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Wednesday 11th January 2012
11 January 2012
Social housing maintenance provider Mears Group reports trading and cash for the year ended 31 December 2011 was in line with management expectations.
In a pre-closing trading update, Mears noted that new contract wins increased the group's order book to £2.8 billion. The group has forward visibility forecast revenues of 93 per cent for 2012 and 78 per cent for 2013.
"Our bid pipeline remains robust at in excess of £3 billion with the immediate bidding opportunity for further contracts due to start over the course of 2012 at £1.1 billion," according to the statement.
Mears will announce its preliminary results for the year ended 31 December 2011 on 20 March.
The group's social housing maintenance division has won 44 per cent by value of all contracts bid in the past nine months, amounting to more than £550 million.
"Since the interim management statement released on 10 November 2011, the group has won new contract awards valued at £156 million, including extensions," the statement said.
A major client is Gateshead Borough Council which is looking to award a three-year contract for responsive repairs, void services, gas servicing, cyclical maintenance and adaptations services. The contract is valued at £60 million for the three years.
"We are to be appointed as sole partner to deliver these services to 21,000 properties," Mears said. "The contract, which is due to commence in April 2012, is subject to the satisfactory conclusion of the normal standstill period."
In domiciliary care, Mears' bidding success rate by value is 69 per cent of all contracts bid for in the past nine months, amounting to £60 million. Since the interim management statement in November, the group won a two-year deal as a main provider to Warwickshire County Council, worth around £2.7 million.
"We have also seen a positive period of contract retention on rebid including a 3-year contract with Rotherham Metropolitan Borough Council valued at 5.8 million and a 2-year contract with Sunderland City Council valued at 1.9 million.
Mears also won its first specialist care contract for people with complex needs, boosting its confidence for more wins in the sector, according to the statement. The contract with Hartlepool Borough Council "was secured on the back of our acquisition of Choices and is valued at £1 million over a three-year period".
David Miles, chief executive of Mears, said "the first quarter of 2012 will see the most intense period of new contract mobilisation in our history". Five significant contracts will start around 1 April with an annual value of £50 million.
The company will also "target further acquisitions to broaden the diversity of Mears" care offering along the services supply chain and to expand the range of services provided to people in their homes".
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