Mears Share Discussion Threads

[johndoe23] 03/12/2024 15:46

Buyback finished, drift maybe?

[cellars] 07/11/2024 12:48

I would like to see progress on the broadening of activities objectives referred to in previous statements

[johndoe23] 04/11/2024 09:18

Looking to see if forecasts for FY'25 change. 31p earnings currently, maybe get upgraded?

[jimmywilson612] 01/11/2024 13:24

£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.

[johndoe23] 01/11/2024 13:11

Suspended this would fall back

[horndean eagle] 01/11/2024 12:53

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.

[saad112] 01/11/2024 12:11

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.

[jimmywilson612] 01/11/2024 11:18

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.

[johndoe23] 01/11/2024 11:14

Why I don't think I can re enter

[qs99] 01/11/2024 11:13

indeed, totally side stepped the elephant in the room

[johndoe23] 01/11/2024 11:11

Good update but question about asylum contract not rebuffed

[johnv] 23/10/2024 14:12

Looks like everyone across the markets are nailing down the hatches and waiting for the Budget of Doom next week.

[74tom] 23/10/2024 11:50

"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.

[morph7] 23/10/2024 11:24

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.

[skanjete2] 23/10/2024 11:11

Breaking up the contracts is one thing.

Handling the asylum seekers housing there after is a whole other thing.

[qs99] 23/10/2024 11:05

Likewise, that article was a great spot, thank you, if they do terminate early then some big issues to contend with IMO/DYOR

[johndoe23] 23/10/2024 10:55

Well I'm out. Rightly or wrongly, for now

[qs99] 23/10/2024 10:23

Great spot thanks. Given asylum seekers still going up, why would they break housing contract? Can you post article please?

nothing would surprise me with the muppets i/c tbh

[morph7] 23/10/2024 09:12

Weakness maybe Ft article.. "UK ministers explore using break clauses in asylum housing contracts"

[johndoe23] 23/10/2024 08:51

Might have to shoot first ask questions later

[qs99] 23/10/2024 08:50

Indeed, but stock still heading south on v.little volume, odd