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1 December, 2011 - 10:47 By News Desk

May Gurney reveals £4bn bid pipeline

Philip Fellowes-Prynne

Norwich based integrated services company May Gurney boosted its share price 6p to 291p after posting excellent first-half results – and revealed a £4 billion pipeline of bidding opportunities.

The UK business is confident that it has a strong enough strategy and balance sheet to underpin success into 2012 despite gloomy predictions about the global economy.

Group revenues increased 21 per cent to £351 million in the six months to September 30.

EBITA has increased to £15m (H1 2010, £12.3m, with underlying earnings per share increasing 25 per cent to 15.09p.

The group has generated £17.7m of cash from operations representing over 100 per cent conversion of EBITA. It ended the period with gross cash of £36.6m (£36.2m) and net cash of £15.2m (£10.9m). The interim dividend was lifted 34 per cent to 2.79 pence per share (2.08p).

May Gurney, which provides integrated essential maintenance and enhancement services to clients in the public and regulated sectors, says that more than £290m in new contracts and extensions was secured in the first half.

Chief executive Philip Fellowes-Prynne, said the forward order book stood at £1.5 billion (£1.4bn), including framework agreements, but excluding extensions; potential contract extensions are valued at a further £1bn.

He also revealed a £4 billion pipeline of bidding opportunities in core markets.

“Whilst alert to the challenges in the economy, and the pressures on government-linked expenditure in particular, we believe that the essential nature of our services, our flexible approach, together with our solid balance sheet, position us well to continue to build upon the group's success,” he said.

• PHOTOGRAPH SHOWS: Chief executive Philip Fellowes-Prynne

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