24th Jun 2025 11:21
(Alliance News) - Mears Group PLC on Tuesday reported continued momentum as it said trading in the first half of the year had been "excellent".
The Gloucester-based housing and social care provider said it experienced a strong trading performance so far in the first half of 2025, giving it the confidence to guide interim pretax profit "modestly ahead" of the prior year's GBP30.5 million.
The company noted "solid" growth in its maintenance-led activities, credited to regulatory market drivers. It also highlighted the contribution of increasing spend from its registered provider clients and 100% contract retention realised over the past year.
Further, Mears noted improved operating margins, with profits underpinned by strong operating cash flows.
Shares in Mears Group edge up by 3.7% to 401.65 pence on Tuesday morning in London.
The company now also guides its full-year results "modestly ahead of current market expectations", owing to the positive trading experienced in its first half.
Mears cited the analyst consensus forecast for the 2025 of GBP1.06 billion in revenue and adjusted pretax profit of GBP50.9 million.
Mears said revenue is expected to be at least GBP1.06 billion, while adjusted pretax profit is anticipated to be no less than GBP54 million. In 2024, revenue was GBP1.13 billion. The company did not adjust its pretax profit for 2024 of GBP64.1 million.
"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," said Chief Executive Lucas Critchley.
By Christopher Ward, Alliance News reporter
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