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Infrastructure woes lead to Amey being advertised for sale

14 December 2018

Losses recorded within major contracts have resulted in parent company Ferrovial advertising that its service division is up for sale.

This includes Amey, which was singled out by the The Construction Index report due to its losses recorded for major infrastructure projects.

Its highway maintenance contract with Birmingham City Council saw £210m allocated for losses.

Added to this was another deficit of £48m accrued from Amey's contract for the upgrade of the M8 motorway in Scotland.

The combined effect of the two contracts' losses was deemed to be the main reason for Ferrovial posting a net loss of £64m in the first half of this year.

The Spanish infrastructure service provider purchased Amey in 2003 for £81m, followed by airport operator BAA for £10bn in 2006.

Ferrovial's last notable UK acquisition came in 2013, when it purchased Enterprise for £385m.

The company was then merged with the Amey operation, resulting in its doubling in size.

According to national newspaper reports, Ferrovial has appointed Goldman Sachs to handle potential sales deals, which could include both directly- and indirectly-owned companies or parts thereof.

News of the potential Amey sale is the latest in difficulties reported by a number of the larger contractors, highlighted by the collapse of Carillion early in 2018, the ongoing issues within Interserve and rumours continuing to circulate concerning other large service providers.

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