Mears Group shares rise sharply amid upbeat forecasts


  • Mears Group shares rose over 8% on Thursday afternoon 

Mears Group shares rose over 8 per cent on Thursday after the firm said annual profits and revenues are set to come in ‘modestly’ ahead of forecasts.

The group, which specialises in maintenance and repair work for local authorities and housing associations, said annual revenues and adjusted pre-tax profit were expected to exceed £1.05billion and £43million, respectively.

It reported robust conversion of EBITDA to operating cash flow, resulting in a net cash position of £105million on 31 December, and average daily net cash of around £75million for the year. 

On the up: Mears Group saw its share price rise sharply on Thursday

On the up: Mears Group saw its share price rise sharply on Thursday 

Mears Group shares were up 8.47 per cent or 26.50p to 339.50p on Thursday, having surged over 66 per cent in the last year. 

The group made shareholder distributions of around £49million during the year, including ordinary dividends and share purchases. 

Lucas Critchley, the chief executive of Mears Group, said: ‘We are delighted to have achieved strong revenues, profits and cash generation in 2023. 

‘This strong momentum is expected to continue into 2024 and the Group continues to deliver well against its clearly defined strategy, underpinned by our long track-record for operating excellence.’

Looking ahead, Mears Group said the momentum from 2023 was continuing, as the board’s expectations for 2024 now exceeded market expectations. 

It added: ‘The momentum seen in 2023 is expected to continue into 2024 and, as a result, the Board’s expectations for FY24 now sit materially ahead of market expectations

‘The Board continues to anticipate a reduction in management-led revenues as the elevated activity level seen across FY23 normalises. 

‘However, adjusted profit before tax in FY24 is now expected to be of a similar quantum to FY23, reflecting continued margin progression.’





Read More

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More