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.

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.