News on 13 September 2000
Amey plc has improved pre-tax profits by 41% to £13.72m on turnover
up 32% at £298.3m for the 6 months to the end of June. Average operating
profit margin improved by 40% to 6.5%. The company's forward order book
now stands at £2,200m with £580m of 2001 revenues already
secured.
Amey proposes a 5% share placing to fund PFI/PPP opportunities, expected
to raise around £27 million. The Amey Board is also recommending
a 5 for 1 share split which it believes will increase the marketability
of its shares and will be seeking approval from shareholders at an EGM.
Neil Ashley, Chairman, commented: "Our strategic approach to the
support services marketplace is paying off, with our order book at an
all time high. The first half of this year has been characterised by major
contract wins, renewals and extensions of existing contracts and growth
of contract values. These many successes have resulted in a strong increase
in our future secured workload.
"The second half of the year has started well and we are on course
to achieve our profit expectations."
In his statement Chief Executive Brian Staples said that Amey's two-year
old strategy to transform itself from a construction business into a leader
in the provision of support services had proved successful: "We are
now approaching the end of our planned exit from conventional construction
activity, and by the year end that process will be complete."
Although the transition to higher value services has helped to improve
margins Amey is not leaving its roots behind entirely. A new unit, Amey
Asset Services, has been formed from the original construction division.
The company says it has a unique ability to integrate asset provision
with its offering of 'upper echelon business support services and infrastructure
management'.
Amey sees continued growth in the outsourcing markets it serves and says
the Government’s modernisation agenda will provide major opportunities.
Local authorities, education and health as well as PFI and PPP are all
identified as target markets. The company also comments on encouraging
business changes in the utility and transportation sectors.
According to Staples: "Property orientated outsourcing is increasingly
at the heart of many new opportunities flowing from both the public and
private sectors. In that scenario, the liberation of value from property
estates runs hand in hand with the provision of business services."
- Amey and Group 4 in partnership have won the fast-track contract to
design, build and operate a 900 bed detention centre at Thurleigh in
Bedford for the Immigration Service. The centre will be delivered under
a special terms contract by Amey Asset Services. A new company Group
4 Amey Immigration Services Ltd will have responsibility for the construction
and maintenance for 6 years, worth in the region of £80 million.
