Amey, backed by private equity, targets business growth through strategic acquisitions in 2024, following a successful financial year.
- In 2023, Amey reported a pre-tax profit of £97.0m on £1,836m revenue, illustrating robust financial health.
- Acquired by One Equity Partners and Buckthorn Partners, Amey has shed unprofitable operations, improving cash flow significantly.
- CEO Andy Milner highlights the focus on energy transition, risk management, and leveraging digital platforms for expansion.
- Amey seeks to enhance sector capabilities and diversify their offerings through careful acquisition strategies.
Amey has demonstrated a forward-thinking approach by focusing on strategic acquisitions in the wake of a successful fiscal period. This initiative marks a significant shift in the company’s trajectory, following its acquisition by UK private equity firms, One Equity Partners and Buckthorn Partners, from Ferrovial of Spain in a £400m deal. The transaction, completed on 30th December 2022, has positioned Amey well to pursue growth opportunities by reinforcing its financial stability.
The company’s 2023 financial results underscore its successful turnaround, reporting a pre-tax profit of £97.0m on a revenue of £1,836m. This financial performance indicates not only robust profitability but also a solid cash flow position, with group cash flow reaching £79.9m. This is a significant improvement reverse from a £10.4m outflow in 2022, even after accounting for £30.9m in payments related to historical contract losses, reflecting thoughtful financial management and strategic planning.
CEO Andy Milner, who returned to lead Amey in 2022, has outlined a clear vision focused on expansion and diversification. This vision involves divesting from underperforming sectors, such as waste collection, utilities power projects, and military accommodation. The company is now zeroing in on high-growth areas, including energy transition and decarbonisation, where it can apply its infrastructure expertise to deliver practical solutions.
Milner emphasises that Amey’s operational resilience is bolstered by its unique operating model and comprehensive risk management strategies. He notes the company’s ability to remain unaffected by prevalent macroeconomic and geopolitical disturbances. With its stable financial base, Amey is well-positioned to capitalise on new market opportunities, particularly those leveraging emerging digital platforms to expand its international consultancy services.
The focus on acquiring businesses is part of Amey’s broader strategy to diversify its sector presence and capabilities. Milner’s leadership aims to integrate new acquisitions seamlessly into the company’s existing structure, enhancing both domestic and international offerings. This strategic direction is aimed at cultivating a robust and diversified portfolio, poised to adapt and thrive in a dynamic global market.
Amey’s strategic restructuring and acquisition plans encapsulate a robust approach to sustainable growth and sector diversification.
