MAY Gurney Share Discussion Threads

[red ninja] 15/3/2011 23:55

Was this Somerset ?

I may add many council run services like mine made a pigs ear of it during the winter.

[alter ego] 15/3/2011 17:42

MAYG took over refuse collection and recycling for my local council last year. During the bad weather it was shambolic and the council apologised for their lack of planning, preparation and communication. I suspect some penalties may have been triggered but can't be sure. This is probably a one off and you might be right to see it simply as teething problems but MAYG were on my watch list. They are not any more. In a business like theirs, basic competence is essential and for me, they failed the first test.

[apad] 15/3/2011 15:36

Didn't know that MAYG is building schools!

Lots of contracts news on their website.

Anyone been following contracts and have a view?

apad

[nellie1973] 18/2/2011 13:30

Another broker upgrade

[red ninja] 04/2/2011 13:24

Arbuthnot reiterated its "buy" recommendation for May Gurney (MAYG), the infrastructure support services company, with a 350p target price. The broker notes the recent Turriff Group deal which it says has brought Scottish Water - among others - onto the group's client list as a meaningful customer, raising the company's exposure to the utility sector just as new regulated investment programmes are rolling out. Other attra_ctions of the deal, Arbuthnot added, include penetration into a new, relatively immature market with many cross-selling opportunities. The shares fell by 3p to 259p.

[nellie1973] 24/1/2011 13:29

Several broker upgrades today

[red ninja] 23/1/2011 12:26

Seems communication was poor, but appart from that can't see they performed worse than anywhere else in the country.

Still I agree that MAYG should improve there communication and act in coodination with the council...

[indomie] 23/1/2011 08:45

guess that depends if u live in the county! read as though this isnt the first problem they've had with MAYG, but hopefully they can turn this one around or presumably there will be clauses which can get the council out of the deal - dont really want this negative publicity when so many new contract opp's up for grabs this year!


'May Gurney, which took over the contract of collecting recycling in March last year following a shake-up of waste disposal services, has now made a formal apology, after council leader Nigel Ashton said it had "used up all its warnings".

Nigel Ashton said: "We held a robust meeting with May Gurney. I was no more furious than our residents. Clearly the performance of the contractors on occasions has been dreadful and unacceptable.

"I do understand it wasn't able to get out because of the weather on some days, but I do not accept there was no plan B or C, and no intention to inform the public on how it would be catching up. It was quite clear the council had to lead, there was a lack of clarity and lack of timely and consistent communication, which is unforgivable.

"The contractor has been left in no doubt it has used up all their warnings, I read them the riot act so to speak."'

[red ninja] 23/1/2011 00:09

No, just sounds like a slapped wrist, but I'm not really sure what they did was wrong.

[indomie] 22/1/2011 20:32

Has May Gurney been sacked from their North Somerset Council contract?

[red ninja] 21/1/2011 14:02

Nice deal :-


May Gurney acquires Turriff, a multi-utility provider, and strengthens geographical coverage

May Gurney, the infrastructure support services company providing essential maintenance and enhancement services to clients in the public and regulated sectors, is pleased to announce that it has acquired Turriff Group Limited ("Turriff"), one of Scotland's largest utility infrastructure maintenance companies, for a cash consideration of up to

£13.6 million.

Under the terms of the transaction May Gurney will pay an initial cash consideration of up to £8.6 million, with a further £5 million payable over three years dependent upon a number of key performance indicators being met, including future revenue targets and key employee retention. In addition, May Gurney is assuming approximately £9.4 million of debt.

This acquisition delivers key benefits to May Gurney:

· Further strengthens its position in the utilities maintenance market and gains entry to the £2.4 billion support services market in Scotland, with opportunities in local government and rail.

· May Gurney gains access to the UK's regulated £1.7 billion gas marketplace which is displaying strong and sustained growth with dependable, long-term income streams.

· Turriff's acquired order book is approximately £90 million, with available extensions worth up to an additional £70 million. Its key long-term clients include Scotia Gas, Scottish Water and Scottish & Southern Energy.

· The transaction is expected to be earnings accretive in the first full year of acquisition.

· Potential to achieve cost synergies of circa £0.3 million per annum.

· The transaction further underpins May Gurney's existing £1.4 billion forward order book and long term earnings visibility.

Headquartered in Aberdeen, Turriff has more than 550 employees and is one of Scotland's largest utility infrastructure maintenance companies with market-leading positions in gas, water, electricity and multi-utility services.

