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May Gurney’s group revenue was up 18% to £571.4m (2010: £483.1m), aided by some 10 weeks trading from Turriff, acquired in late January with a £90m order book. Turriff will be rebranded as May Gurney in October.
Pre-tax profit was £18.8m, slightly ahead of the £18.4m made the previous year.
Profit before interest, taxation and amortisation (EBITA) was up 14% to £25.1m, representing an operating margin of 4.4%, down from the previous year’s 4.6%, after bidding and mobilisation costs were written off as incurred during the year.
New contracts, contract renewals and extensions secured total more than £350m. All are through long-term relationships. The order book stands at £1.4bn (including framework contracts but not extensions) and the sales pipeline at more than £4 bn.
Cash generated from operations of £28.6m represents more than 100% of EBITA
The company has no long term debt and netcash of £10.9m (2010: £29.2 million), after funding acquisition of Turriff.
Chief executive Philip Fellowes-Prynne said: "May Gurney has once again delivered a strong financial and operational performance with continued turnover and profits growth, healthy cash generation and significant new business wins providing organic growth and long-term earnings visibility. During the year, we have undertaken exceptional levels of strategic contract mobilisations and bids, as well as successfully acquiring Turriff, one of Scotland's largest utility infrastructure maintenance companies.
Our strong financial position is the result of our proven strategy of focusing on developing long-term relationships with our clients for the delivery of essential front-line maintenance and enhancement services, a market which is worth £22 billion per annum and reaches 24 million people across the UK.
With our consistent operational performance, strong balance sheet and the underlying trends within our chosen markets, we are confident in the Group's continued future success."
More than 95% of May Gurney’s business is in delivering long-term essential services to the public and regulated sectors.
Year highlights include an 18-month contract extension for a highways maintenance contract with Norfolk County Council, valued at up to £50m, and a new long-term highways maintenance contract with Surrey County Council, worth up to £93m over six years (plus a possible four year extension).
Since April 2011, in just the last two months, May Gurney has secured three-year extension to its highways maintenance contract with East Sussex County Council, valued at up to £60m and a new long-term contract for street lighting with the Royal Borough of Richmond upon Thames valued at up to £5m, as well as rail and water wins and renewals.
Baroness (Margaret) Ford of Cunninghame, chairman of the Olympic Park Legacy Company, is taking over from David Sterry as non-executive chairman of May Gurney at the agm. Gurney at the agm in succession to David Sterry , , becomes non-executive chairman of May Gurney at the agm
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