MAY Gurney Share Discussion Threads

[essentialinvestor] 05/10/2010 19:21

WG is correct from what I see.

Today's statement says the order book is 1.4, down from 1.7 at the AGM statement.

That looks a large fall imv.

[doc robinson] 05/10/2010 19:00

will these be swallowed up shortly????

[red ninja] 05/10/2010 15:36

Last accounts state : record order book of 1.7 billion so not sure were you are coming from.

Also bear in mind that share price is down a long way from peak price.

[wjccghcc] 05/10/2010 13:35

Although the order book is down 20% from its peak which might be a concern.

[red ninja] 05/10/2010 11:00

Very encouraging trading statement.

Looks like the bulls may be right on this one, it may flourish in rough times.

[apad] 05/7/2010 15:48

May Gurney's ability to boost profits and turnover to record levels in the face of what looks likely to be the sharpest round of spending cuts ever seen is certainly impressive. Growth has been boosted by the decision to switch away from new capital projects and more into essential and non-discretionary maintenance work.
Management is also continuing to collaborate closely with local authorities - which account for a bulk of group business - to find ways of achieving more for less given the pressure on councils to provide services more efficiently. An increasingly attractive means of achieving this is to outsource more work to the likes of May Gurney. Both the group's trading divisions - public sector services and environmental services - reported steady growth last year, and even more importantly, around 95 per cent of group business comes from established long-term contracts. Underpinned by the resilience of earnings and an order book that has risen by 36 per cent from a year earlier to a record £1.7bn.
Analysts at Altium Securities are forecasting 2011 adjusted pre-tax profits of £23m and EPS of 23.6p (2010: £21.6m/21.9p).
MAY GURNEY INTEGRATED SERVICES (MAYG)
ORD PRICE: 195p MARKET VALUE: £138m
TOUCH: 193-198p 12-MONTH HIGH: 278p LOW: 160p
DIVIDEND YIELD: 2.8% PE RATIO: 10
NET ASSET VALUE: 105p NET CASH: £29.2m
Year to 31 Mar Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2006 365 16.7 22.5 nil
2007 406 15.2 17.7 3.0
2008 437 17.0 18.2 4.6
2009 470 5.2 3.9 5.1
2010 483 18.4 19.6 5.5
% change +3 +254 +399 +8
Ex-div: 9 Jun
Payment: 13 Jul

[apad] 19/6/2010 10:09

Plenty of time to wait until an upward trend establishes itself?

[simon gordon] 18/6/2010 17:16

Tempus - 3/6/10:

With a name like Philip Fellowes-Prynne, the chief executive of May Gurney sounds like a bastion of the officer class. In fact, the down-to-earth North Easterner likes nothing more than deploying his 4,300 frontline staff to get down and dirty, cleaning public lavatories, sorting out sewerage, filling in potholes and keeping the street lights on. May Gurney is in the business of delivering maintenance services to utilities and the public sector. However, exposure to that latter customer base has in recent weeks spooked investors, who hear talk of nothing but public sector cuts from the Government.

Mr Fellowes-Prynne draws this parallel: "When you cannot afford a new home, you invest in maintaining [the one you have]. We are in that maintenance end of that market." His point is that his business is not in the big capital projects that are likely to feel the brunt of cuts but in long-term maintenance contracts with councils. In the year to March 31, this delivered a 3 per cent rise in revenues to £483 million, with underlying profits rising 7 per cent to £21.6 million as margins grew from 5 per cent to 5.2 per cent. The dividend is also up, 9 per cent higher at 3.7p. Opportunities, the company says, are abundant as councils and utilities outsource services to cut back operating costs.

Tempus was a buyer of the May Gurney story in January when the shares stood at 263p. Last night, they closed unchanged at 203p, having fallen largely because of the political climate. That puts the stock on a forward earnings multiple of about nine, an appreciable discount to peers in the support services sector. Holders of the shares should continue to add on ongoing weakness.

[simon gordon] 18/6/2010 13:26

Altium - 2/6/10:

MAYG has delivered a good set of prelims in line with expectations at the P&L level and with net cash c.6% ahead of our forecast. Margins grew across the business, and in addition to the £1.7bn order book, the company has disclosed the extent of its bid pipeline, at £4.0bn. At 2.35x contracted sales, this is another strong number. Cash conversion was strong again at 120% of EBITA. Notwithstanding the difficult economic environment, the business is supported by secular growth drivers such as under-penetration in outsourced markets, regulation and the ability to take market share from smaller players. These results continue the pattern of growing the business by providing the company's client base with blue collar services which are ever more necessary in current cash-trapped times. Visibility is good with c.90% of current year revenues covered by the order book.

[ssords] 24/2/2010 13:01

Potential power of this company to grow at last being recognised
Ssords

[geraldus] 24/2/2010 12:53

O.T. investinggarden - anything on GCI on SDM - G.Spotts

[investinggarden] 24/2/2010 10:06

Strong buy recommendation from Growth Company Investor

[ssords] 06/1/2010 17:35

Encouraging article in The Times today. Perhaps the financial press waking up to the potential of this company. Often needs prods from them to aquaint punters of a possible good thiong out there.
Ssords

[ssords] 05/1/2010 15:04

Latest contract sees MG goes from strength to strength. Very strong order book and little gearing must make this company bound for a much higher share price - imhoo
Ssord

[geraldus] 02/12/2009 08:04

Questor has it as a buy today after its October recommendation.

[geraldus] 01/12/2009 19:54

Very pleased with the results,still think a well run support outfit like this has further to go than £3.They have quite a cash pile available for a sizeable aquisition.I imagine the I.C. will be crowing about it later.

[aishah] 01/12/2009 15:23

Altium raises price target to 300p

[ssords] 01/12/2009 15:17

Some good half yearly results given share price a well warranted lift.
Ssords

[ghurah] 11/11/2009 13:58

off topic (in case some people mind)

is there anyone here that can help me?....read on...

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I would appreciate as many responses as possible and would really help me...
if yes then please email me for further information:

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all confidential etc

[geraldus] 20/10/2009 18:46

Large volume today on the buy side.

[geraldus] 15/10/2009 18:10

Yet another juicy contract,still interesting to see what their margin is on winning all these bids.

[ssords] 09/10/2009 17:04

Buyers suddenly coming for this share. Looks like message that is a going somewhere positive company finally getting through - long may such continue.
Ssords

[geraldus] 05/10/2009 19:11

Well a 5.5% rise,nice.

[ssords] 05/10/2009 09:37

Yes - amazing what a little press coverage can do. Luckily for me I had a head start and am now comfortably in the black on this one. Am expecting further rises though after shorters take profits and consolidation the share price level. MG is good for the long term - IMOO of course.
Ssords