May Gurney (AIM:MAYG) continues to impress
May Gurney announced today that it has been named as preferred bidder for Cheshire West and Chester Council’s waste and recycling contract
The contract, which begins April 2012 and involves collection of waste from 147,000 household, is valued at up to £126m for a 14 year period with potential for a further 7 years extension.
MAYG has delivered consistently over the past five years and the valuation at c9x 2012 forward estimates and 10.5x 2011 actual, with a prospective dividend yield of approx 3% continues to look modest given the impressive track record. The shares remain approx 14% off their end July highs.