Buyback announced good news |
Not a material amount relevant to his holding, but good to see the CFO put his hands in his pocket. |
yes, good to see Mirabeau |
director buy |
They keep mentioning that the management-led business will normalise to a lower revenue level.
Does anyone know what these management-led activities actually comprise? Apparantly housing for homeless people for the government. Are there any other activities?
And is there any possibility to quantify what a "normalisation" means? At the moment, the management-led business is more than half the total business. What percentage of this will disappear over time and at what margins?
The shares seem very cheap, but is difficult to me to quantify the risks involved. |
Indeed, shame they can't get their shares motoring to then use the paper for M&A purposes
think others have mentioned, but a takeover of KINO for instance (i'm a long-term holder as well as this), but must be others....
DYOR |
No volume even with excellent interims, so far under the radar |
Favourable coverage on stockopedia today. Nothing amazing but amber/green rating |
Thanks thebd11, genuinely don't see how "asylum" policy would do anything but go UP for volumes under Labour no?!
Either way, I'm happy to keep taking the 4+% yield as downside IMO is limited....DYOR |
Why would government asylum policy have a negative effect I wonder ? |
 Peel..."Mears (MER LN) (Hold TP 380.0p) Strong 1H24 performance: new guidance drives 9% FY24 revenue increase... 1H24 PBT was £30.5m (+44% YoY), which is slightly ahead of our estimate. Adjusted EPS rose 68% (organically) and DPS increased 28% to 4.75p. The company reported strong cash generation, with average net cash of £66m. There are no major surprises in the trading commentary. We expect investor focus is likely to be on the increased guidance (following another positive trading update in June). The company now anticipates FY24 revenue to be c.£1.1bn (versus our prior estimate of £1.0bn) and adjusted PBT to be £53-55m (versus our prior estimate of £50m). The outperformance is driven by the visibility through FY24 (most specifically the asylum seekers volumes). We increase our FY24E PBT forecast from £50m (cons: £50m) to £54m, to give EPS of 41.1p. It remains challenging to assess when the elevated contract volumes will normalise. However, we also increase our FY25E PBT estimate from £39.0m (cons: £38.7m) to £42m, to give EPS of 32.2p. The shares have drifted down on concerns regarding government asylum policy uncertainties and currently trade on 11.2x December 2026E EPS." |
Anyone got any broker views please? Thanks in advance. |
Some buying coming in now... |
T Clarke value outed in the end, hopefully the same here! |
A great set of results here. I don't hold any but do hold Kinovo in this sector and expect Kinovo to be taken out at some point |
I've added a fair few this morning DYOR |
Thanks team Mears. it just looks v.v. odd....govt spending in this area IMO should increase, Mears in a great position, over £1bn of revenues, great cash focus, yet shares just don't reflect the value, they don't have to be "highly" rated, but sitting on EV/EBIDA of <2 looks dozy IMO....DYOR |
Crazy price 350p I think I will add this price action today is just plain madness |
It is a lowly rated sector - high volumes of work for low margin I remember saying all those things about T Clarke years ago GFRD are my favourite pick along with Mears Solid but not exciting but at the moment a good place to park some cash |
QS, I am also scratching my head. I can only think some are put off by possible falling profits in the future? Say profits fell by 10%, this would still be tremendous value.Also not a great day to release results, fear back today in the markets. |
So market cap says £327m, net daily cash average 66m so EV 260m....we have EBITDA post IFRS of 69m and Net Cash flow from Op Act of 75m...so full year we have 140m-150m of EBTIDA post IFRS or Net cash flow from op Act vs EV £260m.
Decent yield, now increased, maybe more share buy-backs, what am I missing around the "value" proposition here?
DYOR |
Still too many sellers |
They keep giving caution of possible normalisation of revenues/profits going forward, but still looks way too cheap.FY earnings say 45p, on a PE of 10 that's 450p |
Wow better than anticipated. Should be good for a 25p increase I would think |
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