The firm said: “Trading in the first half has been strong, reflecting solid organic year-on-year growth, an accelerated delivery of contracts in the rail business and a good performance in the local authority highways sector on the back of dry summer weather.

“In the first half, we have secured a number of new contracts and contract extensions including those previously announced with West Oxfordshire District Council, Essex & Suffolk Water (Northumbrian Water) and Network Rail, and a newly awarded three-year extension to our long-term street lighting contract with the London Borough of Waltham Forest.

“In addition, we are in the midst of a strong bidding period, including a number of AMP5 awards which are outstanding.

“Given this first half performance, the Board believes that the Group will achieve the top end of market expectations for the full year 2010/11. Our solid £1.4bn order book and healthy pipeline of sales opportunities in our core markets, worth in excess of £4bn, provide us with good long-term earnings visibility.”

Philip Fellowes-Prynne, Chief Executive, commented: “This strong performance is a result of our consistent operational delivery, long-term customer relationships and strategic focus on providing essential front line services.

“More than 95% of May Gurney’s business is represented by long-term contracts and the Group has an established market position, delivering essential services to more than 18.5 million people across the UK.

“Our collaborative approach with our customers and emphasis on transformational service design means that May Gurney is already providing innovative, efficient and cost effective solutions to its long-term clients, which meet with the Government’s current agenda.

“May Gurney’s established position, addressing markets worth around £16bn per annum, and business model mean that we believe we are well placed as the October Comprehensive Spending Review measures are announced.

“May Gurney’s strong performance, combined with our healthy order book, contract wins and extensions, good sales pipeline and established market position, gives us confidence about our prospects for the current financial year and beyond”.

Interim results for the six months to 30 September 2010 will be announced on 1 December 2010.