Mears hails record full-year revenues

Housing and social care provider Mears reported a rise in full-year profit on Friday thanks to a "strong" recovery in revenues.

In the year to the end of December 2022, adjusted pre-tax profit grew 37% to £35.2m, on record revenue of £959.6m, up 9% on the previous year. The company said revenue was underpinned by the increased volumes experienced within the Asylum Accommodation and Support Contract.

Mears said it had successfully mitigated most of the adverse impacts of inflation, skills shortages and supply chain issues that affected the wider industry in 2022.

Operating margins strengthened to 3.8% from 3.4% a year earlier and the company proposed a final dividend of 7.25p a share, taking the full-year dividend to 10.5p from 8p.

Mears also said that its board hard approved a £20m share buyback.

Chief executive David Miles said: "I am delighted with the strong performance of the group, and these are a terrific set of financial results.

"Our market leading position, based on a clear strategy and resilient operating platform, has underpinned this performance, and positions the group for further sustainable growth in the medium-term."

Broker Peel Hunt, which rates the shares at ‘buy’, said pre-tax profit was ahead of its expectations and guidance of £33.5m.

At 1005 BST, the shares were up 6.5% at 222.00p.