REG - Mears Grp PLC - Trading Update

MearsAnnouncement

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RNS Number : 0447O  Mears Group PLC  24 June 2025

Mears Group PLC

("Mears" or "the Group" or "the Company")

 

Trading update

Continued momentum

 

Mears Group PLC, the leading provider of services to the Housing sector in the
UK, is pleased to confirm that it has experienced strong trading in the first
half of its 2025 financial year ('FY25') and expects profit before tax for the
first six months to be modestly ahead of the prior year(1).

 

The first half has seen solid growth in its Maintenance-led activities, driven
by regulatory market drivers increasing spend from the Group's Registered
Provider clients and further underpinned by the 100% contract retention
reported over the last 12 months. As anticipated, Management-led activities
have continued to normalise as Asylum related contingent solutions are
replaced with long-term residential accommodation. This transition continues
to be managed well.

 

Operating margins have continued to strengthen, and profits have once again
been underpinned by strong operating cash flows.

 

Given the positive trends seen in the first half, the Board anticipates
results for the full year to be modestly ahead of current market
expectations(2), with revenues and adjusted profit before tax of no less than
£1,055m and £54m respectively.

 

Notice of results

The Group will announce its interim results for the six months ended 30 June
2025 on Thursday 7 August 2025.

 

Lucas Critchley, Chief Executive Officer said:

"Trading in the first half has been excellent across the Group.  We have
continued to make progress against each of our key strategic goals; delivering
growth in maintenance activities, developing a full compliance and asset
management offer, and positioning the Group to deliver additional housing
services to Central Government."

 

Note:

1. H1 2024 reported results with revenue of £580m and profit before tax of
£30.5m

2. The Board consider the current consensus analyst forecasts for FY25, prior
to this announcement, to be revenues of £1,055m and adjusted profit before
tax of £50.9m.

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
("MAR") prior to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations.

 

 

 For further information, contact:

 Mears Group PLC                    Tel: +44(0)1452 634 600
 Lucas Critchley
 Andrew Smith

 Deutsche Numis                     Tel: +44(0)207 260 1000
 Julian Cater
 Kevin Cruickshank

 Panmure Liberum                    Tel: +44(0)207 886 2500
 Tom Scrivens
 James Sinclair-Ford

 

About Mears

Mears is a leading provider of services to the Housing sector, providing a
range of services to individuals within their homes. We manage and maintain
around 450,000 homes across the UK and work predominantly with Central
Government and Local Government, typically through long-term contracts. We
equally consider the residents of the homes that we manage and maintain to be
our customers, and we take pride in the high levels of customer satisfaction
that we achieve.

Mears currently employs over 5,000 people and provides services in every
region of the UK. In partnership with our Housing clients, we provide property
management and maintenance services. Mears has extended its activities to
provide broader housing solutions to solve the challenge posed by the lack of
affordable housing and to provide accommodation and support for the most
vulnerable.

We focus on long-term outcomes for people rather than short-term solutions and
invest in innovations that have a positive impact on people's quality of life
and on their communities' social, economic, and environmental wellbeing. Our
innovative approaches and market leading positions are intended to create
value for our customers and the people they serve while also driving
sustainable financial returns for our providers of capital, especially our
shareholders.

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