Mears Share Discussion Threads

[chrisfoster] 30/1/2010 14:01

Quite right melody. I continue to hold too.

[melody9999] 29/1/2010 21:30

You would think that the current market volatility might attract more investors towards solid defensive performers like MER and DTY. Don't investors like to sleep at night?! Holding here and await events.

[rivaldo] 24/1/2010 18:57

FYI SCSW mag were very positive on MER last week:



"279p Epic code: MER

(Sharewatch) Mears has won new contracts with an initial value of £113m, taking the total value of new contracts in the first nine months to £550m (£650m including extensions). The big contracts are on the social housing side worth £93m from councils in Crawley, Colchester, Canterbury, Thanet District and Birmingham for varying terms (between four and ten years). Strong hold."

[rivaldo] 22/1/2010 13:42

Thx ig - makes a good read:

"08/01/2010
Robert Tyerman

Social housing star Mears Group indicates a 'successful trading outcome' for 2009 and says it has secured three quarters of 2010's forecast revenues of £539m.

Analysts now expect the acquisitive company, steered by entrepreneur Bob Holt, to report pre-tax profits for 2009 up some 45% to £23m on turnover 13% ahead at £474m, with nearly £28m pre-tax on the cards for this year. Fully listed Mears won new contracts worth more than £550m last year, which potential contract extensions could take to £650m and says its forward order book now stands at £1.8bn.

Claiming 'demand for our services has never been stronger', Holt points out that nearly 90% of the company's revenues come from social housing and domiciliary care. He maintains these are defensive markets, where spending is 'largely non-discretionary' and which provide 'substantial immunity from bad debts'.

Mears cites a strong bid pipeline for contracts and says it is now at 'advanced stages of negotiating further significant opportunities'. The shares, which have fluctuated between 210.25p and 298.25p over the past year, now trade at 283p and have scope for further gains."

[investinggarden] 22/1/2010 11:31

Add recommendation from Growth Company Investor

[badtime] 21/1/2010 18:59

Old Derek is often singing ther praises

[geovest] 18/1/2010 07:48

Great move. Flush out the stragglers, then give notice of de-listing SOR shares which will flush out the rest. Only uncertainty is the 28% main shareholder who may make life more difficult, but will become marginalised over time.

[rivaldo] 18/1/2010 07:19

Good - the offer for SOR is now unconditional.

[rivaldo] 14/1/2010 15:03

Go for it my son....

[rivaldo] 13/1/2010 07:10

RNS out, and it's good news, as with 57% acceptances it appears the SOR takeover is going through - no doubt some were waiting for the other offer which has of course now fallen through.

Since everyone considers this to be a bargain it's time the share price resumed its uptrend given the excellent trading update too.

[rivaldo] 11/1/2010 14:48

Uptrend being resumed following the trading statement?

Given results on 9th March and news of the Supporta offer closing we should hopefully see a continued share price rise over the next two months.

[geovest] 08/1/2010 13:36

I think it is most likely that they realised they would not be able to raise the financing for a cash offer.

[iii spy] 08/1/2010 12:49

Possibly concerned over the non-core business at SOR and cannot line up an exit for it in time. I am sure BH has done his homework and has a safe haven for that part of the business to right off against the new debt.

[cwa1] 08/1/2010 11:58

Nice ferreting as ever riv. Thanks.

That would be my only concern that they have found something in their due diligence that they didn't like-but I guess Mears should be in an excellent position to know what they are buying and think they are entitled to our trust on that one.

[rivaldo] 08/1/2010 09:40

:o))

Nice article in today's FT, emphasising that Supporta's major shareholder considers MER's offer price to be a bargain and that Bob Holt knows SOR's business well as its former Chairman....



"Allied withdraws its cash offer for Supporta
By Hannah Kuchler

Published: January 7 2010 23:05 | Last updated: January 7 2010 23:05

Allied Healthcare has withdrawn its indicative cash offer for domiciliary care provider Supporta, leaving the way clear for Mears to buy the company.

Allied gave no reason for the withdrawal, and the Supporta board has already recommended Mears' £27.2m all-share offer.

Romac Investments, which holds 28.2 per cent of Supporta through its Gingko Investments subsidiary, had urged other shareholders to wait for a cash offer before accepting the Mears' bid.

Nigel Welby, a leading shareholder in Romac Investments, said: "We're naturally disappointed that Allied has decided to walk away as we feel the Mears offer fundamentally undervalues the business. We will have to sit down in the morning and consider what to do – we have a material stake and will influence the outcome."

Supporta shares fell 4p to 30p.

Karl Green, an analyst at Altium Securities, said: "We don't know whether Allied Healthcare just didn't feel able to exceed Mears' offer or whether they found something in the due diligence that they didn't like.

But the Mears chief executive Bob Holt was chairman of Supporta, and Mears is in domiciliary care too, so he knows the company." The domiciliary care market is worth about £3bn a year."

[cwa1] 08/1/2010 09:09

Excellent update. Happy with that going forward. I'm assuming that the price will down by the end of the day as per tho ;-)

[geovest] 08/1/2010 08:13

I like the wording "the Group is currently at advanced stages of negotiating further significant opportunities." It means they are already past the tender stage and are now negotiating final term.

[rivaldo] 08/1/2010 07:17

Excellent trading update this morning - 2009 results will be good, order book is up to £1.8 billion from £1.7 billion, secured 2010 revenues up to 75% from 72%...

....and further "significant opportunities" to be announced.

Expectations for 25p-26p EPS this year should be increased with the Supporta acquisition, but a re-rating to 330p or so should be in order to start with imo:

[rivaldo] 07/1/2010 15:43

:o)) Maybe they just couldn't finance the deal themselves in time to top MER's offer, who knows? It has to be good news for MER that they don't have to raise their offer or engage lawyers and advisers costing £m's for evermore....

[cwa1] 07/1/2010 15:14

No intention to make an offer for Supporta plc ("Supporta")

On 23 December 2009, Allied Healthcare International Inc. ("Allied") announced,
in accordance with Rule 2.4 of the City Code on Takeovers and Mergers (the
"Code"), that it had submitted an indicative cash offer for the entire issued
share capital of Supporta, which was subject to, amongst other things, due
diligence.
Following a period of due diligence, Allied has decided to terminate discussions
with Supporta. Allied therefore confirms, in accordance with Rule 2.8 of the
Code, that it has no current intention to make an offer for Supporta.

Wonder what they found.................?

[jimmerandloz] 06/1/2010 16:57

It's nice to see the shares on a slow upward trend at last!

[rivaldo] 06/1/2010 15:53

Popping upwards.

[iii spy] 04/1/2010 12:54

Any idea what this level might be? you seem to be well informed.

[phillis] 04/1/2010 12:35

the price is what somebody is prepared to pay. Mears have another level up their sleeve