AWG hopes Morrison sale will earn £300m

The 'For Sale' sign is about to be hung over Morrison plc. Its owner, water utility group AWG, is reported to be expecting bids of around £300m.

Bankers were called in last week by AWG with a view to setting up a timetable for the sale process.

Steve Johnson, who arrived recently as Morrison's managing director, has played a part in the transformation of the business from what was a loss-making position a few years ago.

Johnson said margins are currently above the sector average of 2.5%. He plans to make Morrison a top quartile player, which would require it to achieve a 4% margin.

Morrison has two operating divisions: Facilities Services (annual turnover of £280m) and Utility Services (£500m).

Johnson said the latest total turnover (£780m) represents a 20% rise on the previous year. He added that profitability was up 30%, but would not reveal a specific figure.

(Contract Journal, 8 August 2007, p 1)