Gloucester's Mears Group hails first half performance, which sees revenue rise 8 per cent

Gloucester-based Mears Group, which provides services to the UK affordable housing and care sectors, has hailed a strong first half, which saw group revenue rise 8% on last year.

For the six months to June 30, the company reported revenue of £525.6 million compared to £485 million in the first half of 2022.

READ MORE: Mears Group reports trading in line with expectations and first half "solid progress"

Adjusted profit before tax increased by 18% to stand at £21.3 million versus £18.1m in H1, 2022.
Mears said the group had seen the positive momentum continue into the second half and is expecting revenues for the full year of at least £1 billion and adjusted profit before tax of at least £40 million.

In a statement, CEO David Miles said: "We are delighted to deliver strong results for the first half year, with record levels of revenues, profits, and daily net cash.

"This strong momentum is expected to continue through the second half, and we have today further increased our FY23 guidance.

"The excellent financial performance is testimony to the strategic actions taken in recent years, our investment in resilient operating platforms, and a committed and engaged workforce with a shared desire to deliver the highest level of customer service in the affordable housing sector."

Mears employs around 5,500 people and maintains around 450,000 homes across the UK and works predominantly mainly with central and local government typically through long-term contracts. It also provides accommodation and support for vulnerable people.

Among the operational highlights of the six months was the company's successful grant application for £47 million in Wave 2 of the social housing decarbonisation fund (SHDF), it said.

This will contribute to total works worth around £120 million to be delivered over 2024 and 2025.

Mears Group declared an interim dividend of 3.70p (2022: 3.25p), an increase of 14%, reflecting the continued strong cash performance and positive outlook, it added.

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