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Company spotlight: Emcor


THERE is a danger with so much largesse pouring out of the Government's purse that the opportunities offered by private sector clients are ignored.

Emcor's UK division, which dropped the old Drake & Scull moniker in September, is one business that is not passing up the generally better margins but sometimes riskier deals on offer from private sector clients.

Emcor continues to take on the cost of restructuring in the UK and Canada that totalled just under £1 million in the three months to September 2005 but Tony Whale's refocus of the UK arm is paying off with a return to the black.

Overall, operating income at Emcor Group more than doubled to £18 million in the third quarter of 2005 compared to the same period a year ago.

Revenue was virtually static in the third quarter at just under £700 million and was also almost unmoved at around £2 billion in the first nine months of this year ? but again profits surged.

In the first nine months of this year, operating income at Emcor again doubled to £28 million.

Margins remain low, but concentrating on core work such as UK mechanical and electrical and facilities jobs is proving prof itable and relat ively free of risk.

Overseen by the firm's chairman Frank McInnis, this recent improvement is expected to provide full-year earnings per share of around £2 for each of the New York Stock Exchange-traded shares, which have benefited from the company's recent turnaround.