BusinessCompany NewsDoubts surface again over Amey’s accounts

Doubts surface again over Amey's accounts

City analysts remain confused over construction group Amey's accounting treatment of long-term contracts, according to reports in the press.

Link: Amey bags £35m for DTI accounts

Fears relate to the company’s ability to cover the significant start-up losses of government contracts, after the company introduced a new method for booking the cost of bidding for contracts, according to a report in the Daily Mail.

The new treatment resulted in Amey recording a 2001 loss of £18m, instead of an expected profit of £52m.

Concerns also relate to an announcement by the company last month that it would miss profit forecasts unless it was awarded the Tube contracts. In addition the company booked £14m on its recent accounts for money owed for developing the Croydon light rail system.

Debts at the company stand at more than £106m according to reports.

But the company said it was satisfied with the report of the independent auditors, Grant Thornton and was confident it would meet its commitments.

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