Mears Share Discussion Threads

[nellie1973] 09/3/2010 07:39

Very impressive, I am no longer a holder but will be buying back in!!!

[turborock] 09/3/2010 07:26

Decent set of results today

[volvo] 01/3/2010 18:23

Surely the larger Connaught offers better prospects at 300p with 3 brokers saying 440p or above. Both have about 90pc of 2010 fees and 80pc of 2011 in bank already.

Either way both will benefit as councils, even the reluctant ones, will otsource everything possible.

The savings for the councils are clear.

At the smaller end of the scale, a strategic bidder is said to be running the "slide rule" over Connaught, the social housing group. Bankers noted gossip that Enterprise, which is owned by 3i, has approached Connaught. Another potential bidder could be Mitie as it has held merger talks with the company in the past. Connaught, though, lost 1.1 to 300p and Mitie perked up 2.4 to 228¾p.

[cwa1] 26/2/2010 07:29

Brewin Dolphin resumed its coverage of Mears (MER), the support services firm, in the wake of its acquisition of Supporta, which the broker expects to be "modestly earnings enhancing" in FY 2010. Mears' focus on social housing will benefit the firm, as the British population ages, increasing the demand for such accommodation; the government is also committed to investing in new build social housing, giving good visibility. Around 85% of the firm's revenue comes from repair and maintenance, and this is a particularly stable area as funding comes either from tenants or from the government (where tenants are on benefit). Earnings growth of 14% is forecast for FY 2010 and the broker says that good growth is achievable after this point as well. It reiterated its 'buy' stance and 368p target. Me ars share price fell by 0.5p to 262.75p.

[rivaldo] 25/2/2010 11:52

Interesting test-bed project for MER:



"87 social housing projects to test innovative low carbon technologies
Peta Hodge
25th February 2010

The effectiveness of a range innovative new low carbon technologies, many of which have been developed by SMEs, are to be tested in 87 social housing projects across the UK, with the aim of making them carbon neutral.

The 'Retrofit for the Future' project – which is backed by £17 million of Government funding – is being delivered through the Technology Strategy Board's Small Business Research Initiative (SBRI), a procurement scheme to encourage all businesses, but particularly SMEs, to engage with government departments and be prepared for future government procurement policy....

....The retrofit of 14 Prince Rupert Road, Eltham is the project of social landlord The Hyde Group, whose award winning Retrofit and Replicate project in Mottingham achieved an 80 per cent reduction in CO2 emissions. ECD Architects have planned what technology will be used in the property and Mears Group will be responsible for installing it."

[rivaldo] 16/2/2010 10:03

Nice - 1.7m shares traded already and an excellent bounce back. Perhaps a SOR overhang has been cleared.

The 340p broker valuation will have caught some people's attention too.

[rivaldo] 16/2/2010 07:23

Thx CWA1 - reads well.

Given the bargain acquisition of Supporta it'll be interesting to see how soon other brokers start upgrading their forecasts for this and future years.

340p would still only be a P/E of 13 or thereabouts, which given MER's certainty of revenues and prospects would still be decent value imo.

[cwa1] 15/2/2010 23:06

Arbuthnot Securities said that recent weakness in outsourcer Mears' (MER) share price offers a "buying opportunity", as it reiterated its 'buy' stance and 340p target. The broker expects a continuation of positive trading, with demand for the group's services continuing to increase, making 2009 a record year in terms of new contract awards and order book. Mears is also forecast to deliver improved cash generation, with a 15% increase in pre-tax profit to 23.2 million pounds. Additional acquisitions will, Arbuthnot says, bring earnings accretion of around 3-4%, with negotiations reported to be at "advanced stages" for a number of deals. A strong balance sheet, good prospects, robust end-markets and high contracted order book are all positives, argued Arbuthnot. The shares added 6.5p to 254.75p.

[rivaldo] 15/2/2010 23:02

Eh? Bob Holt still owns 500,000 MER shares, the same amount he's held since 2005 (his last sale).

Perhaps you mean another Bob Holt...or perhaps another of his companies. Or perhaps you're just causing mischief :o))

[dnfa1975] 15/2/2010 19:59

hasnt bob holt lumped all his stock out and banked £18m?

[rivaldo] 15/2/2010 19:17

A better performance today. And this reads well re the 10 year £200m contract in Brighton:



"Perfect ten
11th February 2010 Southern Brighton & Hove City Council Mears Group

Brighton & Hove City Council's 10-year housing contract with the Mears Group is shaking up housing provision in the area.

Not only is it one of the largest contracts of its kind it is set to bring benefits including faster repairs, improved security and a focus on green issues

The £200 million contract, which covers 12,500 homes, builds on Mears' existing contract with Brighton & Hove. The company already provides responsive and void repairs together with gas servicing to the council's extensive portfolio of homes. And this latest contract win will see it add programmed, cyclical and further maintenance works to the list.

Commenting, Bob Holt, chief executive of Mears Group, said: "Working together with Brighton & Hove we can deliver the tangible improvements into the community which are so important to the people that live there. I believe this to be one of the largest contracts of its kind awarded in the UK ever and represents a significant move to a long-term partnership for Brighton & Hove.

