Mears Share Discussion Threads

[rivaldo] 09/6/2010 07:13

The AGM statement today could hardly be any better:

"Mears issued its Interim Management Statement ("IMS") on 11 May 2010 and is
pleased to report that the trends referred to in the IMS are continuing which
are summarised from the IMS as follows;

· Continued strong trading across all the Group's divisions;
· Over GBP500 million of new contract awards in Social Housing;
· 9 new contract awards in domiciliary care;
· Integration of the Supporta acquisition is well advanced.

IMS Comment on Trading
Mears is continuing to deliver strong trading across all divisions.

Since publication of our final results on 9 March 2010 for the year to 31
December 2009, we have announced contract wins of over GBP500 million in Social Housing and a bid pipeline which still remains in excess of GBP3 billion. The order book currently stands at GBP2.5 billion with secured revenues of 91% of consensus forecast for the current year and 77% for 2011.

IMS Comment on Outlook
Mears' two growth markets of Social Housing and Domiciliary Care, which account for approximately 90 per cent of Group revenues, are defensive sectors where spend is predominantly non-discretionary and cash generation is robust. Given the Group's public sector client base, Mears is substantially immune to bad debts and our customer work patterns and payment terms have remained on
schedule.

Mears is well positioned to benefit from an active contract bidding market and
remains confident in the prospects for the future growth of the Group."

[rivaldo] 04/6/2010 07:10

Good to see MER rising back towards the highs.

[rivaldo] 02/6/2010 15:08

TAM, you probably know more about MER than I do - I only bought this year at 231p so managed to catch the low for a change.

But I'd say that in the current market MER has actually performed well in holding on to most of its recent gains.

I also believe that the City loves all that recurring and visible earnings - how many companies have forward visibility of 90% or so future revenues? So I'd hope that the share price will continue to consolidate and move upwards nice and steadily, especially:

- with the move into social care
- with the likelihood of more contract wins
- and with the likelihood that MER will actually benefit from government spending cuts via outsourcing etc (and see post 1413 above re increased capital investment in social housing).

[thickasmince] 02/6/2010 14:38

I've held this share since 2003 and it never appears to get the rating it once did. Maybe the nonsense that went on at Connaught is hitting sentiment, or just the general government spending cuts playing on investors mind.

[rivaldo] 27/5/2010 07:15

Interesting that in an article about cuts in government spending, MER gets singled out as being a beneficiary of INCREASED spending....



"Additional spending

While most of the £6.2bn of savings has been earmarked to reduce public debt, a small proportion -- £500m -- has been earmarked for spending.

Business will get £200m. Capital investment for colleges and social housing, are the other main beneficiaries, signaling a commitment that may be some relief to companies involved in these areas such as Kier (LSE: KIE) and Mears (LSE: MER)."

[rivaldo] 26/5/2010 13:38

Thx Muncher. Pretty sure it's been posted already, but good to read again anyway:

"Bulls see Mears increasing pre-tax profits 60% to £29.5m this year, for earnings of 24.5p a share, with the board likely to increase the dividend from 5.7p to 6.5p a share. By 2011, profits might approach £34m, on £629m turnover.

At current levels then, the shares, consistent dividend payers and strongly backed by Growth Company Investor at 274.75p, are trading on a prospective multiple of 12.2, an undemanding rating given Mears' track record and high levels of revenue visibility, stemming from an order book of £2bn. Keep buying."

[rivaldo] 12/5/2010 11:38

From today's Mail:



"Collins Stewart and Investec issued buy recommendations followed a trading update by social housing and geriatric care group Mears. The shares rose 6.25p to 303.75p. Trading remains strong across all divisions. Following the recently announced £500m of new wins in social housing and £30m in care, the order book stands at £2.5bn. The target price of both brokers is around 333p."

[rivaldo] 12/5/2010 09:05

Exactly. Such consistency and visibility of forward earnings normally results in a higher rating - I feel MER is on the cusp of achieving such a rating.

A snippet in the Express:



"Mears Group added 6¼p to 303¾p following a bullish trading update. Its order book has increased to £2.5billion as ­analysts noted a recent "purple patch" of contract wins."

[tom.b] 12/5/2010 08:45

This is not just a really promising Company - it has consistently delivery

[rivaldo] 12/5/2010 07:08

Excellent news again today - an analyst workshop should mean more interest here. Perhaps those upgrades are nearer than we thought rcktmn!



