Michael Dunn (Finance Director) and David Sterry OBE (Chief Executive)
May Gurney - 23,728,116 shares placed at 186 pence per share. Offering nearly 2 times over subscribed.
The Placing
The Directors of May Gurney Integrated Services plc ("May Gurney" or the "Company") are pleased to announce that 23,728,116 ordinary shares in the Company have been placed with institutional investors at 186 pence per share conditional on admission to AIM, raising £44.1 million in total, of which £13.5 million (net of expenses) was raised for the Company. At the placing price, the Company will be capitalised at £130.6 million. The Placing was nearly 2 times oversubscribed.
Altium Capital Limited acts as nominated adviser and broker to the Company.
The first day of dealings is expected to be Wednesday 21 June 2006.
May Gurney - Highlights
May Gurney has a differentiated business model of a dynamic, integrated support and construction services business led by a strong management team, with on average over 20 years industry experience and expertise, supported by an experienced operational team.
Its robust financial position, with a 7-year track record of growing turnover and profits alongside strong cash flow generation, has meant that EBITA has increased from £2.2 million in 2001 to £13.7 million in 2006.
The Company has highly visible and predictable quality earnings, with a forward order book in excess of £1.1 billion in total:
- of this, over £900 million is secured with an additional £250 million expected under framework contracts;
- the order book is based upon long-term client relationships;
- there is a strong pipeline of future opportunities with a wide range of blue-chip clients across a number of sectors; and
- the majority of revenues for the year to March 2007 are secured.
May Gurney's focused strategy is to grow the business both organically and through selective acquisition opportunities in the UK's consolidating support services market place with the majority of the Company's revenues being derived from maintenance and enhancement spend. Thus the Company mitigates any exposure to any downturn in capital expenditure by the UK government.
Increased regulatory pressures and central government efficiency agendas should continue to provide good growth opportunities for May Gurney.
David Sterry, Chief Executive said:
"We are delighted that the offering has been so well received by institutions, particularly in light of recent volatile market conditions. We look forward to pursuing the exciting growth opportunities that exist in our chosen markets and continuing the excellent performance we have achieved in recent years."
For more information about this press release, please contact:
May Gurney Integrated Services plc
David Sterry, Chief Executive
Michael Dunn, Finance Director
Tel: 01603 727272
Altium
Phil Adams
Mike Fletcher
Paul Lines
Tel: 0161 831 9133
Citigate Dewe Rogerson
Ginny Pulbrook
Tel: 020 7638 9571
Footnote: This announcement and the information contained therein are not for release, publication or distribution in, or into, the United States, Canada, Australia, Japan or South Africa.
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