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News » UK » Amey books £200m loss on Birmingham highways contract » published 11 May 2018

Amey books £200m loss on Birmingham highways contract

Amey’s Spanish parent company Ferrovial has reported a loss of €161m for the first three months of 2018 due mainly to its problems in Birmingham.

Amey looks after Birmingham's highways Above: Amey looks after Birmingham's highways

The first-quarter loss includes a €237m (£200m) provision for possible losses on Amey’s contract with Birmingham City Council.

Amey signed a PFI contract with Birmingham City Council in 2010, worth £2.7bn, to look after its highways for 25 years but by 2014 the two parties had fallen out over the contract specification and went running to their lawyers.

The legal dispute reached the court of appeal earlier this year, which found in favour of the council. Amey says it has already invested £350m in the contract.

Ferrovial said that a decline in Amey’s activity in the UK had also had an impact on its first quarter earnings.

 

 

 

 

 

MPU

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This article was published on 11 May 2018 (last updated on 14 May 2018).

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