May Gurney considers closing public building arm

Aaron Morby 12 years ago
Share

May Gurney is considering closing its facility services business as part of an ongoing restructuring of the group.

The division, turns over around £40m and employs around 50 staff, carrying out building and repair work for local authorities, specifically for schools and regional frameworks.

It has a place on the SMART south east framework and is working on North Lincolnshire and Lambeth BSF programmes.

May Gurney issued a trading statement this morning saying that it had reorganised its business into two clear trading divisions: public sector services and regulated services.

The restructuring and redundancy programme is on-going with around £2.9m set aside for redundancy payments.

May Gurney chief executive, Philip Fellowes-Prynne, said: “We expect the coming financial year to be one of consolidation for May Gurney, as we focus on driving margins on our newly-won environmental services contracts and bedding-in our internal reorganisation to ensure that it achieves planned efficiencies.

“The performance within the facility services business, which represents 7% of the company’s group turnover, proved disappointing.

“This is a non-core division and the company is reviewing its options, to include closure.”

May Gurney said it was on track to deliver year-end results in line with growth expectations.

The second half was driven by higher than expected revenues from its local authority highways maintenance business and a good performance from its long-term utility services contracts in repair and maintenance and M&E.

This has been balanced by newly-won environmental services contracts which are achieving recycling rates above client expectations, but are taking longer to reach their expected margins.

A small number of under-performing projects in Scotland were discontinued.

Latest news

Four arrested in £140m property fraud probe

Serious Fraud Office investigating collapse of property developer Signature Group
15 mins ago

London £3bn housing framework out to tender

SMEs allocated slots on London Construction Programme housing framework refresh
6 hours ago

BAM wins first major RAAC school rebuild

Contractor seals £46m deal for St Leonards school in Durham
6 hours ago

Failed strip out specialist owes £1.5m to supply chain

More than 100 subcontractors and suppliers left with unpaid bills by Type Ten Limited
7 hours ago

Councils to turn screw on building owners over fire safety upgrades

Government tells councils to step up legal action against rogue building owners
7 hours ago

Green light for £300m Fenland energy from waste scheme

Wisbech incinerator will generate 50MW from half a million tonnes of waste
20 hours ago

Multiplex starts on 50-storey Thames tower

Developer green lights construction of latest phase of £3bn Bankside Yards scheme
1 day ago

McLaren lodges fresh Reading Broad Street Mall plan

Town centre scheme will deliver 600 homes in four towers
1 day ago

Beard bags £24.5m Bristol office revamp

Construction to start in April
6 hours ago

SMEs star in £3.2bn social housing upkeep deal

Around 85% of Efficiency North's framework winners are local firms
1 day ago

Scottish NHS new building projects delayed for two years

Spending clampdown hits over a dozen planned projects
1 day ago

Balfour M25 workers hold strike ballot

Motorway maintenance crews unhappy with 3.4% pay rise offer
1 day ago

Rainsford Contracts acquires M&E specialist

Expanded contractor will have turnover of £45m
1 day ago

Statom expands with launch of Northern HQ

RC frames specialist now targeting jobs in Scotland and north of England
2 days ago

High Court dismisses Stonehenge tunnel challenge

Judge quashes legal challenge against Government consent for £1.7bn job
2 days ago

£1.5bn Teesside carbon capture scheme consented

Final investment decision expected this year for construction start
2 days ago

First viaduct steel section installed at HS2’s complex junction job

Victor Buyck Steel Construction install first 300t viaduct section
2 days ago

Sister scaffold firms file administration notices

BCM Scaffolding Services and Scaffteq West employ 100 people between them
2 days ago

McLaughlin & Harvey suffers £8.6m loss

Cost inflation and Scottish landfill tax legislation hit Antrim-based group
2 days ago

Regulator opens probe into National Highways delivery

ORR concerned about 'dip in performance' on capital projects
2 days ago

Sir Robert McAlpine chief Paul Hamer exits

Hamer replaced as CEO by former Lendlease Europe boss Neil Martin
5 days ago

Unite Students to build £250m Newcastle scheme

Work to start this summer on revamp of Castle Leazes site
2 days ago

Britcon poaches Tilbury Douglas business development chief

Don Stewart joins Britcon board as strategic director
2 days ago

Building control system on verge of collapse

Calls to delay new registration scheme
5 days ago

Go-ahead for UK’s largest mass timber structure neighbourhood

Visionary 685-home sustainable village will be built in Lewes, East Sussex
5 days ago

£90m Manchester zig-zag library approved

Work to start this summer on iconic city centre building
5 days ago

Mace clear to start £34m weather-watching HQ job

Planning granted for European Centre for Medium-Range Weather Forecasts
5 days ago

Ford Dagenham site revamp to hit nearly 4,000 homes

Latest phases approved for £1bn Beam Park redevelopment
5 days ago

Sisk names new data centres regional director

John Hennessey appointed to lead expansion
6 days ago

Balfour starts £171m Sussex Uni student DBFO job

West Slope Residences will provide 1,900 bedrooms
6 days ago

Contractor services