May Gurney Integrated Services

In the midst of healthy contract bidding, infrastructure support services star May Gurney expects to achieve ‘the top end of market expectations’ for the full year, following a strong first half indeed.

Despite the uncertain economic backdrop, May Gurney continues to showcase its defensive qualities, which stem from the provision of essential maintenance and enhancement services to long-standing clients in the public and regulated sectors.

A strong performance was delivered during the half to September, reflecting organic growth, the delivery of contracts in the rail sector as well as a good performance in the highways space, helped by dry summer weather conditions. For May Gurney, this was yet another half of contract wins and extensions, including work secured with West Oxfordshire District Council, Northumbrian Water and Network Rail, as well as an extension to its long-standing street lighting tie-up with the London Borough of Waltham Forest.

Enticingly, May Gurney, with £1.4bn of solid orders in the bag, giving excellent earnings visibility and more than 95% of its business represented by long-term contracts, is hopeful of winning additional water sector work, with many deals currently up for grabs.

Philip Fellowes-Prynne, the group’s astute CEO, believes May Gurney is well placed to profit during this age of austerity, as it is ‘already providing innovative, efficient and cost effective’ solutions to clients, bang in line with the Government agenda.

Set to unveil interims in December, May Gurney is forecast to grow profits from £21.6m to £23m in the year to March, producing earnings of 23.4p, with a 5.9p dividend on the cards. Originally backed by Growth Company Investor at 307.5p in 2007, the shares remain significantly undervalued.