MAY Gurney Share Discussion Threads

[nellie1973] 02/12/2010 20:09

Now tipped in press today

[red ninja] 01/12/2010 23:37

In at 1.86 here and happy to hold at the current levels for future growth.
They seem good value at current levels, but happy with mayg shareholding at 4-5% of SIPP so not looking to add at current price levels.

I'd be happy to buy more at 1.96 too, but I'd be suprised if we see that price with current robust performance.

[deswalker] 01/12/2010 19:49

I sold out of MAYG on 21 Oct at 234.2 because they looked fully valued to me. I've just put today's numbers in my detailed spreadsheet model and looked at the share price for the first time today since I sold. IMO I made the right decision to sell and still think they are fully valued at these levels, but I'm a conservative value investor so DYOR.

I have no axe to grind either way having bought on 6 July at 197.2 and would not be tempted to re-enter until I could get a similar price again.

Good luck holders.

[essentialinvestor] 01/12/2010 19:10

sords

Do you see Serco dominating the Sector longer term, or room for some of the smaller players?.

Have a look at the Serco contract in Hertfordshire, announced
last week, they have given Serco just about everything.

[ssords] 01/12/2010 17:50

These shares always a buy esp at current share price . Just look at their BS, order book, types of contract, and cash position. Plus strong management and work force. I have held since ISP and have topped up since. Now I am somewhat overweight, so holding off but anybody not committed they are a good buy. But of course DYOR.
Ssords

[nellie1973] 01/12/2010 14:25

broker upgrade today

[red ninja] 11/11/2010 17:11

ES,

Well a significant new contract would be announced, Extensions probably only in the trading update. They never seem to have loads of seperate contract win RNSes, but my eye is on MAYG news...

[essentialinvestor] 11/11/2010 11:07

RN

I have not seen many major contract announcements recently,
unless deatils are not given on each one of these.

It may be worth watching very carefully, imv only.

[red ninja] 22/10/2010 17:42

EI,

Well I'm happy to continue holding MAYG at the current price level.

STAF wish I'd bought them, but went for Morson (MRN) instead.

All the best

[essentialinvestor] 22/10/2010 17:25

RN

Well done on MAYG, meant to post that yesterday.
Holding pre Thursday took guts - respect.

Have done nicely on STAF today, and CGS which I sold this week.
However, I clearly got this one wrong short term.

Enjoy your gains, Good Fortune.

[red ninja] 20/10/2010 17:52

Well they are bidding for £4 billion. I would hope they could win 10-12% of that ie isn't that around their share in this market.

[essentialinvestor] 20/10/2010 17:46

RN, that is the Bull case and I am not necessarily taking another view.

If the Order Book had not fallen from to £1.7 Billion to 1.4 Billion,
I might have bought.

The last statement said they were in the middle of a strong bidding process.
They announce these on the website usually, rather than by RNS,
so you have a good idea on success in winning contracts.

[red ninja] 20/10/2010 17:30

Hmm well my rational for buying MAYG was 95% of contracts are long term ie safe from renegociation. Secondly councils are having their grants lowered. Thus many councils who use in house provision will change to use outsourced
provision at a lower price. Thus MAYG should benefit in that scenario...

[essentialinvestor] 20/10/2010 14:44

Any early views on how the cutbacks may impact MAYG?.

It's the Highways segment to look at, I can not find details on this yet.

[red ninja] 10/10/2010 12:35

Questor share tips: May Gurney is a good defensive play
May Gurney's long contracts for road repairs and waste collection in the public sector mean fears over spending cuts are overstated, says Questor.

Published: 8:00AM BST 10 Oct 2010

May Gurney has long contracts for the public and private sectors, such as road repairs for councils and fixing the roof of London's Victoria Station. May Gurney
206¼p
Questor says BUY

May Gurney is an infrastructure services group, so worries over austerity cuts have hit the shares hard recently. They are now 5pc below the initial recommendation price after rising to above 270p earlier this year.

However, Questor is more positive on the outlook for the sector than most – and the company confirmed this view last week when it said that its full-year results would be at the top end of the expected range.

A lot of May Gurney's work is also defensive – with Philip Fellowes-Prynne, its chief executive, noting that more than 95pc of its business was on long-term contracts.

