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News & Media > Financial

05:04:2010

On track to deliver results in line with expectations

May Gurney today (6/4/10) reports on trading for the year ended 31 March 2010, prior to entering its close period.

The company is on track to deliver results for the year in line with expectations. In addition, the business continues to generate significant cash, with a strong net cash position in excess of £27m at the period end.

May Gurney has maintained momentum in the second half-year. The company's secured and framework order book stands at a record £1.7bn, and significant renewals and new long-term contracts have been won, totalling more than £670m in the half-year. This provides continued visibility of earnings.

The successful contract wins during the period include a landmark bundled services joint venture with Torbay Council to deliver a wide range of essential front-line services worth up to £130m over an initial period of 10 years, and Lambeth Council's Building Schools for the Future (BSF) programme worth up to £185m during the first five years of a 10 year contract.

The AMP5 re-bidding process is continuing and is on track. May Gurney has continued to consolidate its position in the utility maintenance market through retaining and expanding relationships with key existing clients, in addition to securing new business. This includes long-term contracts with South West Water (worth up to £170m over up to 10 years); Wessex Water (worth up to £65m over five years); and Anglian Water (worth up to £120m over eight years).

Philip Fellowes-Prynne, chief executive of May Gurney, said: "The essential nature of what we do and our collaborative approach to delivering a wide range of integrated services has resulted in more than £1.1bn in renewals, contract extensions and new business this year - all under long-term contracts - and their successful mobilisation will be a focus in the coming year.

“Our solid business model and long-term client relationships mean that we continue to enjoy a record order book, healthy bidding pipeline and are creating cash-backed profits.

“We are in line with expectations for the year and our combination of continued financial strength and visibility of future earnings means that we are well positioned for the future."

The preliminary results will be announced on 2 June 2010.