First half revenues for May Gurney Integrated Services plc were up 21% to £288.9m, EBITDA was up 17% to £16.3m and pre-tax profit was up 31% to £11.1m.
The company said that the first half-year had seen a stronger performance than previous periods due to the impact of a severe winter and good early summer weather. The services its deliver are often safety related, such as highways drainage or winter maintenance.
May Gurney is the market leader in highways maintenance services to local authorities, maintaining over 37,000km of roads and more than 500,000 street lights and illuminated signs across the country. It deliver highway services to eight councils and 10 London boroughs, all under long-term contracts.
And this business has been further boosted by being named preferred bidder for three new long-term highways maintenance contracts for Surrey County Council with a combined value of up to £93m (6 years plus a possible 4 year extension).
Other contract awards in the past six months include:
· New AMP5 contract for Essex & Suffolk Water (Northumbrian Water) worth up to £30m (33 months plus possible extensions of 2 and 5 years) and a design and build contract worth up to £8m (4 years plus possible extensions of 4 and 2 years).
· New AMP5 contract with Bristol Water worth up to £12 million (4+ years to March 2015).
· A three-year extension to its long-term street lighting contract with the London Borough of Waltham Forest worth up to £3m and a two-year extension to the street lighting contract with the London Borough of Bromley worth up to £3m.
· New environmental services contract for West Oxfordshire District Council worth up to £36m (7 years plus a possible 7 year extension).
· Property Framework contract with Network Rail has been extended by two years, plus possible enhancement works.
· New three-year contract with Nexus for the refurbishment and upgrading of the Tyne & Wear metro.
Commenting on the results, chief executive Philip Fellowes-Prynne said: "May Gurney delivers essential front-line services to more than 18.5 million people across the UK with 95% of our business represented by long-term contracts. Over the first half-year we have achieved another period of turnover and profit growth. We have further strengthened our cash position, maintained our forward order book at £1.4bn and have a sales pipeline worth in excess of £4bn, along with winning several significant new long-term contracts and extensions worth over £200m.”
He added: “The current market conditions have resulted in further opportunities for May Gurney. With our solid order book, excellent earnings visibility, focused acquisition strategy and continued strong cash generation we have confidence in the Group's future success.”
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