Mears Share Discussion Threads

[cestnous] 13/1/2015 09:07

Silly boy! Cheers CR

[cockneyrebel] 13/1/2015 08:42

Free Cash Flow = FCF.

CR

[cestnous] 13/1/2015 08:24

A good statement and prospects look better than the chart shows. Will probably be holding for some time. What's FCF?

[cockneyrebel] 13/1/2015 08:18

Liberum - Buy for Mears - Target £5.15:


FY 14 earnings will be in-line and cash slightly better. Market concerns surrounding the order book are overdone and have created an opportunity: we still expect double digit earnings growth (Morrison margin normalisation is the key driver); there are growing Housing Management opportunities; and Torbay is a strategically significant contract win. CY 15E P/E of 11x and 8% FCF yield are too cheap. BUY.

[cockneyrebel] 13/1/2015 07:20

A rather decent confident trading update imo -do these really deserve to be off this much?

A well run co with a great track record imo.

CR

[cockneyrebel] 12/1/2015 13:58

Well done cestnous:

"As Sky News has reported - based on other NHS England statistics - there are record numbers of hospital beds 'blocked' by healthy patients who can't be discharged because there are no care beds for them in the community"




And:

From Dec 15th:

"Mears" or "the Group")
Appointment as Preferred Bidder
Mears, the provider of support services to the Social Housing and Care sectors in the UK, is pleased to announce that it has been appointed preferred bidder by Torbay & Southern Devon NHS Trust ('Torbay' or 'the Trust') for Living Well@Home Services. It is anticipated that the contract will be awarded in January 2015 and will be for a minimum five year term with three possible one-year extensions. We understand this to be the first time that a contract of this type has been let to a single prime contractor in the UK.
The Trust has responsibility for all community NHS and Adult Social Care activities in the area. Mears will deliver a full range of community based services including personal care and more complex services such as health care at home, community support, mental health and learning disabilities support. The Trust currently spends in excess of GBP10 million per annum on home care and support services.
As prime contractor, Mears will also be responsible for working in partnership with the Trust to integrate IT systems and drive future innovation in service development. The Trust specifically wanted a long term strategic partner who is able to demonstrate a commitment to integrated working and the development of services that push the boundaries of quality care and support. Outcome-based payments will be implemented as soon as possible within the contract period.
This new contract is expected to commence in April 2015. The contract is designed to provide the flexibility for other services such as sheltered housing and a seven day response service, to be considered in the future.
Commenting, David Miles, Chief Executive of Mears, said:
"We entered the Care market in 2007 with a clear strategic vision that the market would develop in a similar way to Social Housing. Notably, we expected to see a shift towards outcome-based contracts, where vendor payments are based on the quality of the outcome for the recipient rather than simply based on the time spent in delivering the service. We also expected to see customers move toward awarding contracts for longer terms to fewer providers, who could provide broader services and who could also assist in driving efficiencies within clients' cost bases. We have positioned ourselves as a high quality business focused upon service delivery in readiness for the market change. The speed of change has been slow however strong momentum has now built up which endorses our strategy.
"We absolutely share the vision for Torbay and recognise there is a lot of excellent care already delivered. A significant role within the contract is harmonising standards, integrating IT systems and achieving great quality for all clients. Local providers will continue to play a key role in the delivery of care and support in Torbay.
"The anticipated award of this Torbay contract is another crucial milestone for Mears and represents further strong development in the UK Care market. While still early days, there are indications now that a number of other Local Authorities are looking to follow the lead of Wiltshire County Council and now Torbay"

------------------------------

Which is one reason why I've been buying on the recent lows - many more social care contracts to come imi.

All imo/dyor etc

CR

[cestnous] 09/1/2015 10:56

Bought yesterday and today . Cheers for heads up CR.

[cockneyrebel] 09/1/2015 10:46

Broken out through the recent resistance.

Trading update on Tuesday.

