Mears Share Discussion Threads

[polopolo2] 20/8/2008 16:09

Cerrito - 20 Aug'08 - 08:02 - 878 of 881


From Today's \Tempus in the Times
quote
Mears Group

The above was an interesting read but it would appear that even The Times get things wrong as Mears actually left the Aim market a couple of months back not next month as stated...........!!

[mdrans1] 20/8/2008 15:49

OK hosede, you are very knowledgeable. Knowing so much about Mears and its prospects it must have come as a shock when you discovered the pe was actually less than half what you had previously thought.

It's even more surprising that this revelation did not change your view one jot.

Ho and thanks for the Chinese lesson. I will get onto it right now.

[joshalexander] 20/8/2008 11:22

hosede

To compare Mears with Chinese AIM stocks is bording on the ridiculous IMO.
MER have a 10 year track record of year on year growth which is why they trade at a Premium.

And MITIE where Holt learnt his trade have a 30 year plus record of growth.

I do not currently hold and this may well trade lower shorter term,
but on a 3-5 year view its only going significantly higher in my view.

I remember many people questioning the MITIE model over the years and thinking
it was overpriced at various stages or going ex growth, but it has returned more money to holders over the past 30 years than any other UK company, except perhaps HALMA plc.

[hosede] 20/8/2008 11:03

mdrans you can buy e.g excellent chinese AIM shares such as JHL, RCG, HAIK on forward PE's of 4 or less. I think anything above 9 in the current climate is expensive. Don't forget that at the bottom of the market in 1973 the FTSE's PE was 2.8 -- and this crash could easily be a lot worse than 1973 - though different of course. But it just shows you how low markets can go!

[cerrito] 20/8/2008 08:02

From Today's \Tempus in the Times
quote
Mears Group

It is hard to think of a small-cap stock better suited to uncertain times than Mears Group. It has net cash, sits on a record £1.7 billion order book - more than four times this year's forecast revenues - and, by virtue of its niche (the repair and maintenance of council housing), draws nearly all of its sales from the public sector. Those attributes provided little protection against profit-takers yesterday, who sent Mears nearly 8 per cent lower after first-half results. Although underlying earnings were up an above-forecast 22 per cent, short-term money switched out of the shares amid disappointment that 2009 forecasts were left on hold. That seems harsh.

Since Bob Holt, the chief executive, reassumed day-to-day control last year, Mears has regained a momentum that latterly it had lost: £430 million of new work has already been won this year, against £500 million for 2007 as a whole. Underlying sales in social housing were up 34 per cent at no detriment to operating margins, steady at 5.6 per cent. The concern is that Mears's foray into domiciliary care - which began with last year's purchase of Careforce at a hefty 19-times earnings - has yet to pay. Even on next year's forecast £4 million operating profits, the division's return on investment is modest. Recent noises from Nestor, Claimar and Supporta also suggest that trading may get tougher.

Those who have ridden the 17-fold rise in the shares since the float must trust that Mr Holt, who is heavily incentivised, has not lost his touch. That faith, and tracker fund support from next month's entry to the FTSE all-share index, give grounds to buy at 296p.

[mdrans1] 19/8/2008 17:03

hoseede
If you thought the PE was 35 and you have now discovered it is actually 15, you might be expected to show a bit more enthusiasm.

[hosede] 19/8/2008 13:41

Beerbandit
I stand corrected - read these as full year figures. earlier post edited

[beerbandit] 19/8/2008 12:38

Hosede
Where do you get your pe of 35 from? Its actually around 15, which I think is low for a company demonstrating such superb growth in these troubled times without a hint of slowing down (see recent contract wins)I'm afraid you have been trying to talk this company down for a while now but without much success, suggest you short something else.
BB

[hosede] 19/8/2008 10:47

5dally
This is a superb company but I think. There is a distinct likelihood that as councils get squeezed by increasing defaults in council tax and rents that spending in the areas in which MER is involved will be trimmed back, and the rate of growth will slacken. Only time will tell, but without doubt this downturn has a long long way to run and is set to get a whole lot worse

[5dally] 19/8/2008 09:37

Can't beleive we are down on these results,,,,,this market is nut's

[polopolo2] 18/8/2008 15:23

Mears continues to keep their hat whilst those around them lose theirs..... Looking forward to some astounding results tommorrow which will prove to be a welcome change in todays stormy market conditions.

