Mears lifts FY profit, revenue guidance

8th Dec 2022 07:55

(Sharecast News) - Housing and social care provider Mears Group lifted annual profits and revenue guidance driven by elevated contract since its interim results in August.

The company on Thursday said it now expects revenues for the full financial year to December 31 of £950m and adjusted profit before tax of £33.5m, both above the current range of market expectations.

Average daily net cash for the 11 months to 30 November 2022 of £40m was also ahead of previous guidance.

Mears said it had been bidding for several "material" contract opportunities during the second half and was short-listed for the re-tender of the North Lanarkshire Future Integrated Housing Service contract, estimated at £1.8bn over 15 years.

In addition, the group is awaiting the outcome of the Community Accommodation Services tender to the Ministry of Justice where it has bid on eight of the 10 areas with an aggregate annual contract value of more than £20m.

The company added that chairman Kieran Murphy was stepping down and would be replaced by Chris Loughlin, senior independent director after the company's 2023 annual general meeting in May. Lucas Critchley will be appointed to the board as executive director on January 1 and replace current chief executive David Miles during 2023.

Reporting by Frank Prenesti for Sharecast.com