May Gurney Sees ‘Significant’ Growth in Waste, CEO Says
May Gurney Integrated Services Plc (MAYG), which maintains Britain’s canals, expects “significant” growth in municipal-waste collection as local authorities try to meet recycling targets, Chief Executive Philip Fellowes-Prynne said.
May Gurney should gain business because its curbside sorting programs can separate recyclables more efficiently than the authorities can, Fellowes-Prynne said. Full-year profit rose 1.5 percent as it gained more business filling potholes, the Norwich, England-based company said in a statement today.
The company is the fifth-biggest municipal waste collector in the U.K. with an 8 percent market share, the CEO said. About half of U.K. waste is collected by local governments, down from 53 percent last year, and that total may decline to 40 percent in five years as they outsource contracts, Fellowes-Prynne said. Britain faces fines if it doesn’t meet European Union targets to reduce landfill waste.
“We see the pressure on in-house services continuing,” Fellowes-Prynne said in a telephone interview. “We see the opportunities to grow as quite significant.”
May Gurney is seeking acquisitions in both its government- and utility-services units, and is considering possibilities including vehicle fleet management and generation of renewable and fossil fuel power, he said.
“We have no debt, and we have cash,” he said. He wouldn’t say whether the company is close to a deal.
May Gurney rose 1.75 pence to close at 272 pence at 4:30 p.m. in London. The shares have risen 8.4 percent this year, giving the company a market value of 191 million pounds ($313 million).
Net income rose to 13.3 million pounds in the year ended March 31, from 13.1 million pounds a year earlier, the company said. Sales climbed 18 percent to 571.4 million pounds.
May Gurney said it planned to raise its full-year dividend by 20 percent to 6.6 pence per share.
To contact the reporter on this story: David Altaner in London at firstname.lastname@example.org
To contact the editor responsible for this story: Colin Keatinge in London at Ckeatinge@bloomberg.net