New suitors woo jilted Lawrence
09:56 03 Jun 2004
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Lawrence, the specialist pipeline constructor, is back on the market after McNicholas plc pulled out when close to completing a deal. As a result, several other construction groups are now talking to Lawrence's owner, Bristol Water Group.
A spokesman for Bristol Water said: "The focus of the group is on its core water skills. We identified that Lawrence does not fit with this strategy and we commenced a sale process during the year.
"We were close to completing a sale but, for reasons unrelated to Lawrence, the prospective purchaser was unable to proceed. We have now received a number of further offers for the company which we are discussing with the potential purchasers."
It was McNicholas that pulled out from the deal. Dutch firm Koop Holdings, owner of Nacap, which has worked with Lawrence on three joint ventures, said it will not be bidding.
The latest financial results from Bristol Water show that Lawrence made an operating profit of £800,000 in the 12 months to 31 March 2004. The figure is down from the previous year's performance, which saw a much healthier figure of £1.5m.
Lawrence's trading performance for the first half of the period took a hit after problems on two gas network renovation contracts. However, a strong recovery in the second half brought Lawrence back into profit. The forward orderbook is said to be strong, although it does not include any major gas pipeline projects for 2004/2005.
Bristol Water has closed the Gas Design Consultancy subsidiary, created in 2003 to work alongside Lawrence. The move reflected the preference of potential purchasers of Lawrence not to include GDC in the sale. GDC made an operating loss of £300,000, which includes a provision for the cost of closure.