14th Jan 2014 11:06
LONDON (Alliance News) - Mears Group PLC Tuesday said its order book stands at GBP3.8 billion, with a bid pipeline of GBP3.0 billion, as it focuses solely on social housing and domiciliary care.
In a pre-close trading update ahead of its full-year results to December 31, Mears said it has 90% visibility of consensus revenue forecast for 2014 from continuing operations of GBP911 million.
Mears provides support services to the UK social housing and care sectors.
The firm said Morrison Facilities Services Limited, acquired in November 2012, has delivered a positive contribution in the year.
"The key focus is now at an individual contract level to maintain the improved service delivery whilst continuing to resolve the remaining financial challenges," it said.
Last year, Mears agreed a deal to sell its loss-making subsidiary Haydon Mechanical and Electrical Ltd to its management team for a token GBP1.
The firm said the sale has allowed it to focus fully upon its core and growing social housing and care businesses.
Mears could gain GBP7 million if Haydon is re-sold in the future.
One of the firms more recent deals, a GBP20 million contract with Wiltshire County Council, has started "positively", the firm said.
Financially, the firm has extended its revolving credit facility of GBP120 million by a further two years to July 2018.
Mears will publish its results on March 18.
The stock was trading at 478.79 pence Tuesday, down 0.46 pence or 0.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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