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Mears Group PLC on Thursday announced a new £12 million contract, and said trading in the second half of the financial year had remained strong. As a result, the Gloucester-based housing and social care provider expects financial 2024 results to be marginally ahead of current market expectations. Mears is ‘increasingly confident of delivering against market expectations for financial 2025,’ it added in a trading statement. A company compiled consensus for financial 2024 predicts revenue of £1.13 billion and adjusted pretax profit of £60.9 million. On a similar basis, the board considers market expectations for financial 2025 to be revenue and adjusted profit before tax of £982 million and £44.7 million respectively. In 2023, Mears reported revenue of £1.09 billion and pretax profit of £46.9 million. No figure for adjusted pretax profit was disclosed, although adjusted operating profit was £51.4 million. In response, shares in Mears leapt 7.3% to 372.98 pence each in London on Thursday. Mears said operating margins in the core housing activities continued to strengthen in the second half of the financial year, and volumes in management-led activities had reduced at a slower rate than previously anticipated. Chief Executive Lucas Critchley praised the group’s ability to deliver against its strategy. ‘It is particularly pleasing to see how our enhanced operational and commercial focus is driving improvements to the underlying business,’ he added. He cited the ‘robust’ period of contract retention as evidence of the ‘strength of our market position’. Mears said the group has seen 100% retention on contracts subject to re-bid during financial 2024 and only a single material contract remains subject to a re-bid which could impact the new financial year. The firm also announced a new £12 million contract from Moat Homes. The 18-month deal, which will see Mears delivering responsive and voids maintenance to around 20,000 homes in the South-East of England, will start in February. Critchley expects the progress made through 2024 to continue into 2025. ‘The group remains well-positioned to benefit from continued opportunities in its core markets,’ he said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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