[cambium] 18/8/2008 15:08

pushes the order book even higher, I bet Bobs glad he is back

[5dally] 18/8/2008 15:03

Think £4 will be reached sooner rather then later IMO

[polopolo2] 18/8/2008 11:32

Superb news this morning. Will soon be over 400 having recently gone through 300. Terrific company that constantly delivers.

[5dally] 18/8/2008 07:05

RNS Number : 4916B
Mears Group PLC
18 August 2008



18 August 2008

Mears Group PLC

("Mears Group")




£57 million of new contract wins for Social Housing Division




Mears Group is pleased to announce that it has been awarded two new social housing contract awards amounting to £57 million. This brings the total aggregate contract awards in the six months since we announced our preliminary results to over £400m.




Octavia Housing and Care

A 10-year partnership with Octavia Housing and Care, based in Central London, to provide repairs and void services. The contract is valued at £36 million for the 10-year period. The contract is due to commence in October 2008







Old Ford Housing Association

A 10-year partnership with Old Ford to provide responsive repairs and voids services. The contract is valued at £21 million for the 10-year period. Old Ford is one of seven Group partners within the Circle Anglia Group which has a housing stock of over 27,000 properties and is one of the largest housing associations in the UK. Since the start of this year, Mears has now entered into partnership arrangements with four of the seven Circle Anglia Group partners.




Commenting, Bob Holt, Chief Executive of Mears Group, said:
"We would not achieve these levels of contract wins without the great references that we get from our existing clients. Our strategy, based upon long term partnerships, delivering customer excellence, innovation and investment in our people, continues to be the driver behind winninggood quality contracts that provide clear and sustainable margins.Our order book stands at £1.7 billion and the visibility of future revenues has been further enhanced."
www.mearsgroup.co.uk




Mears (LSE ticker: MER.L) is a leading provider of outsourced services to the public sector. The Group operates across two core divisions, that of Social Housing and Domiciliary Care. The Social Housing division provides rapid response and planned maintenance to Local Authorities and Registered Social Landlords in the UK, and is also a provider of building services for capital improvement works such as the Decent Homes programme, which aims to ensure all social housing meets set standards of decency. The Domiciliary Care division provides support to people, who remain in their own homes, through the provision of personal care services which are delivered principally as part of outsourcing arrangements with Local Authorities.

[crickley] 15/8/2008 16:12

NT has topped up again and talks about a bit in The Standard mentioning a 500p bid target.

[polopolo2] 13/8/2008 19:17

Any problems on the housing front should benefit mears as they look after social housing as opposed to the buy/sell residential market

[thickasmince] 10/8/2008 16:30

Yes, nice to see it going north as I still feel this is being associated with all the housing problems, or is it more to do with government funding? I wonder.

[5dally] 05/8/2008 16:24

Thanks for that thickasmince ,,,,interesting, share price doing well today :-)

[thickasmince] 04/8/2008 23:18

It highlights all the housing associations in Scotland, mainly west of Scotland, except Edinburgh....yes I know piggy, that is on the East. Still, as we say up here, in footie, west is best.

[thickasmince] 04/8/2008 23:16

5dally...must say I prefer this to an over hyped board full of rumour and such like.

Did you know, Laidlaw Scott have their own wesite, with some damn fine info re the Scottish operation. I will paste the link in a mo.

[emptypiggy] 21/7/2008 12:38

whats that old saying """ no news is good news"""
shhhhh before ya rock summit lol
:O)

[5dally] 21/7/2008 11:52

Quiet thread for a stock that's doing so well:-)