The new boss of May Gurney, the group that supplies bin collections to several London boroughs, today tried to reassure investors that things are back on track after last month’s shock profit warning.
Willie MacDiarmid, who stepped into the breach when Philip Fellowes-Prynne walked the plank last month, said: “I am pleased to state that following my recent appointment as interim chief executive, plans are in place to address the issues we highlighted in September and we are taking steps to reinforce the good work already started to give a clear focus on commercial disciplines.”
May Gurney shares crashed 40% on September’s profit warning, hitting a low of 99p. Today they gained 6.13p to 132.63p.
The firm said the three problem and loss-making contracts it had identified in September have now been ring-fenced.
MacDiarmid said: “I have been very encouraged by positive conversations with our clients, and by our business wins in the first five months, totalling more than £276 million.”
John Lawson, analyst at Investec, said: “We made a drastic change of stance at the time of the profit warning and while the [share price] fall may appear overdone, we are not inclined to change our view back again just yet.”
