Amey has posted a pre-tax loss of \u00a3428m for the year to 31 December 2018, hampered by a long list of exceptional items including \u00a3123m on the failed Birmingham City Council Highways PFI contract.<\/p>\n
The losses also include a \u00a3314m write down on the waste collection and utilities businesses as the highways and environmental divisions all made losses before exceptional items.<\/p>\n
However, the other areas of the business such as consulting and rail facilities management, justice and defence posted profits.<\/p>\n
Overall the group revenue increased to \u00a32.32bn from \u00a32.2bn and results show Amey UK made a pre-tax profit of \u00a3208,000 before exceptional items.<\/p>\n
Amey finalised a deal at the beginning of July to pay \u00a3215m to terminate its troubled Birmingham highways maintenance PFI contract.<\/p>\n
Parent company Ferrovial said that the agreement would see \u00a3160m paid in 2019 and the remaining\u00a0\u00a355m over the next six years.<\/p>\n
Amey\u00a0will\u00a0continue to provide services on\u00a0an interim\u00a0basis\u00a0until\u00a030\u00a0September 2019,\u00a0and it said this period may be\u00a0extended until\u00a031\u00a0March 2020.<\/p>\n
\u201cRelease from this difficult contract is hugely significant for the group and enables the business to capitalise on the major changes that have been made over the past three years and focus on success,\u201d said chief executive Andy Milner.<\/p>\n
Parent company Ferrovial put Amey up for sale late last year and has since reduced its valuation of the business to \u00a388m.<\/p>\n
\u201cIn 2018, the group has recorded and exceptional cost of \u00a3123.2m as part of the overall cost of exiting from Birmingham City Council Highways PFI contract, which has suffered from high level performance deductions and penalties applied by the contract,\u201d a company statement said.<\/p>\n
\u201cIncluded in this amount is \u00a395m of additional provisions for the cost of exiting the contract and \u00a335m in respect of impairment of loan balances plus accrued interest receivable from Amey Birmingham Highways Holdings Limited, which is now in administration.\u201d<\/p>\n
In 2017 the company’s exceptional charges on the Birmingham contract were \u00a3208.5m.<\/p>\n","protected":false},"excerpt":{"rendered":"
Losses include \u00a3123m on the failed Birmingham City Council Highways PFI contract<\/p>\n","protected":false},"author":237924,"featured_media":1093894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"coauthors":[62334],"class_list":["post-2032431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-top-story"],"yoast_head":"\n