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Some press coverage this morning....

The Times

Mears Group, the AIM-listed provider of building maintenance services firmed 1p at 69p after announcing that it expects full-year figures for 2002 to be ahead of expectations. Arbuthnot Securities, house broker, now expects full-year sales for 2003 to break through the 100 million barrier, and has raised its current-year, pre-tax profit forecast from 4.5 million to 4.77 million. The broker points out that, on its revised numbers, Mears trades at a 9 per cent discount to its sector, which it thinks undeserved.

http://www.timesonline.co.uk/article/0,,748-557763,00.html


The Independent

Mears specialises in facilities management for local councils. In plain English this means it does maintenance contracts for council houses, handling everything from decorating the stairwells to mending leaking taps.

It is a solid business whose shares have suffered as a result of the de-rating of the support services sector. Mears pleased the market yesterday by saying full-year profits for 2002 should be ahead of expectations. It also said the current year has started well, with a strong order book worth 270m and improved margins.

Bob Holt, the chairman, was even moved to pronounce that the group was better placed to take advantage of market opportunities "than at any time in its history". What Mears has to play for is the 50 per cent of local councils who currently handle their own maintenance rather than contract it out. These contracts can be substantial. In February last year, Mears signed a 10-year deal worth 130m in with Richmond, south-west London.

With the shares up 1.75p at 69p, they trade on 11 times current year earnings. This is a 9 per cent discount to the sector, which looks unjustified for a cash generative group like this. Sector woes may act as a drag, but the stock should outperform its peers. Good value.

http://news.independent.co.uk/business/investment_column/story.jsp?story=373373



T22

PS Eeyore - thanks. No, am not going to the T1ps event... don't like peeople such as Nick Leslau and Nigel Wray.

duly noted.

Tipped again by Investors Chronicle, probably the third or fourht time in the last 3 years. Price up by 2.5%