A Questor tip in the Telegraph from December 2007 gives the lowdown:

'Since Questor last tipped May Gurney in June at 296p a share, the support and construction services group has climbed to as high as 345p, only to give back most of these gains.

This week's strong interim results, however, should really get the momentum going again. The 220m business, which focuses on providing maintenance and services to the highways, utilities, rail and general infrastructure markets, posted a rise in pre-tax profits from 6.8m to 8.1m. Revenue also improved from 199.6m to 215m.

This company is firmly on track to achieve its full-year estimates and is set to continue to be a highly acquisitive business, especially as all its recent bolt-on acquisitions are proceeding well.

It has just announced plans to buy the trade and assets of the Southern Household Waste Centre recycling business from Environmental Waste Controls, its existing joint venture partner. It is paying 3.2m and taking on 1.7m of debt - and the acquisition has been viewed positively as a transaction that will give May Gurney more defensive characteristics than its peers - something precious in these unsettled stock markets.

Its core commercial markets show an acceleration in expenditure, with county councils having an annual spend of 1.1bn on highways maintenance and the Highways Agency having a 2.2bn expenditure programme in 2007/8.

May Gurney should benefit from regulatory changes encouraging UK waste to be treated, and higher landfill levies should provide further incentive for local councils to recycle. It also works on flood protection programmes for the Environmental Agency so should hopefully pick up business following this summer's unprecedented flooding, and provides services for UK water companies.

Since it floated on Aim in June 2006 at 186p, May Gurney has performed well. Businesses on the junior market have tended to be sold off quite heavily during the recent market turmoil, as they are deemed younger and more risky investments.

Therefore, it has done well to stay at these levels despite investors choosing to shun Aim shares. The group has a small interim dividend, but it has decided to lift it, proving there is no reason to think the company will not be able to continue outperforming other Aim stocks.

The shares are trading at around 17 times 2008 estimates, but housebroker Altium Securities has given it a 370p price target and thinks there is still scope for a re-rating. Buy.'

The company has also just announced a contract with Network Rail:

May Gurney Integrated Services Plc
27 February 2008



May Gurney Integrated Services plc
('May Gurney' or the 'Company')


May Gurney awarded long-term property maintenance framework for Network Rail


May Gurney, the dynamic integrated support and construction services company,
announces that it has been awarded a long-term framework contract for the
replacement, refurbishment and maintenance of Network Rail's operational
property. The contract, covering the London and North East region, runs for two
years, with a potential three-year extension, and is estimated to be worth circa
20 million per annum. This contract replaces May Gurney's current long-term
property maintenance framework that covers a different geography and follows
Network Rail's decision to consolidate its property maintenance business into
three regions (from five).

The contract primarily includes renewal work at railway stations - the repair,
refurbishment and remodelling of buildings, platforms, foot-bridges, lighting,
car parks and related infrastructure - and Network Rail's commercial property
and depot buildings.

David Sterry, Chief Executive at May Gurney said: 'We are delighted to have been
awarded this contract with Network Rail. The property maintenance framework
demonstrates our success at developing strong long-term customer relationships
and the importance of our ability to deliver truly integrated services - drawing
on our expertise of building maintenance, asset & facilities management, civil
engineering and mechanical & electrical engineering services'.

Trading continues to be in line with management's expectations. The forward
order book - including framework contracts - is maintained at over 1 billion,
continuing to give excellent visibility of earnings.



A trading statement is due in a month or so.

The forecasts for the next two years suggest the current share price of around 260p is very very reasonable;

www.fool.digitallook.com/?action=forecasts&ticker=mayg

As ever please DYOR.

Get a little worried when companies describe themselves as "dynamic" although of course compared to Network Rail that may well be true.

Results due tomorrow (although it didnt appear on the MoneyAM forward diary !!).
Judging by the comparatively large trades at 150p there could be some decent figures and positive outlook to be announced.

If Cameron wins the next election all contracts awarded to private sector companies will be reviewed and then probably slashed.

