Amey plc’s business process outsourcing and infrastructure management divisions contributed almost 70% of the company’s turnover and virtually all its profit last year. Support services turnover was up from £237,031,000 to £360,969,000 and profit rose from £16,674,000 to £34,827,000. The company says the creation of the Asset Services Division ‘signals the start of the final phase of our withdrawal from the conventional construction marketplace’. The acquisition of Comax triggered a re-classification to the FTSE support services category. Amey is also launching two new divisions Utility Services and Technology Services to address major growth opportunities.

Amey’s pre-tax profits before restructuring costs and after interest rose 54% to £28.72m but the costs of the Comax acquisition and integration (£153) reduced profit on ordinary activities before taxation to £6.58m.

Amey’s Chairman said: "1999 was a watershed year for the Amey Group, with the Comax acquisition triggering a re-classification to the FTSE support services sector. Comax is now fully integrated, the promised costs savings are secured and the anticipated synergy benefits are being delivered.

"The increasing influence of the Internet is dramatically changing the way in which business is conducted, both in the UK and worldwide. We believe that these changes present Amey with an abundance of opportunities to drive the Group’s future growth. Since our core skill is in assisting change in both the public and private sector, we look to the future with considerable optimism."

Amey has conducted a review of the impact of e-commerce and internet technology which identified five areas of opportunity: infrastructure support for web-based businesses; e-business in the public sector; adding a web based component to key Amey business units; reducing the cost base; technology partnerships to offer clients integrated services.

Amey’s Business Process Outsourcing Division announced £100m of new work including the first renewal of its contracts with DERA; secure support to the Foreign and Commonwealth Office; transport contracts with Calderdale Local Authority and Serco Rail; recruitment for Hewlett Packard and contracts with Centrica.

Richard Byatt