Mears Share Discussion Threads

[yoyoy] 12/9/2010 07:59

This is well worth noting from the FT

"Connaught had blamed its difficulties on public spending cuts as councils deferred projects to improve their social housing stock and said that they had been exacerbated by pressure from suppliers.

Supplier concerns had risen after it emerged that Deloitte had been drafted in to review the company's accounting practices.

However, Mears was one of the most vocal companies in distancing itself from the woes of its rival. Little more than an hour after Connaught issued its first profit warning in June, Mears said it had not experienced similar difficulties.
"

here is the link to the full article

[yoyoy] 12/9/2010 07:53

Teelegraph

"Mears is paying a nominal fee to acquire the repair and maintenance contracts, it is understood, and is also in talks about snapping up a contract with Norwich City Council, one of Connaught's biggest clients.

Bob Holt, chairman of Mears, said his company was "delighted" with the progress of talks with KPMG, the administrator to Connaught's social housing division. In addition, a number of Connaughts's customers are believed to have independently approached Mears about taking on work.

"

[nfs] 11/9/2010 22:13

Today's FT has Mears buying some contracts from Connaught,and the Norwich contracts is not in the package

[mdrans1] 11/9/2010 21:03

If Morgan Sindal is a whale @ £305M market cap, Mears @ £237M is some sprat!!

[dnfa1975] 11/9/2010 13:07

problem is Morgan Sindal is a strong player, stronger and bigger than mears.
A sprat and a whale, prepare for battle

[copyright] 11/9/2010 12:08

From today's Daily Mail >>>>>>>>>>>>>>>>>

More than 2,500 jobs have been saved after building firm Morgan Sindall snapped up the majority of contracts from failed social housing maintenance group Connaught.

And a further 1,000 positions are likely to be secured this weekend as Mears ties up an agreement to take over eight maintenance deals.

Morgan Sindall is not taking on Connaught's 12 biggest contracts, including its largest deal to maintain housing stock for Norwich City Council, because the company considers them to be loss-making.

The business spent £28million to buy around 100 contracts from Connaught, which it hopes will generate £200million a year for the firm.

The contracts, which account for 80 per cent of Connaught's deals, will be transferred directly into Morgan Sindall's affordable housing division, Lovell.

John Morgan, executive chairman-of Morgan Sindall, said his firm only took on 80 per cent of Connaught's contracts because he felt the rest were badly priced.

Housing group Mears, which was also in the running for the contracts, said it is continuing to negotiate to take on some work.

Chairman Bob Holt said: 'We've already picked up a number of contracts with local authorities, who have approached us directly and we will be looking at picking up the remaining contracts next week.'

[turborock] 10/9/2010 23:29

they acquired "the majority". I guess we'll have to wait and see

[miss womble] 10/9/2010 13:27

Does anyone know if Morgan Sindall has left anything for Mears or have Mears already cherry picked up some contracts isolated by Connaight's downfall. Rgards MW

[dnfa1975] 09/9/2010 21:20

hopwe to get a slice at 250p

[tom.b] 09/9/2010 00:36

Mears are going to get a premium and uplift on these new contracts before they take them on... Bob Holt don't take wild chances...£3.00 sooner than we think or hoped!

[celeritas] 07/9/2010 23:58

Rivals circle as Connaught confirms administration
Tue 7th September | 21:54

Rival contractors are vying to take over Connaught jobs as the firm confirmed its fall into administration.

Councils and housing associations will mobilise plans to replace the ailing contractor as accountant KPMG steps in to run the company

Firms like Mears, Rok, Morgan Sindall and Willmott Dixon will be sounded out by housing bodies as the future of Connaught and its 10,000 workforce remains uncertain.

A Connaught Stock Exchange update said: "Following extensive discussions with the Group's secured lenders, it is now clear that sufficient support would not be extended to the Group as a whole to enable it to continue trading as a going concern.

"As a consequence, the Board is saddened to announce that it is in the process of appointing partners from KPMG as administrators of Connaught plc and its subsidiary, Connaught Partnerships Limited, which comprises its Social Housing Division."

The group's compliance and environmental divisions are not being placed into administration and will continue to trade normally.

Accountants at KPMG will now run Connaught while they seek to find a buyer for the business.

Contracts could be sold-off individually as rivals circle the remains of the firm.

John Morgan, chief executive of Morgan Sindall: "Clients have been approaching us over the last few weeks, but there has been a sharp increase in the number of approaches today."

Bob Holt, chairman of Mears Group, said: "We are watching the situation carefully and we are ready and willing to pick up work if it becomes available, we have been approached."

Another contractor told the Enquirer: "Now this has been confirmed it will be a case of talking with KPMG and seeing what contracts are up for grabs."

[celeritas] 07/9/2010 20:52

Contracts will have to be renegotiated but I also expect someone wil have to step into the void left by cnt pretty quick.
MER and ROK are the two who stand to gain the most from Connaughts demise.

[phillis] 07/9/2010 17:30

Don't think Mears will take on any work whose margin doesn't match their objectives

[yoyoy] 07/9/2010 17:18

Mears was the first named alternative company on Radio 4 just now.

Phillis - as long as Mears does its background work. Could we see councils having to pay more for the work?

[phillis] 07/9/2010 17:14

Mears won't have to bid
CNT will be in default because of their financial condition and customers will be begging for Mears to take over

[daz] 07/9/2010 14:32

yoyoy - Mears is also a likely bidder for parts of CNT. I suspect the administrator is not going to be able to sell CNT in its entirety because of the problems with particular contracts, it's much more likely to be sold piecemeal.

[phillis] 07/9/2010 13:34

Major competitor in disarray

Buy Buy Buy!

[yoyoy] 07/9/2010 13:33

Daz,

Only if it closes its operations - there is always the possibility that someone will buy them on the cheap

[dnfa1975] 07/9/2010 08:52

gonna fly now imho

[daz] 07/9/2010 08:24

Should benefit from CNT's administration announced this morning. I'm surprised it hasn't moved up more.

[nfs] 05/9/2010 22:21

I am delighted to be able to invest in a quality company on a modest rating,with excellent management,a strong focus on cash flow,long term contracts,great defensive qualities,pays a dividend and where a major competitor has got fundamental looking problems.Enough water seems to have passed under the 'company specific' bridge re Connaught to feel comfortable investing here.
Congrats to all who got in at 25-30p and are still here/I think it's time the trading raneg was broken,earnings have grwon an awful lot without any share price advancement

[tom.b] 03/9/2010 08:11

...all the way to £3.00... come on mears

[yoyoy] 02/9/2010 16:26

rising gradually

[tom.b] 01/9/2010 00:02

Where have all the incestors (Investors)gone?... CNT in trouble and rising and MER in the clover and no stir...anyone have any guess as to why?...