Road repair spending boosts May Gurney

Higher than expected spending on highways maintenance helped May Gurney boost turnover and profits during the six months to September 30.

Results posted this week show revenue up 21% to £351m while pre-tax profit increased to £14.5m from £12m.

The firm said: “This strong H1 performance was driven primarily by an increase in highways maintenance on the back of new Government funding.”

May Gurney has a forward order book of £1.5bn and is working on potential contract extensions of a further £1bn.

But the firm is wary about any future drop in highways maintenance spending which would result in cost cuts at the division.

It currently maintains roads for ten County Councils and 11 London Boroughs looking after 38,870 kms of the UK total of 285,000 kms of roads.

May Gurney said: “The business is well positioned to react appropriately in the event of a reduction in spending in our target markets, and our guidance continues to reflect a degree of uncertainty surrounding a potential reduction in highways maintenance activities in the coming year.”