Alfred McAlpine, the construction and house building company, plans to move into the PFI market once it sells its housebuilding arm to George Wimpey for an estimated £400m to £440m. The cash will enable the company to concentrate on its construction arm which has delivered an increase of 40 per cent in pre-tax profits. The construction arm is to be split into a capital projects division and a division concentrating on support services and PFI work. Oliver Whitehead, chief executives, said the outsourcing services market offered higher margins and a better rating for shareholders.
Mitie cheers City
Mitie, the outsourcing group, delighted the City with better than expected full year figures from contracts in cleaning , mechanical engineering and maintenance. Mitie is poised to pick up more contracts as the government increases spending on infrastructure.
Mowlem sucks in Pall Mall
Construction group John Mowlem expanded the activity of its outsourcing business by acquiring Pall Mall, one of the UK's largest independent commercial cleaning groups for about £42m. Mowlem is purchasing from a management buyout team backed by Gresham Trust, the private equity house. The deal is being financed by a windfall gain from the sale of scaffolding business SGB.
Jarvis jockeys for position in Tube PPP
The importance of the London Underground PPP to Jarvis is emphasised by the fact that Bob Clarke, engineering and development director, is being seconded to Tube Lines, the preferred bidder for London's Jubilee, Piccadilly and Northern Tube lines in which Jarvis has a one-third share. Under PPP, maintenance and renewal of the network including track, tunnels and signals, will be undertaken by private companies on 30-year leases, while management of the system will remain with London Underground Limited.
The London Underground scheme will generate £13bn of investment, with full implementation next spring — two years behind schedule.
Source
The Facilities Business
Postscript
Malcolm Craig is editor of Stockmarket Confidential
