Beginning in March 2011, the Anglian Water Programme Partner Civil and MEICA contracts cover the whole Anglian Water region and will run for an initial three years. With an anticipated combined value of £20m over the three year period, the contracts include activities associated with asset upgrade, maintenance and enhancement of water treatment and waste water treatment facilities.
May Gurney has also expanded its existing long-term relationship with South West Water to be the sole contractor for developer services, mains laying and water rehabilitation. The initial contract period of four years is valued at up to £23m, with a possible extension of a further six years.
The contracts add to a strong six months for the contractor, which says it is now on course to deliver final results for the year to 31 March “towards the top end of market expectations”. In the first six months of its financial year it took less than £100m in new contracts and contract extensions/renewals. In the second half it took more than £245m, bringing the total for the full year to £345m. Higher than expected revenue from its local authority highways maintenance business, repairing potholes, contributed strongly.
The company's order book now stands at £1.4bn and the sales pipeline at more than £4bn.
In its pre-close trading update, May Gurney said that it would take a £1.9m hit on the closure of its geotechnical and piling businesses.
Chief executive Philip Fellowes-Prynne said: "It's been a strong and successful year for May Gurney with exceptional levels of new contract mobilisations and bidding, together with our entry into the Scottish support services market through the acquisition of Turriff.
"Our collaborative approach to delivering a wide range of integrated essential services continues to be in high demand from the public and regulated sectors. Our ability to design and implement transformational front line services, combined with our experience of engaging with clients and local communities in long-term partnerships, are important market differentiators.
"May Gurney's performance continues to be driven by a robust business model, deep long-term client relationships, assured operational delivery, strong order book and a substantial bidding pipeline."
The preliminary results will be announced on 1 June 2011.
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