Buy/ Hold recommendation from Growth Company Investor

http://www.growthcompany.co.uk/recommendations/1051832/may-gurney-integrated-services.thtml

Given as a buy in todays' Sunday Telegraph by Questor. Sounds interesting to me.The price is up about 100 points from spring time lows. Currenly 218 ,trading on 10 X next years' earning with 2.5% yield.
Any further views out there?

Also big article in this w/e FT.
A well run little company, imo, but as expressed in the article MAYG are not going to be immune to a downturn in government spending ("is that bypass really necessary just at the moment?"). On the 'up side', Brewin Dolphin reckon MAYG are gaining market share as they have a reasonably diverse platform of skills (Road, water, waterways, lighting, telecoms etc).
Tough times, but a good little AIM performer lately.

Peel Hunt note today:
"May Gurney has issued an unscheduled update and announced the departure of the CEO. Increased Environmental Services contract investment and the likely reduction in Gas activity leads to a 17% reduction in FY 2013 EPS. In addition, there will be a £10m exceptional arising from the closure of Facilities. The order book is maintained at £1.5bn and with 2013E net debt at £78m (£10m net debt for facility purposes) the balance sheet remains robust. Whilst we remain enthusiastic about medium-term prospects the shares are likely to struggle. We move our recommendation to Hold and place our target price under review.
Details. In Environmental Services (16% 2013e revenues) two large contracts (worth c£20m pa) remain a drag on profitability. Whilst successfully achieving client KPIs, management has reassessed the expected returns over the life of these contracts. In Utilities (27% 2013e revenues) management anticipates that Scotia Gas Networks will, as part of its regulatory settlement, reduce and in source certain activity previously undertaken by MAY. The combined underlying EBITA impact we estimate to be £5.0m in 2013 and £5.8m in 2014. In Facilities (5% 2013e revenues) management has identified additional costs associated with its closure. This will result in an exceptional charge of £10m. We revise 2013 net debt to £78m from £40.4m but note £68m represents contract backed finance leases which do not form part of May’s available facilities (£48m to 2015) or covenants. At this stage we assume a dividend cut (3x covered) but management will review the policy at the interims.
Management change. CEO Philip Fellowes-Prynne is stepping down to be replaced, on an interim basis, by non executive Willie MacDiarmid. We see this as a sound appointment to drive the performance improvement.
Estimates. Trading in the remaining operations is in line (order book unchanged at £1.5bn) and this is supported by another resilient Transience performance. We downgrade our Mar 2013 PBT from £30.0m to £25.0m to give EPS of 26.2p from 31.5p. For 2014 we look for Mar 2014 PBT of £26.0m from £32.0m to give EPS of 27.1p.
Investment case. The shares will undoubtedly weaken on the back of this statement but are likely to present an interesting opportunity at lower levels given the group’s positioning in an attractive and consolidating sector."

Just seen these in the HL lunch time flier Harry - worth some investigation?

I wish I knew skinny. This has always been a steady, if dull company, often recommended by our local stockbroker. Worth investigating, but don't forget I don't spreadbet, so trading very short term bounces is not on my agenda.

Hmmm - think I'll watch from the sidelines, I'm still smarting from MCHL.

Following the sell-off seen in May Gurney shares on Thursday, Investec has retained its 'sell' rating and 100p target price for these shares, saying that it will take some time for the infrastructure services firm to rebuild confidence.

"Yesterday's news came as a shock to us, especially with the departure of the CEO, and, whilst the group had previously flagged that there were issues in some business units, the problems seem to have magnified," said analyst John Lawson.

"Whilst most of the business seems fine to us and the order book looks healthy (valued at £1.5bn), it could take some time to rebuild investor confidence. Hence, we are not in a hurry to change our negative view."

In auction now -9.6% @106.25p

I would stay out 50p .

"Brewin changed its stance on May Gurney Integrated Services (MAYG) from "sell" to "buy" with a target price of 155p. The broker noted that the shares have fallen off rapidly, following a negative update that included the departure of the construction and maintenance firm's chief executive, net debt forecast increases and write-offs. However, Brewin believes that the shares now look attractive, trading on a prospective earnings multiple of 4.7 times for the 2013 financial year and offering a dividend yield of 6.8%. The broker added that the group has a stable order book of 1.5 billion pounds, but admitted that it may take some time for the group's credibility to be restored."

