Trading Statement

Mears Group PLC 10 January 2008 Mears Group PLC ('Mears' or 'the Company') Trading update Strong Performance across all Operations Series of key contract wins in Social Housing Growing presence in Domiciliary Care Mears is pleased to issue a trading update ahead of its preliminary results announcement for the year ending 31 December 2007, due to be released on 11 March 2008. The strong first half performance has accelerated in the second half, with all of the Company's businesses performing well. Contract Wins in Social Housing Since announcing interim results in August 2007, Mears has secured three significant social housing contracts with new customers with a total value of £204 million as follows: - Yesterday the Company announced the award of a flagship contract with Birmingham City Council to provide responsive repairs and voids refurbishment. The contract is worth £65 million over 4.5 years with a possible extension to a 7 year term. - In November 2007 Mears announced an £89million major strategic partnership with Sedgefield Borough Council over 5 years covering all aspects of housing repairs, maintenance and decent homes. - In October of 2007 the Company was awarded a 10 year contract worth £50 million to carry out response and repair works for Midland Heart Housing Association. Since announcing its results for 2006 Mears has won contracts worth £500 million across the whole group. The Company's order book now stands at a record level of £1.4 billion. With 97% revenue visibility for 2008 and some 77% of the 2009 market consensus forecast secured, the Company is confident that it will continue its record of delivering strong performance. Growing Presence in Domiciliary Care In line with the Company's growth strategy to extend its presence in the domiciliary care sector, Mears has continued to acquire small and medium sized companies in the sector and these will provide a positive contribution towards the planned revenue growth for 2008. Since Mears acquired Careforce Group plc in April 2007 the Company has acquired eight businesses for an aggregate initial purchase consideration of £10.3 million which includes the most recent acquisition in December of CCA Quality Home Care Ltd ('CCA') for a maximum total consideration of £2.45 million. CCA operates from offices in Lisburn, Northern Ireland servicing contracts with the Belfast Trust and the South Eastern Trust as well as a small number of private clients. This series of acquisitions now provides the necessary scale for Mears to influence the way in which domiciliary care is procured and delivered and the Company is confident of winning new contracts in the near future given its most recent bidding activity in the domiciliary care sector. Strong Operational Performance and Continued Investment From an operational perspective Mears continues to perform strongly, placing the utmost importance on service standards and on its partnership with customers. Mears has continued to invest in systems and in people to ensure that the excellent record of contract retention and customer care is maintained. New Contract Bid Pipeline The Company's bid pipeline remains strong which is very encouraging, particularly following the substantial contract awards which have already been achieved. Mears continues to be highly selective in the contracts it targets to ensure that the Company maintains a high quality order book and a sustainable business model. In addition, the continued pressures on existing and potential customers to both contain costs and improve efficiencies will also provide further opportunities to add to the range of services Mears can provide to its growing customer base. - Ends - NOTES TO EDITORS: Mears Group PLC is a leading provider of a range of services to social landlords. The Group is also a major supplier of domiciliary care in the United Kingdom following the acquisition of Careforce Group plc in April 2007. The social housing 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 40% since Mears was listed on AIM in October 1996. The Group was awarded the AIM Company of the year award in 2003. Enquiries: Mears Group PLC Bob Holt, Chief Executive 07778 798 816 David Robertson, Finance Director 07887 705 357 Andrew Smith, Executive Director 07712 866 461 Threadneedle Communications Trevor Bass/Alex White 020 7936 9666 Nominated adviser to Mears Group PLC - Investec Keith Anderson/Michael Ansell 020 7597 5970 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Mears Group (MER)
UK 100

Latest directors dealings