Trading statement published

May Gurney has today (2/4/08) reported on trading for the 12 months ended 31 March 2008, prior to entering its close period.

During the second half of the year trading has been in line with management's expectations and we have consolidated our position across our chosen markets, winning significant long-term maintenance contracts worth in excess of £250m.

These contract wins include a new eight-year highways services contract for Northamptonshire County Council, renewal of a long-term property maintenance framework for Network Rail, and a new long-term framework for SmarteEast (a not for profit company jointly owned by Essex, Hertfordshire and Suffolk County Councils) to provide construction services across eastern England.

Long-term street lighting contracts have also been renewed for Thurrock Council and the London boroughs of Bexley and Redbridge.

We've also completed the acquisition of the household waste recycling (HWRC) business for Gloucestershire and Norfolk County Councils, and the acquisition and successful integration of Willows, the north-west based gas utility maintenance contractor.

Our forward order book remains robust and currently stands at more than £800m, plus around £250m under frameworks. The business remains cash generative with net working capital remaining in line with expectations.

Against this background of positive trading in the second half of the year, we are on track to deliver results for the year in line with management's expectations and, supported by the substantial visibility inherent in our order book and dependable workflows in our chosen markets, the outlook for 2008/9 remains positive.

David Sterry, Chief Executive, said: "Our continued focus on long-term customer relationships as the driver for our earnings growth, coupled with our prudent acquisition policy, continues to deliver strong and consistent results.

"The excellent visibility of our £1 billion plus order book, clear opportunities in our chosen markets, successful acquisitions and strong cash position maintain our confidence in our prospects for the future."

The company's preliminary results will be announced on 3 June 2008.

Appointment of New Director
May Gurney is delighted to announce the appointment of Philip Fellowes-Prynne as Chief Operating Officer with effect from 14 April 2008.  Philip has a wealth of experience in the infrastructure and waste support services sectors at a senior and board level having been Chief Executive of Accord plc where he was also involved with the successful strategic highways JV with Mouchel plc.  Prior to that he was with Cleanaway Ltd (subsequently Veolia plc) for four years.

Philip will take over from Richard Dean, who has indicated for some time that he wishes to leave the Company in 2008 after eight successful years, initially as Managing Director of Construction and then as Chief Operating Officer.  Richard will stay on until the AGM in July to ensure a smooth handover.

David Sterry, Chief Executive, said 'We are deeply indebted to Richard for his input to May Gurney over the last eight years.  He was part of the MBO team that formed May Gurney Integrated Services plc in 2001 and has been a key player in the strategy to move May Gurney to a service business since that time.  We wish him well in the future.  I am delighted to welcome Philip to the Board.  Not only does he have an excellent track record but is someone who shares our philosophy and culture.  He will bring valuable skills to the Board and I and my colleagues look forward to working with him.'