Mears lifts dividend, grows profits despite flat top line

(Sharecast News) - Housing solutions company Mears Group lifted its dividend after managing to grow its bottom line in 2025 despite a flat revenue performance as strong growth in maintenance activities was completely outweighed by a downturn in the management side of the business.

The company, which covers the social housing and local authority-owned housing sectors, said trends in the management arm are expected to continue this year, as it continues to shift its focus towards delivering housing services.

Mears reported revenues of £1.14bn for last year, just £3m higher than the preceding 12 months.

Maintenance revenues grew 12% to £620.4m to represent 55% of total turnover, up from 49% in 2024, while management-led revenues dropped 11% to £515.0m.

However, an improvement in the adjusted operating margin to 5.7% from 5.6% helped lift adjusted operating profit by 2% to £64.8m. Basic earnings per share were 11% higher at 55.7p.

That led the company to recommend a final dividend of 11.9p, taking the full-year payout to 17.5p, up 9% on last year.

Mears said it has made a "solid start" to 2026, helped by the disposal of its non-core facilities management activities for £18m. Despite the operations contributing £2.8m of pre-tax profits in 2025, Mears said the reduction would be fully offset by an outperformance in its core business.

The stock was up 3.1% at 346p by 0944 GMT.

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