Mears Share Discussion Threads

[lpf] 06/6/2007 16:16

From today's AGM statement, about the new contract:
the sole strategic partner to deliver their entire housing maintenance and improvement programme. This is worth a minimum of £168million over 15 years but further negotiated works could see that rise. ...

They also report being confident of meeting market expectations - and those expectations have been rising steadily over the last 12 months, and stood earlier this week at a turnover of £315m, giving Mears a forward price-sales ratio of 0.77.

As the non-RSL sector cools, I'd expect to see Mears' margins improve significantly, as costs go down: demand will remain high.

At a forecast earnings yield of 5%, these don't look cheap at first glance, but with revenue growing at 20% per year, they're looking pretty attractive to me as a solid GARP stock.

[5dally] 31/5/2007 16:01

Whats up here, nice surprise

[simon gordon] 25/5/2007 13:25

Looks like a gentle de-rating post the diwersification.

[lew stules] 25/5/2007 13:23

Gone below the 200 SMA will drift back to £2.60ish IMHO.

[timmbo] 24/5/2007 13:21

long forgotten this puppy. straight back to summer last year price..then a buy

[cambium] 30/4/2007 16:07

Bob selling more to top up in WYT

[hosede] 30/4/2007 15:52

well topped up with another 8k at 320 - lets hope its just another hiccup. If Bob Holt does as well with Careforce as he has with Mears these prices will get left well behind in ayear or two

[hosede] 30/4/2007 12:41

Can't see why ! The careforce has been a done deal for at least a week - maybe a broker's note

[danski] 30/4/2007 11:12

no sell recommendation in any sundays as far as i can see. must have sth to do with the careforce deal

[hosede] 30/4/2007 09:59

Sudden plummett this morning - a mass of small sells - must be a "sell" rrecommendation in one of the Sundays. Could be a good time to top up

[hazelton] 22/3/2007 19:22

AEGEON Group , major interest in Mears

[fellowes2] 06/3/2007 22:44

The Domicilary Care sector is a growth Market, although there are issues such as very strict regulation and problems in recruiting and retaining good staff. The Careforce Management are not highly rated by the City and Mike Rogers did not exactly excel himself in his previous role at Nestor Healthacre, and this is being very kind.

I am suprised that Mears did not buy one of the larger unquoted Home Care providers, my view is that this is not a sector that Bob Holt knows well and I can see why there were Director disagreements over this strategy.

[mistertibbs] 06/3/2007 22:34

If it's any comfort, which I doubt, Laidlaw Scott work for local care home so they at least have experience in this field.

[simon gordon] 06/3/2007 11:54

I think they should have focused on outsourced building maintenanace, as are ROK and Connaught. If you look at GSH they are a new young pup on AIM who have a coherent strategy with a focus on building maintenance.

It would have been simple for Mears to build on their infrastructure and roll out additional services to the public and private sector.

This move may pay off but as a business decision it looks like a diversion or as Peter Lynch called it a 'diworsification.'

[hazelton] 05/3/2007 20:26

I too think that this could well be a positive move. These are growth markets and may well prove to be the next engine of growth for a while to come. MER has done well and they have probably spent months looking at these possibilities. We should afford them some time to ascertain the outcome , I doubt that the cost is that high.

[mistertibbs] 05/3/2007 20:06

As a 24/7 home carer, I am well aware the need for help in these matters and believe this a good long bterm move, although I feel some adverse reaction may be felt with this slight change in strategy. I've been concerned for some time that eventually mer would indeed need to diversify away from social housing repairs as this market will start to tail off after 2010

[fellowes2] 05/3/2007 18:40

It looks like it and my caution seems to have been misplaced here.

[mikeb01] 05/3/2007 12:12

Could this be the reason Black left divirgence of opinion on future direction?

[simon gordon] 05/3/2007 08:21

Mears looks likely to be de-rated with this diversification.

They should just focus on outsourced building maintenace.



Care for the elderly?

Bonkers!

[cambium] 05/3/2007 08:16

LONDON (AFX) - Mears Group PLC announced higher full-year earnings and
sales, and said it has agreed a recommended bid for Careforce Group, valuing the
latter at around 22.2 mln stg and paid for via a placing of new shares.
Mears reported full-year to Dec 31 profits before tax and goodwill
amortisation of 12.5 mln stg, up 28.4 pct from 9.8 mln last time, on sales up
18.6 pct to 241.4 mln stg compared with 203.5 mln last year.
Sales were boosted by a 27.7 pct increase in social housing turnover.
Mears said it will offer Careforce shareholders 0.4552 new Mears shares for
every Careforce share they hold, valuing each share at about 160 pence.
Alternatively, shareholders could opt for 150 pence per share in cash.
The bid represents a premium of 43.5 pct over the March 2 closing price of
111.5 pence, Mears said.
To fund this offer, Mears plans to raise about 25.2 mln stg via a placing of
7.53 mln new shares, priced at 334 pence each.

[hosede] 20/2/2007 14:43

Fellowes2
The same thing happened with Barratts (in the early ninties I think). Lawrie Barratt having retired had to take the helm again when the share price was about 50p. It's now 1200+. MER sailing on to new highs today anyway

[5dally] 16/2/2007 10:07

This is a buy in Money Week today, very positive write-up and says very good growth for future, I've just bought some more as I see this to go higher on the run up to results

[cambium] 07/2/2007 16:05

Blacks gutted

[popout] 01/2/2007 16:09

A mere storm in a tea cup. The CEO has left for personal reasons and who can blame him? We all have that entitlement whatever path we choose. He has done a stern job and should be congratulated on his achievements to date.

The share price has rebounded strongly today and IMHO the impending results will be at the high end of expectations as they have continued to do so time and time again.