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 maintenance provider, is based in Glasgow and has customers throughout Scotland. An initial consideration of £2.1m has been paid in cash with up to a further £2.9m due depending upon the profit achieved in the next 18 months. In the year to 31 August 2005 Laidlaw Scott Limited generated £0.4m profit before tax on turnover of £6.0m. The Company had net assets at 31 August 2005 of £0.4m and was largely debt free. Based on our current estimates we are confident that this transaction will be earnings enhancing. I am delighted that we have found such a good business 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 the significant contract gains we had made. In addition we have been notified that we can expect to be confirmed as one of a select number of framework partners to deliver the Decent Homes programme for Ealing Homes, the Arms Length Management Organisation (ALMO) of London Borough of Ealing. This is subject to final board ratification where we expect a positive outcome.
 
The Decent Homes programme covers a wide range of planned maintenance works to the ALMO’s stock of nearly 14,000 homes.  The works will include kitchens, bathrooms, heating, roofing, insulation, doors/windows and decorations.  Ealing Homes plan to invest over £360 million in the programme. We already provide over half the ALMO’s repairs and maintenance service and were instrumental in supporting Ealing Homes in achieving their two star rating. 
 
The size of the bid pipeline for contract tenders remains extremely healthy and we 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 and to avoid securing turnover at margins which will compromise quality and cash. The Laidlaw Scott acquisition and recent senior appointments in the bid team business development, marketing, HR and IT are driving forward initiatives which will underpin our continued profitable growth. 
 
We are delighted with progress during the first four months of the year. Given the scale of our order book and current opportunity pipeline we are confident that 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 new levels of excellence and playing a crucial role in creating better communities. 
  
  
Bob Holt 
Chairman 
  
Press Contacts: 
  
Bob Holt (Chairman)                                Tel: 07778 798816 
Stuart J Black (CEO)                                Tel: 07971151320                             
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.