Drainage firm sees turnover double to £50m
SOLIHULL-based UKDN Waterflow, the UK’s largest independent, non-franchised specialist drainage contractor, has seen its sales almost double during the last 12 months to around £50m.
The firm has attributed the strong performance to two strategic acquisitions and significant organic growth. It is now targets further growth after securing a new £5m banking facility.
The business, which provides national drainage inspection and repair services for clients including London Underground and McDonalds, grew organic sales by 21% during 2011 as it continued to focus on maintaining existing customer relationships and securing agreements in new markets.
It also acquired complementary firms Drain Control and Waterflow last year as part of its long term strategy to transform the business from the largest drainage claims manager in the home insurance market into a national, full-service drainage support business operating across multiple additional markets.
The two acquisitions have provided the business with an increased range of technical expertise – including cutting-edge ‘no-dig’ drainage repair technologies – and geographic reach as well as an entrance into new sectors including utilities, transport infrastructure, retail and leisure.
Annualised sales for the combined business were £47.7m in the 12 months to December 2011.
UKDN Waterflow also highlighted the impact of a successful strategy to expand its market share with local Water and Sewage Companies (WaSCs) on its growth. This followed the transfer of sewer and drainage ownership from private landowners to the UK’s 10 WaSCs last year. UKDN Waterflow is now a direct partner to five WaSCs and service a further two through sub-contract relationships.
During 2011 the firm made significant investments into its operational technology and IT infrastructure, including new PDA-systems for its 360-strong emergency response teams, to extend the reach and speed of its customer service and capture additional efficiency savings.
Its recent investments also include a major rebranding exercise that saw the transformation of the business’ entire vehicle fleet, 19-strong nationwide depot and uniforms for its 570 employees.
Looking ahead, the firm said that a strong start to 2012 meant it was forecasting further growth in the current financial year as it continued to reap the benefits of its increased reach and service capabilities.
It also said that it may look to make a number of further acquisitions during the year and announced that it had secured an additional £5m finance package with HSBC to support this strategy.
Greg Beech, chief executive at UKDN Waterflow, said: “Our focus on developing our core operations and investing in excellent customer service is paying dividends. In the past year the business has undergone a complete transformation through strategic acquisitions and organic growth that has seen us emerge as a leading national player with a strong and diverse customer base.”
Private equity firm Lyceum Capital acquired a controlling stake in UKDN Waterflow in 2010 when the business had sales of just over £19m, 11 depots and 270 employees.