"Mears is hosting a workshop on Mears Care and the UK domiciliary care market for analysts and investors today at Collins Stewart, 88 Wood Street, London, EC2V 7QR.

Mears will be presenting on its Mears Care division and the markets in which it operates. No new material information will be provided."

[tara7] 11/5/2010 19:50

Jim Slater, or his kid, might like NTA. I am looking for profits many times the share price, as they sell half a billion pounds of property on the edge of Hyde Park, that is going up over 20% P/A.!!! £7M market cap, profits in my view could be over £60M.!!

[rivaldo] 11/5/2010 19:15

Yep - given the huge contract win RNS's you'd have thought so.

I suspect Panmure's etc will wait for the next set of results before increasing targets, by which time the share price may well have jumped beyond 330p anyway.

[rcktmn] 11/5/2010 19:09

It's always been 330p+...it should be much more considering the recent good news announcements?

[rivaldo] 11/5/2010 19:05

Terrific finish today on decent volumes.

From Citywire:



"Panmure Gordon has....a buy and 330p target for Mears"

[rivaldo] 11/5/2010 07:35

Terrific IMS just out - how good are these snippets....



"Mears is continuing to deliver strong trading across all divisions.

Since publication of our final results on 9 March 2010 for the year to 31 December 2009, we have announced contract wins of over £500 million in Social Housing and a bid pipeline which still remains in excess of £3 billion. The order book currently stands at £2.5 billion with secured revenues of 91% of consensus forecast for the current year and 77% for 2011."

Domiciliary care is doing very nicely:

"We have been awarded further significant contracts since March 2010, estimated to be worth in the region of £30 million, reflecting ongoing trends in awarding consolidating contracts to providers with an excellent quality reputation and a capability to deliver against the emerging personalisation agenda."

Sounds like more bid action to come:

"Our bid pipeline remains extremely healthy in this sector and we would expect to be able to make further positive announcements in the near future."

And the outlook is very bullish:

"Mears' two growth markets of Social Housing and Domiciliary Care, which account for approximately 90 per cent of Group revenues, are defensive sectors where spend is predominantly non-discretionary and cash generation is robust. Given the Group's public sector client base, Mears is substantially immune to bad debts and our customer work patterns and payment terms have remained on schedule.

Mears is well positioned to benefit from an active contract bidding market and remains confident in the prospects for the future growth of the Group."

[debbiegee] 29/4/2010 13:57

Thanks,will be interesting watching events unfold !

[rivaldo] 29/4/2010 13:52

Hi debbie. Amazing stuff re RAY! As I said in the RAY thread header I sold out years ago, but I still follow it. I'm surprised Garmin didn't come in earlier. Seems like a lottery to me really - certainly not my bag now given that anything can happen. That's about all I can say. Wish I'd bought back in at 2p or whatever though....

[debbiegee] 29/4/2010 12:57

Rivaldo,OT
I see you are familiar with Raymarine RAY.
Do you have an opinion please ?

[debbiegee] 28/4/2010 19:12

Tough day all round but we had years highest close at 315.5 UT !

[essentialinvestor] 27/4/2010 18:11

Although I do think MER have paid generiously for some acquisitions imv,
it's clearly a very solid Business model which provides services needed on a
daily basis.

[essentialinvestor] 27/4/2010 18:08

Posted this on the SHA thread earlier as some had expressed caution on MER.




Short MER at your peril imv.

The Domiliciary(Home Care)care market is booming as LA's look for cost
savings over Residential care.

It also reflects an "enabling"(no laughing)culture in Social Services.
Enabling Survice Users(the Industry term) to maintain independance,
where posiible, by remaining in their own home for longer.

We all know there are cuts on the way, these will be concenstrated on
directly employed staff leading to more outsourcing, not less.

Some services are essential and will continue to be provided.

No Government is going to allow vunerable elderly people requiring care
at home to rot.

Many of these indivudals also make contributions towards this care and
LA funding of this is already strictly means tested.

This is one of Mears's two main divisions.

My view FWIW.

[debbiegee] 27/4/2010 16:36

AT 315 uptrend chart still in tact even with ftse 142 down and dow 149 down !