Last checked at 8 Jan 2010 07:00
8 January 2010
Mears Group PLC
("Mears" or "the Group")
Pre-Close Trading Update
Mears is pleased to announce that it expects to report another successful trading outcome for the year ended 31 December 2009 with particular focus on its robust management of working capital with strong cash conversion of operating profit.
The Group has already secured 75 per cent of its consensus forecast revenues for 2010 and the forward order book stands at £1.8 billion. Mears has previously announced new contract awards in 2009 of in excess of £550 million with a potential worth in excess of £650 million, subject to contract extensions. This will result in a record year for the Group in terms of both new contract awards and order book level. The bid pipeline continues to be strong and the Group is currently at advanced stages of negotiating further significant opportunities.
Commenting, Bob Holt, Chairman of Mears, said:
"I am delighted with the progress made across the Group during 2009, particularly with our achievements in continuing to build a successful care provision along side our social housing services.
The demand for our services has never been stronger. Our two growth markets Social Housing and Domiciliary Care, which together account for approaching 90% of Group revenues, are defensive markets where spend is largely non discretionary and afford us substantial immunity from bad debts. Moreover as a result of our quality partnership relationships with public sector customers, we have not experienced any work delays in the areas in which we operate".
The Group will be announcing its preliminary results for the year ended 31 December 2009 on Tuesday 9 March 2010.
ends
About Mears www.mearsgroup.co.uk
Mears is a leading social housing service provider to Local Authorities and Registered Social Housing Landlords in the UK and has a growing presence in the domiciliary care market, providing personal care services to people in their own homes delivered as part of outsourcing arrangements with Local Authorities.
Mears employs in excess of 8,000 people and provides maintenance and repairs services to 500,000 homes nationwide. Mears also provides domiciliary care to over 13,000 service users each week
| Enquiries: | |
| Mears Group PLC | |
| Bob Holt, Chairman | Tel: +44(0)7778 798 816 |
| Andrew Smith, Finance Director | Tel: +44(0)7712 866 461 |
| Joint Broker - Investec | |
| Keith Anderson/Daniel Adams | Tel: +44(0)20 7597 5970 |
| Joint Broker - Collins Stewart | |
| Mark Dickenson/Piers Coombs | Tel: +44(0)20 7523 8350 |
| Financial PR - Mears Group | |
| Threadneedle Communications | Tel: +44(0)20 7936 9666 |
| Trevor Bass/Alex White | |
| IR - Hansard Communications | Tel: +44(0)20 7245 1100 |
| John Bick/Kirsty Corcoran | Tel: +44(0)7872 061007 |