Mears Share Discussion Threads

[cwa1] 18/12/2009 07:57

OK. Let's :-)

[essentialinvestor] 18/12/2009 07:51

Yes I read that, and then reached my own conclusion.
Lets have this discussion in 12 months time.

[cwa1] 18/12/2009 07:48

Beat me to the punch there rivaldo, that's the bit that looks most salient to me!

[rivaldo] 18/12/2009 07:44

In case you missed it!

"The Mears Directors believe that the Acquisition will enhance earnings per share after expected cost savings for the year ending 31 December 2010."

[essentialinvestor] 18/12/2009 07:38

So £27 million, plus I assume the £17 approx of debt.

That will do wonders for the Mears share price imo, not holding thankfully.

[rivaldo] 18/12/2009 07:23

Nice agreed acquisition of Supporta today. The key points are that it expands MER's interests in an ever-growing sector, and also in particular that:

"The Mears Directors believe that the Acquisition will enhance earnings per share after expected cost savings for the year ending 31 December 2010."

Here's the RNS:

[jimmerandloz] 17/12/2009 21:50

Hi, thanks for taking time out to provide this information.

I guess the answer is to sit tight, stay patient and take more of a longer term view of the shares.

Thanks again!

[rivaldo] 17/12/2009 09:59

Hi jimmer. The recent news is of course great for MER over the long-term, but the share price is a function of the market, and that in turn reflects demand and supply of shares. Who knows - perhaps a larger shareholder is profit-taking/top-slicing? Today's RNS indicates that Lloyds have been doing exactly that. Perhaps they'll stop selling soon and demand will push the price higher. The markets are a bit stagnant at present - perhaps MER is doing relatively OK in holding present levels and will rise in a pre-Xmas/New Year rally? Then there's the old chestnut about the market-makers (MMs) - perhaps they're holding the price down to enable a buyer to accumulate a holding (it does happen!).

There's always a variety of factors to consider as to why a share price is going up, down or is merely stable within a range.

[jimmerandloz] 15/12/2009 19:26

I'm quite new to the stock market, so please excuse the question if it is an obvious one....

My logic says the release of the news mentioned in previous posts would have had a positive effect on the share price - but the price has hardly moved over the last couple of days.

Is it fair to say that news such as this has a positive effect in the longer term?

[rivaldo] 14/12/2009 14:09

:o))

Nice article here:



"More wins for marvellous Mears
Article Date: Dec 14 2009

Social housing repair-to-domiciliary care star Mears has shrugged off public sector spending cut concerns by clinching at least £200 million worth of new contracts.

Won across its three divisions, the deals are worth an initial £113 million to fully listed Mears, chaired by legendary support services entrepreneur Bob Holt. However, likely extensions should drive the total to 'in excess of £200 million'.

The bulk of the wins are in Mears' social housing division, where it has secured work with the borough councils of Crawley and Colchester, the district councils of Canterbury and Thanet, as well as a five-and-a-half-year gas maintenance services deal worth £12 million with Birmingham City Council.

Meanwhile, Mears' growing care division, benefiting from the local authority trend towards procuring services from fewer, larger market players, has secured business with the local authorities of Newport, Peterborough and Darlington. Elsewhere, its M&E (mechanical and electrical) division has signed contracts valued at £20 million, of which the bulk entails infrastructure and fit out services for the 2012 London Olympics' Athletes Village.

Since unveiling record full year numbers back in March – showing 2008 turnover up 38 per cent to £420 million – Mears has inked deals 'with a potential worth in excess of £650 million' and another record year is shaping up.

Citing its defensive growth prospects, analysts expect pre-tax profits to rise from £20.2 million to £22.4 million this year, on revenues of £471 million, ahead of £26.8 million on £540 million sales by 2010. Up 3p this morning to 273p, the shares currently value Mears at £203 million."

[cwa1] 14/12/2009 07:33

Yawn. More good news :-)

[rivaldo] 14/12/2009 07:17

Terrifc contract news - and more to come given this closing comment?

"I look forward to bringing you further news in the future"

Nice:



"£200 million of new contract wins across all divisions

Mears is pleased to announce the award of new contracts across all three operating divisions.

The awards have an initial value of £113 million and are subject to contract extensions taking the total worth to in excess of £200 million. This takes the aggregate total of new contracts awarded in the nine months since Mears announced its preliminary results to in excess of £550 million with a potential worth in excess of £650 million, subject to contract extensions, which would result in a record year for the Group in terms of both new contract awards and order book.