"Mears has gained significant contract wins of £400 million since April 2009 and has a strong pipeline of contract bids. Our partnership strategy continues to gain momentum with existing and new customers and we are committed to delivering a value for money quality of service offering which provides very high tenant satisfaction. This is reflected in our ratings with customers who are progressively focusing on value and delivery of service rather than price alone. I look forward to bringing you news of further contract awards soon."

While Mears and Brighton & Hove obviously enjoy a strong working relationship the council will be keeping its eye firmly on the ball where the contract is concerned, setting challenging performance targets that will be rigorously monitored and subject to financial penalties. In fact if Mears were to fail to perform to the standards, which have been set through close consultation with tenants the contract could be terminated.

And it is not just run of the mill improvements and repairs that will be covered, tenants will see faster repairs and improved security with council and contractor staff housed in four 'our neighbourhood' hubs across the city with close links to local police officers.

Green issues are very important at Brighton & Hove and the council has signed up to the national 10:10 Campaign to cut its carbon emissions by 10 per cent in 2010/11 – a bold step up from the previous target of 20 per cent over five years.

It is asking residents and businesses to do the same and has set Mears the challenge of becoming carbon neutral by 2012.

Council leader Mary Mears said: "This is a big challenge but one we think is achievable. A low carbon Brighton & Hove is our top sustainability priority and this is a real opportunity to re-energise our staff, be bold, and inspire others across the city to do the same."

Keeping with the green theme a new 'supercentre' depot run on alternative energy is being set up to service the contract and Mears is committed to a series of eco-friendly measures, including furniture recycling and reducing the waste sent to landfill.

Training is also an important issue at Brighton & Hove and it has made sure that there will be plenty of training provision for local people.

Mears is committed to taking on at least 200 apprentices throughout the lifetime of the contract, setting up a kitchen manufacturing workshop and encouraging more women to take up a career in the construction industry. There will also be opportunities for local small businesses and contractors.

Councillor Maria Caulfield, cabinet member for housing, said: "This is the first time a local authority has been able to stipulate such a wide range of initiatives that not only improve the repairs service, but help the local economy and protect the environment."

"Tenants will see 'first visit' repairs in most cases and they can be reassured of their security with local police officers closely linked to council and contractor staff."

The contract between the two organisations breaks the norm not only in terms of size and longevity but also in terms of what it will offer to the wider community over the next decade."

[edale] 15/2/2010 10:50

Thanks iii Spy

[iii spy] 13/2/2010 12:31

edale, ginkgo did not aquire these shares in the market, they held just short of 30% in SOR so these are the equivalent shares in MER as part of the acquisition. It wil be interesting to see if they reduce or increase there holding.

did lgih dispose of 5%? or just reduce there holding? I couldn't work it out.

[nfs] 12/2/2010 15:34

delighted to have got in today with a small maiden purchase.Great order book and long term story

[melody9999] 11/2/2010 23:28

right on support trend line now

[edale] 11/2/2010 20:34

After hours RNS 2.9 million shares acquired by Ginkgo ? Are these shares issued as part of the acquisition ?? Presumably if they had been buying them on the open market in the last few days the share price wouldn't have dropped.

[rivaldo] 11/2/2010 19:18

Agreed - seems obvious that some former SOR holders are exiting, possibly because they're resentful at MER having got SOR at a bargain price!

The most recent forecasts average at around 22p EPS for last year and 25p EPS this year (with around 5.5p and 6.3p dividends).

So the P/E is now in single figures, despite almost absolute certainty over the figures given recent RNS's. Ridiculous.

[iii spy] 10/2/2010 13:48

Starting to look oversold. Don't forget that SOR was purchased with paper so plenty will be selling in the first three months and there can't be that many buyers.

[essentialinvestor] 10/2/2010 13:41

MITIE(MTO) have moved into Social Housing and are aggressively targeting
this Market.

I have to declare an interest and say that I own shares in MITIE,
and I know this Market very well.

I will not comment of the MER share price untii later this year,
having made clear my view on the price they paid for Supporta.


Good luck to holders.

[jimmerandloz] 10/2/2010 13:31

I also agree - It doesn't seem to make any sense why the share price would drop over 11% over the past month with such positive news. Anyone else have any thoughts?

[chrisfoster] 10/2/2010 12:29

Same here edale. Perhaps we hold the minority opinion though.

[edale] 10/2/2010 10:45

I saw this as one of my 'safer' investments but beginning to wonder if someone knows something negative either about Mears or its recent acquisition I don't. Still holding but don't understand the recent fall. I would have thought pressure on council costs and a government move to increase domiciliary care would both be positive for Mears ?

[rivaldo] 10/2/2010 07:24

RNS out - the Supporta acquisition now has 95% acceptances and the SOR directors have resigned, which should lead to decent cost savings!

[rivaldo] 31/1/2010 07:45

Couldn't agree more melody9999.

Interesting to see the CEO leaving at Connaught for unexplained reasons and the share price there diving after the shenanigans. I wonder if there may be a bit of sector re-investing away from Connaught and into MER?