Turriff already pays its ways says new owner May Gurney

ENGINEERING firm Turriff is already generating profits for new owner May Gurney, which bought the Aberdeenshire-based business in January.

Utilities contractor May Gurney splashed out £13.6 million for the Scottish company as a springboard for expanding the business north of the Border.

In June, the Norwich-based group unveiled plans to double Turriff’s turnover to £80m over the next five years.

The firm yesterday unveiled record interim results, with turnover up 21 per cent to £351m in the six months to 30 September. Stripping out the effect of the Turriff takeover, revenues grew by 14 per cent.

Underlying pre-tax profits increased by 21 per cent to £14.5m, allowing the company to increase its interim dividend by 34 per cent to 2.79p.

Buying Turriff helped May Gurney to push up the margin in its regulated services business – which includes work with gas, power and water companies – to 3.7 per cent from 3.4 per cent.

Chief executive Philip Fellowes-Prynne said: “The integration of Turriff is now complete, consolidating our position in water and gaining entry to the UK’s £1.8 billion gas market and Scotland’s £2.4bn support services market, and it is already contributing to group earnings.

“We have completed the mobilisation of the Scottish Water contract and have started work in England for Southern Gas Networks, leveraging the resources of our utility services and highways teams.

“We have successfully completed a high-profile gas mains replacement project in the heart of Edinburgh. The project is part of Scotland Gas Networks’ policy replacement programme to replace all metallic gas pipes within 30 metres of property within the next 30 years.”

Numis analyst Francesca Raleigh said: “Interims are bang in line with expectations. This is our preferred stock in the blue collar maintenance space and a potential FTSE 250 candidate.”