Mears Share Discussion Threads

[chrisb1103] 08/4/2011 10:58

The order book is a record £2.7bn, revenues grew by 11pc to £524m, securing a 15th year of uninterrupted growth, and the dividend is up 18pc to 6.75p. Pre-tax profits slipped from £18.4m to £16.4m, due to an amortisation of acquisition intangibles of £10.1m relating to Supporta deal and the acquisition of Careforce in 2007.

At 280, Mears trades on an affordable 2011 price to earnings ratio of 10 and a yield of 2.6pc. Buy.

The final dividend of 4.85p is payable on 1 July 2011 to shareholders on the register on 10 June 2011.

[chrisb1103] 08/4/2011 09:19

Support here? bouncing now on bottom of trading channel, few indicators now turning positive, oversold imo and due a reversal to 330 area maybe?



Also sat at longer term established rising trend line since 2003



Growthcompanyinvestor from 15/03/11 "Mears enjoys 93% visibility of consensus forecasts for the current year and 80% for 2012. Broker Collins Stewart expects pre-tax profits of £39.6m and EPS of 28p. Mears has net debt of £12.2m but this should be repaid by the end of the year and a new bank facility of £85m has been signed to help fund the business. On 10 times current year earnings, Mears is a quality business that deserves more. Buy."

Was 280 then, now 245. Another new contract win here from 1/04/11 (10 years):

[hosede] 21/3/2011 11:14

CNX
I think we HAVE been in the blue chip business but as the Govt. cuts bite I don't think it beyond the realms of possibility that councils could default - defaults by council tax payers are certain to soar - and housing associations also. At the best, as councils get squeezed, payments will be long delayed and work will be deferred.

[sjewson] 17/3/2011 08:32

Im guessing there are a few people on the sidelines waiting for a upturn in the market in a solid performing share like Mears, increased div and positive outlook. "Dont catch a falling knife" but just waiting for some support and director buying wouldnt go a miss. At this point it could signal the bottom, definite buying opportunity on increased relative strength. Keep watching for some improved volume.

[cnx] 16/3/2011 19:41

hosede


which customers do you expect to defaultif you can ? councils?, companies?, governments?

i always thought we were in the blue chip business?

[hosede] 16/3/2011 12:11

By Mears's standards I would have thought results were mediocre which is reflected by the drop. Not likely to make a lot of progress this year either. The risk of bad debt which in the past has been neglible will soon become significant. But a relatively safe share nonetheless

[cnx] 15/3/2011 19:57

if you believe, here is a buying opportunity, especially in view of dividend increase and almost perfect view from holt

what will be interesting is to see directors buying on this drop

[sjewson] 15/3/2011 16:46

Fell of a cliff today after good results an exceptable drop of 2/3% in line with the market would of sufficed!

[turborock] 04/2/2011 07:42

"Mears started at Canaccord with buy rating, 389p target price."

[nellie1973] 03/2/2011 13:43

broker upgrade

[rcktmn] 12/1/2011 20:22

Nice share price climb today...looking good!

[rcktmn] 11/1/2011 19:17

Hope so...showing 13% profit so far on my initial outlay...looking for 350p+ in the next few months! but will hold for larger gains on a 2yr view (imho)

[edale] 11/1/2011 18:28

Great trading statement, this could be a real runner this year.

[turborock] 19/11/2010 09:26

There is a contract in Exeter (I think that's where CNT's HO is), if that is what you mean.

[thorpematt] 15/11/2010 21:03

Here's one for all you MER followers:

This morning, whilst waiting in the cue to pay for fuel, I saw a Mears van drive up the road. Now this is only the second time I recall seeing one in my home town, in all the years I have lived there.

Q. Why is this significant, you may ask?

A. Because I live within a stones throw of the head offices of both ROK and CNT.

BTW: Never owned a share in either (although admit to having considered them both!)

[rcktmn] 12/11/2010 19:32

Bought some more MER today....at some point in the not too distant future we'll hit 350p (I hope! imho)

[copyright] 08/11/2010 20:04

According to the Guardian newspaper >>>>>>>>>>>>>>>>>>>>>>>>>>>>

Mears, which took on eight contracts when rival Connaught collapsed for £500,000, has publicly expressed an interest in Rok's social housing maintenance work. Mears's chairman Bob Holt said he estimated that made up about £50m-£100m of Rok's work.

The UK's fifth-largest contractor Kier, which is heavily involved in social housing, was also understood to be talking to administrators, as was Leadbitter, a firm strong in the south-east.

Another name being mentioned as a possible buyer was Morgan Sindall, the UK's fourth-largest contractor, which took on much of Connaught's work.

A bid battle is now beginning for different parts of Rok. Industry figures said they did not expect it to be sold as a single entity.

[chillwill] 08/11/2010 12:48

Looks like another competitor has gone into administration.

"Social housing and construction firm Rok provided an unpleasant surprise for the markets, as it issued an unexpected notice, which stated that the firm would be entering administration. The company, which employs 2000 people, had previously issued two profit warnings earlier in the year, after discovering failings in its plumbing, heating and electrical businesses."

[ianst99] 03/11/2010 15:49

One to keep on the watch list and maybe buy at year end results which may disappoint in the short term.

[phillis] 03/11/2010 10:43

inflation usually good for these businesses as cost recoveries are part of the contract

deflation is bad

[gears] 03/11/2010 08:10

If inflation takes off and pressure hits margins what then for all the projections.

[phillis] 02/11/2010 15:51

Bandit

The full facts are stated for everybody to read and stated therein is a shortfall in profit expectations this year

Still a great business though

[mdrans1] 02/11/2010 10:39

Obviously they will need a few more vans.

[borchardt] 02/11/2010 09:57

Its all about the future not the past - Contract mobilisations costs will feed through to profits in next results and they have levels of unprecedented opportunities.