May Gurney Integrated Services plc, the infrastructure services company, announced this morning that it has secured two new long-term AMP5 framework contracts with Wessex Water with a combined value of up to £65 million.
Beginning in April 2010, the contracts cover the whole Wessex Water region for an initial period of five years (with a combined value of up to £65 million) plus possible extensions.
The 'Strategic Grid' framework contract, valued at up to £40 million over the first five years, covers the reinforcement of Wessex Water's strategic supply mains system including pumping stations and large pipelines.
The 'Network' framework contract, valued at up to £25 million over the first five years, includes mechanical and electrical (M&E) activities associated with asset upgrade, maintenance and new build at water treatment and waste water treatment facilities.
Philip Fellowes-Prynne, Chief Executive of May Gurney, said:
"We are delighted to have been awarded two new long-term contracts for Wessex Water, which further consolidates May Gurney's position as a leading provider of essential support services to the water industry. We were chosen because of our proven track record of developing successful long-term partnerships to deliver great performance, the technical expertise of our M&E teams and our industry leadership on environmental and waste management issues."
More than 95% of May Gurney's business is represented by long-term contracts in the public and regulated sectors, which, together with a strong £1.4 billion forward order book and a healthy pipeline of future opportunities, provides high visibility of earnings.
The new long-term contract wins, coupled with the recently announced £170 million long-term Integrated Water Distribution Services contract for South West Water, further consolidate May Gurney's strong utilities market position and supplement the £500 million in new long-term contracts and extensions already won during the first half.
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