May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
The infrastructure services said the contract is currently valued at that amount over an initial period of 10 years with possible extensions of a further 15 years. It will be delivered through a new joint venture company (JVC) between Torbay Council and May Gurney.
The estimated annual value is up to £13 million and the aim is that the JVC will begin mobilisation in April with services commencing in July.
The JVC will deliver a wide range of essential front-line services to the residents of Torbay including waste and recycling collections; the maintenance of highways, grounds, parks, car parks, buildings and the Council's vehicle fleet; street and beach cleansing; and out of hours call centre support.
May Gurney will hold an 80 percent share of the JVC, which will also independently source new business clients in the region.
More than 95 percent of May Gurney's business is represented by dependable long-term contracts in the public and regulated sectors, which, together with a strong £1.4 billion forward order book and healthy pipeline of future opportunities, provides high visibility of earnings.
Disclosure: The author holds no positions in the company