May Gurney has reported profit of 7%, as it published its preliminary results for the year ended 31 March 2010 today (2 June).
The infrastructure service support company’s underlying profit has risen from £20.2m up to £21.6 – and increase of £1.4m over the past year.
According to the company, its contract wins which have lead to a record order book of more than £1.7 billion have helped secure its strong position. This includes its landmark £130m bundled services joint venture with Torbay Council announced in March this year.
Commenting on the results, chief executive Philip Fellowes-Prynne said: “May Gurney remains well positioned in all of its core markets to provide clients with outsourced solutions which implement change, restructure services and achieve efficiency savings. The resilience of our target markets, coupled with our consistent operational performance, excellent visibility of earnings, focused strategy and strong balance sheet leaves us confident in the group’s future success.”
Over the past year its environmental services branch has won contracts totalling £344m. This includes a £14m contract to manage North Yorkshire County Council’s Household waste and recycling centres over seven years for £24m, North Somerset Council awarded May Gurney the contract to deal with its recycling, waste collection, food waste and manage its HWRCs for £85m and Bridgend Couty Borough Council awarded it £75m to provide a bundle of services including recycling, food and waste collections and the management of its HWRCs.
The firm is confident that proposed public sector cuts will not impact on its growth as local authorities are driven to address waste issues and may increasingly consider outsourcing services as a solution. In its preliminary review May Gurney stated: “We believe the combination of spending cuts and increased demand for local services will drive local authorities to seek increasingly innovative solutions” such as its recently agreed joint venture with Torbay Council.