10th Oct 2019 08:15
(Alliance News) - Construction and housebuilding group Galliford Try PLC on Thursday said it has secured two water contracts worth GBP340 million as part of a new UK regulatory framework.
The FTSE 250-listed firm has been appointed as delivery partner for two design and build projects with Southern Water, a private firm which manages water services in areas of the south of England, including Hampshire, Sussex and Kent.
The deal, which also includes American engineering firm Black & Veatch Corp and British company Morrison Utility Services Ltd, is worth GBP425 million, Galliford's share is worth GBP240 million.
Galliford explained: "The frameworks cover capital investment schemes such as water and wastewater treatment works, upgrades in the western region in joint venture with Black & Veatch, as well as network schemes including pipelines and pumping stations in both the western and eastern regions in joint venture with Morrison Utility Services."
In northern England, the Galliford has inked a deal with Yorkshire Water which will secure the company GBP100 million over a five-year term, and there is "scope for a three-year extension".
The company said: "Working with design partner GHD Group Pty Ltd, Galliford Try has been allocated to the 'complex civils' framework covering the design, build and refurbishment of clean and wastewater treatment assets, reservoirs and pumping stations."
The contracts are part of the AMP7 frameworks, an asset management plan period used by Ofwat, the water industry regulator in England and Wales.
The plan runs from 2020 to 2025.
Galliford Chief Executive Graham Prothero said: "The water sector is a key strategic focus for our construction business as set out in our recent results. We are delighted to have been appointed to these frameworks having established an excellent relationship with Southern Water and Yorkshire Water over previous AMPs. We look forward to working with them to improve the service they provide to their customers."
Shares in the company were 1.8% higher at 621.00 pence each early on Thursday morning in London.
By Eric Cunha; [email protected]
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