Amey reports £98m loss as it struggles to restructure the business

Amey reports £98m loss as it struggles to restructure the business

by Pranali Mehta

Amey, a Ferrovial-owned company, has reportedly recorded another pre-tax deficit for 2020. Owing to loss-making contracts in roads and waste treatment, the company has reported a total pre-tax loss of £98 million. As per reports, in 2019, the company had suffered from a loss of more than £217 million.

Meanwhile, the firm has also disclosed that it was moving through with plans to sell its garbage collection and utility business, but it had been unable to find a buyer for its waste treatment operations.

Amey has said it will continue to invest in finishing the construction and commissioning the treatment facility Isle of Wight but it would still designate the business as non-core while it evaluated its options.

Group sales from ongoing operations fell 6% year on year to £2.14 billion.

Operating losses before exceptionals in the three primary business streams of transportation infrastructure, secure infrastructure, and consultancy climbed to £29 million as a result of the COVID-19 pandemic, up from previous loss of £21 million.

The overwhelming loss of £62 million, comprised Amey's Isle of Wight waste treatment contract for £10 million and Milton Keynes for around £40 million.

A further £10 million loss is budgeted for the Sheffield City roads maintenance contract and £3 million for other utility contracts.

To help the company, parent firm, Ferrovial, decided to spend more money, turning £112 million in debt into stock.

Amanda Fisher, Chief Executive Officer at Amey, stated that Amey has a robust order book, operating in markets critical to the bounce-back economy as the pandemic recovery continues. Moreover, the company expects a better trajectory in 2021 and beyond, and the company is confident that it will be able to build long-term value for both consumers and shareholders.

Fisher also acknowledged that Ferrovial Group was still looking to divest in its services portfolio of different businesses, including Amey, while keep up the support for the company.

Source credits: https://www.constructionenquirer.com/2021/06/16/amey-suffers-98m-loss-after-further-contract-provisions/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...