Last month non-exec director Willie MacDiarmid stepped out of the boardroom to take over running the business from chief executive Philip Fellowes-Prynne after problems in some parts of the business proved to be worse than first thought.
The problems centre on three parts of the business: the MaGos (May Gurney Optimised Solution) kerbside waste sorting operation; the Facility Services division; and the Scottish Utilities business
In a trading update today, Mr MacDiarmid said that the problems had now been 'ring-fenced' and were being addressed.
The £100m contract extension is with Somerset Waste Partnership (SWP), for the on-going provision of recycling and refuse collection services. This deal will now run for a further seven years. The order book remains solid at £1.5bn.
Mr MacDiarmid said: "I am pleased to state that following my recent appointment as interim chief executive, plans are in place to address the issues we highlighted in September and we are taking steps to reinforce the good work already started to give a clear focus on commercial disciplines.
"I have also been very encouraged by positive conversations with our clients, and by our business wins in the first five months, totalling more than £276m.
"With robust operational improvements and efficiencies being driven forward, May Gurney is focused on delivering a solid future performance."