Mears Group Plc · LSE:MER
Mears — H1 2011 Earnings Presentation
12 slides from Mears's earnings presentation, August 2011
Slide 1: Interim Results for the six months to June 2011
Interim Results for the six months to June 2011
Slide 2: Financial Highlights
Financial Highlights 2 I Strong performance and excellent visibility of future performance • Revenue up 16% to £292.6m • Operating profit before exceptional items and amortisation up 4% to £15.2m • Robust operating margins across both core divisions • Normalised diluted EPS up 6% to 11.42p • Excelle
Slide 3: Income statement
Income statement 3 Six months to June 2011(£m) 2010(£m) Change Revenue 292.6 252.6 +16% Operating profit 15.2 14.6 +4% Net finance cost (1.2) (1.4) Normalised profit before tax 14.1 13.2 +7% Costs relating to the acquisition and - (2.5) integration of Supporta Amortisation of acquired intangibles (3
Slide 4: Social Housing
Social Housing 4 Six months to June 2011 2010 Revenue £207.2m £184.7m +12% growth Operating profit * £11.5m £10.0m Operating margin 5.5% 5.4% * pre amortisation and share based payments 21.61p 21.61p 21.61p Revenue (£m) Operating Profit (£m)* 379 22.9 355 194 179 21.3 12.9 13.0 282 17.1 147 9.6 206
Slide 5: Domiciliary Care
Domiciliary Care 5 Six months to June 2011 2010 Revenue £51.7m £47.8m +8% growth Operating profit * £3.9m £3.6m +24% Operating margin 7.5% 7.5% * pre amortisation and share based payments and before the costs relating to the acquisition and integration of Supporta plc ** for the 9 months to 31 Decem
Slide 6: Other Services
Other Services 6 Six months to June 2011 2010 Revenue £33.7m £20.1m +67% growth Operating profit * £0.3m £1.4m +24% Operating margin 0.8% 6.7% * pre amortisation and share based payments21.61p 21.61p 21.61p Revenue (£m) Operating Profit (£m)* 78 41 194 2.7 179 1.7 61 34 2.1 55 51 27 1.9 1.9 1.3 49 2
Slide 7: Cash flow
Cash flow 7 Rolling 12 months to June 2011 (£m) 2010 (£m) PBT pre amortisation 29.8 25.6 Non cash adjustments 5.0 3.0 Finance costs 2.2 2.2 Working capital movement (9.1) (6.7) Group operating cash flow 27.8 24.0 Interest (3.0) (1.7) Tax (4.5) (5.2) Net expenditure on tangible and intangible assets
Slide 8: Balance sheet
Balance sheet 8 At June 2011 (£m) 2010 (£m) Intangible fixed assets 122.3 118.4 Tangible fixed assets 12.2 12.9 Working capital balances 37.5 34.6 Net debt (9.4) (13.5) Dividend (4.1) (3.5) Deferred consideration (2.5) (2.1) Pension liability (net of deferred tax) (5.5) (5.9) Tax and other deferred
Slide 9: Revenue bridge
Revenue bridge 9 I 2011 revenue visibility of 97% of consensus forecasts Sales gap I 2012 revenue visibility of c85% of consensus forecasts 2011 £37m acquisitions - 2011 full year effect mobilisations - Sales gap full year effect £6m 2011 £16m £33m mobilisations (£28m) 2011 £32m Decent 2011 Acquisit
Slide 10: Delivering our strategy and leading change
Delivering our strategy and leading change 10 I Effective mobilisation and integration of several large contracts and acquisitions I High win rates for new contracts I First major housing contract secured in Wales I Breakthrough contract win for our British Gas partnership I Acquisition of acute car
Slide 11: Sector outlook is extremely positive
Sector outlook is extremely positive 11 I Supportive Government Strategy and Positive legislative changes • Strong Government endorsement for housing and care integration • Housing Finance reform creates new opportunities • Increasing environmental opportunities now appearing with significant upside
Slide 12: Mears priorities
Mears priorities 12 I Maintain operational excellence I Continued systematic bidding I Leading innovation in major areas of opportunity • Unique Care and housing service integration • Leveraging British Gas partnership • In-sourcing leadership • New homes solution • New care commissioning models • C