UK's Mears Group rises on upbeat annual outlook

Mears

11/01/2024 09:28

** Shares of Britain's Mears Group  MERG.L  up 8.15% at
337.9p
    ** The housing maintenance services provider sees FY revenue
and adjusted profit before tax (PBT) in excess of 1,050 mln
pounds ($1.34 bln) and 43 mln pounds, respectively
    ** Adds current consensus analyst forecasts for FY23 to be
revenue of 1031 mln pounds and adjusted PBT of 40.9 mln pounds
    ** Co also sees FY24 materially ahead of expectations with
adj PBT to be of a similar quantum to FY23
    ** Stock top pct gainer on FTSE small-cap index  .FTSC 
    ** Brokerage Peel Hunt raises target price to 350p from
300p, reiterates "add" rating
    ** Brokerage adds elevated management-led volumes,
operational focus and expanded contract activity drive stronger
FY24 outlook
    ** Stock gained 49% in 2023

   ($1 = 0.7841 pounds)

 (Reporting by Hani Kollathodi in Bengaluru)
 ((Hani.Kollathodi@thomsonreuters.com;))