Mears trades ahead of expectations after 'strong' start to the year

17th May 2022 08:21

(Sharecast News) - Mears said on Tuesday that it had experienced "strong trading" in the first four months of its financial year that has put it ahead of internal expectations and left it "increasingly confident" in the outturn for the full trading year.

Mears stated its "strong performance" had been driven by continued elevated revenues in its management-led activities, improving operating margins, and excellent cash performance.

The London-listed group also highlighted the performance had been achieved amid "a challenging operational backdrop", including price inflation and skills shortages, and through a busy period of new contract mobilisations.

Elsewhere, Mears revealed that chief executive David Miles had indicated his intention to step down from the role after more than twenty-six years with the group. Mears said chief operating officer Lucas Critchley will replace Miles at "a future date".

Miles said: "The group has performed brilliantly through the year to date. I am delighted at the strong financial performance delivered in the first four months. We are trusted partners to our Local and Central Government clients. Our clients face significant operational challenges and Mears core skills and well-invested operating platform ensures we are well placed to support them though these."

As of 0855 BST, Mears shares were up 3.21% at 193.0p.

Reporting by Iain Gilbert at Sharecast.com