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.
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.