Mears H1 revenues grow, raises FY guidance

8th Aug 2024 09:40

(Sharecast News) - Housing and social care provider Mears raised its full-year guidance on Thursday after it revealed the UK Ministry of Defence had extended certain key contracts.

Mears posted a 10% jump in revenues to £580.0m for the six months ended 30 June, while pre-tax profits surged 44% to £30.5m, predominately driven by immigration-related services.

The London-listed group also stated that the services it delivers to the Ministry of Defence had been extended, with a new workstream linked to the Afghan Resettlement Accommodation Programme to support settlers with relocation and accommodation.

As a result, Mears upgraded its full-year guidance for revenues of £1.1bn and adjusted pre-tax profits of £53.0m to £55.0m, both of which were ahead of current market expectations.

Chief executive Lucas Critchley said: "Trading in the first half has been excellent across the group and is reflected in a strong set of interim numbers. We have made good progress in the first half, with a focus on developing and broadening the range of services we offer to clients.

"In addition, an increased operational focus, making fuller use of the group's IT system capabilities, is resulting in operational and commercial improvements, and is evident in the continued progress in operating margins.

As of 0940 BST, Mears shares were up 2.94% at 350.0p.

Reporting by Iain Gilbert at Sharecast.com