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News & Media > Financial

01:06:2010

May Gurney reports record turnover and profits in 2009/10

May Gurney reports record turnover and profits in its Preliminary Results for the year ended 31 March 2010.

Financial Highlights
Another year of record turnover and profits:
• Revenues up 3% to £483.1 million (2009: £470.3 million)
• EBITDA up 6% to £28.8 million (2009: £27.2 million)
• EBITA up 8% to £22.1 million (2009: £20.5 million); EBITA margin up to 4.6% (2009: 4.4%)
• Underlying PBT (profit before tax and non-recurring items) up 7% to £21.6 million (2009: £20.2 million)
• PBT up 254% to £18.4 million (2009: £5.2 million)
• Underlying EPS up by 7% to 21.92 pence (2009: 20.50 pence)
• Recommended final dividend of 3.7 p per share up 9% (2009: 3.4p) reflecting the Company's consistent performance

Strong balance sheet
• Net cash increased to £29.2 million (2009: £18.6 million)
• No long-term debt
• Strong cash performance, with cash generated from operations representing over 120% of EBITA

Long term earnings visibility
• Record order book up 36% to more than £1.7 billion (including framework agreements, excluding extensions) (2009: £1.25 billion)
• More than 95% of business in long-term contracts delivering essential services to the public and regulated sectors
• Strong pipeline of bidding opportunities and potential contract extensions in core markets of more than £4 billion

Operational Highlights
Significant contract wins and expansion of service offering:
• New contract wins, renewals and expansions (including extensions) totalling over £1.1 billion
• New landmark 'bundled' services joint venture with Torbay Council delivering greater value by providing a wide range of front-line services
• AMP5: eight new contracts and renewals won, with the bidding process continuing for a number of potential new contracts and renewals. Overall increase in repair and maintenance (R&M) work of 22%

Strategy
Target markets remain resilient, with strong growth characteristics:
• Continued strategy of delivering essential front-line maintenance and enhancement services, a market worth £19.0 billion per annum
• Market growing due to increased outsourcing in May Gurney's chosen markets
• Focus on broadening May Gurney's service offerings with innovative solutions
• Strong long-term relationships facilitate collaborative approach to local authorities' budgetary challenges

Commenting on the results, Philip Fellowes-Prynne, Chief Executive, said: "We are delighted to report record turnover and profits for the eleventh year in succession, together with a strong cash position, significant business wins, an enlarged forward order book of more than £1.7 billion (excluding potential extensions) and a healthy pipeline of sales opportunities in our core markets.

"The essential nature of what we do and our collaborative approach to delivering a wide range of integrated front-line services has resulted in more than £1.1 billion in renewals, contract extensions and new business this year, all under long-term contracts, and their successful mobilisation will be a key focus in the coming year.

"A key factor in our success is the continued commitment and passion of our 4,300 people. They are at the forefront of service delivery, helping more than 18.5 million people across the UK to go about their everyday lives, safely and easily.

"May Gurney remains well positioned in all of its core markets to provide clients with outsourced solutions which implement change, restructure services and achieve efficiency savings. The resilience of our target markets, coupled with our consistent operational performance, excellent visibility of earnings, focused strategy and strong balance sheet leaves us confident in the Group's future success."