EMCOR UK Reports Building Services Business Performed Well During Year Ended December 2014
17 June 2015
Building services management provider EMCOR UK filed its annual report and accounts for the year ended 31 December 2014. These show that the company, which began focusing in 2013 solely on the provision of building services, performed well at operating profit level.
Specifically, in 2014, operating profit improved to £8.2m compared to a loss of £4.3m in the previous financial year. This was mainly due to elimination of trading losses, resulting in the strategic decision to withdraw from the mechanical and electrical construction market. The closure of the construction division, which was completed in 2014, was largely responsible for the decline in turnover by 18% since 2013. Cash resources continue to be strong.
EMCOR UK has been investing heavily in its strategy of providing best-in-class building services management services and excellence in customer service. For example, as a result of upgrades in its IT systems EMCOR UK and its customers now have greater visibility of data regarding facilities, which, in turn, provides the intelligence to drive efficiencies and reduce waste. The company has also invested in its sustainability and energy management capabilities.
New business activity in 2014 was very encouraging and saw EMCOR UK extend a number of existing contracts, and win important new customers, including:
- Thames Water
- United Utilities
- BAE Systems
- Southampton Airport
These new contract wins will continue to feed into revenues during 2015.
Keith Chanter, Chief Executive, EMCOR UK, stated, “These results for 2014 show that the decision to focus the business on the provision of building management services has really started to pay dividends both for our customers and EMCOR UK. We shall continue to invest in our people and the provision of excellence in customer service to ensure that we deliver on our strong growth agenda in the financial year ahead.”
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About EMCOR UK
With over 100 years’ experience in the UK market, EMCOR UK provides facilities management and sustainable business solutions for a diverse range of private and public sector organisations. A Fortune 500 company with estimated 2015 revenues of ~$6.6B, EMCOR Group, Inc. (NYSE: EME) is a leader in mechanical and electrical construction, industrial and energy infrastructure, and building services. A provider of critical infrastructure systems, EMCOR gives life to new structures and sustains life in existing ones by its planning, installing, operating, maintaining, and protecting the sophisticated and dynamic systems that create facility environments---such as electrical, mechanical, lighting, air conditioning, heating, security, fire protection, and power generation systems---in virtually every sector of the economy and for a diverse range of businesses, organizations and government. EMCOR represents a rare combination of broad reach with local execution, combining the strength of an industry leader with the knowledge and care of 170 locations. The 29,000+ skilled employees of EMCOR have made the company, in the eyes of leading business publications, amongst the “World’s Most Admired” and “Best Managed”. EMCOR’s diversity---in terms of the services it provides, the industries it serves and the geography it spans---has enabled it to create a stable platform for sustained results. The Company’s strong financial position has enabled it to attract and retain among the best local and regional talent, to undertake and complete the most ambitious projects, and to redefine and shape the future of the construction and facilities services industry. Additional information on EMCOR can be found at www.EMCORGroup.com
This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of business. Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2014 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.