For the year to 31 December 2010, based on unaudited management accounts, Turriff had earnings before interest, tax, depreciation and amortisation of £2.5 million on revenues of £41.0 million. At completion, Turriff had a balance sheet showing total assets of approximately £18 million.

Under the terms of the deal, key members of Turriff's senior management team have been incentivised to remain with the business.

May Gurney Chief Executive Philip Fellowes-Prynne commented:

"We are delighted to welcome Turriff to the May Gurney group, whose focus on developing long-term client relationships and reputation for assured operational delivery is so aligned to our own.

This transaction meets with our strategy of developing wider services with existing clients and increasing our geographical spread. Turriff will provide access to the power and gas maintenance sectors, the Scottish support services market and consolidates our position in water. These are all key growth markets with dependable, sustainable income streams which will provide us with significant opportunities to develop long-term relationships with new clients."

[red ninja] 24/12/2010 12:03

MAYG seems to be a well run ship and I would think they would be aware of the Seven Trent issues. Thus hopefully they were well prepared for them in dealing with Severn Trent.

[essentialinvestor] 16/12/2010 14:07

Having just read that post, I would also hope they have not been too eager
just to win the business.

How can you possibly price a PDaS contract correctly?, it may end up being loss making very easily.

[zoa] 14/12/2010 08:47

The Severn Trent contract win whilst being an opportunity could also become a threat. Imagine taking on all the private drains and sewers in the region, this would involve dealing with properties in remote locations with antiquated septic tanks and drains, worse still there will be very few maps of any of these systems. I can envisage teams of men in wellington boots spending all their time trying to locate blockages. I was talking to a Severn Trent engineer who said that the contract for PDaS has been up for grabs for a couple of years and that no one has been willing to take it on, for the reasons that I have outlined, so perhaps the mention of "potentially" in the company announcement means that MAYG have not taken this on. One further thought what will happen to the likes of Dyno Rod when all this business is taken from them?

[montyville2] 09/12/2010 18:59

You may be right with a slight pull back on profit taking but I fully expect to see the share price nearer £3 in the next few months. My crude analysis on the recent results leads me to believe MAYG is overdue a rerating IMHO!

[essentialinvestor] 08/12/2010 22:46

ss

This has come up sharply from £1.80 in just a few weeks.
Some taking profits is to be expected imv.

[ssords] 08/12/2010 17:50

Serco and CPI have their own problems, that do not affect Mayg but I guess the shortsighted just follow the herd. Anyway has bounced back today.
Ssords

[essentialinvestor] 07/12/2010 19:36

It's the sector folks, Serco down, CPI barely changed.
Some cautious sector comment perhaps.

[stevedeer] 07/12/2010 19:03

is it the divi record day today... could be the reason for the move down? also been tipped a lot recently!

[ssords] 07/12/2010 17:16

Been up on excellent contract just won. Crashes down for no good reason. Can only imagine short term holders manipulating share price unnaturally. No other reason for the day's dip. MAYG still a solid, leading, go ahead company with solid order book, and no liquidity problems.
Ssords

[essentialinvestor] 06/12/2010 16:27

Well done here guys, I was too cautious in my view.
Nice contract win today as well, back on my list for the next results -
as long as the share price does not run away.

[apad] 04/12/2010 09:33

Doobz,
I had a small holding of MAYG and had parameters with which to judge the announcement. I bought more at about 08:50.
This tends to be my general behaviour - I reward members of my portfolio for their successes. Quickly, i.e. before the rns is widely commented.
Newspaper writers simply need copy - their trade is words and they are best ignored.
Once the adulation is in the open it is usually best to wait until a share is off the radar a good example is MRW, which is half way between results and there will be the usual copy about competition worries in the run up to Xmas.
I ought to add that I only expect to sell shares if they publish bad news. My AZN shares are ex ICI!

[stevedeer] 04/12/2010 07:48

I tend to ignore paper tips... but not in this case. Got in on Friday morning with a small spreadbet 'long'. I was looking to capitalise on this winter's freezing conditions (fixing roads/schools etc)... the fundamentals look good so I jumped in. Great info on their web site... will top up on weakness

steve

[doobz] 03/12/2010 21:09

I wonder how reliable tips in the paper are?? Any experience with them? Im a medium term investor and I have researched this company after the tip that you mentioned and it looks very strong indeed. Think I will buy on monday, is anyone else recently in?

cheers

Darren