12th Aug 2021 11:01
(Alliance News) - Mears Group PLC on Thursday reported a healthy rebound in the first half, with the housing solutions provider upping its annual guidance and reinstating its interim dividend.
Mears's shares were up 0.8% to 190.00 pence each in London on Thursday morning.
Mears swung to a pretax profit in the six months to June 30 of GBP5.6 million from a GBP13.8 million loss a year ago.
Sales revenue was 12% higher at GBP443.7 million, compared to last year's GBP396.7 million.
Chief Executive David Miles said: "The group has performed well and traded resiliently through another lock-down impacted reporting period. With the cash performance continuing to exceed expectations as trading conditions normalise, we are delighted to be able to restore Mears' long history of sustainable, progressive dividend payments."
The company's rebound led to the reinstatement of an interim dividend of 2.50 pence per share. Mears's payout is still lacking compared to 2019, however, having declared a dividend of 3.65 pence in the first half of 2019, which was 46% higher than this year's interim dividend.
"The business is in good shape and with the long-term challenges of affordable housing, public health and climate change high on the political agenda at local and central government, we look forward to future growth with confidence," Miles said.
Annual revenue guidance has been increased to around GBP840 million, up from previous guidance of between GBP770 million and GBP820 million.
The lower range of the company's adjusted pretax profit guidance was given a boost and is now seen between GBP23.0 million and GBP25.5 million, compared to the prior guidance of between GBP21.3 million GBP25.5 million.
By Greg Roxburgh; [email protected]
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