Mears boasts of robust order book

published 10 January 2012

Shares in social housing and care provider Mears were up on news that contract successes have pushed it almost all the way to meeting the market's revenue expectations for 2012.

The company said its order book has risen to £2.8bn. The strong order book means that the company has booked 93% of 2012's forecast revenues and 78% of 2013's, and there could be more to come; the group said there is immediate bidding opportunity for further contracts due to start over the course of 2012 at £1.1bn. In total, the bid pipeline has a value of more than £3.0bn.

The value of the Social Housing contracts the firm has won in the last nine months, at more than £550m, accounted for 44% of the total value of the contracts for which it was pitching. Since early November, the group has won new contract awards valued at £156m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

On the Domiciliary Care side of the business, the value of the contracts won in the last nine months, at £60m, was equivalent to 69% of the total value of the contracts for which it was pitching.

Chief Executive David Miles said: "The first quarter of 2012 will see the most intense period of new contract mobilisation in our history with five significant new contracts due to start on or around 1 April 2012 with an annual value of £50m.

"We will 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."

The share price rose 3.36% to 223.25p by 13:37.