Social Housing division

We have been awarded new contracts amounting to £93 million that have a potential worth in excess of £180 million subject to contract extensions as set out below:

etc"

"The M&E division has been successful in being awarded works valued at £20 million which are to be delivered in the main in 2010.

£13 million of the £20 million relates to a contract to provide M&E infrastructure and fit out works on the Athletes Village for the 2012 London Games. The Athletes Village will become a mixed community of Social and Part Ownership homes for rent and some private homes for sale post the Olympics and help regenerate the area and leave a long term legacy after 2012. These awards increase the total works on the Village to date to £22 million when added to a previously awarded contract."

[rivaldo] 11/12/2009 08:45

That's the opportunity for MER - reductions in direct gov spending will bring huge opportunities for MER via outsourcing.

The market is also migrating towards far bigger contracts, which are being won by proven players like Mears.

There is a convergence between MER's social housing and care businesses, with increasing opportunities to combine its care and repair services, that should only increase in future years, no matter what political party forms the Government.

The political scene is driving increases in domiciliary care.

Besides, there's the long-term nature of MER's recurring income - some contracts run through to 2019/2020 from memory.

And then there's the significant opportunites for MER re the 2012 Olympics village...

[simon gordon] 10/12/2009 17:46

D-day is coming closer for the likes of MER:

Hamish McRae in the Indie - 10/12/09:

"There is a parallel problem on the spending side. We don't have much detail on the plans beyond next year and we were not given much more yesterday. However, embedded in the figures are really savage cuts. Take public investment. The Chancellor boasted how high public investment was this year and said he was determined "to build on these strengths by... boosting investment in our national infrastructure and skills".

Well, on page 189 there is indeed a table that shows that net public investment this year is 3.5 per cent of GDP. But by 2013/14 it falls to just 1.3 per cent of GDP. That is brutal, particularly so since the burden actually falls on the private sector, the construction and engineering that carry out the investment. I don't think people have any idea quite how serious the squeeze on spending will be, even on this government's own plans."



Coffee House - 10/12/09:

"The Institute for Fiscal Studies says that government plans imply £36bn of cuts in departmental spending ie over 19% from 2011-2014 in order to protect schools, hospitals and increase overseas aid. They say the police pledge is meaningless. They also say that defence, higher education, transport and housing are most likely to be hit.

The cost of paying back the debt over the next eight years is equivalent to £2,400 per family in taxes or cuts over that period."

[rivaldo] 06/12/2009 19:21

Thx CWA1. I appreciate your appreciation :o))

On Friday Panmure's reiterated a Buy here, with a 330p valuation.

Not much more need be said.

[cwa1] 30/11/2009 16:06

Usual good stuff r. Keep up the good work it is appreciated!!

[rivaldo] 30/11/2009 16:05

News - a contract win re gas maintenance contracts in Birmingham:



"Mears Group will provide the gas service to the areas of Hodge Hill and Yardley"

[rivaldo] 20/11/2009 10:58

More here:



"Panmure Gordon has hiked its target on Mears Group from 260p to 330p and repeated its buy rating. That will be warmly received by chairman and Oldham's best-known son Bob Holt. He was disappointed this year when shares in the social housing and care group missed out on promotion to the FTSE 250 index by just a penny. Today the shares traded unmoved at 278½p."

[rivaldo] 19/11/2009 13:48

Good news today - looks like all the brokers are coming to a consensus of 300p-330p.

I may have to ISA some more:



"Panmure Gordon...maintains buy for Mears, raising target to 330p from 260p"

[rivaldo] 15/11/2009 07:24

Nice plug for MER in Derek Pain's investment column in the Independent yesterday:



"Mears, a constituent of the no pain, no gain portfolio, is one deserter. It moved up market to full listing last year. The support services group has a strong record and should hit new profit highs this year. Chairman Bob Holt, in a trading update, said it had "experienced strong trading across all divisions". Around £450m of new contracts have been gained since March and the order book is £1.7bn.

With much of its income stemming from social housing and home care – two areas where significant spending cuts are unlikely – Mears should withstand the impact of the recession better than most."

[rivaldo] 13/11/2009 12:26

A 20k buy first thing today and looking strong.

[rivaldo] 12/11/2009 19:02

Thx Mr Garden - already posted here ages ago though :o))

Ta chrisfoster. Shouldn't take much to see a breakout here imo - another contract win should do it.

[investinggarden] 12/11/2009 11:21

Strong Buy Rating from Growth Company Investor

[chrisfoster] 12/11/2009 07:59

rivaldo - nice work on the last two finds, cheers. :-)