LONDON (ShareCast) - (Sharecast News) - Mears Group reported a robust full-year financial performance on Thursday, with revenue and profit growth supported by strong operational execution and contract momentum, as it raised its guidance for the year ahead.
The London-listed housing repair, maintenance and regeneration specialist said revenue for the year ended 31 December rose 4% to £1.13bn, while profit before tax increased 37% to £64.1m.

Its adjusted operating margin improved to 5.6% from 4.7%, reflecting enhanced commercial and operational efficiency.

Earnings per share also saw significant growth, with basic earnings up 53% to 50.3p per share.

The company said its cash performance remained strong, with average daily adjusted net cash of £59.6m despite £40m of share buybacks during the year.

Adjusted net cash at year-end stood at £91.4m, down from £109.1m in 2023.

The board recommended a final dividend of 11.25p, taking the full-year dividend to 16p, an increase of 23%.

Operationally, the group secured around £220m in new contracts during the year, excluding a major award from North Lanarkshire Council.

It also won a contract with housing association Moat to manage around 22,000 homes in the South East.

The total order book grew to £3bn, from £2.5bn a year earlier.

Mears also highlighted growth in its central government operations, including work for the Ministry of Defence, and reiterated its commitment to expanding services in compliance, decarbonisation, and planned works.

A five-year strategic review outlined a focus on organic growth in local government activities, regulatory-led services, and preparations for the next round of government procurement.

The group said it had made a strong start to 2025, adding that it now expected to be modestly ahead of market expectations, guiding for revenue of at least £1.05bn and adjusted profit before tax of no less than £50m.

"I am pleased to report on another strong year for the group - the strategic update completed during the period has provided fresh impetus, refining our approach to maximise the addressable opportunity," said chief executive officer Lucas Critchley.

"A strong period of contract retention has bolstered the order book and provides improved revenue visibility over the medium term."

Critchley said an increased operational focus had delivered improved service metrics, and was also evident in the continued progress in operating margin.

"The group is recognised as a housing specialist with a track record of delivering reliable and innovative solutions across our range of services and will continue to develop its service offering to address new and evolving challenges faced by our clients."

At 1014 BST, shares in Mears Group were up 15.01% at 410p.

Reporting by Josh White for Sharecast.com.

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