25th Jun 2019 13:11
(Alliance News) - Support services firm Mears Group PLC said on Tuesday its annual results should be in line with guidance after a satisfactory first half.
Mears said it has made "solid progress" repositioning its its Development activities. As announced in March, as current contractual obligations unwind, the company will no longer participate in contracts that have a high requirement for working capital funding.
Good progress has also been made in unwinding and cancelling a GBP30 million property acquisition facility. The facility has been brought down to GBP15 million in the fist half and there is visibility of a further reduction in the second.
In addition, the company expects to report a "small reduction" in average daily net debt in the first half compared with the average net debt reported for the 2018 financial year.
"I am very satisfied with the progress made in the first half of 2019 particularly against the well documented challenges others have and are experiencing with the support services arena," said Mears Chief Executive David Miles.
"The board continues to accelerate the unwinding of the working capital absorbed within Development activities announced three months ago. We will ensure that the group remains well-positioned to contribute to the housing development needs of our customers," he added.
Shares in Mears were down 1.5% at 247.30 pence on Tuesday.
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