May Gurney's preliminary results for the year ended 31 March 2009 show a tenth consecutive year of turnover and trading profits growth, a strong cash position and a buoyant forward order book.

The company reported its trading profits rose by 16% to £20.5 million, and it has a net cash of £18.6 million and no debt.

Commenting on the results, Philip Fellowes-Prynne, Chief Executive, said: "We are delighted to report record turnover and trading profits for the tenth year in succession, together with a strong cash position, a buoyant forward order book of more than £1.25 billion and a healthy pipeline of sales opportunities in our core markets.

"May Gurney's target markets have proven resilient in the current economic environment and we continue to benefit from a good level of future earnings visibility, with more than 95% of our business in dependable long-term contracts to deliver essential front-line services for our clients in both the public and regulated sectors.


"Throughout the year we have achieved significant organic growth by using our established client relationships and wider service offering to secure a number of new long-term contracts.

"We have also continued to pursue selective complementary acquisitions, such as our £14.9 million acquisition of ECT Recycling, which has significantly enhanced our capabilities in the local government environmental services market.

"Effective cost management and operational efficiency are key priorities for our business in order to deliver better value for our clients. We firmly believe that focusing on these operational areas now will mean that we are better prepared for the future."

The company has also been awarded new long term business:

• British Waterways: worth £80 million over 4 years
• Preferred bidder for North Lincolnshire Council Building Schools for the Future programme: worth £80 million for the first 5 years of a 10 year contract
• New Household Waste Recycling Centres (HWRCs) contract for Essex County Council: £16 million over 4 years
• Western Power Distribution contract: worth £24 million over 3 years
• Contract extensions totalling £150 million for our long-term clients Network Rail and Norfolk County Council

(CD)