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Mears Group PLC on Thursday backed its guidance for 2026 and hiked its dividend as revenue edged slightly higher in 2025. The Gloucester, England-based provider of housing and social care said pretax profit edged down 1.0% to £63.5 million in 2025 from £64.1 million in 2024. Revenue was 0.2% higher at £1.14 billion from £1.13 billion. However, administrative expenses climbed 5.0% to £190.8 million from £181.7 million and finance costs rose 17% to £16.1 million from £13.8 million. Mears raised its final dividend by 5.8% to 11.90 pence from 11.25p. This brings the total dividend for the year to 17.50p, an increase of 9.4% from 16.00p for 2024. Growth in Mears’ traditional Maintenance-led activities was helped by ‘excellent contract retention through an unusually busy period of rebids,’ the firm said. Mears noted that it has sold the non-core Facilities Management arm for £18 million in cash. Mears expects the profit reduction from the disposal of Facilities Management to be fully offset in 2026 by an outperformance in the core business. The company said ‘positive progress’ in contract bidding reinforces a ‘high level of confidence’ in delivering Maintenance-led annual growth in line with previous guidance of between 5% and 9%. It expects revenue in Asylum Services to continue to decline, as revenue normalises from previously elevated levels. It said the timing of this remains uncertain. The firm is confident that the adjusted operating margin will be maintained within the 5% to 6% range. It reported an adjusted operating margin of 5.7% in 2025, widened slightly from 5.6%. ‘I am delighted to report another strong year of operational and financial performance, and a period in which we have continued to make strong progress against our key strategic objectives. Delivering strong growth in our traditional Maintenance-led activities is a key achievement which continues to be underpinned by excellent contract retention,’ said Chief Executive Officer Lucas Critchley. Shares in Mears Group were up 3.6% at 347.50 pence at midday on Thursday in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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