Infrastructure contractor and consultant Amey has delivered ahead of expectation in its first year under private equity ownership following Ferrovial’s decision to offload the business for £400m.
The firm has significantly boosted its order book and lifted its contract bidding win rate to one in three projects, compared with a success rate of just one in 14 under the ownership of Ferrovial when it suffered significant losses.
Andy Milner, chief executive of Amey, said: “In the first full year of new ownership, Amey has performed well, ahead of expectations and in line with the growth strategy I set out when I rejoined Amey at the end of 2022.
“The business demonstrated in 2023 that, unincumbered from discontinued operations disposed of in 2022, it is capable of significant cash generation.”
Amey trading by divisions*
2023
2022
Revenue
Op. profit
Revenue
Op. profit
Transport Infrastructure
£1.18bn
£35m
£1.05bn
£34m
Complex facilities
£503m
£24m
£439m
£34m
Consulting
£204m
£23m
£202m
£23m
Non Core#
£61m
£10m
£530m
£80m
*Excluding exceptionals #Legacy contracts to be completed
Profit after tax for the year to December 2023 on continuing operations increased to £84m (2022 – £72m) while revenue slipped to £1.8bn (2022- £2.1bn).
During this period the group generated an £80m cash inflow (2022: £10.4m outflow) even after payments
made against historic contract loss provisions of £31m.
Milner added: “With the support of our investors, One Equity Partners and Buckthorn Partners, we have accessed new opportunities, particularly in energy transition and decarbonisation where we are able to develop, implement and manage practical infrastructure solutions.”
A change in focus and approach last year led to significant success in work winning with Amey’s order book increasing 23% to £7.6bn.
“The core activity in Consulting, Transport Infrastructure and Complex Facilities combines to be a very focussed business, free of discontinued activity which was disposed of in 2022,” said Milner.
Amey is now also looking to diversify its sector presence and capability through acquisitions and by using its existing and emerging digital platforms to grow its international advisory and consulting offer.
Milner said: “This strategy will deliver sustainable infrastructure excellence and continuous data-enabled improvement for our customers and stakeholders that aligns with our vision of enabling a zero-carbon economy adaptive to climate change and enhancing the natural environment.”
Since the year-end, Amey completed the refinancing of its borrowing facilities with a replacement £235m five-year syndicated facility with six lenders.
Part of this facility, together with the group’s excess cash, was used to repay £159m to Ferrovial, in early settlement of due payments following the purchase of Amey.
