Mears Group PLC
10 January 2008
Mears Group PLC
('Mears' or 'the Company')
Trading update
Strong Performance across all Operations
Series of key contract wins in Social Housing
Growing presence in Domiciliary Care
Mears is pleased to issue a trading update ahead of its preliminary results
announcement for the year ending 31 December 2007, due to be released on 11
March 2008.
The strong first half performance has accelerated in the second half, with all
of the Company's businesses performing well.
Contract Wins in Social Housing
Since announcing interim results in August 2007, Mears has secured three
significant social housing contracts with new customers with a total value of
£204 million as follows:
- Yesterday the Company announced the award of a flagship contract with
Birmingham City Council to provide responsive repairs and voids refurbishment.
The contract is worth £65 million over 4.5 years with a possible extension to a
7 year term.
- In November 2007 Mears announced an £89million major strategic partnership
with Sedgefield Borough Council over 5 years covering all aspects of housing
repairs, maintenance and decent homes.
- In October of 2007 the Company was awarded a 10 year contract worth £50
million to carry out response and repair works for Midland Heart Housing
Association.
Since announcing its results for 2006 Mears has won contracts worth £500 million
across the whole group. The Company's order book now stands at a record level of
£1.4 billion. With 97% revenue visibility for 2008 and some 77% of the 2009
market consensus forecast secured, the Company is confident that it will
continue its record of delivering strong performance.
Growing Presence in Domiciliary Care
In line with the Company's growth strategy to extend its presence in the
domiciliary care sector, Mears has continued to acquire small and medium sized
companies in the sector and these will provide a positive contribution towards
the planned revenue growth for 2008.
Since Mears acquired Careforce Group plc in April 2007 the Company has acquired
eight businesses for an aggregate initial purchase consideration of £10.3
million which includes the most recent acquisition in December of CCA Quality
Home Care Ltd ('CCA') for a maximum total consideration of £2.45 million. CCA
operates from offices in Lisburn, Northern Ireland servicing contracts with the
Belfast Trust and the South Eastern Trust as well as a small number of private
clients.
This series of acquisitions now provides the necessary scale for Mears to
influence the way in which domiciliary care is procured and delivered and the
Company is confident of winning new contracts in the near future given its most
recent bidding activity in the domiciliary care sector.
Strong Operational Performance and Continued Investment
From an operational perspective Mears continues to perform strongly, placing the
utmost importance on service standards and on its partnership with customers.
Mears has continued to invest in systems and in people to ensure that the
excellent record of contract retention and customer care is maintained.
New Contract Bid Pipeline
The Company's bid pipeline remains strong which is very encouraging,
particularly following the substantial contract awards which have already been
achieved. Mears continues to be highly selective in the contracts it targets to
ensure that the Company maintains a high quality order book and a sustainable
business model. In addition, the continued pressures on existing and potential
customers to both contain costs and improve efficiencies will also provide
further opportunities to add to the range of services Mears can provide to its
growing customer base.
- Ends -
NOTES TO EDITORS:
Mears Group PLC is a leading provider of a range of services to social
landlords. The Group is also a major supplier of domiciliary care in the United
Kingdom following the acquisition of Careforce Group plc in April 2007.
The social housing services provided include response maintenance, void
refurbishment, planned preventative maintenance, improvements to meet the
'Decent Homes Standard' and estate management.
Profits have shown an annual compound growth rate of 40% since Mears was listed
on AIM in October 1996. The Group was awarded the AIM Company of the year award
in 2003.
Enquiries: Mears Group PLC
Bob Holt, Chief Executive
07778 798 816
David Robertson, Finance Director
07887 705 357
Andrew Smith, Executive Director
07712 866 461
Threadneedle Communications
Trevor Bass/Alex White
020 7936 9666
Nominated adviser to Mears Group PLC - Investec
Keith Anderson/Michael Ansell
020 7597 5970
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.