Mears reports strong trading results for year to date

Mears said it has delivered strong trading in the year to date on the back of new contracts and acquisitions. The social housing repairs and maintenance provider has secured £125m worth of new contracts since January 1st and has experienced strong spends from its existing customer base.The group has also achieved 95% visibility of the £915m consensus revenue forecast for 2013 and 80% visibility of the £960m consensus revenue forecast for 2014.The order book stands at £3.8bn and the bid pipeline remains at £3.0bn.During the period the company successfully integrated newly acquired Morrison Facility Services which provides facility services to private businesses and local government bodies. The business, which was purchased last November, is expected to break-even in the first half before exceptional costs of integration.In April, Mears also acquired the entire issued share capital of ILS, a homecare company, for a total consideration of £22.5m on a debt-free, cash-free basis. ILS provides community based care services to about 3,400 service users in Scotland and has contracts with 20 local authorities, employing more than 1,600 employees. Mears added that the group continues to benefit from a strong balance sheet. Chief Executive, David Miles, said: "I am delighted with the progress made by the group in recent months. The speed and quality of the integration of the Morrison business has exceeded my expectations and our social housing business is performing very well, delivering excellent visibility to revenues. "The acquisition of ILS is an important achievement for the Group and I am pleased with the progress made in the short intervening period. The acquisition will provide Mears with the platform to provide higher acuity home services across the UK, complementing Mears' existing care capabilities and developing the capability to offer longer term continuing healthcare in the home, an area in which Mears does not currently operate."Shares rose 2.08% to 368.50p at 10:58 Tuesday.RD Mears