Mears Group (MER)

Sector:

Support

Index:

FTSE Small Cap

382.50p
   
  • Change Today:
      1.50p
  • 52 Week High: 393.00p
  • 52 Week Low: 240.00p
  • Currency: UK Pounds
  • Shares Issued: 96.08m
  • Volume: 437,886
  • Market Cap: £367.49m
  • RiskGrade: 144

Mears to resume dividends as trading normalises

By Abigail Townsend

Date: Tuesday 29 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Mears is to resume dividend payouts, the housing services provider confirmed on Tuesday, after strong first-half trading left it on track to meet full-year forecasts.
The firm said trading had been in line with expectations in the calendar year-to-date. Group revenues the for six months to 30 June are expected to be in excess of £430m, while adjusted pre-profits are anticipated to come in around £110m.

Average daily net debt is expected to be around £20m, significantly down on the £97m reported in the 2020 full-year.

Last year, interim revenues were £407m while the adjusted pre-tax loss was £5.3m. Housing maintenance activities normally account for around 60% of group revenues. But lockdowns meant planned works were deferred and Mears - whose clients include local authorities and housing associations - moved to providing emergency services only.

Since then, however, trading has normalised across the group, leaving it on track to meet its full-year guidance and resume dividend payments.

"Given the return of normalised trading arrangements across the business, the strong cash performance and positive pipeline outlook, the board anticipates returning to the dividend list for the six months ended 30 June 2021," Mears said.

David Miles, chief executive, added: "The group has again performed resiliently though another lockdown-impacted reporting period.

"However, as we look forward, activity levels and operating and financial arrangements are returning to normal across the group, and we are confident that this will be reflected in the group's financial performance in the second half of the year.

Analysts are currently looking for revenues of between £771m and £811m, and adjusted pre-tax profits in the range of £21.3m to £25.4m.

As at 1030 BST, shares in Mears were ahead 2% at 187.01p.

Andrew Nussey, analyst at Peel Hunt, said: "The update confirmed that 2021 trading remains in line, with first half pre-tax profits expected at around £11m given the positive unlocking momentum.

"The shares continue to offer excellent value, in our view, given the prospects of attractive, sustainable, free cashflow growth."

Peel Hunt has a 'buy' rating on the stock and a 275p target price.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Mears Group Market Data

Currency UK Pounds
Share Price 382.50p
Change Today 1.50p
% Change 0.39 %
52 Week High 393.00p
52 Week Low 240.00p
Volume 437,886
Shares Issued 96.08m
Market Cap £367.49m
RiskGrade 144

Mears Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
57.01% below the market average57.01% below the market average57.01% below the market average57.01% below the market average57.01% below the market average
9.89% above the sector average9.89% above the sector average9.89% above the sector average9.89% above the sector average9.89% above the sector average
Price Trend
94.79% above the market average94.79% above the market average94.79% above the market average94.79% above the market average94.79% above the market average
87.88% above the sector average87.88% above the sector average87.88% above the sector average87.88% above the sector average87.88% above the sector average
Income
39.97% above the market average39.97% above the market average39.97% above the market average39.97% above the market average39.97% above the market average
43.75% above the sector average43.75% above the sector average43.75% above the sector average43.75% above the sector average43.75% above the sector average
Growth
60.43% above the market average60.43% above the market average60.43% above the market average60.43% above the market average60.43% above the market average
43.43% above the sector average43.43% above the sector average43.43% above the sector average43.43% above the sector average43.43% above the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 1
Sell 0
Strong Sell 0
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Mears Group Dividends

  Latest Previous
  Final Interim
Ex-Div 27-Jun-24 05-Oct-23
Paid 16-Jul-24 27-Oct-23
Amount 9.30p 3.70p

Trades for 17-May-2024

Time Volume / Share Price
16:37 78,023 @ 382.50p
16:38 50,000 @ 382.50p
16:36 78,023 @ 382.50p
16:35 75,565 @ 382.50p
16:35 150 @ 382.50p

Mears Group Key Personnel

Finance Director Andrew C M Smith
Chair Jim Clarke
CEO Lucas Critchley

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