AGM Trading Update

RNS Number : 3933D

Mears Group PLC

29 June 2021

 

29 June 2021                                                                                                                               

Mears Group PLC

("Mears", the "Group", or "the Company")

AGM Trading Update

Mears (LSE: MER), the UK Housing solutions provider, is holding its Annual General Meeting today at 11.00a.m., at which the Chairman will make the following trading statement:

Trading at Mears in the calendar year to date has remained in line with management's expectations. Notwithstanding the on-going external challenges, the board re-iterates its previously provided guidance for the full financial year ended 31 December 2021 ("FY2021"), as being in line with current market forecasts¹.

The return to normal payment mechanisms across our contract portfolio is now largely complete with activity levels increasing. Group revenues for the first half of FY2021 are expected to be in excess of £430m and adjusted profit before tax in the region of £11.0m².  The positive working capital and improved net debt performance from Q4 FY2020 has continued in the first half of FY2021, with average daily net debt anticipated to be approximately £20m³, a significant reduction from the £97m reported in FY2020.

Given the return of normalised trading arrangements across the business, the strong cash performance and positive pipeline outlook, the board anticipates returning to the dividend list for the six months ended 30 June 2021.

The Company will announce its interim results for the six months ended 30 June 2021 on 12 August 2021.

David Miles, Chief Executive Officer of the Group, commented:  

"The Group has again performed well and traded resiliently through another lock-down impacted reporting period. However, as we look forward, activity levels and operating and financial arrangements are returning to normal across the Group and we are confident that this will be reflected in the Group's financial performance in the second half of the year.

"I am also exceptionally proud that our traditionally high levels of employee engagement, diversity, support and satisfaction have been recognised by no less than six independent 'Best company to work for' awards, including at national (The Sunday Times), regional and industry-specific levels.

"With this and other fundamentals of our business in such good shape and the long-term challenges of affordable housing, public health and climate change high on the political agenda at local and central Government, we look forward to the future with confidence."

1.  Mears compiled analyst consensus forecasts for FY2021 show revenues ranging from £771m - £811m and adjusted profit before tax in the range of £21.3m - £25.4m

2.  Adjusted profit before tax stated on continuing activities before exceptional items and before the amortisation of acquired intangibles

3.  Includes the benefit of £16m of VAT deferral re-paid in full in March 2021

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information, contact:

Mears Group PLC
David Miles, Chief Executive Officer	Tel: [phone]
Andrew Smith, Finance Director	Tel: [phone]
Alan Long, Executive Director	Tel: [phone]
Joe Thompson, Investor Relations	Tel: [phone]

The person responsible for arranging the release of this announcement on behalf of Mears Group PLC is Ben Westran, Company Secretary.

About Mears

Mears currently employs around 6,000 people and provides services in every region of the UK. In partnership with our Housing clients, we maintain, repair and upgrade the homes of hundreds of thousands of people in communities from remote rural villages to large inner-city estates. Mears has extended its activities to provide broader housing solutions to solve the challenge posed by the lack of affordable housing and to provide accommodation and support for the most vulnerable.

We focus on long-term outcomes for people rather than short-term solutions and invest in innovations that have a positive impact on people's quality of life and on their communities' social, economic and environmental wellbeing. Our innovative approaches and market leading positions are intended to create value for our customers and the people they serve while also driving sustainable financial returns for our providers of capital, especially our shareholders.

 

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