May Gurney wins council contract
May Gurney, a support services company, has been awarded Harrow Council's highways maintenance contract, valued at up to £50m.
May Gurney, a support services company, has been awarded Harrow Council's highways maintenance contract, valued at up to £50m.
The contract, which starts in April 2012, has an initial contract period of five years with an option to extend for a further two years.
The contract has been awarded in three "bundled services" lots and includes maintenance of the council's key infrastructure assets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
May Gurney's current forward order book stands at £1.5bn and it has a strong pipeline of bidding opportunities and potential contract extensions worth in excess of £4bn in May Gurney's core markets.
Peel Hunt commented on the news, saying: "We regard this as another important win and demonstrates the positive momentum across the group."
The broker left its earnings estimates unchanged, however, though it reiterated its "buy" recommendation, saying: "May Gurney continues to demonstrate its 'defensive' growth and cash characteristics, arising from its focus on non-discretionary services."
Northland Capital Partners was also positive: "May Gurney continues to make steady progress in both revenue and earnings and remains debt free. The on-going public sector cuts in the UK should offer further outsourcing opportunities and the scale of the order book provides a degree of reassurance and visibility," the broker said.
The shares trade on a multiple of 10 times Northland's projected earnings per share for May Gurney in fiscal 2012, underpinning the broker's "buy" recommendation.
The share price rose 0.87% to 290p by 12:51.
NR
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published