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."