CR

[tjbird] 30/12/2014 01:26

MER tie up with FLOW


In August, Flow signed a Heads of Terms agreement with
Mears Group for the provision of national surveying, high
volume installation and managing agent services and
aftercare for Flowgroup’s game-changing microCHP boiler.
Mears repair and maintain over 700,000 social homes across
the UK. It is intended that Mears will provide nationwide
coverage for installation of the Flow boiler, as well as ongoing
servicing and maintenance 24/7, 363 days a year under an
extremely competitive servicing package to Flowgroup’s
customers. Flowgroup believes that Mears’ extensive
network of experienced engineers, working alongside the
Company’s previously announced installation partners, will
allow the provision of a high quality installation and support
services and will give the Company the capacity to compete
with the largest boiler providers in the UK. Since signing this
agreement, the Flow and Mears teams have been working
closely together to map installation resource and plan
extensively for January’s launch.

[mikeb01] 12/11/2014 12:12

RNS Number : 7718W
Mears Group PLC
12 November 2014



For Immediate Release
12 November 2014

Mears Group PLC
("Mears" or "the Group")
Interim Management Statement


Mears, the provider of support services to the Social Housing and Care sectors in the UK, today releases its voluntary Interim Management Statement ("IMS") for the period from 1 January 2014 to date.

As indicated at the Company's interim results, the Group has continued to experience a lower level of new Social Housing bidding opportunities resulting in 96% visibility of the £864m market consensus revenue forecast for 2014 and in excess of 86% visibility of the £934m market consensus revenue forecast for 2015.

Mears continues to deliver a solid trading performance across both core divisions and is pleased to report ongoing strong margin progression, driven primarily by continued efficiencies within the ex-Morrison business. The Board expects earnings to be generally in line with its expectations for the 2014 full year.

Business Development

Mears has secured new contracts from its traditional Social Housing bidding pipeline in excess of £170 million in the period. A strong bidding success rate of 35% (by value) of all contracts bid during the period has been maintained.

As detailed within our interim results, changes to our clients' income generation have delivered significant surpluses to their Housing Revenue Accounts. These changes have resulted in delays in new bidding opportunities as clients assess how best to deploy these surpluses and, as previously reported, the absolute level of opportunities to bid for in the year being lower than originally anticipated.We can expect to see a continuing lower than normal level of broad maintenance strategic partnerships in 2015, with an improving picture in 2016 and increasingly encouraging signs thereafter. The bidding opportunities available to the Group over the longer term are expected to return to more normal historical levels.

Mears has been focused over the last twelve months on providing a broader housing offering to its customers. Our extended range of services has mirrored our changing client requirements in areas such as Housing Management and new forms of partnering arrangements.

In Care, we have secured new contracts worth in excess of £75 million in the period, a bidding success rate of 61% (by value) of all contracts bid. In addition, tender opportunities are showing a further move towards fewer providers with increasing contract length, which accords well with our long term partnership approach.

Acquisition of Omega Group

During October 2014, Mears completed the acquisition of the Omega Group ("Omega"). 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 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 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. Furthermore, 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 initial consideration for the acquisition was £20.0 million in cash, funded from Mears' existing banking facilities, and the Omega business was acquired with a normal level of working capital. Additional deferred consideration is payable in the event that average EBITDA over a 36 month period to 31 October 2017 exceeds £3.40 million per annum. The additional consideration payable will be an amount based upon a multiple of 6.8 applied to the average EBITDA, less the initial consideration paid, with total consideration capped at £40.0 million. The deferred consideration will be satisfied using either cash or shares, at the discretion of the Company.

In the brief period since the acquisition, the performance of Omega has proceeded well and we are pleased to announce that Omega Lettings has won a contract with Central Bedfordshire Council to provide lettings, housing management and temporary accommodation services in the Central Bedfordshire area. This contract, which will support Central Bedfordshire Council by placing homeless households into quality and affordable private sector rented accommodation, further strengthens Omega Group's presence in the Home Counties.

