Infrastructure services firm, May Gurney has issued a big profit warning and parted company with its chief executive.
The firm, which looks after rail, road and utility assets says some kerbside recycling contracts are experiencing serious difficulties while the Facility Services division, which has focused on the education sector, is to be run down with exit costs likely to hit £10m.
At its utilities business, one of its brands, Scotia Gas Networks, has decided to reduce its outsourcing requirement, which will impact revenues.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Philip Fellowes-Prynne, the Chief Executive, has left "by mutual consent", to be replaced on a temporary basis by non-executive director Willie MacDiarmid, whose background is as a senior manager at Scottish Power.
May Gurney says it will "significantly under-perform" its original forecasts for the full year, resulting in a massive sell off of the stock. At midday the shares had fallen 46%.
BS