In auction +11.1%

in this morning at 108p stop at 100p so we will see, ok so far.,.

118p and in profit, should be a good earner this one and divies.,.

Nice one BB.

Don't forget to book a profit Balerboy!

This one's price will go all over the shop until an update comes and I find it hard to believe it won't contain more carnage when it does. When profit warnings involve failures in three separate divisions, the immediate sacking of the CEO without so much as a "thank you for your efforts" and a new guy to survey the damage, I fully expect more damage to be reported. It was particularly disturbing to read in industry news that they have extended payment terms to their suppliers to 60 days from 45. When cash flow becomes an issue, it starts to smell a bit off, so I went short at 121p and 111p after the warning.

I expect price volatility in the short term but I think the latest broker comments are sanguine and complacent. Only the broker notes and a rampant stock market are keeping these up IMO.

From this week's IC:
"As profit warnings go, they don't come much worse than the one from support services outsourcer May Gurney. Management admits that full year figures will significantly underperform expectations due to sreious operational issues on rubbish collection contracts and a further £10m exceptional costs for the closure of the facilities management division. CE Philip Fellowes-Prynne has left with immediate effect. Broker Peel Hunt has downgraded it's full year profit forecats from £30m to £25m, giving EPS of 26.2p (down from 31.5p). The broker also assumes a dividend cut.
The losses on it's MaGos rubbish collection contracts are a concern as these represent 3% of group revenues. But perhaps more worrying is the news that Scotia GasNetworks is taking previously outsourced utility work back inhouse. With problems across so many areas of the business and so few clear answers, at 114p the shares look sufficiently vulnerable to make them a sell."

Hmmm, EPS 26.2p down from 31.5p. Is that all? I can see there being a lorryload of provisions and impairments and the dividend cut is certain.

Interested to see if there was going to be a bounce. Does not read well.

All noted, thanks bones.,.

trying to get to 120p all buys at mo, set stop to 115p

Holding in Company

The Company was notified on 14 September 2012 that Aviva plc has a notifiable interest of 2,855,209 ordinary shares of 5p each in the capital of the Company, representing approximately 4.07% of May Gurney's existing issued share capital.

going well at 124-125p tight stop in place but looking good.,.

Well done BB - bigger cajones than me! :-)

Ah, so size is important?

Wow.... thanks skinny thought only cynic had seen them.,.

how high will the "dead cat" bounce?

enough for a "juicy" profit in cynics words.,.

header looks in need of some updating!

May have set stop too tight at 124p got triggered last thing. seemed to be dithering around 125-126 and american market didn't make any difference to sp. Will see tomorrow.,,.

Good trade there BB. Played the bounce well with the aid of the broker note from Peel Hunt - whose MM colleagues were also active on the bid and remain so :)

I added to my short at 122p today so personally would hope for a resumption of the down move soon. That said, I have mostly bullish trades elsewhere so the net damage of continued strength to MAYG is not a particular problem. It is a specific situation trade and I still have a clear picture in my head of seeing this sub-£1 in the next month or two unless we hear of a miraculous disappearance of the company's business problems.

Will this turn out to be another Mouchel Parkman?

Sore point!

BB - you jammie sod!.. Excellent timing yesterday :-)

250 jobs to go in Scotland.......

http://www.bbc.co.uk/news/uk-scotland-scotland-business-19650458

19 September 2012 Last updated at 16:13

May Gurney announces plans to shed up to 250 posts

Infrastructure support services company May Gurney has announced plans to shed up to 250 jobs in Scotland.

The firm said it was taking the step after a major client, Scotia Gas Networks (SGN), revealed plans to cut the amount of work it outsourced.

The proposed job losses will affect employees supporting SGN's activities in Aberdeen, Dundee and Falkirk.

May Gurney said it was working with SGN to keep the impact of the cuts "to a minimum".

Steps include an agreement with SGN to retain some mains replacement and all new connections work in the north-east of Scotland until 2014.

In a statement, the firm said: "While May Gurney will continue to work with SGN in a strategic partnership, this decision will result in a significant reduction in the work we undertake for the group in Scotland and, also, our staffing requirements going forward.

