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Transport acquisition works for May Gurney

12 Jun 12 Expansion into the passenger transport market has helped public services contractor May Gurney grow turnover and profits.

Chief executive Philip Fellowes-Prynne
Chief executive Philip Fellowes-Prynne

For the year ended 31 March 2012, May Gurney has reported revenues up 22% to £695.3m (2011: £571.4m) and underlying pre-tax profit up 17% to £28.4m (2011: £24.3m).

TransLinc, acquired in November 2011, contributed revenues of £13.6m and EBITA of £2.1m at the back end of the year. Originally part of Lincolnshire County Council, TransLinc provides specialist fleet management and passenger services to the public sector. It is now called Fleet & Passenger Services.

Across the group, more than £400m in new contracts, renewals and extensions were secured in the past financial year. Since April, May Gurney has also secured a two-year extension to its Omnibus Contract with British Waterways, valued at up to £40m.

Chief executive Philip Fellowes-Prynne said: "May Gurney has delivered a strong financial performance, with continued year-on-year growth and healthy cash generation.”

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He said: “May Gurney continues to benefit from long-term visibility of revenues. Our order book stands at £1.5bn, with a further £1.1bn in potential contract extensions, and our bidding pipeline is £4bn in our core markets. More than 95% of our business is delivering long-term essential services to the public and regulated sectors.

“Our strategy of targeting resilient, maintenance-focused revenue streams has proved successful against the background of a challenging economic environment. Whilst we continue to bid intelligently, our approach has always been to pursue value over volume, especially as our markets become increasingly competitive. Therefore, we remain selective and focus on profitable work where added value, service innovation, collaborative working and customer service are the primary drivers.

“The impact of the next Comprehensive Spending Review (CSR) is expected to drive further outsourcing of services which are currently in-house, to address the imperative to reduce costs whilst maintaining front-line essential services to local communities. We are confident given the start to the new financial year that our deep long-term client and community relationships, diverse portfolio of integrated essential services, strong order book and substantial bidding pipeline will ensure continued growth and success."

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