Client login
Password

News & Media > Financial

06:07:2010

May Gurney publishes AGM statement

May Gurney's Annual General Meeting ('AGM') was held on 7 July 2010. During the AGM David Sterry, chairman, made the following statement:

"During the first three months of the current financial year we have continued to build upon 2009/10, and have secured new contracts and contract extensions with a combined value of up to £90m.

"These include a new recycling contract for West Oxfordshire District Council worth up to £36m over a period of seven years and a possible seven year extension; and a new AMP5 contract with Essex & Suffolk Water (Northumbrian Water) worth up to £30m over 33 months, plus possible extensions of two and five years. In addition, our Property Framework contract with Network Rail has been extended by two years, with a total value of up to £24m, plus potential enhancement works.

"The core theme of the emergency budget - driving value for money through all areas of Government - was largely anticipated by the industry which has been working hard on this agenda for some time.

"We note the recent Government statement on the overhaul of the Building Schools for the Future (BSF) programme, with some school schemes in our Lambeth BSF programme having been stopped and others under review. The Group's profit is not materially exposed to this sector.

"Public sector organisations will look to drive efficiency savings through working more closely with the private sector to outsource front-line and support services, and May Gurney's business model meets with this agenda.

"Our collaborative approach, assured operational delivery, ability to deliver bundled services, and emphasis on transformational service design, means that the company is well placed to help its long-term clients as they seek to 'do more with less'.

"In addition, we have an established market position as we already deliver essential front-line services to more than 18.5 million people across the UK, a market worth circa £19bn per annum.

"More than 95% of our revenues are generated through long-term contracts with clients in the public and regulated sectors. The order book currently stands at £1.5bn and there is a healthy pipeline of sales opportunities in our core markets of more than £4bn.

"With trading in the first quarter in line with management's expectations, bidding opportunities and mobilisations progressing well, our high visibility of earnings and strong cash generation, we remain confident about our prospects for the current financial year."