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Dennis Flower, Editor

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Emcor builds and runs mechanical and electrical systems and has two businesses: Emcor Engineering Services and Emcor Facilities Services.

Emcor UK is a wholly owned subsidiary of Emcor Group Inc, a US Fortune 500 company. Emcor UK’s turnover in 2009 was £320.9 million, down for the second successive year as it dealt with the recession and its departure from the rail sector. But pre-tax profit was up to £11.2m in 2009.

Emcor UK, which has been trading in the UK for more than 100 years, provides four services:

  • Construction - services range from heating and air conditioning, to gas installation and renewable energy
  • Energy - services include sustainable energy consulting, supply contract negotiations, and building compliance
  • Facilities - more than 270 contracts in the UK for customers including British Airways, GlaxoSmithKline, Barclaycard, BAE Systems and British American Tobacco
  • End-to-end capabilities - building and facilities management services.

In total, Emcor services more than 1bn sq ft of space.

About two-thirds of Emcor’s contracts are in the community sector. Emcor also operates in the education, health, and hotels and leisure industries.

Big contracts include a £103m contract to build flats and a hotel in North West London and a £193m contract to build a new central library in Birmingham.

Emcor UK's 2009 results showed operating profit was up by 50 per cent from 2008 despite a drop in turnover. The company wants to continue to boost its profit margin, aiming for 5 per cent by 2015.

The company believes it increased labour productivity by 10 per cent in 2009, using a 77-point plan it implements through an innovation academy.

Mr Chanter believes the company can take advantage of the growing pressure for sustainable buildings.

He said in April 2010: “The engineering business is able to retrofit existing buildings, and work on new buildings, to make them more energy efficient, while the FM business can manage the buildings effectively.

“I think the FM part of the business could be two to three times bigger within 10 years – and similar opportunities exist for engineering.

“We have a very solid platform to move forward. We will keep working on relationships and new ways of doing things, as well as on the green agenda.

“We also have a degree of cash there for the right opportunities, whether they be in IT, business development, capital or an acquisition. There is the possibility we would look for a specialist acquisition.”

In Q3 2009 Emcor said it had increased its focus on execution and project management. This operational focus had helped it convert outstanding work into cash. This, in turn, has helped strengthen its balance sheet.

See how Emcor is placed in the HVACR Index

Contact Details


1 Thameside Centre
Kew Bridge Road
Brentford
Hounslow
TW8 0HF
http://www.emcoruk.com/





Financial

Financial Analysis - Emcor

 20092010Turnover (£m)320.9297.7Turnover Growth (%)-10.2

Contracts

Contract Activity - Emcor

Emcor contract activity by region and sector in 2011

Key People

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Key People - Emcor

The people who matter at Emcor

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