"As a result, we have entered into consultations with our staff and anticipate that up to 250 people could be affected by this development.

"We will be working with employee representatives to seek alternative roles for our people and anticipate a number of those impacted could be redeployed."

It added: "In addition to continuing our discussions with SGN, we have also been working with one of our other long-term clients - Scottish Water - with a view to using transferable skills and retraining to create new jobs on the contract we deliver for them."

Profits warning

Earlier this month, May Gurney issued a profits warning and announced that its chief executive would leave the firm with immediate effect.

The company in part blamed the loss of a contract to renew and maintain gas mains for Scotia Gas Networks, which is a subsidiary of SSE.

May Gurney's clients in Scotland include Network Rail, Scottish Water, SSE, Fulcrum and Nokia.

The firm said it remained "totally committed" to growing its operations in Scotland, where it employs 600 people.

In January last year, May Gurney bought Aberdeen-based maintenance company Turriff for £13.6m.

Turriff hold interests in gas, water, electricity and multi-utility services.

Notice of Post Period End Trading Update

May Gurney, the support services company providing essential maintenance and enhancement services to clients in the public and regulated sectors, will be publishing its post period end trading update for the six months ending 30 September 2012 on Tuesday 9th October 2012 at 7am.

..Questor share tip: May Gurney's diversification should see it through these tough times

By Garry White | Telegraph – Thu, Sep 13, 2012 08:00 BST

May Gurney's shares have collapsed after a profit warnings. Questor thinks the shares are a speculative buy.

May Gurney 99p -18½ Questor says BUY

Last week's profit warning from infrastructure group May Gurney has caused the shares to collapse. The falls are explainable, but the shares look oversold.

The company has a history of meeting and beating forecasts and, although about 60pc of revenues are derived from the public purse, they are relatively defensive. These facts were represented in the relative stability of its share price for the past two years.

However, May Gurney said it "will significantly underperform" in the current year because of a £10m hit from closing a division that had served the axed Building Schools for the Future (Other OTC: FRNWF.PK - news) programme, a slowdown in outsourcing from Scottish utilities and "serious operational issues" in two recycling contracts. The recycling contracts make up about 3pc of historic revenue.

The Scottish utility issue is a disappointment, after the company paid £13.6m last year for Turriff, which operates in this space.

Analysts have cut about 20pc from 2013 forecasts yet the shares plunged by half. So, looking at the profit downgrades, the share-price fall looks way overdone. However, there are very good reasons for this to be the case. First (OTC BB: FSTC.OB - news) of all, the ghost of Mouchel is still stalking the City. It is just a few weeks since May Gurney's peer went into administration, wiping out equity holders.

However, it is important to note that May Gurney's contracts are for essential services and are diversified. It operates in road, rail and waterways maintenance, waste collection and recycling. The focus on maintenance rather than new projects, particularly in the roads sector, is important to note.

The regulatory aspect of the waste sector is also a key driver of future earnings. European rules mean that UK landfill tax is expected to increase to £80 a tonne in April 2014 from £64 a tonne today, which means the recycling market is likely to increase over the next few years.

No single client generates more than 7pc of revenues and the top 10 customers generate about 40pc of the total. May Gurney's contracts are also relatively long term. Analysts have calculated that, based on the current order book of £1.5bn, 77pc of forecast revenues in 2013 are covered.

There are potential risks, including government spending cuts, increased competition and more problem contracts. Weather also caused some problems in the group's highways unit earlier this year and this risk remains.

Questor is concerned about a potential writedown of Turriff, because it was this part of the business that lost the contract from Scottish utilities. However, Questor spoke to Lady Ford, May Gurney's chairman, yesterday and she said that Turriff had opened up opportunities across the UK and its other contracts were performing well.

It is possible that a small writedown could occur, but this appears priced in.

When things go wrong, the market can be very unforgiving. There is no doubt it will take some time for the shares to recover substantially but, trading on a 2013 multiple of just 4, falling to 3.8, they look too cheap. Questor last tipped the shares as a buy in December last year at 285p and they are 65pc below this level after they fell by more than half last week.

The shares do look oversold so remain a buy but it must be considered speculative.

..

