Disposal of non-core operation

Mears Group PLC

("Mears" or "the Group" or "the Company")

Disposal of non-core operation

Mears Group PLC, the leading provider of services to the Housing sector in the UK, is pleased to announce that it has disposed of its subsidiary, Morrison Facilities Services Limited, a business delivering Facilities Management services, predominantly in the education and health sectors. Following the strategic update, this business was identified as non-core to the Group and has been the subject of a competitive sales process.

The sale is for a total consideration of £18.0m, settled in cash on completion. The business was sold on a debt and cash-free basis, and with a normal level of working capital. In the financial year ended 31 December 2025, the Group's FM activities reported revenue and profit before tax of £32.1m and £2.8m respectively, and these activities were previously reported within the Maintenance-led segment.

Lucas Critchley, Chief Executive Officer, said:

"I am pleased to complete this transaction, which brings a further simplification to the Group and is further progress against our strategic plan, reinforcing our focus to delivering housing services, a market in which we continue to see significant growth opportunities driven by strong regulatory drivers. I would like to place on record my thanks to the Morrison team, and we wish them well under new ownership."

The Group is due to release its results for its financial year ended 31 December 2025 on 26 March 2026

About Mears

Mears is a leading provider of services to the Housing sector, providing a range of services to individuals within their homes. We manage and maintain around 450,000 homes across the UK and work predominantly with Central Government and Local Government, typically through long-term contracts. We equally consider the residents of the homes that we manage and maintain to be our customers, and we take pride in the high levels of customer satisfaction that we achieve.

Mears currently employs over 5,000 people and provides services in every region of the UK. In partnership with our Housing clients, we provide property management and maintenance services. Mears has extended its activities to provide broader housing solutions to solve the challenge posed by the lack of affordable housing and to provide accommodation and support for the most vulnerable.

We focus on long-term outcomes for people rather than short-term solutions and invest in innovations that have a positive impact on people's quality of life and on their communities' social, economic, and environmental wellbeing. Our innovative approaches and market leading positions are intended to create value for our customers and the people they serve while also driving sustainable financial returns for our providers of capital, especially our shareholders.