Email Facebook Twitter

London South East Natural Resources Webcast

ShareCast News

May Gurney profits plunge in first half results

Tue, 4th Dec 2012 14:28

Underlying profits at support services provider May Gurney fell to 1.1m pounds in the first half of 2012, compared to 14.5m pounds in the corresponding period last year, according to the group's interim results published on Tuesday.

The results, which cover the half year ending September 30th, showed a reduction in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) and overall operating margin, although the company posted 314m of new business.

Underlying EBITDA was 12.6m, compared to 14.7m in the first half of 2011 and the group's overall operating margin was 3.7%, compared to 4.5% a year earlier.

The decline in operating margin was connected to a number of factors, including poor weather over the summer and underwhelming performance from two environmental services contracts.

The group's surface dressing operations were negatively affected by poor weather and a short-term downturn in rail services. In addition, provisions for SGN's reduction in outsourcing and poor performance of two MaGOS environmental services contracts contributed to the operating margin decline.

At the half-year, no provision for future losses had been made in respect of the two MaGOS contracts and the group said this would be reviewed again at the year end.

May Gurney secured 314m of new work and contract extensions in the first half of 2012, up from 290m in the corresponding period last year. Group revenue rose 4.0% to 338.9m, compared to 324.7m in the corresponding period last year.

Margaret Ford, Chairman of May Gurney, said: "May Gurney's first-half performance was in line with our revised expectations. We have taken steps to reinforce commercial disciplines and the plans we put in place to address the operational issues we announced in September are on track. As expected, the process to resolve the two MaGOS environmental services contracts is complex, and will continue well into next year."

The share price was unchanged at 14.04 GMT at 172p.


Back to ShareCast News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.