The group provides services such as road repair, waste collection in the public sector and railway and utility maintenance services in the private sector. The company is currently repairing the roof of Victoria Station in London, for example.

Last week, it said that trading in the first half had been strong and it had secured a number of new contracts. These include contracts with North Yorkshire County Council to manage 17 household waste recycling centres, which is valued at up to £24m, and one with Oxfordshire District Council for waste and recycling collections. This contract is worth up to £37m.

The group's order book stands at £1.4bn and management says it has a healthy pipeline of sales opportunities in core markets – worth in excess of £4bn. The company has no long-term debt and had just under £30m in cash on its balance sheet at the end of March. This represents about 20pc of the group's current market capitalisation.

The company has not made any acquisitions since then and its cash pile is expected to grow further.

The Government's comprehensive spending review is released on October 20, but it is likely to be a few more months before the full scope of cuts becomes clear.

Mr Fellowes-Prynne told Questor on Friday that the company has already cut a number of staff on sub-contracted work to make managing any cuts easier – but he noted that bins still need to be emptied and potholes in roads need to be filled.

The shares were first recommended at 218p on October 4 last year and are now down 5pc compared with a market up 13pc. They remain a buy.

[red ninja] 08/10/2010 21:59

Growth Company Investor :-

May Gurney Integrated Services

STRONG BUY 05/10/2010 James Crux

In the midst of healthy contract bidding, infrastructure support services star May Gurney expects to achieve 'the top end of market expectations' for the full year, following a strong first half indeed.

Despite the uncertain economic backdrop, May Gurney continues to showcase its defensive qualities, which stem from the provision of essential maintenance and enhancement services to long-standing clients in the public and regulated sectors.

A strong performance was delivered during the half to September, reflecting organic growth, the delivery of contracts in the rail sector as well as a good performance in the highways space, helped by dry summer weather conditions. For May Gurney, this was yet another half of contract wins and extensions, including work secured with West Oxfordshire District Council, Northumbrian Water and Network Rail, as well as an extension to its long-standing street lighting tie-up with the London Borough of Waltham Forest.

Enticingly, May Gurney, with £1.4bn of solid orders in the bag, giving excellent earnings visibility and more than 95% of its business represented by long-term contracts, is hopeful of winning additional water sector work, with many deals currently up for grabs.

Philip Fellowes-Prynne, the group's astute CEO, believes May Gurney is well placed to profit during this age of austerity, as it is 'already providing innovative, efficient and cost effective' solutions to clients, bang in line with the Government agenda.

Set to unveil interims in December, May Gurney is forecast to grow profits from £21.6m to £23m in the year to March, producing earnings of 23.4p, with a 5.9p dividend on the cards. Originally backed by Growth Company Investor at 307.5p in 2007, the shares remain significantly undervalued.

[red ninja] 07/10/2010 19:56

EI,

To my mind there is value here and a reasoable divi.

I agree that the market has some reserves about performance in this age of austerity, but only time will resolve those doubts or not.

I have a small holding in MAYG, I am encoraged so far and if the interim result are reasonable I will continue to hold.

[essentialinvestor] 07/10/2010 17:28

RN

There may be value here at some stage, I would want to see the order book
at the next update, and their comment on the details of the spending review.

[red ninja] 07/10/2010 17:04

Brewin Dolphin re-iterated its "add" recommendation for May Gurney Integrated (MAYG), the dynamic integrated support and construction services company, with a 230p target price. Yesterday's first-half trading update indicated that full year results should be at the top end of expectations. In light of the challenging trading backdrop and mobilisation costs incurred this year on contract start-ups, this is a very creditable achievement and highlights the success management has had in gaining market share and outperforming in difficult markets. The shares slipped 4.5p to 205.5p.

[essentialinvestor] 06/10/2010 08:30

300 Million is the best part of one years revenue, someone needs to
call the Company to clarify this large fall.

Well spotted WJ.

[red ninja] 06/10/2010 06:22

WG you are right, didn't have time to full read the trading statement.

The loss of 300 million in the order book is a question for the management ?

Possibly non-renewals or one of jobs ?

The question is how much of the "healthy pipeline of sales opportunities in our
core markets, worth in excess of GBP4 billion" will they convert ?

[essentialinvestor] 06/10/2010 00:42

So what has caused the 300 Million reduction in the order book?,
and in just a couple of months.