Mears FY profits up more than a third

11th Apr 2024 09:51

(Sharecast News) - Housing services business Mears Group stated both revenue and profits improved in 2023 and said it expects to deliver another "strong" in FY24.

Mears said pre-tax profits came to £46.9m, up 34% year-on-year, while revenue rose 14% to £1.1bn.

The London-listed company added that it was "well placed" to win a new contract with North Lanarkshire Council, due to start in July and set to run for up to 12 years at £125.0m per annum - a total of £1.5bn over the course of the full contract.

Mears also said it had started new work under a Ministry of Defence contract, something it said provided "further evidence" of central governments increasingly looking its way for specialist housing support.

"We are delighted to have delivered strong growth in revenues, profits and cash generation in 2023, said chief executive, Lucas Critchley. "The board believes that the group is well-positioned for the future and is pleased that the strong trading momentum built in 2023 has continued into 2024."

Mears also said it had successfully submitted grant applications for roughly £40.0m under the Social Housing and Decarbonisation Fund, which will contribute to works worth £120.0m both this year and next.

As of 0950 BST, Mears shares were up 1.11% at 365.0p.

Reporting by Iain Gilbert at Sharecast.com