Mears Group FY revenues seen 'slightly ahead' of management expectations
By Iain Gilbert
Date: Thursday 25 Nov 2021
(Sharecast News) - Housing and social care provider Mears Group said on Thursday that trading across the group has "continued to strengthen" its the publication of its interim results in August.
Mears stated that based on its year-to-date performance and good visibility through to the end of the year, it now expects to deliver full-year revenues of roughly £850.0m, slightly ahead of management expectations, and an adjusted pre-tax profit of around £25.0m, towards the top end of its previously stated range.
The London-listed firm said its improved trading performance had been driven by "good demand" in reactive maintenance as clients prioritised the clearance of repair backlogs and continued elevated volumes within its management-led contracts.
However, while Mears did note that planned maintenance revenues had been slower to return to pre-pandemic levels, it highlighted that inflation in its supply chain and the availability of materials and labour costs had remained manageable.
Looking forward, Mears said it was "encouraged" by recent trading and a "growing number of opportunities emerging across the group", with the company now expecting that while a normalisation of management-led volumes and a slower recovery in planned maintenance will impact revenues, it anticipates that this will be partially offset by MOJ and other 2021 business wins, supplemented by indexation ratchets within contracts.
As of 0940 GMT, Mears Group shares were up 3.51% at 191.50p.
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