New £12M maintenance deal for Mears adds to 100% retention on existing contracts

Gloucester-based Mears Group, the housing maintenance and social care provider, expects its 2024 results to be ahead of expectations and is positive about its 2025 outlook.

The Group saw 100 per cent retention of its contracts, including with Thanet District Council (£9 million per annum for 10 years), Folkestone and Hythe Council (£4 million per annum for 10 years) and Dover District Council (£4.5 million per annum for 5 years).

It also won a new 18-month contract with Moat Homes worth £12 million. This will see Mears undertaking maintenance to around 20,000 homes in the South-East of England.

Mears has also bought properties to fulfil its asylum accommodation contract. In 2023 Mears paid £21.6 million to buy a 221 properties across the North East of England, which have now been sold and leased back. This transaction saw the Group receive £16.3m in cash on completion, with the balance taking the form of an interest-bearing loan, combined with a continuing 25 per cent equity interest in this investment vehicle.

The Group continued to purchase additional properties last year which it expects to be the subject of a later sale and leaseback during this year.

Lucas Critchley, Chief Executive Officer, said: "The Group continues to deliver against its clearly defined strategy, and it is particularly pleasing to see how our enhanced operational and commercial focus is driving improvements to the underlying business, as evidenced in service quality, compliance, and stronger operating margins.

"The robust period of contract retention evidences the strength of our market position. The progress made across all parts of the Group through 2024, as reflected throughout this statement, is expected to continue into 2025. The Group remains well-positioned to benefit from continued opportunities in its core markets."