Water projects gusher for Gleeson

By THIS IS MONEY
Updated:

 

Pressure on water monopolies to spend less on salaries and more on updating pipes is proving a gusher for MJ Gleeson Group, where profit before tax is up 20.5% at £16.1m.

Engineering division turnover rose 48% to £129m in the year to 30 June, mostly on water industry projects.

Partnerships with water monopolies, including Thames Water, are expected to yield revenue of at least £400m over the next five years. Executive chairman Dermot Gleeson is harnessing some of this water power to fund an expansion into rail, in January acquiring Mabey Construction, a contractor to Railtrack, London Underground and the Docklands Light Railway.

Earnings per share are 21.9% ahead at 114.71p and the dividend 20.1% to the good at 26.50p on turnover 17.3% ahead at £349.6m. The construction business has its best-ever order book, and this is the fifth successive year of increased profits.

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