Mears Regulatory News (MER)

4 Jun 2008 07:00



4 June 2008

Mears Group PLC

("Mears Group" or "the Company")

AGM Statement

At the Company's Annual General Meeting to be held at 12.00 p.m. today, Bob Holt, Chairman, will issue the following statement: 

We are pleased to report a satisfactory performance for the first four months of 2008 and are confident that the Company will again produce results to meet the Board's expectations.

Social Housing division

When we announced record results in March of this year, we highlighted that a return to bidding on a highly selective basis had generated significant success during the six months to March 2008. We have continued this momentum and we have already announced £57m of Social Housing contract awards since that time.

We are pleased today to be able to announce further social housing contract wins amounting to in excess of £80m as follows:

Cross Key Homes 

We have been awarded a 10-year partnership with Cross Keys Homes to provide responsive repairs and voids services. The contract is valued at £41m for the 10-year period. This award widens the range of services we provide to Cross Keys Homes, adding to the partnering arrangements we hold with them for Decent Homes, Gas Servicing and Cyclical Decorations.

Blackpool 

Mears has been awarded a £20m Decent Homes partnership with Blackpool Coastal Housing, valued at £5m per annum for the next 4 years.

Liverpool Mutual Homes

We have been awarded preferred supplier status to deliver Decent Homes works to Liverpool Mutual Homes. Mears is one of eight partners and will share in a spend valued at £160m over the next 4 years. 

Our order book stands at £1.4 billion and provides full visibility for 2008 and strong visibility for 2009 and beyond.  We continue to place great emphasis on winning good quality contracts that can provide clear and sustainable margins.

The size of the social housing bid pipeline for contract tenders remains extremely healthy and we continue to target customers who share our view of long term partnering arrangements.

Care division

We are pleased to announce five new contract wins by our care division amounting to over 6,500 hours per week or over £4m of annualised revenues. Careforce continues to build a presence across a growing geographical area and is well placed to take a leading position in the consolidation of the domiciliary care market. Investment in infrastructure and people continues as we grow the business.

The 5 new contract wins are as follows:

Blackburn with Darwen 

A preferred supplier status for one of three localities within Blackburn with Darwen Borough Council. The contract to supply homecare to Blackburn with Darwen Borough Council commences in July 2008 and runs until March 2011 with a possible extension for a further 2 years. The expected volume under this contract will be 1,000 hours per week.  It is understood that the number of providers in the area has been reduced from 13 to 9 as a result of this recontracting process.

Manchester City Council

A locality based contract to supply home care to Manchester City Council commencing on 23 June 2008 for an initial term ending on 31 March 2011, with a possible extension for a further 2 years thereafter. The expected volume under this contract will grow to 2,250 hours per week. Given such volume, this contract represents the largest contract win in a new location achieved by Careforce since it was acquired by Mears and together with recent wins in Trafford, Wigan and Blackburn with Darwen strengthens the Company's presence in the North West of England. 

Southend-on-Sea 

A contract to supply homecare to Southend Borough Council will commence 1 October 2008 and run for an initial period of 3 years with a possible extension for a further 2 years. It is expected that the hours supplied under this contract will grow in stages up to 2,000 hours per week. As a result of this contracting exercise we understand that the number of contracted providers has been reduced from 19 to 6.

Neath Port Talbot 

A block contract to supply a minimum of 750 hours per week of home care to Neath Port Talbot County Borough Council for an initial one year contract with a possible extension for a further period of 2 years. Commencing in July 2008, this award represents the Care division's first contract win in Wales and will provide a valuable springboard to pursue other opportunities in the region.

Move to the Official List

On 22 May, Mears announced that it intends to apply for admission of its ordinary share capital to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities.

I am pleased to say that we are on track with the process of the move and subject to the receipt of the necessary approvals from the UK Listing Authority, we expect admission of the Company's shares to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities on Monday 23 June 2008.

Bob Holt Chairman

-ends-