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Amey plc, previously known as Amey Ltd and Amey Roadstone Construction, is a United Kingdom based infrastructure support service provider. It was once listed on the London Stock Exchange, but since 2003, it has been a subsidiary of Spanish company Ferrovial.

Amey plc
Public company
IndustrySupport services
Founded1921
HeadquartersOxford, England
Key people
Andy Milner, (CEO)
Number of employees
19,000[1]
ParentFerrovial
Websiteamey.co.uk

HistoryEdit

Amey was founded in the 1921 by William Charles Amey, as an Oxfordshire based quarry operator. The company grew during World War II with its involvement in the construction of Royal Air Force bases. In 1959, the company was responsible for the supply of gravel for the construction of the M1 motorway, between London and Birmingham. In the same year, it became a public company.[2]

It was first listed on the London Stock Exchange in 1963. Ronald William Amey took over the business from his father, and agreed the sale of the company in 1972.[3] The family had a close association with Abingdon School, where the Amey Theatre is named after them.[4] For a time, the Amey head office was in Sutton Courtenay, Vale of White Horse, near Abingdon.[5]

Between 1972 and 1989, the company was owned by Consolidated Gold Fields, and used the names Amey Roadstone and ARC. In 1974, they bought Stephen Toulson & Sons. In 1989, Hanson purchased the company for a short period before it went into private ownership until 1995, when it was refloated on the London Stock Exchange. In April 2003, it was acquired by Ferrovial, but continues to trade under the Amey name.[2][6]

From 2003 to May 2010, the company jointly owned (with Bechtel) Tube Lines, the consortium responsible for the maintenance, renewal and upgrade of the infrastructure, including track, trains, signals, civil work and stations, on three London Underground lines.[6] Following a funding shortfall at the business, it was bought from Amey and Bechtel by Transport for London.[7]

In February 2006, Amey acquired the highway and railway design consultancy, Owen Williams, allowing it to substantially grow its business and develop its own consultancy division. Amey acquired the rail consultancy arm of WYG Engineering Ltd in July 2010, Transportation Planning (International) Ltd (TPi) in February 2011 and Aquatech Engineering in November 2014.

In April 2013, Amey completed the acquisition of utilities, waste and public service providers, Enterprise plc.[8] In January 2016, Amey acquired Travel Point Trading Ltd (TPT), a strategic asset management consultancy with a strong presence in the rail sector in the United Kingdom.[9]

In February 2018, Amey purchased Carillion's rail contracts with Network Rail in the East Midlands, London and the North West, following Carillion's liquidation in January. The purchase saved about 700 jobs.[10][11] In August 2018 Amey completed the acquisition of Ministry of Defence (MoD) housing maintenance contracts previously run in joint venture with Carillion.[12]

In December 2018, press reports said Ferrovial had put Amey up for sale.[13] Ferrovial had posted a net loss of €72m for the first half of 2018 after allocating €237m for losses on Amey's highway maintenance contract with Birmingham City Council.[13][14] Amey also lost £48m on the M8 motorway upgrade in Scotland.[13]

In February 2019, Amey was reported close to a deal enabling it to exit its Birmingham highway maintenance contract, liabilities from which were preventing the sale of the company by Ferrovial,[1] who slashed the value of Amey by £660m, saying the "fair value" of Amey in the United Kingdom was £88m.[15] In May 2019, Amey was said to be close to agreeing a deal to terminate its Birmingham contract;[16] in July 2019, Ferrovial confirmed the deal terms: the council will receive £160m in 2019 with a further £55m paid over the next six years. Services will continue on an interim basis until 30 September 2019, and may be extended until 31 March 2020.[17]

On 28 July 2019, it was reported that a £2.3bn management buyout of Amey, backed by private equity house Apax Partners, was being planned.[18] The following day, Amey revealed a pre tax loss of £428m for the year to 31 December 2018. On revenues of £2.32bn, a £208,000 pre tax profit was wiped out by exceptional items, including £123m on the highways contract for Birmingham, and a £314m write down on its waste collection and utilities businesses.[19]

PersonnelEdit

Andy Milner was appointed chief executive officer on 31 March 2016. He replaced Mel Ewell, who served as CEO from 2003 to 2016.[20][21]

OperationsEdit

Amey works for the public and regulated sectors in the United Kingdom, selling services including highways and rail management and maintenance, facilities management, waste collection and treatment provision of utilities services as well as consultancy services. Most of Amey's business is based in the United Kingdom; however it also operates in America, Australia and Qatar. Amey is involved in consultancy in the civil engineering industry, with a wide range of design and asset management services offered.

This includes structural design, civil infrastructure, transport systems and asset management services.[22] The company retains its Oxfordshire links, with its head office in the Sherard Building on the Oxford Science Park in the city of Oxford.[23]

Major projects undertaken by Amey Roadstone Construction included Mount Pleasant Airfield, which was completed in 1986.[24]

RailEdit

Amey operates two tram concessions and a rail franchise in a 30:70 partnership with Keolis

ControversiesEdit

BlacklistingEdit

Amey Construction was revealed as a subscriber to the United Kingdom's Consulting Association, exposed in 2009 for operating an illegal construction industry blacklist.[27]

Streets AheadEdit

In August 2012, Amey signed a twenty five year private finance initiative 'Streets Ahead' contract with Sheffield City Council to maintain the city's roads, pavements, street lights and highway trees.[22] The replacement of up to 17,500 of the city's 36,000 highway trees was the subject of a campaign by local residents, who argued that the majority of the trees listed for felling were healthy and could be retained using sensitive engineering solutions.[28][29][30]

