Mears Share Discussion Threads

[mdrans1] 02/8/2010 18:29

18 th (unconfirmed) on SharScope

[dnfa1975] 02/8/2010 15:39

thanks riv. Date of results 17 aug?

[rivaldo] 02/8/2010 13:37

This year's divi should be around 6.3p-6.5p, and next year's around 7p, so the divi yield is moving up to nearly 3% at current prices.

[dnfa1975] 02/8/2010 13:23

what is forecast dividend yield

[dnfa1975] 02/8/2010 10:41

248-250


nice !!

[dnfa1975] 02/8/2010 09:10

nice move, lets hope start of somebig move up

[dnfa1975] 02/8/2010 08:19

chart looking good for gap to 300p

[cambium] 01/8/2010 22:30

91% but whose arguing!

[rivaldo] 01/8/2010 19:27

Rubbish.

MER's EPS last year was 21.61p. In 2006 it was 13.63p. That's almost 60% EPS growth in the 4 year timeframe you're using!

The most recent forecasts are for around 25.5p EPS this year and around 29p EPS next year,

That would be 112% EPS growth in 6 years.

At least get your facts right please.

MER will likely be picking up sizeable work from Connaught, and they will also be expanding the social care side apace.

Besides, MER announced ages ago that they've ALREADY secured almost 80% of forecast revenues for 2011. How much better visibility can any company provide?

[hosede] 01/8/2010 18:58

Rivaldo
I think MER have been market leader for some time, but their EPS has been broadly flat for the last four years. True CNT won't be winning any more contracts but I doubt there will be many contracts to win.
MER have not noticed any downward pressure YET! Cameron's cuts don't really get going til next year - 20% VAT from 4th Jan etc. On account of our crazy house prices, figures suggest 25% of (all)tenants are struggling to pay their rents - so they will struggle even more next year and council tax defaults will soar. Essential housing maintenance may be unaffected but improvement projects - double glazing, new bathrooms, kitchens, central heating etc. etc. are cetain to be put on hold or dramatically slowed. I suspect these are where MER makes its best margins. I expect the first "cautious statement" to emerge early next year

[rivaldo] 01/8/2010 07:55

CNT are MER's biggest competitor. But CNT are currently in deep brown stuff and will not be winning any contracts in the foreseeable future.

MER will be rubbing their hands with delight.

And as MER said just weeks ago:

"Following the brief statement made by Mears after the market closed on Friday 25 June the Company is pleased to reiterate that it is continuing to deliver strong trading across all divisions and is not experiencing any downward pressure on spend in its social housing business. Current trading and strong cash conversion for the year are in line with management expectations.

In summary:

· Continuing to deliver strong trading across all divisions

· No evidence or experience of downward pressure in spending in social housing which remains a largely secure and non-discretionary spend

· £2.5 billion order book and £3 billion bid pipeline

· Winning longer term agreements with Local Authorities and RSLs

· Secured revenues of 91% of consensus forecast for the current year

· Strong focus on cash conversion.

Commenting, Bob Holt, Chairman of Mears Group, said:

"I believe that Mears will now be considered market leader in social housing repair and maintenance which will add further to an already unprecedented level of opportunity within the public sector. Local Authority clients continue to consider more innovative and higher scale partnerships which is already evidenced this year with major contract wins.

"The quality of our operational delivery and our people underpins our strategy and continues to give us clear competitive advantage as evidenced by our enhanced reputation both in terms of the winning of new business and the recruitment and retention of key personnel. These factors are central in maintaining a robust revenue stream with our existing client base whilst providing significant opportunity within our bid pipeline.""

[hosede] 30/7/2010 18:14

You lot are living in cloud cuckoo land. Do you really think UK authorities will disband their police forces like some US authorities have done? Not a chance! As the money runs out, council house maintenance etc. will be the first thing to get chopped. The care side may suffer less but it's not the main profit maker.
Even the Govt. admit 600k public sector workers are going to lose their jobs so you can bet the actual figure will be nearer 900,000. Double that for the other workers who depend upon them and that's nearly 2m more people who are likely to default on their council tax, parking fines etc. etc. If it weren't for Bob Holt's supreme skill and savy, MER would be in the same boat as CNT. AS it is it will survive but get severely mauled. As will all outsourcers to the public sector

[rivaldo] 30/7/2010 10:35

A long article in the FT today about CNT concludes:



"Analysts said that Mears and Kier, among Connaught's biggest rivals, were likely to benefit from the company's woes. Shares in Mears have rallied 10 per cent since the start of the month."

Agreed stevemarkus, MER ought imo to be heading back to 300p sooner rather than later.

Last year's interims were on 18th August, so only just over two weeks to go, and everything the company has said indicates they'll be good.

EDIT - looks like Breeden have top-sliced a few. No doubt they need to raise some funds after their disaster with CNT.

[stevemarkus] 29/7/2010 09:38

Yes, good to see a little move up. Would be nice to see it nearer £3.

Cheers,
Steve.

[rivaldo] 29/7/2010 09:21

..and a nice start this morning too. Looks like sentiment is turning in MER's favour.

[dnfa1975] 28/7/2010 16:59

strong close

Following the brief statement made by Mears after the market closed on Friday 25 June the Company is pleased to reiterate that it is continuing to deliver strong trading across all divisions and is not experiencing any downward pressure on spend in its social housing business. Current trading and strong cash conversion for the year are in line with management expectations.

In summary:

• Continuing to deliver strong trading across all divisions
• No evidence or experience of downward pressure in spending in social housing which remains a largely secure and non-discretionary spend
• £2.5 billion order book and £3 billion bid pipeline
• Winning longer term agreements with Local Authorities and RSLs
• Secured revenues of 91% of consensus forecast for the current year
• Strong focus on cash conversion.

Commenting, Bob Holt, Chairman of Mears Group, said:
"I believe that Mears will now be considered market leader in social housing repair and maintenance which will add further to an already unprecedented level of opportunity within the public sector. Local Authority clients continue to consider more innovative and higher scale partnerships which is already evidenced this year with major contract wins.

"The quality of our operational delivery and our people underpins our strategy and continues to give us clear competitive advantage as evidenced by our enhanced reputation both in terms of the winning of new business and the recruitment and retention of key personnel. These factors are central in maintaining a robust revenue stream with our existing client base whilst providing significant opportunity within our bid pipeline."

[dnfa1975] 28/7/2010 12:38

great!!!!!! Thanks a good read.

[dnfa1975] 27/7/2010 21:48

long and strong

[melody9999] 27/7/2010 19:28

This looks very encouraging all of a sudden. I've been minded to sell with recent news - but now looks a strong hold for me. And if others think the same as me we should see the share price going north as the bulls win out.

[chillwill] 27/7/2010 16:40

Speaking of charts, the volume has started picking up which is a good thing, more people interested and downward momentum seems to have subsided. It shouldn't be too strenuous for the share price to put on 15-20% from here.

[dnfa1975] 27/7/2010 15:37

gap up to 300p on the chart

[dnfa1975] 27/7/2010 15:36

lovely jobby