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- AGM Statement
4th June 2008
4 June 2008
Mears Group PLC
("Mears Group"or "the Company")
At theCompany's Annual General Meeting to be held at 12.00 p.m. today, BobHolt, Chairman, will issue the following statement:
We are pleased to report a satisfactory performance for the first four months of2008and are confident thatthe Companywill again produce results to meetthe Board'sexpectations.
When we announcedrecord results in March of this year,we highlighted that areturn to bidding on a highly selective basis had generated significant success during thesix months to March2008. We have continuedthis momentum and we havealreadyannounced 57m of Social Housing contract awardssince that time.
We arepleasedtoday to be able to announcefurther social housingcontract winsamounting to in excess of 80mas 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 valuedat 41mfor 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.
Mears has been awarded a 20mDecent Homes partnership with Blackpool Coastal Housing, valued at 5mper 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 160moverthe next 4 years.
Our order book stands at 1.4billion andprovides 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 remainsextremely healthy and we continue to target customers who share our view of long term partnering arrangements.
We are pleasedto announcefivenew contract wins byourcare divisionamounting toover6,500hours per weekorover4mof 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 continuesas we grow the business.
The 5 new contract wins are as follows:
Apreferred supplier status for one of three localities withinBlackburnwith Darwen Borough Council. Thecontract to supply homecare toBlackburnwithDarwen Borough Council commencesin July 2008and runsuntil March 2011 witha possible extension for a further 2 years.The expected volumeunder this contractwill be1,000hours per week.It is understood that the number of providers in the area has been reduced from 13 to 9 as a result of thisrecontracting process.
Alocality basedcontract to supplyhome care toManchester City Councilcommencingon23June2008for an initial term ending on 31 March 2011, with a possible extension for a further 2 years thereafter. The expected volume under this contractwill grow to2,250 hours per week.Given such volume, this contract represents the largest contract win in a new locationachieved by Careforce since it was acquired by Mears and together with recent wins in Trafford, Wigan andBlackburnwith Darwenstrengthens the Company's presence in the North Westof England.
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.
A block contract to supplya minimum of750hours per weekofhome care to Neath Port TalbotCountyBorough Council for an initial one year contract with a possible extension for a furtherperiod of2 years. Commencing in July 2008, this award representsthe Care division's first contract win inWalesandwill provide a valuable springboard to pursue other opportunitiesintheregion.
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 tothereceipt 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.
Mears Group PLC
Bob Holt, Chairman
tel: 07778 798 816
Andrew Smith, Finance Director
tel: 07712 866 461
Nominated adviser to Mears Group PLC -Investec
tel: 020 7597 5970
Trevor Bass/Alex White
tel: 020 7936 9666
Hansard Group,John Bick
tel: 07872 061007