Mears Grp PLC - Trading Update

Mears Group PLC

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

Trading Update

Strong trading performance

Upgrade to profit expectations for FY 2024

Mears (LSE: MER), the UK Housing solutions provider, today provides an unscheduled update on trading for the financial year ending 31 December 2024 ('FY24').

Since the interim results announcement in August, trading has remained strong across the Group, with operating margins in the core housing activities continuing to advance, driven by an increased operational and commercial focus. Volumes in management-led activities have also reduced at a slower rate than previously anticipated. Consequently, the Board now anticipates that the Group's full year results for FY24 will be materially ahead of previous expectations, with revenues of approximately £1,125m and adjusted profit before tax of at least £60m¹.

Lucas Critchley, Chief Executive Officer, said:

"The Group continues to deliver well against its clearly defined strategy, and it is particularly pleasing to see how our enhanced operational and commercial focus is driving improvements to the underlying business, as evidenced in stronger operating margins. We look forward to providing a fuller update on this in the full year results." 

Note:

¹ The Board consider the current consensus analyst forecasts for FY24, prior to this announcement, to be revenues of £1,098m and adjusted profit before tax of £54.5m. Adjusted profit before tax is reported before non-underlying items.

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.

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.