|May Gurney Integrated Services
||EPS - Basic
||Market Cap (m)
Real-Time news about May Gurney (London Stock Exchange): 0 recent articles
|targatarga: nig - depends on where you think costains share price is going. If you sell today your hopefully up on what you initially paid! imho|
|darlocst: COST & MAYG in all share merger:
Came out too late to be RNSd but all details on Costain website.
Based on Costain share price values MAYG at 253p plus 5.5p dividend will be paid.
A good result IMO.|
|speedsgh: consolidation since start of dec should be viewed as healthy imo. pre-close trading update due at end of March, then preliminary results mid-Jun. that should hopefully wake the share price up a bit.|
|speedsgh: ... which is often the best time to buy/add, Dodge. Remember, pre-close trading update is due at end of March so not too long to wait for confirmation that previous problems have been ring-fenced + are being dealt with, hopefully no further problems + that it is business as usual. My guess is the share price will start ticking back up prior to release of interims + then, all things being well, head on back above 200p to its previous trading range. NAI.|
|paulypilot: Happy days indeed, and it still looks cheap!
EPS for this year is going to be around 25p, so that's only a PER of under 7.5, which for a group that has no structural debt (just finance leases on equipment used in contracts, e.g. refuse collection lorries) is very undemanding.
We've got a cracking, sustainable, well-covered divi yield too.
Whilst my finger has been twitching over the sell button, on account of them having risen so much, I can't bring myself to sell at what remains an under-valuation. I cannot see why this stock should be on a PER under 10, so that equates to 250p share price target for 2013. Am happy to hold & collect the divis.
Happy Xmas everyone!
|bones: More in-depth analysis from the trade:
'No sell-off' of May Gurney divisions as shares fall 40 per cent
6 September, 2012 | By Luke Cross
May Gurney's finance director says his company is not planning to wind down or sell off any parts of its business after a profit warning and the departure of its chief executive today.
Asked why CEO Philip Fellowes-Prynne had left, FD Mark Hazlewood told CN it was a result of a conversation with the board about "how far he has taken the business", along with Mr Fellowe-Prynne's own plans for the future.
When asked if the contractor's operational performance played a part in the CEO's departure, he added: "I would not say it is unrelated. But these things come to a natural point."
In response, Mr Fellowes-Prynne told CN he will be looking for a new position from next month."I'm required to say no more," he said.
May Gurney will now go through a full external recruitment process.
Mr Fellowes-Prynne's departure "by mutual consent" was announced along with a profit warning this morning.
May Gurney's share price dropped more than 40 per cent today, while analysts suggested the firm could face consolidation in the future as they revised their profit forecasts for the next two years. May Gurney saw a 17 per cent rise in underlying profits in the year to March 2012.
Mr Hazlewood, who joined May Gurney earlier this year, said there were no intentions to sell off parts of the business and declined to comment on whether May Gurney would be an acquisition target.
He told CN: "There are no plans to dispose of any parts of the company. In terms of the rest of the business, everything else is performing strongly.
Asked if any part of the group is facing redundancy or restructuring, he added: "No, the underlying business is performing strongly." He said the company has "plenty of head room" for credit with a £35m bank facility and £15m overdraft.
The profit warning came after the closure of the non-core facilities division, which was set up to take on Building Schools for the Future work and was axed by the government in 2010. The division is worth around 7 per cent of May Gurney's £695m revenue, and is being wound down at a cost of £10m.
The company saw 100 job losses last year, mainly in senior management roles, along with a restructure of divisions. Mr Hazelwood did not expect to hear much from clients as May Gurney continues to meet key performance indicators on other contracts.
Mr Hazlewood said the facilities division sub contracted construction work, so had a small workforce which is being redeployed into other parts of the company. The trend of companies outsourcing or bringing services back in-house is "patchy", he said.
