Issue is profits still forecast to drop |
Deutsche Bank raises Mears Group price target to 460 (435) pence - 'buy' |
Decent update! |
4*
Mears Group the UK Housing solutions provider, today issued a positive update on trading for the financial year ending 31 December 2024. Trading has remained strong in the period since Interim Results with operating margins in the core housing activities continuing to strengthen, and volumes in management-led activities reducing at a slower rate than previously anticipated. The Board now expects results to be marginally ahead of current market expectations for FY24...
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/MER/425 |
Reflecting on below, wonder what's next on the radar, seemingly unconnected, but not so, given the strong push of labour to weed out the bad deals, not looking great for Mears, it's a long way down the trend since June is clear....
reflect on what this means for government contracts/policy...
Defence Secretary John Healey said the “dreadful deal” to privatise the service family estate was a “fire sale” by the Conservatives in the run-up to the 1997 general election in a 6bn deal reversal.
“Today ends one of the worst-ever government deals,” he said.
Mr Healey said problems with military accommodation “will not be fixed overnight” but “this is a decisive break with the failed approach of the past and a major step forward on that journey” |
Buyback finished, drift maybe? |
I would like to see progress on the broadening of activities objectives referred to in previous statements |
Looking to see if forecasts for FY'25 change. 31p earnings currently, maybe get upgraded? |
£60M Profit on revenues over a Billion.
Doesn't sound much gouging going on. The Government needs to make sure they provide a quick decision for Asylum Seekers.
The issue is with the speed of the decision making.
Freedom of Information (FOI) requests of Home Office data obtained by the charity show that the number of people waiting for more than a year for an initial decision increased almost tenfold from 3,588 people in 2010 to 33,016 in 2020.
You can't blame Mears for signing up to a government contract. |
Suspended this would fall back |
Really not the ideal time to flag up how much they are gouging the govt with asylum contracts. Putting it out mid morning and hoping it would sneak through and not make too many headlines. |
Excellent update and with 2 months of trading still remaining!
Some hefty upgrades to follow.
Snippet from the interims:
Current trading and outlook
The positive momentum achieved in the first six months of 2024 has continued into the second half. The Board now anticipates revenue for the full year of approximately £1.1bn, with adjusted profit before tax in a range of £53m-£55m, ahead of current market expectations. |
Its an update I assume they felt they had to make due to trading update of current forecasts.
I assume discussions on-going with the government around the Asylum contracts. Its the government that has to re-negotiate, or look for break-clauses. |
Why I don't think I can re enter |
indeed, totally side stepped the elephant in the room |
Good update but question about asylum contract not rebuffed |
Looks like everyone across the markets are nailing down the hatches and waiting for the Budget of Doom next week. |
"Since 2021, Mears’ profits have jumped 83 per cent to £47mn, and last year it warned that losing the asylum contract in 2026 was a “principal risk” to its business."
Suspect a return to £2 is on here if the above happens. |
 UK ministers are keen to apply break clauses in contracts for asylum accommodation with outsourcers including Serco and Mears in an effort to renegotiate terms or end the deals.Home Office ministers were "shocked" by the profits made by Serco, Mears and Clearsprings Ready Homes on multiyear contracts signed in 2019 and hope to use break clauses in 2026 either to revise the original terms or terminate, said two people briefed on their thinking."They [the companies] made way more than was originally envisaged because the asylum system became so out of control," said one of the people. The Home Office was regularly bidding against other Whitehall departments for hotel and dispersal accommodation, driving up prices, the person added.In 2019, the previous Conservative government overhauled the procurement of asylum accommodation. It said the changes would ensure vulnerable asylum seekers had access to support and set clear requirements for housing conditions, although human rights groups have continued to warn that some asylum accommodation remains unsafe.In the same year, 10-year contracts for asylum accommodation were awarded to Serco in the Midlands, North West and east of England, Mears in the North East and Yorkshire and the Humber, and Clearsprings in the south of England.The contracts, which contained break clauses after seven years in 2026, will cost the state about £4.6bn in total, according to government procurement data provider Tussell. Tussell's figures also include Mears contracts in Scotland and Northern Ireland, and a Clearsprings contract in Wales.The three companies do not specify the returns made on the contracts. But last year Clearsprings, whose principal source of business is asylum contracts with the Home Office, reported an increase in operating profit to £62.5mn, from £1.9mn in 2019. |
Breaking up the contracts is one thing.
Handling the asylum seekers housing there after is a whole other thing. |
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