The company said its performance has been driven by an increase in highways maintenance on the back of new Government funding, activity in AMP5-related contracts and the successful integration of Turriff.
In the first half, May Gurney was also named preferred bidder for two new long-term contracts. Bristol City Council's waste collection, street cleansing and winter maintenance contract is valued at around £96 million over seven years, with a potential seven-year extension and mobilises in November. Cheshire West and Chester Council's waste and recycling contract, is valued at up to £126 million for a fourteen-year period with the potential for a further seven year extension.
The company’s latest acquisition,Turriff, has now been fully integrated into May Gurney, providing access to the UK's £1.8 billion gas market as well as a platform to deliver growth in the Scottish market.
In the light of a strong first-half performance, the Group said it expects to perform ahead of current market expectations for the year ending 31 March 2012. May Gurney’s forward order book has increased to £1.5 billion (including framework agreements but excluding extensions), and its pipeline of sales opportunities is worth in excess of £4 billion.
Philip Fellowes-Prynne, Chief Executive, commented:
"During the first six months of the current financial year, we have continued to build on our strong performance in 2010/11 and have grown our forward order book to £1.5 billion.
The support services market remains cost competitive as clients seek to drive more value from their front-line services and demand innovation from their outsourcing partners. As a market leader in delivering transformational essential services to 24 million people across the UK, May Gurney is well-placed in this challenging environment.
Specifically, we see an increasing trend of clients looking to work together to deliver shared services across the public and regulated markets. Our long experience of collaborative working, together with our unique geographic footprint and integrated operational resources, means that we are well-placed to support this shift.
May Gurney's first half performance, combined with our increased order book, new business wins, sales pipeline, and established market position, provide us with good long-term earnings visibility ".
May Gurney's interim results for the six months to 30 September 2011 will be announced on 1 December 2011.
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