Pre-Close Trading Update

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