UK's Mears Group FY25 revenue beats analyst estimates, adj oper profit misses

Mears

26/03/2026 07:11

Overview

UK housing services provider's preliminary FY25 revenue edged up, beating analyst expectations

Adjusted operating profit for FY25 missed analyst estimates

Company announced new £20 mln share buyback programme and completed Pennington Choices acquisition

Outlook

Mears maintains guidance for 5-9% annual growth in Maintenance-led revenues for FY26

Company expects adjusted operating margin to remain within 5-6% in FY26

Mears anticipates continued revenue reduction in Asylum Services as volumes normalise, timing uncertain

Result Drivers

MAINTENANCE CONTRACT RETENTION - Co said strong growth in Maintenance-led revenues was underpinned by high contract retention and new contract wins

MANAGEMENT-LED REVENUE DECLINE - Co attributed drop in Management-led revenues to normalization of Asylum Accommodation and Support contract volumes

COMPLIANCE CAPABILITIES EXPANDED - Acquisition of Pennington Choices extended compliance service offering and accelerated strategic progress

Company press release: ID:nRSZ1648Ya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 1.14 bln
GBP 1.12 bln (6 Analysts)
FY EPS
GBP 0.54
FY Adjusted Operating Profit
Miss
GBP 64.80 mln
GBP 68.84 mln (6 Analysts)
FY Dividend
GBP 0.18
FY Operating Profit
GBP 75 mln
FY Pretax Profit
GBP 63.50 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy."

Wall Street's median 12-month price target for Mears Group PLC is GBp509.50, about 51.9% above its March 25 closing price of GBp335.50

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)