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Mears Group (MER) investor relations material

Mears Group H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary7 Aug, 2025

Executive summary

  • Revenue declined 4% year-over-year to £559.4m, but statutory profit before tax rose 5% to £32.0m and adjusted operating margin improved to 5.6% from 5.2%.

  • Statutory diluted EPS increased 20% to 27.68p; interim dividend per share up 18% to 5.60p, reflecting board confidence.

  • Achieved 100% contract retention in maintenance-led activities and secured new orders approaching £1.5bn, including flagship contracts.

  • Continued investment in people and technology to expand compliance and asset management capabilities and support new market opportunities.

  • Successfully mobilized new contracts, including Milton Keynes City Council and Moat Homes.

Financial highlights

  • Operating profit rose 8% year-over-year to £36.9m; operating margin increased 70bps to 6.6%.

  • Profit before tax up 5% to £32.0m; adjusted operating margin (pre-IFRS 16) at 5.6%.

  • EBITDA to cash conversion at 105%, though down from 119% in H1 2024.

  • Average daily net cash at £66.7m; adjusted net cash at 30 June 2025 was £81.1m.

  • Dividend and share buybacks totaled £26.5m, with £16m returned via buyback and 4.3m shares cancelled.

Outlook and guidance

  • Maintenance-led revenue expected to grow 8-9% in FY25; management-led revenue to decline by £100m due to AASC normalization.

  • Adjusted operating margin guidance (pre-IFRS 16) of 5.3-5.6% for FY25, with medium-term target range of 5.0-6.0%.

  • Board expects adjusted profit before tax for the full year to be modestly ahead of market expectations.

  • Continued investment in people and technology to support organic growth and new service offerings.

  • Working capital unwind anticipated in H2 2025; employer's National Insurance changes to add £5m annual payroll cost.

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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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