Mears Share Discussion Threads

[mikeb01] 09/11/2014 15:06

Ok so anyone know why this share is so volatile lately with swings of up to 3% both inter and intra day?

[deadly] 07/11/2014 17:42

Skinny - do you ever post anything that is not in the header?

[skinny] 15/10/2014 06:39

Mears, the support services group to the Social Housing and Care sectors in the UK, is pleased to announce the acquisition of the Omega Group ("Omega" or "Omega Group") for an initial cash consideration of £20 million. Omega is a leading private sector provider of residential lettings and management services to the Social Housing market, with a portfolio of circa 1,700 properties and a client base of 24 Local Authorities and Housing Associations. The large majority of Omega's customers are based within London. However its most significant recent success has been to become the Social Lettings Agency for Birmingham City Council under a five-year contract to provide lettings, housing management and temporary accommodation services.

The Omega Group comprises:

· Omega Lettings Limited, 100% owned, property lettings
· Tando Property Services Limited, 50% owned joint venture, property lettings
· O&T Developments Limited, 50% owned joint venture, property lettings
· Zenon Property Services Limited, 100% owned, maintenance provider
· Omega Housing Limited, 100% controlled, Registered Provider (not for profit)
· Let-to-Birmingham Limited, 100% controlled, property lettings


Prior to its acquisition by Mears, Omega was owned and operated by members of the Antoniou family. The management team will remain with the business.

Rationale for the acquisition

The acquisition of Omega is in line with the Group's strategic aim to continue growing in the evolving Social Housing market; it will add further innovation to Mears' housing management offering and it is sympathetic to our partnership ethos. More specifically, the acquisition is a logical extension to the services provided within our Social Housing division and will add value to our existing customer base. Moreover, this acquisition will enhance our ability to work more widely with housing providers to improve the delivery of housing and property management services and to increase the supply and management of housing. Omega has been very successful in developing customer relationships, and Mears' national footprint will offer a wider range of customer relationships for Omega's services. The acquisition augments the Mears' medium term growth strategy and is anticipated to be earnings enhancing in the year ending 31 December 2015.

Key financial information

The latest audited accounts for Omega Lettings Limited are for the year ended 31 December 2013. The remaining Omega Group companies are entitled to accounting exemptions given their individual sizes and so prepare abbreviated accounts which are unaudited. The latest unaudited accounts for O&T Developments Limited are for the year to 31 January 2014 and the latest unaudited accounts for the remaining Omega Group companies are for the year ended 31 March 2013.

The aggregate pro-forma financial results extracted from the latest accounts for each of the Omega Group companies reported revenues, profit before tax and gross assets of £15.9m, £2.0m and £7.9m respectively. This reflects a 50% profit contribution and no inclusion of gross assets in respect of Tando Property Services and O&T Developments which will be accounted for using the equity method of accounting going forwards.

Mears expects the transaction to be earnings neutral in the year ending 31 December 2014. Whilst there will be some initial costs of integration, together with the transaction costs already incurred, these will be reported within normal trading and will be funded by Omega profits generated in the period up to the 31 December 2014.

Acquisition consideration

The initial consideration for the acquisition is £20.0 million in cash funded from Mears' existing banking facilities. The Omega business will be acquired with a normal level of working capital. Additional deferred consideration is payable at a multiple of 6.8 applied to average EBITDA over the 36 month period to 31 October 2017, up to a maximum of £20.0 million, and is payable in instalments across the earn-out period. The deferred consideration will be satisfied using either cash or shares, at the discretion of the Company, with the total consideration capped at £40.0 million.

Commenting on the acquisition, David Miles, Chief Executive of Mears, said:

"We are delighted to announce the completion of the acquisition of Omega. The shortage of safe and secure housing is a significant challenge faced by Mears' clients today. I anticipate Local Authorities having increased responsibility to provide more social homes and remove the reliance upon those private landlords who provide properties which are not of a uniformly high standard. This acquisition is a logical extension to the services provided within our Social Housing division and will enhance our ability to work with housing providers to improve the delivery of housing and property management services.

"I have been impressed by the quality of the Omega Group management team, who appear to have a strong cultural fit with Mears, and I welcome the Omega team to the Mears Group.

"I am excited by the medium term organic growth opportunities that will be facilitated through the development of the Omega business model. I know that Mears' clients will welcome our involvement to help professionalise this service area whilst being in a position to provide financial stability."

