Long Term Contract Wins and Trading Update
Waterman Group plc (“Waterman” or “the Group”), the engineering and environmental consultant, today announces two significant long-term contract awards and provides an update on trading.
London Borough of Bexley – Framework Agreement
Our Infrastructure and Environment team has won an extension of a framework agreement, of up to four years on an annual renewable basis, with the London Borough of Bexley.
The new contract includes provision of traffic and transportation engineering services over and above the current services of civil, highway, bridgeworks, drainage, Construction Design Management Co-ordinators (CDM-C) and staff secondment.
The Infrastructure and Environment team will be supported on the contract by Group’s wholly owned subsidiary Waterman Aspen, which specialises in highway and transportation secondment services.
The framework appointment is estimated to be worth £1.5m to Waterman in its first year.
Midlands Highway Alliance
AECOM together with Waterman’s transportation outsourcing business has secured a £30 million contract with the Midlands Highway Alliance (MHA). Under the three-year contract, which has the option to be extended by the MHA by an additional year, AECOM and Waterman will support the 20 local councils on highway projects across the Midlands region.
The Alliance will deliver a range of services, including major highway improvements, maintenance and road safety projects, town centre regeneration schemes and transport studies. Work starts immediately, with AECOM and Waterman working as part of an integrated team with MHA members to enhance their in-house design capability.
The new contract will see Waterman continue to second up to 70 professional and technical staff via the Midlands Highways Alliance.
Nick Taylor, Chief Executive of Waterman commented,
“ I am delighted that we have won these two significant long-term contracts. As we stated when issuing our Interim Results in February 2015, we are targeting longer term projects and framework agreements as part of improving the Group’s earnings profile.”
“ I am also pleased that as we indicated to our shareholders, our Civils and Transportation consulting business is delivering an improving performance during this financial year compared to the comparable period in the previous financial year.”
“ Looking ahead, we remain confident about the Group’s prospects. We anticipate continuing revenue growth throughout the UK during 2015, most particularly from retail and residential developments and in the highways infrastructure market. The Board believes that the Group remains on track to make significant progress towards delivering the strategic targets of tripling annual adjusted profit before tax to £3.3m over the three year period up to June 2016.”
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