May Gurney has been awarded a £93 million core maintenance contract on behalf of Surrey County Council.
The firm announced the win, beating off rivals Balfour Beatty, Enterprise, Colas and Skanska, with the release of a strong set of half-year results posting a 19 per cent rise in underlying pre tax profit to £12.0m from £10.1m for the period to September 30.
Neither of the incumbents on the council’s existing maintenance contracts appeared on the shortlist.
Vinci subsidiary Ringway, currently working on the network in the west of the county, was not invited to tender despite submitting a pre-qualification questionnaire in May.
The other incumbent Carillion – responsible for maintenance in the eastern half of Surrey – decided not to tender for the contract.
May Gurney has secured long-term contract extensions with a combined value of £200m and signed 16 new contracts over the period. Its forward order book has been maintained at £1.4bn.
Chief executive Philip Fellowes-Prynne said: “Our strong H1 performance reflects excellent organic year-on-year growth and has been underpinned by a good performance in the local authority highways sector on the back of a severe winter and a dry summer, combined with an accelerated delivery of contracts in the rail sector, resulting in a change in our H1/H2 revenue profile compared to previous years.
“In line with our performance we have adopted a more progressive dividend policy and increased the interim dividend to 2.08 pence per share, up 16 per cent on the same period last year.
“The Comprehensive Spending Review, that will lead to reduced budgets and the removal of ring-fencing, is driving our clients to pursue a variety of different approaches to deliver better outcomes from their front-line services, with an increasing propensity to outsource.
“Our ability to design and implement multi-service (or bundled) solutions and our wide service portfolio, along with our deep long-term relationships, leaves us well placed to support them.