Amey UK plc, the support services firm, has announced a rise in profits for its 2005 financial results.
Turnover for the year was £1.2bn (2004: £961m) and profits rose 116 per cent to £52m (2004: £21m), a before tax margin of 4.3 per cent. These results were supported by strong cashflows and a net debt reduction of £22.9m whilst contract wins and extensions put the company’s order book at £5bn.
Mel Ewell, Chief Executive, said: “This has been a strong year for Amey in which we have seen significant improvement in our mainstream business activities whilst other areas of the business have shown impressive development and innovation. Our success is built on consistently excellent service provision to our customers.”
Strong performance in the EduAction joint venture with Nord Anglia led to the extension of that contract to 2008.
- The long term relationship with QinetiQ was strengthened with the signing of a further five year contract to 2010.
- Amey was announced as preferred bidder for the Bradford Building Schools for the Future project.
Amey is currently leading a number of different consortia bidding two Scottish schools projects, one schools project in Northern Ireland, two “Building Schools for the Future” projects and two major roads projects. One of these is for the widening of the M25 London orbital, which is a project valued at over £4 billion
- Amey continued the expansion of its portfolio of PFI investments with the financial close of the “Renfrewshire Schools” and “C Vehicles” contracts. These projects are now in their operational phase, with Amey involved in the management of their special purpose vehicles.
- A consortium led by Amey was selected as preferred bidder for the “Bradford Building Schools for the Future” contract and financial close is expected in the first half of 2006. This is one of the pathfinder contracts for a 15 year, £75 billion programme to rejuvenate all 3,500 secondary schools in England.
- In Local Government, the Bedfordshire County Council contract award represented a significant step in securing access to the Managing Agent Contractor market as a single organisation. The Cumbria County Council contract involved the transfer of the Council’s contract service staff into Amey bringing new commercially transferable capabilities.
- In Rail, the geographic footprint of Amey’s market presence has been broadened through successes which include the award of a £20m contract to regenerate the line at Ebbw Vale, a £15m contract in Port Talbot and a national Electrical and Plant (E&P) framework. A greater share of the On Track Machines market and a successful bid to supply tampers contributed considerably to the breadth of services already offered to Network Rail.
- Amey was ranked among Network Rail’s top ten performers out of its 3,919 suppliers.
- In Strategic Highways, the Scottish Executive South West Trunk Unit Operating Company contract was secured for a further five years, reaffirming the credibility of Amey’s single organisation approach. The increased market turnover also reflected Amey’s role in helping clients to secure budgets by developing robust cases for maintenance and improvement programmes. Additional professional services projects were won to develop GIS inventories and improve road safety.
- The ‘C’ Vehicles contract with the Ministry of Defence marked the start of services to the Defence market.