Galliford Try appointed to work on Southern Water upgrades

Galliford Try has won a new contract to deliver infrastructure improvements on behalf of a UK water company.

The construction company said it would work on the “design and build” aspects and as a mechanical and electrical contractor for Wessex Water’s capital delivery framework, a planned £3.7 billion programme of improvements across the south west of England.

Between 2025 and 2030, Wessex Water plans to spend £445 million on reducing flooding and more than £1.1 billion on improving water quality by removing 1,550 tonnes of nutrients from waterways.

This is part of the wider AMP8 programme, an agreement between regulator Ofwat and water companies that sets out how the latter manages their assets, delivers services to customers and invests in infrastructure.

Galliford expects to raise at least £400m from its work on Wessex Water’s asset management plan.

Other companies working on the project include consultancy Aecom and civil engineering firms Kier Group, Morgan Sindall and Mott MacDonald Bentley.

Bill Hocking, CEO of Galliford Try, said: “We are delighted to be working with our partners at Wessex Water to help them realise their plans for AMP8.

‘The expected significant increase in activity in the water sector is a key part of our sustainable growth strategy and we look forward to serving Wessex Water’s customers and stakeholders.’

Galliford’s latest contract win comes about a month after Southern Water appointed the company to work on planned £3.1bn infrastructure improvements.

The deal with Southern Water could be worth more than £500 million over seven years, according to the London-based company.

Southern Water, majority owned by Australian investment bank Macquarie Group, serves 4.7 million customers in Kent, Hampshire, Sussex and the Isle of Wight.

The UK water industry has faced significant criticism from politicians and environmentalists in recent years over the large volumes of sewage discharges entering UK waterways.

According to the Environment Agency, the number of sewage discharges into English rivers and seas by water companies more than doubled from 1.75 million hours in 2022 to 3.6 million hours last year.

Water UK, the trade association for the British water sector, called the rise “unacceptable” but blamed increased rainfall, a major cause of storm flooding.

Galliford Try shares rose 2.8 percent to 299p early on Monday afternoon, taking their gains since the start of the year to around 34 percent.