Financial position

Mears continues to benefit from a strong balance sheet. Robust working capital management has always been, and remains, a cornerstone of our business and we have maintained a particular focus on efficient cash management. The Group's revolving credit facility of £120 million is committed until July 2018 and provides comfortable headroom above our current working capital requirements.


Outlook

We expect our core Social Housing business to continue to grow through further contract wins. Whilst we are the market leader, we deliver services to just 15% of the UK Social Housing stock which still leaves significant further growth opportunities underpinned by our market-leading service delivery. We will continue to make further operational and financial improvements to the former Morrison contracts as this area of the business sees margin development up to the historical Mears market-leading level.

We will continue to broaden the services that we provide and we see the development of our Housing Management services as an important extension of our Social Housing activities. The demand for affordable housing will provide opportunities to work with housing providers to improve the delivery of housing and property management services and to increase the supply and management of housing through innovation and partnership. This area is currently highly fragmented and undeveloped but we believe the Group is well positioned to progress and deliver strong organic growth. We will consider further acquisitions in this area to develop both the breadth of services and scale.

In our Care business, we will continue to move further up the acuity chain, with an increased focus upon organic growth supported by in-fill acquisitions, extending the Mears Nurseplus model across our client base. This will increase our ability to respond to growing opportunities from health and social care outsourcing and the implementation of new localised commissioning models.

The Board is pleased with the progress made during the period; however the temporary delays in tendering new opportunities in Social Housing have been frustrating.

Commenting, David Miles, Chief Executive of Mears, said:

"Our Social Housing business has long been recognised as the market leader in terms of operational performance and customer satisfaction. We have increased our focus upon positioning us for future market growth in Housing Management and on continuing margin improvement. I believe the opportunities for us in Social Housing remain very strong as our clients seek broader solutions to their increasingly complex housing challenges.

"In Care, as a robust high quality provider at the forefront of change in the sector, we remain very well placed strategically to take advantage of the longer term opportunities. I am delighted at the success we have achieved in new contract bidding and importantly, we continue to see a positive move in the structure of tendered opportunities with new contracts being awarded to fewer providers with increasing contract lengths. There has been a marked move away from frameworks towards Strategic Partnerships; this will benefit us disproportionately given our long term partnership ethos.

"We will continue to develop further our services provided at the higher end of the acuity chain, with an increased focus upon organic growth supported by in-fill acquisitions, extending the Nurseplus model across our client base. This will increase our ability to respond to growing opportunities from health and social care outsourcing and the implementation of new localised commissioning models."

For further information, contact:

Mears Group PLC

David Miles, Chief Executive Tel: [phone]

Andrew Smith, Finance Director Tel: [phone]

Bob Holt, Chairman Tel: [phone]

Alan Long, Executive Director Tel: [phone]

www.mearsgroup.co.uk
Buchanan
Richard Darby/ Sophie McNulty/ Sophie Cowles Tel: [phone]
www.buchanan.uk.com
Notes for editors
Mears is a leading social housing repairs and maintenance service provider to Local Authorities and Registered Social Landlords in the UK and now commands a leading position in the UK Local Authorities' outsourced care market, providing personal care services to people in their own homes.

Mears employs in excess of 15,000 people and provides maintenance and repairs services to in excess of 10% of the UK social housing stock. Mears also provides care to over 20,000 service users.


This information is provided by RNS
The company news service from the London Stock Exchange

END

[cambium] 12/11/2014 10:28

Lack of bidding exposure

[turborock] 12/11/2014 09:57

Why the huge drop today?

[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 07:39

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 08:41

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 08:41

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 07:05

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 09:22

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

[cambium] 06/4/2014 21:54

10 years ago I started this thread. Wow

[cambium] 06/4/2014 21:53

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 17:59

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 14:37

does this still warrant a 20x multiple