Mears Group PLC
14 January 2008
Mears Group PLC
('Mears' or 'the Company')
New contract wins in Care Division.
Mears Group is pleased to report significant new contract wins by its Care
Division, Careforce, which has been particularly successful in securing future
revenues in two areas where existing contracts, having come to the end of their
natural term, were being retendered. In both cases, Careforce has been
successful in winning higher volumes of the outsourced work at similar or
increased billing rates.
In Rotherham, Careforce has won the maximum possible allocation of three blocks
and in Hertfordshire it has won contracts which will lead to significantly
increased volumes and will run to at least 2015 with possible extensions to
2018. The anticipated aggregate forward sales value of the new contracts in
Rotherham and Hertfordshire is in the region of £34 million during the basic
contract terms or around £52 million if the options to extend the contracts are
taken up.
Since Mears acquired Careforce Group plc in April 2007 the Company has completed
on 8 businesses for an aggregate initial purchase consideration of £10.3
million. The Company believes that this series of acquisitions will continue to
provide the necessary scale for Mears to influence the way in which domiciliary
care is procured and delivered.
Mears Group Chairman, Bob Holt, commented:
'I am delighted to be able to report these significant gains so soon after our
acquisition of Careforce last year. I believe that they confirm that our Best
Value approach and our commitment to Partnership Working resonate well with the
expectations and responsibilities of our Local Authority partners. I believe
they also provide further evidence of the consolidation taking place in the
domiciliary care market which is leading to the placing of outsourced services
by local authorities with a smaller number of larger providers such as
ourselves.'
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
Mike Rogers, Executive Director
07768 685 283
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
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