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Mears Group (MER) investor relations material
Mears Group Trading update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Trading performance and revenue
Maintenance-led revenues for FY25 expected to exceed £610m, reflecting about 10% organic growth and strong contract renewals, including new contracts with North Lanarkshire Council and Moat Homes.
Management-led revenues for FY25 expected to be over £500m, down from £577m in 2024, due to reduced Asylum Accommodation contract revenues, with further decreases anticipated in 2026.
Adjusted profit before tax for FY25 anticipated at no less than £62.5m, at the top end of market guidance, with operating margin (pre-IFRS 16) broadly consistent with the prior year at 5.6%.
Contract wins and business development
Nearly 100% contract retention achieved, highlighted by a new £250m, 10-year contract with Cross Keys Homes for repairs, compliance, and maintenance.
Acquisition of Pennington Choices Limited in September 2025 has expanded compliance capabilities and created new client opportunities.
Balance sheet and cash flow
Average daily net cash position during FY25 was £52.8m, with year-end adjusted net cash expected to exceed £50.0m.
EBITDA to operating cash conversion was around 80%, reflecting normalized working capital.
Sale and leaseback of 199 properties completed for £24.6m, generating £18.0m in cash and a 25% equity interest in the investment vehicle.
Revolving Credit Facility extended to December 2029 with improved pricing.
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