the introduc-
tion of Totex will ultimately drive more innovation rather than some of the reticence encountered over AMP5 in implementing new technolo- gies and innovation. Totex is beyond simply driving costs out by adopting different
products and methods. “We need to approach projects as a blank canvas with our clients to ascertain how we can achieve a better solution that has longevity at the right overall cost. The focus is on the entire solution and not just the asset. Ideally our engineers will be further integrated within our clients’ team at feasibility stage rather than responding to design specifications.” “We have already seen a dip in high-value Capex projects. We are aware of key major projects to be procured, how- ever we still see refurbishment and asset optimisation a key driver for AMP6.
NMC expects an increased
emphasis on alliances. saying: “We are able to offer clients a complete design, build, oper- ate, maintain solution. Other Tier 1s may have to align with design partners or Tier 2 MEICA partners.
The company continues: “The challenge here is that alliances only work well when the right partners are selected.”
THE NUMBERS Sales £M
Gross profit £M 09
144.2 n/a
Operating profit £M 1.8 Pre-tax profit £M Staff
1.6
Net assets £M THE RATIOS
973 18.4 09
Return on capital % 8.4 Gross margin %
Operating margin % 1.2 Net margin %
1.1 Sales/employee £K 148.2 n/a 010
164.5 n/a 3.9 3.7
961 19.9 10
18.7 n/a 2.4 2.3
171.2 NMC Nunn Close
The County Estate Huthwaite
Sutton-in-Ashfield Nottinghamshire NG17 2HW
T: 01623 515008
northmid.co.uk
11
%change
167.2 2 n/a -0.7 -0.8 993 18.3 11
-4.3 n/a -0.4 -0.5
168.4 n/a
-118 -121 3
-8
%change -123 n/a
-118 -121 -2
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www.hydrok.co.uk sales@hydrok.co.uk A supplement to WET News and WWT
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