For Immediate Release
12 November 2014
("Mears" or "the Group")
Interim Management Statement
Mears, the provider of support services to the
As indicated at the Company's interim results, the Group has continued to experience a lower level of new
Mears continues to deliver a solid trading performance across both core divisions and is pleased to report ongoing strong margin progression, driven primarily by continued efficiencies within the ex-Morrison business. The Board expects earnings to be generally in line with its expectations for the 2014 full year.
Mears has secured new contracts from its traditional
As detailed within our interim results, changes to our clients' income generation have delivered significant surpluses to their Housing Revenue Accounts. These changes have resulted in delays in new bidding opportunities as clients assess how best to deploy these surpluses and, as previously reported, the absolute level of opportunities to bid for in the year being lower than originally anticipated.We can expect to see a continuing lower than normal level of broad maintenance strategic partnerships in 2015, with an improving picture in 2016 and increasingly encouraging signs thereafter. The bidding opportunities available to the Group over the longer term are expected to return to more normal historical levels.
Mears has been focused over the last twelve months on providing a broader housing offering to its customers. Our extended range of services has mirrored our changing client requirements in areas such as Housing Management and new forms of partnering arrangements.
In Care, we have secured new contracts worth in excess of
The acquisition of Omega is in line with the Group's strategic aim to continue growing in the evolving
The initial consideration for the acquisition was
In the brief period since the acquisition, the performance of Omega has proceeded well and we are pleased to announce that Omega Lettings has won a contract with
Mears continues to benefit from a strong balance sheet. Robust working capital management has always been, and remains, a cornerstone of our business and we have maintained a particular focus on efficient cash management. The Group's revolving credit facility of
We expect our core
We will continue to broaden the services that we provide and we see the development of our Housing Management services as an important extension of our
In our Care business, we will continue to move further up the acuity chain, with an increased focus upon organic growth supported by in-fill acquisitions, extending the Mears Nurseplus model across our client base. This will increase our ability to respond to growing opportunities from health and social care outsourcing and the implementation of new localised commissioning models.
The Board is pleased with the progress made during the period; however the temporary delays in tendering new opportunities in
"In Care, as a robust high quality provider at the forefront of change in the sector, we remain very well placed strategically to take advantage of the longer term opportunities. I am delighted at the success we have achieved in new contract bidding and importantly, we continue to see a positive move in the structure of tendered opportunities with new contracts being awarded to fewer providers with increasing contract lengths. There has been a marked move away from frameworks towards Strategic Partnerships; this will benefit us disproportionately given our long term partnership ethos.
"We will continue to develop further our services provided at the higher end of the acuity chain, with an increased focus upon organic growth supported by in-fill acquisitions, extending the Nurseplus model across our client base. This will increase our ability to respond to growing opportunities from health and social care outsourcing and the implementation of new localised commissioning models."
For further information, contact:
Andrew Smith, Finance Director Tel: +44(0)7712 866 461
Bob Holt, Chairman Tel: +44(0)7778 798 816
Alan Long, Executive Director Tel: +44(0)7979 966 453
Richard Darby/ Sophie McNulty/ Sophie Cowles Tel: +44(0)20 7466 5000
Notes for editors
Mears is a leading social housing repairs and maintenance service provider to Local Authorities and Registered Social Landlords in the UK and now commands a leading position in the UK Local Authorities' outsourced care market, providing personal care services to people in their own homes.
Mears employs in excess of 15,000 people and provides maintenance and repairs services to in excess of 10% of the UK social housing stock. Mears also provides care to over 20,000 service users.
This information is provided by RNS