Mears Group
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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.
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Trading update summary22 Jan, 2026

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.

AASC revenue reduction speed for 2026
Future cash impact of property sale-leaseback
CKH contract: strategic partnership model outlook
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Frequently asked questions

Mears Group PLC provides a range of outsourced services to the public and private sectors in the United Kingdom. It operates through four divisions: Mears Care, Housing, Retirement Living and Support Solutions. The Mears Care division provides home care services to vulnerable adults who are largely dependent on others to meet their daily needs, including older people, younger people, and others with mental or physical health needs, including learning disabilities or sensory impairments. The company was founded in 1988 and is headquartered in Gloucester, the United Kingdom.

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