Last checked at 17 Jan 2017 07:00
For Immediate Release 17 January 2017
Mears Group PLC
("Mears" or "the Group")
Pre-Close Trading Update
Mears, the provider of support services to the Social Housing and Care sectors in the UK, today issues a pre-close trading update ahead of its preliminary results for the year ended 31 December 2016, which will be released on 21 March 2017.
Mears continues to deliver a solid trading performance and anticipates reporting results for the full year in line with management expectations. The Group expects to report a small net debt balance at 31 December 2016.
Our Housing division experienced a record number of new contract starts during 2016. Following a successful period of mobilisations, these contracts are fully bedded down.
The rationalisation of our Care business, which we announced in August, is substantially complete, allowing greater focus to be placed upon higher quality contracts with sustainable margins.
The Group has good visibility of future revenues with 93% and 82% of the market consensus revenue forecast for 2017 and 2018 of £1.01bn and £1.06bn respectively (PY 94% and 82%).
Commenting, David Miles, Chief Executive of Mears, said:
"Our Housing business has delivered a solid performance in the year. I am particularly pleased by the quality of the newly mobilised contracts and the continued strong progress being made by our Housing Management business where the pipeline of bidding opportunities remains particularly exciting.
"Whilst the trading environment within Care remains challenging, the business has substantially completed the branch closures which has placed the business on a better footing. While the recruitment of sufficient numbers of good quality care workers remains our biggest challenge, we continue to see significant opportunity in the Care sector long-term.
"I am pleased with the overall progress of Mears in 2016. The Group is well positioned to take advantage of future opportunities and we look forward to updating the market with further successes."
For further information, contact:
Mears Group PLC
David Miles, Chief Executive | Tel: +44(0)7778 220 185 |
Andrew Smith, Finance Director | Tel: +44(0)7712 866 461 |
Alan Long, Executive Director | Tel: +44(0)7979 966 453 |
Bob Holt, Non-Executive Chairman | Tel: +44(0)7778 798 816 |
www.mearsgroup.co.uk |
Buchanan
Richard Darby/ Sophie Cowles Tel: +44(0)20 7466 5000
www.buchanan.uk.com
About Mears
Mears is a leading provider to Local Authorities, Registered Social Landlords and the NHS. We deliver repairs and maintenance services and personal care services directly into communities and people's own homes.
Increasingly our growth is coming from Housing management services, that help reduce homelessness and more complex and integrated care solutions to the NHS that enable people to stay in their own homes for longer.
Mears employs in excess of 15,000 people and provides maintenance and repairs services to circa 15% of the UK social housing stock. Mears also provides care, on a daily basis, to over 25,000 service users.