Amey builds on PFI with £155m mental health trust deal

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The Independent Online

Amey, the British support services specialist, has won a £155m deal with the Northern Birmingham Mental Health Trust, bringing to almost £3bn the total of new business generated by its recent Private Finance Initiative (PFI) activity.

Amey, the British support services specialist, has won a £155m deal with the Northern Birmingham Mental Health Trust, bringing to almost £3bn the total of new business generated by its recent Private Finance Initiative (PFI) activity.

The deal will see Amey's asset services division construct and modernise facilities on two sites. Its business services division will take over to provide support services over a 35-year term. Building work is expected to be completed next autumn.

Earlier this year the company, valued at £570m, won the Ministry of Defence main building PFI contract, worth £1.5bn. Last month it announced a £1.2bn deal to build and modernise secondary schools in Glasgow.

Tom MacQuillan, Amey's group communications director, said investors in the new project included Barclays. "This is the first PFI deal we have done under health, but building facilities is the same the world over," he said.

Amey, formerly a construction company, relisted last September in the FTSE support services sector. "That's where the biggest growth is," said Mr MacQuillan. One analyst said: "Amey... [has] good visibility of earnings and a strong order book. Its valuation is reasonably full, but earnings growth should accelerate next year, so we still like it longer-term."

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