Spanish parent says it is facing £208m writedown after dispute with council
Amey’s Spanish parent Ferrovial has reported a loss of €161m (£142m) for the first quarter of 2018, blaming it largely on Amey’s problem road job in Birmingham.
The first-quarter loss includes a €237m (£208m) writedown for possible losses on Amey’s contract with Birmingham City Council.
The firm is responsible for maintaining highways for Birmingham city council, but has been involved in a long-running legal dispute with the council about the contract.
Amey was named preferred bidder for a £2.7bn PFI contract with the council in 2009, to look after its highways for 25 years.
By 2014 the two parties were disputing the contract specification and have been in and out court for the past four years.
The ongoing legal dispute was heard in the court of appeals earlier this year, which found in favour of the council.
Ferrovial said Amey’s decline in activity across the UK had also had a negative impact on its first quarter profit.