According to the council, the 'Streets Ahead' tree strategy meant only trees which had been assessed as dead, dying, diseased, dangerous, damaging footpaths, private property or roads, or discriminatory by obstructing pavements were replaced.[31][32] The ultimate decision was taken by the council.[33] Over the course of the contract the overall number of highways trees would increase.[34]

On 26 March 2018, the city council announced an immediate pause of the tree felling scheme, following the wave of criticism and protests.[35]

ReferencesEdit

  1. ^ a b Daniel, Alex (17 February 2019). "Amey eyes escape route from Birmingham road repair PFI contract". City A.M. Retrieved 18 February 2019.
  2. ^ a b "Our history". Amey plc. Archived from the original on 23 June 2008. Retrieved 23 June 2008. Cite uses deprecated parameter |deadurl= (help)
  3. ^ "Hard lessons learned". Oxford Times.
  4. ^ "The Abingdon Foundation Development Fund" (PDF). Abingdon School.
  5. ^ "Amey bids for high-flying firm." Oxford Mail. Story date: Friday 22 January 1999. Internet date: Wednesday 27 January 1999. Retrieved 13 August 2011. "Servisair, based in Stockport, Cheshire, has operating licenses in eight countries and provides services at more than 60 airports across Europe,[...]"
  6. ^ a b "Spanish firm set to buy Amey". BBC News. 16 April 2003. Retrieved 23 June 2008.
  7. ^ "Tube maintenance back 'in house' as new deal is signed". BBC News. 8 May 2010. Retrieved 10 May 2010. Italic or bold markup not allowed in: |work= (help)
  8. ^ Amey's £385M Enterprise buy moves it into utilities NCE, 28 February 2013
  9. ^ "Amey has acquired Travel Point Trading Ltd, in a deal managed by BCMS". BCMS. January 2016.
  10. ^ Gerrard, Bradley (22 February 2018). "Amey buys Carillion rail contracts, saving 700 jobs". The Telegraph. Retrieved 25 February 2018.
  11. ^ http://www.constructionenquirer.com/2018/02/22/amey-rail-snaps-up-carillion-rail-projects-saving-700-jobs/
  12. ^ "Amey completes Carillion defence JV transition". The Construction Index. 31 August 2018. Retrieved 31 August 2018.
  13. ^ a b c "Amey up for sale". The Construction Index. 3 December 2018. Retrieved 3 December 2018.
  14. ^ Elkes, Neil (13 July 2016). "Legal dispute could cost Birmingham roads contractor £55 million". Birmingham Mail. Retrieved 29 July 2018.
  15. ^ Prior, Grant (28 February 2019). "Ferrovial slashes value of Amey by £660m". Construction Enquirer. Retrieved 28 February 2019.
  16. ^ Morby, Aaron (31 May 2019). "Amey to pay £215m to exit Brum highways PFI". Construction Enquirer. Retrieved 31 May 2019.
  17. ^ Prior, Grant (1 July 2019). "Amey agrees to pay £215m to end Birmingham roads contract". Construction Enquirer. Retrieved 1 July 2019.
  18. ^ Gill, Oliver; Williams, Christopher (28 July 2019). "Private equity giant closes in on Amey in Ferrovial deal". Telegraph. Retrieved 30 July 2019.
  19. ^ Prior, Grant (30 July 2019). "Amey reveals £428m loss". Construction Enquirer. Retrieved 30 July 2019.
  20. ^ "Andy Milner: Executive Profile & Biography – Bloomberg". Bloomberg L.P.
  21. ^ "Mel Ewell: Executive Profile & Biography – Bloomberg". Bloomberg L.P.
  22. ^ a b Ltd, Hemming Group (13 November 2012). "Steel city highways to be 'streets ahead' under PFI". Retrieved 14 March 2017.
  23. ^ "Contact Amey Archived 3 September 2011 at the Wayback Machine." Amey. Retrieved 13 August 2011. "Postal address Amey plc The Sherard Building Edmund Halley Road Oxford OX4 4DQ"
  24. ^ "About the Falklands". Ministry of Defence. Retrieved 4 June 2012.
  25. ^ French firm wins 7-year Docklands Light Railway franchise BBC News 4 July 2014
  26. ^ Keolis/Amey to operate Manchester Metrolink Metro Report International 18 January 2017
  27. ^ "The Consulting Association". Information Commissioner's Office. Retrieved 5 May 2013.
  28. ^ "Council releases more of highways contract | Sheffield News Room". www.sheffieldnewsroom.co.uk. Retrieved 12 March 2018.
  29. ^ "Sheffield Street Trees are Under Threat – Join Us And Help Save Them". Sheffield Tree Action Groups. Retrieved 14 March 2017.
  30. ^ Pidd, Helen (28 November 2016). "Sheffield trees dispute prompts 'scenes you'd expect in Putin's Russia'". The Guardian. Retrieved 28 July 2018.
  31. ^ "Streets Ahead Five Year Tree Management Strategy 2012–2017" (PDF). Government of the United Kingdom.
  32. ^ "Managing & looking after street trees". Government of the United Kingdom. Retrieved 12 March 2018.
  33. ^ "High Court Judgement – Sheffield City Council v Fairhall & Others" (PDF). Paragraph 18.
  34. ^ "Council busts further myths on its street tree replacement programme | Sheffield News Room". www.sheffieldnewsroom.co.uk. Retrieved 12 March 2018.
  35. ^ Halliday, Josh (26 March 2018). "Sheffield council pauses tree-felling scheme after criticism". The Guardian. Retrieved 26 March 2018.

External linksEdit