Yet outsourcing company sees no sign of extra demand from cash-strapped authorities
Infrastructure support company May Gurney has announced a boost in its revenue of almost a fifth.
Revenues climbed 18% to £571.4 million for the year to 31 March 2011 from £483.1 million in 2010.
Real-time Share PriceThe yearly average dividend grew from 5.5p to 6.6p, and the company said it has an order book of work worth £1.4bn.
Yet pre-tax profit did not rise in step with revenue, growing from £18.4m in 2010 £18.8m in 2011.
The firm, which does 95% of its business in the public sector, said it had not seen a rise in work as government tries to use outsourcing companies to save money, but was hopeful it would profit eventually.
“A number of industry commentators have predicted a ’bow wave’ of outsourcing as a result of the CSR. Although we have not seen a surge in demand as yet, there is no doubt that the pressures that budget cuts are placing upon local government finance will increasingly force local authorities to consider outsourcing to deliver services more efficiently,” it said.
Olympic Park Legacy Committee boss Margaret Ford was appointed non-executive director on 20 May 2011, and will become non-executive chairman on 6 July 2011.
Philip Fellowes-Prynne (above), chief executive, said: “May Gurney has once again delivered a strong financial and operational performance with continued turnover and profits growth, healthy cash generation and significant new business wins providing organic growth and long-term earnings visibility.
“During the year, we have undertaken exceptional levels of strategic contract mobilisations and bids, as well as successfully acquiring Turriff, one of Scotland’s largest utility infrastructure maintenance companies.”