In addition to winding down its facilities business, May Gurney has endured problems with two bin collection contracts dubbed MaGos and a Scottish piping contract. However, Mr Hazlewood highlighted the decision by Scottish utilities firm Scotia Gas Networks to take its pipe improvement work in-house.
He explained that problems with the two MaGos refuse contracts relate to an inefficient curb-side bin collection process and that the firm is "working hard to sort that problem out". The MaGos contracts "are two contracts out of five", he added.|
|bones: First of all, I do not hold these nor have done in the past, so am just passing comment. This is not a gloating post.
IMO, the immediate sacking of the CEO suggests a serious review and nasty discovery was had. Or vice versa. Take your pick. Either way it is hard to like it. There wasn't even a thanks to the departing director for all his hard work in the past which is the usual form when someone leaves after a setback. They seem clearly annoyed at him!
Secondly you either believe the board when it says the write down provisions deal with the matter, or you fear it is papering over cracks. When a new CEO finally comes in, or when the interim guy takes a look, the possibility of more remedial action must be real. Further impairments look inevitable as they have said.
Circumstances may well be different from Mouchel but I well remember the denial flying off that BB. At the time, it was still over £1 after a profit warning had halved the share price but people insisted it was cheap as chips with a strong underlying business, regardless of the debt overhang. Ultimately the heavy debt killed it completely and shareholders got nothing. This was after the directors turned down predators who came sniffing around the wounded animal. Watch out for these signs of denial by the board of directors if bidders appear.
Even so, like the Mouchel case after its major warning, IMO, a realistic share price target for May Gurney is well south of £1 as there is nothing positive in today's statement apart from the usual "rest of business is in line, etc". Trouble is that management time will be diverted by the crisis so will not have their eyes fully focussed on the rest of the business.
I wish anyone good luck if they are staying in this share. I guess a white knight bid could be the best outcome. If so, will the directors be man enough to accept the loss of pride (unlike Mouchel)?|
|jonwig: Comment in The Independent:
Our view: Hold for now
Share price: 139.5p (+7p)
When a company operates in a defensive sector, when its shares are trading at a discount to its peer group and when it knows what it will earn for the rest of the year and beyond, and those earnings are impressive, investors should in most cases flock to the shares.
May Gurney, which derives 95 per cent of its work from the public or regulated sectors, is winning new business at a rate of knots. It has about £15m in cash, an order book of £1.25bn and no debt or pension deficit. Ordinarily, it would be very difficult to build an argument against the stock, especially when the shares trade at a paltry 2.5 times enterprise value to underlying earnings or Ebitda.
And yet, we are still nervous about the support services and outsourcing outfit. The shares are cheap, but that is partly because the stock has underperformed its peer group in the last 12 months. Yesterday's trading statement was welcomed by the market, and on thin volumes the shares were up 5.3 per cent, but that does not mask the near-50 per cent drop in the stock over the past 12 months. By comparison, the biggest beast in the outsourcing industry, Capita, has seen its stock trade at almost flat levels over the last year.
The chief executive, Philip Fellowes-Prynne, argues that May Gurney is a resilient and defensive company, and that this will be reflected in the long-term share price. The performance in the last year is largely due to small-cap fatigue among nervous investors, he says, and because several big backers, including New Star, have faced cash calls in recent months.
That may be so, but we would favour those in the sector, such as Capita, which do not have these complications. May Gurney is a good company and the shares may well impress in the coming months and years, but we would hang back and wait to see evidence of growth before buying. Hold for now.
A point I made the other day - MAYG is actually listed in 'Construction & Materials', not 'Support Services'.
That might be part of the reason (Capita doesn't do much lower-margin construction work), but the relative size compared with Capita should indicate a lower valuation, too.|
|u813061: Net cash, large order book, share price ticking up. Update due soon. Hold on for some gains.|
|palwing: Monday AM andno MAYG share price showing. Mine the only one??
MAY Gurney share price data is direct from the London Stock Exchange