Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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http://www.investegate.co.uk/Article.aspx?id=201108040700187141L
Commenting, David Miles, Chief Executive, Mears Group, said: "We see increasing opportunities in this area into 2012, particularly as the 'Green deal' and other energy efficiency measures come into play. Cross Keys will provide us an important reference site to lead our drive into this emerging energy opportunity as we continue to successfully leverage our partnership with British Gas, which gives us access to both funding and expertise in this area."
Mears wins £20 million Photovoltaic solar panel installation contract in Peterborough Mears is pleased to announce the award of a Photovoltaic ("PV") solar panel installation contract in Peterborough which it believes to be the largest Social Housing PV scheme in the UK. The contract award, won with Mears' partner British Gas, is with Cross Keys Homes in Peterborough and will see PV panels fitted to in excess of 3,500 homes. The installation costs are being funded by British Gas as a part of a Feeding in Tariff ("FIT") scheme over a 25 year period. Mears will be carrying out a significant proportion of the installations, as well as all associated works such as scaffolding and electrical components. This scheme will see the first PV fitted in September 2011, with all works completed by April 2012. The Group has valued its share of the contract to be in the region of £20 million.
http://www.investegate.co.uk/Article.aspx?id=201108020700135328L
Mears, the social housing repairs and services contractor to local authorities, appears to be doing rather well in these austere times. Yesterday, the group, which is also a provider to registered social landlords, said it had secured GBP120m of new contracts since it unveiled its full-year results on 15 March. It now trades on a forward earnings multiple of 7.2 on the estimates for 2012, a discount to both its support services and its contracting peers. Based on this lowly valuation and in light of the recent strong momentum, we think that Mears is worth a punt, says the Independent.
Commenting, David Miles, Chief Executive, Mears Group, said: "We continue to see high levels of opportunity within the public sector. We believe that the demand and opportunity for our two growth markets will continue to be strong and that Mears is well placed to benefit. "Our Social Housing division will continue to focus on further organic growth. The continuing consolidation in Registered Social Landlords ("RSLs"), the reforms to the Housing Finance system and changing demographics, all continue to provide increasing opportunities for Mears. The partnership with British Gas also demonstrates our leadership in providing solutions for our clients in the context of the Green Agenda. "Mears Care is well placed to lead and consolidate the Domiciliary Care market place which is some 10 years behind the more developed Social Housing market. We can use the experience gained in Social Housing to enhance the market efficiencies in Domiciliary Care and share the benefits with our clients. We continue to target acquisitions that will broaden the diversity of Mears' Domiciliary Care offering along the services supply chain and expand the range of services provided to people in their homes. "Most importantly, we have the right management team in place to take our business forward and capitalise on the many opportunities available in our growth markets."
Mears today releases its Interim Management Statement ("IMS") for the period from 1 January 2011 to date. Trading update · Mears continues to deliver solid trading across all divisions in line with management expectations. · £120 million of new contract awards since publication in March of the final results for the year to 31 December 2010, which include: o £52 million 10 year repair and maintenance contract with Bedfordshire Pilgrims Housing Association o Additional repair and maintenance contracts totalling £30 million over an average of 4 year terms, including Dover District Council and Leeds City Council o Mears awarded its first in-sourcing solutions contract with Epping Forest District Council to provide support to their Direct Labour Organisation o Several new Domiciliary Care contracts ranging from two to five years in duration with an estimated aggregate value of £37 million over their lifetime o A £4 million, three year contract for the Home Improvement Agency service provided by Gloucestershire County Council. · British Gas partnership developing well - environmental works already commenced across two Registered Social customers. · Roll-out of the Mears Care IT system commenced in April and remains on track. · Mears order book currently stands at £2.7 billion with secured revenues in excess of 93% of the £620 million consensus revenue forecast for the current year and in excess of 80% of the £667 million consensus revenue forecast for 2012.