[skinny] 19/8/2014 07:41

Liberum Capital Buy 492.75 493.25 560.00 560.00 Reiterates

Investec Add 489.88 520.00 520.00 Reiterates

[skinny] 19/8/2014 07:41

Financial Highlights
· Profit before tax* from continuing activities of £18.7m (2013: £16.9m), growth of 11%
· Excellent EBITDA cash conversion from continuing activities of 100% (2013: 85%)
· New contract wins in excess of £200m: Social Housing awards of £135m with a win rate of 35% (2013: £235m and 33%) and Care awards of £66m with a win rate of 63% (2013: £21m and 37%)
· Strong balance sheet with net cash at 30 June 2014 of £2.7m (2013: net debt £21.7m); average net debt of £63.0m (2013: £74.2m)

[skinny] 04/6/2014 06:05

Mears Group PLC (LSE: MER), the provider of services to the Social Housing and Care sectors in the UK, will hold the Company's Annual General Meeting at 9.30a.m., today during which the Chairman will make the following statement:

"Mears issued its Interim Management Statement on 19 May 2014 which highlighted the following:

· Mears continued to deliver solid trading across both core divisions in line with management expectations.
· Mears had secured new contract awards since 1 January 2014 of in excess of £110 million. The Group had achieved 94% visibility of the £908 million consensus revenue forecast for 2014 and 72% visibility of the £960 million consensus revenue forecast for 2015. The order book stood at £3.8 billion with a bid pipeline of £3.0 billion

· Mears continued to benefit from a strong balance sheet and a strong focus on working capital management.

I am pleased to announce that the positive trends referred to in the May statement are continuing."

[beerbandit] 07/4/2014 08:22

14 years ago I bought this share! thank you Mr Holt :-)

[cambium] 06/4/2014 20:54

10 years ago I started this thread. Wow

[cambium] 06/4/2014 20:53

I still just love this share. Why thankyou mr holt

[hawaly] 19/3/2014 18:22

Questor share tip in the Telegraph today:

[mikeb01] 11/12/2013 12:46

So why the rise today? Any news I've missed? Is there a broker rerating?

[hyden] 13/8/2013 16:59

I personally think the results were excellent. Yes, the multiple is very high but they have delivered on promises made, so far. But I must admit I'm in no hurry to buy back in. Whilst the dividend has increased by 9%, it's still very low in comparison with my average holding. And this is where I struggle, MER was one of my few growth stocks and when the dividend is low, your exit strategy is vitally important, imo.

[phillis] 13/8/2013 13:37

does this still warrant a 20x multiple

[skinny] 13/8/2013 08:32

Canaccord Genuity Buy 420.13 430.25 440.00 490.00 Reiterates

[skinny] 13/8/2013 08:31

Financial:
· Revenue increased by 49%.
· EBITA to cash conversion at 100% (2012: 100%) for the rolling 12 month period to June 2013.
· Strong Balance sheet.

Social Housing Division:
· Revenues grew by 76%, including strong organic growth of 17% to £378.9m (£215.0m).
· Operating margin delivered at 3.7% - a blend of a Mears margin at 5.6% (2012: 5.0%) and Morrison at break-even.

Care Division:
· Revenue increased by 8% to £60.5m (2012: £56.1m) as a result of the acquisition of ILS.
· Operating margin maintained at 8.1% (2012: 8.1%).
· Acquisition of ILS enhances our higher acuity care offering.

Group Outlook:
· Order book of £3.8 billion (2012: £2.7 billion). Solid pipeline of new opportunities.
· Full visibility of consensus forecast revenue for 2013 and in excess of 85% for 2014.
· Two new infill acquisitions to develop further our housing management offering.

[hyden] 12/8/2013 16:12

Spiked just before close. Someone knows something I don't?

[hyden] 12/8/2013 13:45

Sold out for now. Nothing other than nervousness ahead of tomorrow. The shares have enjoyed a good run of late and I'm nervous that anything other than an outstanding statement may cause a short-term retreat to c. 375p. I don't normally sell out at whim but I've been wrong-footed too many times this year by simply holding on that I thought I'd chance it this time around.

[marknicho] 12/6/2013 13:15

Another test of 380p coming perhaps?

[hyden] 14/5/2013 21:09

Looks like the recent weakness was unfounded. Glad I held on now.

[silmanesque] 15/4/2013 15:06

I suspect that they are now starting to find out what they have really bought!

[sparkymoc] 04/4/2013 18:17

Anyone know a reason for the recent dip? Seems to be on the slide now for a couple of weeks. Could be a decent opportunity.

[edale] 16/3/2013 10:01

Results due Tuesday 19th Mch.

[cambium] 28/2/2013 16:48

Bought more here