AWG set to list Morrison businesses separately

AWG’s two remaining Morrison businesses are in line for a separate listing on the Stock Exchange next year now they are back on an even financial keel.

AWG bought Morrison for £260m in 2000 only to discover that its due diligence process had failed to spot shortcomings in its operations. Jonson Cox, the new AWG chief executive, said a disposal would be entertained only when Morrison’s woes had been resolved. This has now been achieved.

Morrison now trades as Morrison Utility Services and Morrison Facilities Services. Their latest turnover figures stand at £410m and £190m respectively and last year they jointly contributed an operating profit figure of £18m.

Last year, Galliford Try paid £42m for Morrison Construction Services, a move that gave rise to a book loss on disposal of £56m, largely the result of £93m of unamortised goodwill being written off.

AWG is itself under the spotlight. An agreed bid of £2.2bn has been announced by Osprey, a four-member consortium, and there are signs that rival bids may yet come to the surface. The Osprey members all have funds available for buying into infrastructure groups such as AWG.

A new owner for AWG could trigger a speed-up in the process of separating out Morrison. There are not thought to have been any trade bidders to date.