4th April 2011 Last week, there was an FT report that almost half of councils are not protecting adult social care budgets. Domiciliary care contributes c.18% to Mears (MER)'s business. The shares have fallen sharply since the full year numbers but I am told that the chances are they see 200p sooner than they see 300p. Interestingly, Bob Holt, Mears's chairman, has not climbed into the shares. He would if he thought them cheap. An extract from the diaries of infamous bear raider Evil Knievil
Canaccord Genuity reiterated its "buy" recommendation for Mears Group (MER), the provider of a range of services to social landlords, with a 389p target price. Looking ahead, driven by continued strong performance in social housing and a new focus on the higher-growth Domiciliary Care business, the broker continues to forecast double-digit organic revenue growth to 2013. The broker said that in light of this, and teamed with high cash conversion, the business seemed "undervalued." Mears shares edged back 3.75p to 259.25p.
MearsBUY 15/03/2011 Miles Nolan In a year in which both Connaught and Rok went to the wall, Mears (MER) has shown no signs of slowing down, indeed another record performance is in prospect. A combination of organic and acquisition led growth has left Mears as the clear market leader in both social housing and domiciliary care. Mears has won a record level of contracts in both divisions, and now sports an order book worth in excess of £3 billion. In social housing Mears provides maintenance and repair work to over 10% of the UK's housing stock and is witnessing strong demand - largely due to the non-discretionary nature of its contracts. A major factor in the demise of its rivals was their focus on chasing new contracts, irrespective of the margins achieved. Mears has been careful not to over-bid and to only chase profitable work, even still there is a bid pipeline of a chunky £2bn to chase. Government cutbacks are well documented, however, commitments are still in place to build 150,000 new social homes. As local authorities seek efficiency gains in essential repairs, Mears should be well placed to deliver work which it often has a legal obligation to provide. In domiciliary care Mears now provides over 150,000 hours of care a week, and is on the lookout for suitable acquisitions in what is still a fragmented market. Now in its 15th consecutive record year, Mears achieved a 11% increase in sales to £523.9m in the the twelve months to 31 December as operating profits increased 27% to £31.3m. The bottom line figure was muddied by £2.45m of exceptional charges relating to integration and acquisition costs. 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.
Not every company operating in the social housing sector has had a good time of it since the coalition government came to power promising to slash public spending, but Mears claimed back in November that the demise of its rival Connaught and the implications of the government comprehensive spending review have given it 'unprecedented levels of opportunity'. “A pre-close update in early January indicated that trading across all divisions was in line with management expectations,” noted Panmure Gordon. “In Social Housing, it experienced a busy period of new contract mobilisations but states that ‘robust working capital management has been maintained’. Its order book is £2.7bn, giving +90% revenue visibility for 2011 and c80% for 2012,” the broker added. The broker thinks the key issues in Tuesday’s results will be public sector spending trends and the attitude of clients picked up from the demise of Connaught and Rok. Panmure Gordon’s profit before tax of £29.7m is slightly ahead of consensus of £28.9m. It forecasts earnings per share of 24.6p and a full year dividend of 6.3p. “Mears retains a strong position in the social housing response maintenance market. This market continues to present good medium term opportunities, although short term funding issues create uncertainty. Its strength with local authorities should provide scope to further develop its Domiciliary Care offering and its push towards contract integration,” the broker said.
Hello, I was wondering if there is anyone who has been affected badly as a shareholder by Connaught's collapse who would be willing to share their story and explain what happened? Possibly people who felt they had been misled into buying shares? If you could get in touch I'd be really interested to talk to you. Please contact me via sarah.westall@bbc.co.uk - also if you happen to know anyone please pass this note on - I'm aware there was a Connaught blog with such postings from people but it appears to have been romoved. Many thanks, and I look forward to hearing from you.
i hope Mears take on the people that have been made redundent xx ME
Connaught are down, hopefully Mears will pick up their contracts and start some reasonably serious movement upwards!!!
i think its a strong possibility. But you could also argue the fact that there are toooo many social houses to service for limited numbers of companys. Maybe there is enough work all round!
Still blatantly ramping I see!
How high can this go?, Im enjoying your banter,but im not experienced enough to comment myself,good luck all
Yes.. never did make £3.00 did it! LOL.
First timer got in at 218
With this share.. nice steady gains.
6 Days to go to £3.00 LOL!!
I got in last week at 221.. been up and down but no real movement yet.
..on SP drop.
In last nights London Evening Standard!