Infrastructure services and engineering maintenance specialist Amey UK has reported higher pre-tax profits for 2022, despite setting aside more than £100m to cover expected future losses on contracts.
In its latest financial statement, covering the year to 31 December 2022, the company reported a pre-tax profit of £86.4m, compared with £82.0m in 2021. It also reported group revenue of £2.08bn from continuing operations, down. 11 percent of the £2.33 billion in 2021.
The rise in profits came despite “provisions for future losses” being set aside in 2022 of £108.7m. The accounts say this figure “reflects judgments made in the accounts of the group’s immediate holding company following the acquisition of the group to 30 December 2022”.
Late last year, US-based private equity firms One Equity Partners (OEP) and Britain’s Buckthorn Partners bought Amey for £264.2m from Ferrovial.
The transfer of ownership meant that Amanda Fisher left as chief executive of Amey. She was replaced by Andy Milner, returning to the role held from 2015-19.
In the latest accounts, Milner said the acquisition “brings to an end a long period of uncertainty since 2018”, when Ferrovial announced its intention to divest its services portfolio.
He added: “With the support of our new shareholders, Amey is now in an excellent position to take advantage of the opportunities presented by the UK Government’s £600bn commitment to infrastructure spending, continued investment in the leveling of financing and on the path of the energy transition to get there. net zero”.
Milner said the drop in income reflected the end of “Next Generation Estates” contracts with the Defense Infrastructure Organization (DIO), which is part of the Ministry of Defence.
This was offset by increased revenue from the company’s transportation infrastructure and consulting units, which “capitalized on new business wins,” as well as revenue from a replacement military housing contract with the GOD
Amey won new transport infrastructure business by 2022 worth a total of £834m, including a £540m contract over eight years from Transport Scotland to manage the main road network. The company’s transport infrastructure order book stood at £3.88bn at the end of the year.
On the company’s future ambitions, Milner said: “We are excited about the enhanced growth opportunities Amey will have as an independent company.”
He said the company will invest in core capabilities and analytical and data skills, adding: “With the help of Buckthorn and OEP, we will also look at M&A [merger and acquisition] opportunities”.
In addition, the company has “launched a review of our functional and operational structures to ensure that we are more focused on the needs of our customers in the future”.
Milner said: “Amey is a healthy business with a strong existing portfolio. The change in our future direction will be an evolution and we remain committed to fulfilling our existing contracts. But 2023 marks the start of a new chapter , as we focus on growing the business and helping our customers tackle some of the biggest challenges of our time.”
