Amey suffers £98m loss after further contract provisions

Aaron Morby 2 months ago
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Amey has suffered another major pre-tax loss as it battles to restructure the business.

Chief executive Amanda Fisher says Covid and provisions overshadow a strong trading performance in the underlying core businesses
Chief executive Amanda Fisher says Covid and provisions overshadow a strong trading performance in the underlying core businesses

The Ferrovial-owned firm reported a £98m pre-tax loss last year as it battled with loss-making contracts in highways and waste treatment.

The firm revealed that it was progressing with plans to sell its waste collection and utilities businesses, but had failed to find a buyer for waste treatment operations.

Amey said it would continue to invest in completing the construction and commissioning of its Isle of Wight treatment plant but would still classify the business as non-core while it reviewed its future.

Over the year, group revenue on continuing operations dropped 6% to £2.14bn.

Operating losses before exceptionals across the three main business streams of transport infrastructure, secure infrastructure and consulting reached £29m due to the impact of Covid, up from the £21m loss previously.

Exceptional losses of £62m, included £40m for Amey’s Milton Keynes waste treatment contract and £10m for the Isle of Wight.

A further £10m loss is provided for on the Sheffield City highways maintenance contract and £3m for various utility contracts.

To support the business, parent Ferrovial agreed to inject further investment converting £112m in debt into equity.

Amey 2020 divisional trading
Profit/loss £m Revenue
Transport infrastructure -£57m £812m
Secure infrastructure £59m £1.1bn
Consulting £16m £119m
Non-core/ sale
Environmental treatment -£84m £84m
Waste collection -£7m £85m
Utilities (power and metering) -£18m £150m

Chief executive Amanda Fisher said: “We have a strong order book operating in markets critical to the bounce back of the economy as the recovery from the pandemic continues.

“We see an improving trajectory in 2021 and beyond and with this, confidence that we can create long-term value for both customers and shareholders.”

She also confirmed that Ferrovial Group was continuing to seek to divest its services portfolio of businesses including Amey, while continuing to support the business.

 

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