The Most Famous Companies Of London

Among the companies in the London Stock Exchange, Mears Group PLC is the company I would consider as an investor. This company was founded in 1996 is based in the United Kingdom. Through its subsidiaries, Mears Group PLC provides a range of outsourced services to the public and private sectors in the kingdom. It operates in two segments, housing and care. Mears Group, the Gloucester-headquartered social housing and care specialist, has grown revenue to more than £900m following a strong performance from its housing division. The company offers rapid response and planned maintenance services to local authorities and registered social landlords, including responsive repair; gas and voids services; maintenance, repairs, capital works, and energy investment solution for public buildings; estates cleaning services; and grounds maintenance, hard landscaping, soft lands-carping, and arboriculture. It also provides individual or archetypal energy and carbon assessments and private sector finance; and installation services.

According to the listed company’s results for the year to 31 December 2016, turnover rose to 940.1m from 881.1m in the year before. Profit before tax also increased to 40.1m from 36.8m the year before. The increase in revenue reflected strong organic growth in its housing business following a record year for new contract bidding in 2015. The care business also reported a 5 per cent rise in turnover to 152.6m, boosted by the acquisition of the Care at Home (CAH) division of care UK ltd for 11.2m during 2015.

In those interim results, group revenue increased to GBP470.8m (2016; GBP466.2m). profit before tax and before the amortization of acquisition intangibles increased to GBP18.3m from GBP 18.2m in 2016, which includes a lower first half performance of the Care division following further branch closures to focus on contracts that can provide clear and sustainable margins. Normalized diluted earnings per share, based upon earnings before amortization of acquisition intangibles and after an 18 per cent tax charge, increased by 3 per cent to 13.98p. Average daily net debt for the period was maintained at GBP85m and includes the outflow of GBP5m cash to fund the different consideration resulting from prior acquisitions. This incredible performance validates my choice for Mears Group PLC.

When you compare Mears group to a company like BT group, Mears is way ahead and more promising. BT Group Company is faced with challenges such as overstretched business portfolio, increased pension deficit, decreased profitability and efficiency and also over-relying on UK market so much. A major strength for Mears group is it housing sector. As people continue to do their best so that they can have their own homes, it will invest more and more into housing and this will increase the profits greatly. When you consider its political macro-environment, it has continued to enjoy government support.

A good number of employees have also posted very positive feedback on the ‘Mears Group PLC Employee Reviews’ platform thus showing their satisfaction with the company and also showing they trust in the company. –– http: //indeed.co.uk/cmp/ Mears- Group- PLC /reviews The group, with the local government information unit, supported a report, in December 2014 by a former Paul Burstow calling for home care workers status and a living wage. This company is also one of the companies nominated as Social Mobility Business Compact ‘Champions’ as signatory of the Social Mobility Business Compact, set up by the Deputy Prime Minister Nick Clegg in 2011, to encourage employers to offer young people fair and open access to employment opportunities.

When you look at the PEST Analysis of different companies in the UK most of them are disadvantaged. For instance if you consider a company like Gregg which is based in the baking industry you will find they have a lot to do considering their environment. For example, the UK government in 2013 released a warning about obesity in England. Official publication in the UK government website shows that; in England most people are overweight. Such a thing could have a huge impact to Gregg’s marketing policy by essentials changes in their menu. Greggs should also pay particular attention to their social marketing if they want to prevent decreasing demand for their products. This may occur because most of the ingredients such as salt, flour, sausages, coffee carbonated drinks which Greggs use in their products are non-healthy and the social responsibilities is very important in those case in order to keep satisfaction of the customers. This is according to Weinreich,(2010).

Other companies such Churchill mining and cadence minerals PLC are involved in the extraction of minerals and also processing products using the minerals. This is an unpredictable field because first extraction of minerals is greatly affected by weather changes and also it has affected by Technological changes, each day new machines are invented. This is also a similar thing in the motor industry, because new vehicles are coming up each day those dead stock may be a major problem.

From the this data, the value of shares have shown stability and when its fluctuating its doing so within a reasonable range. Also, the data has shown that the value has risen over the last one week. The offer at mears group is £340. When you compare this with the 52week high and low, it is clear that the share is not overvalued. Its 52w high is £515 and its 52w low is £322.5 thus showing is the best time to buy this share. With my £17,000 this will get me around 51shares which by the end of 6 months will amount to a quite good figure. The closing value of a share was £325 by Friday 11th May, 2018 thus total money would be equivalent to £16,575. This is a loss by £425.

And the end of this investment period, I choose to re-invest in the same company rather than selling my serious, this is because the value of the share will not have raised enough compared to the highest it has ever achieved, that is £515. Also, from all angles of views, one can tell that Mears Group Company is not doomed to failure according to the very essential services its continuing to offer to the residents of the United Kingdom. It also has a very good management system with qualifies personnel with little management system. Mears group also has a very good investor relations and also good collaboration with the legal authorities. Therefore, I would choose not to sell my shares.

References

Nexexchange.com. (2018). NEX Exchange | Home | A London Stock Exchange. [online] Available at: https://www.nexexchange.com/ [Accessed 19 Jul. 2018].

UKEssays. (2018). Economics Essays | Free Essays on Economics | Page 4. [online] Available at: https://www.ukessays.com/essays/economics/?page=4 [Accessed 19 Jul. 2018].

‘Mears acquires domiciliary care business’ healthinvestor. 22 April, 2013 Retrieved 19 Dec,2014

Insider media limited business newspaper, 21st March, 2017