That's over a week old :)

I closed my short at 115 on Thurs for a small gain. Seems to be too many buyers, whether or not misguided, before the update due on 9 Oct. If price carries on up, I may short before the update as I can see a lot of grief coming in the statement if the profit warning is any guide.

Just seen that bones , not really much use. lol

The chart looks like a 'hook and line' - ready to catch some punters!

Trading Update

First Half Trading In Line


May Gurney, the support services company, today reports on its first half trading performance for the six months ended 30 September 2012.

Trading in the first half has been in line with our expectations. The three issues we highlighted on 6th September have been ring-fenced and are being addressed.

Cash conversion remains robust at over 100 per cent of EBITA and we have continued to make progress in terms of contract wins and renewals.

We are pleased to announce that May Gurney has been awarded a seven year contract extension with the Somerset Waste Partnership (SWP), for the on-going provision of recycling and refuse collection services, valued at up to £100 million. In the first five months, the Company has won a total of £126 million of new work and £150 million of contract extensions. The order book remains solid at £1.5 billion.

At 30 September, the Group had gross cash of £20 million and borrowings of £23 million, with total borrowing facilities of £48 million, comprising a £15 million overdraft facility and a revolving facility of £33 million. In addition, the Group had obligations under contract-backed finance leases of £74 million.

TransLinc's integration is proceeding well, is ahead of schedule, and continues to deliver a strong performance, with levels of fleet renewals from local authority clients exceeding the Company's expectations. In the first half, TransLinc secured a new six-year contract with West Lancashire Borough Council for fully outsourced fleet management services valued at £4 million, consolidating the significant contract extensions for Solutions SK, Trafford and Rotherham won in FY2012 which have a combined value of £8 million.

Pauls Scotts blog.

Paul Scott's UK Small Caps: Fri 12 Oct - TMMG, MAYG, IND, TNI, HOME, MNGS http://paulypilot.blogspot.com/2012/10/fri-12-oct-tmmg-mayg-ind-tni-home-mngs.html?spref=tw …

Try again.......

http://paulypilot.blogspot.com/2012/10/fri-12-oct-tmmg-mayg-ind-tni-home-mngs.html?spref=tw …

Interesting tech article here
just out.........

http://www.tradersown.co.uk/members/profile/185/blog-view/blog_896.htm

These are starting to look interesting again.

Interim Results

Performance in line with revised expectations:

· Group revenues up 4% at £338.9m (H1 2011: £324.7m)
· Underlying operating margin of 3.7%, reflecting previously announced operational issues
· Group underlying profit before tax and amortisation of £1.1m (H1 2011: £14.5m)
· Maintained interim dividend of 2.79p reflects confidence in future prospects

Strong balance sheet and cash generation:

· Excellent cash generation, representing more than 100% of underlying EBITA
· Net debt[4] of £3.0m (March 2012 net cash: £11.0m) and contract-backed finance leases of £74.0m (H2 2012: £60.2m)

Continued visibility of earnings and contract wins:

· Order book maintained at £1.5bn, excluding zero value framework agreements and extensions
· Potential contract extensions of a further £1.7bn (H2 2012: £1.1bn) and a c£4bn pipeline of bidding opportunities
· New work and contract extensions of £314m (H1 2011: £290m), including the Canal & River Trust and the Somerset Waste Partnership

Operational plans on track:

· Plans to address the previously announced operational issues are on track, with commercial and operational improvements being driven forward. As previously announced, a £10m charge has been taken for the closure of the Facility Services business
· TransLinc integration complete, performing well and contributing to earnings. New business win from West Lancashire Borough Council

Recommended all-share merger of Costain Group PLC and May Gurney Integrated Services plc

· The Boards of Costain Group PLC ('Costain') and May Gurney Integrated Services plc ('May Gurney') are pleased to announce that they have reached agreement on the terms of a recommended all-share merger of Costain and May Gurney, which is to be implemented by way of a scheme of arrangement of May Gurney pursuant to which Costain will acquire the entire issued and to be issued ordinary share capital of May Gurney.

http://www.moneyam.com/action/news/showArticle?id=4562576

Looks like KIER Group have come in with a counter bid at 315p.