7th Jun 2006 07:01
Mears Group PLC07 June 2006 MEARS GROUP PLC 7 June 2006 AGM Statement At the company's Annual General Meeting to be held at 12.00 p.m. today, BobHolt, Chairman, will issue the following statement: "I am pleased to report a strong performance for the first four months of 2006with continuing buoyant trading conditions. Present indications are that ourresults will be at the top end of this year's market expectations. Acquisition of Laidlaw Scott Limited We have today completed the acquisition of Laidlaw Scott Limited. The Company,which operates almost exclusively as a social housing repairs and maintenanceprovider, is based in Glasgow and has customers throughout Scotland. An initialconsideration of £2.1m has been paid in cash with up to a further £2.9m duedepending upon the profit achieved in the next 18 months. In the year to 31August 2005 Laidlaw Scott Limited generated £0.4m profit before tax on turnoverof £6.0m. The Company had net assets at 31 August 2005 of £0.4m and was largelydebt free. Based on our current estimates we are confident that this transactionwill be earnings enhancing. I am delighted that we have found such a goodbusiness to spearhead our entry into the growing Scottish market. Decent Homes work from Ealing Homes When we announced our record results in March of this year we highlighted thesignificant contract gains we had made. In addition we have been notified thatwe can expect to be confirmed as one of a select number of framework partners todeliver the Decent Homes programme for Ealing Homes, the Arms Length ManagementOrganisation (ALMO) of London Borough of Ealing. This is subject to final boardratification where we expect a positive outcome. The Decent Homes programme covers a wide range of planned maintenance works tothe ALMO's stock of nearly 14,000 homes. The works will include kitchens,bathrooms, heating, roofing, insulation, doors/windows and decorations. EalingHomes plan to invest over £360 million in the programme. We already provide overhalf the ALMO's repairs and maintenance service and were instrumental insupporting Ealing Homes in achieving their two star rating. The size of the bid pipeline for contract tenders remains extremely healthy andwe have maintained our current order book at in excess of £1 billion. Outlook We continue to target customers who share our view of long term partnering andto avoid securing turnover at margins which will compromise quality and cash.The Laidlaw Scott acquisition and recent senior appointments in the bid teambusiness development, marketing, HR and IT are driving forward initiatives whichwill underpin our continued profitable growth. We are delighted with progress during the first four months of the year. Giventhe scale of our order book and current opportunity pipeline we are confidentthat yet again we are on course for another year of outstanding performance.Your Company is in terrific shape and I am committed to taking Mears to newlevels of excellence and playing a crucial role in creating better communities." Bob HoltChairman Press Contacts: Bob Holt (Chairman) Tel: 07778 798816 Stuart J Black (CEO) Tel: 07971 151320 David J Robertson (FD) Tel: 07887 705357 Trevor Bass/Alex White (WSSM) Tel: 020 7067 0743 NOTES TO EDITORS: • Mears Group PLC is the leading provider of a range of services to social landlords. • The services provided include response maintenance, void refurbishment, planned preventative maintenance, improvements to meet the "Decent Homes Standard" and estate management. • Profits have shown an annual compound growth rate of 42% since Mears was listed on the Alternative Investment Market (AIM) in October 1996. The Group was awarded the AIM Company of the year award in 2003. • The Mears mission is to be the market leader in transforming the social housing environment, improving homes, improving neighbourhoods and improving lives. Further information is available on our website www.mearsgroup.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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