CNT Connaught

Mears Group PLC (MER.LN) Tuesday said it expects to win its first contract to make homes more energy efficient by the end of the year.

Mears, which provides repair and maintenance services to social housing in the U.K., Tuesday said it teamed up with British Gas to provide a new service to local authorities keen to cut their energy use and carbon emissions.

Mears Chairman Bob Holt told Dow Jones Newswires the strategic partnership with British Gas, a unit of utility Centrica PLC (CNA.LN), is a big opportunity for Mears but it is too early to forecast what it will mean for the company's earnings.

"Let's get towards the year-end and let's see the first partnership start working and we then will be able to educate the market on what the likely upturn in our numbers is," Holt said. He said Mears would like to think the partnership will have its first customer by the end of 2010.

Holt said the partnership will survey local authorities' social housing estates and asses their energy needs. Its services will include installing insulation and microgeneration systems like solar panels and biomass boilers.

Social housing tenants should benefit from lower electricity bills, warmer homes and better service, Mears said.

The partnership will also help British Gas meet its obligations under U.K. government targets to cut emissions, said Holt.

Holt added Mears is continuing to seek to pick up repair and maintenance contracts left vacant by Connaught PLC (CNT.LN), a rival that called in administrators earlier this month.

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com

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