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May Gurney bosses plan to hold £40 million stake after AIM float

NEWS

SENIOR management at May Gurney will own a £40 million stake in the firm after deciding to f loat the Norfolk maintenance contractor on the Alternative Investment Market.

Chief executive David Sterry, who led a management buyout of the company in 2001, said: 'We believe that the market capitalisation of the company will be in excess of £100 million.

'Senior management will own 40 per cent of the shares with our staff owning another 20 per cent. This allows us to keep the independence of the business while increasing liquidity in the shares.'

May Gurney expects to be trading on AIM by the end of June.

Mr Sterry said the Norwich-based company is hoping to raise between £10 and £20 million from the float, which will be used to fund acquisitions as well as mobilisation costs for its burgeoning highways maintenance division and enhancement deals with local authorities, utilities and Network Rail.

Around 75 per cent of May Gurney's business is secured through framework deals, with the remaining 25 per cent competitively tendered.

The firm has 3,300 staff across 20 offices.

He said: 'The company is 80 years old this year and this is the next stage in the development of the business. It will give us a stronger balance sheet, increase our sources of funding and allow us to bid for bigger contracts.

'We have had double-digit growth over the last few years and we are looking to maintain that through organic growth and selective acquisition.' But Mr Sterry ruled out working abroad in the near future.

He said: 'We are looking to strengthen our domestic position at the moment and overseas markets can be difficult to penetrate.'