Business
Pre-Close Trading Update
Mears Group PLC anticipates reporting Maintenance-led revenues exceeding £610 million for FY25, a nearly 10% organic increase driven by new contracts and near-perfect retention rates, while Management-led revenues are expected to be over £500 million, reflecting a decrease in Asylum Accommodation contract revenues. The company projects an operating margin consistent with the prior year and adjusted profit before tax of at least £62.5 million, with average daily net cash of £52.8 million and year-end adjusted net cash above £50 million. A significant new contract with Cross Keys Homes valued at £250 million over 10 years has been secured, and the integration of Pennington Choices Limited is progressing well. Disclaimer*
About this update from Mears Group Plc
[{"type":"text","content":"\n\n\nMears Group PLC\n(\"Mears\" or the \"Group\" or the \"Company\")\nPre-Close Trading Update\nSignificant progress against all key strategic goals\n \nMears Group PLC, the leading provider of housing services to the public and regulated sectors in the UK, \ntoday announces a trading update for its financial year ended 31 December 2025 ('FY25'), in advance of announcing its final results on 26 March 2026.\n \nTrading highlights\n \n· On 8 December 2025, the Group referenced strong trading in the second half of 2025 and stated that adjusted profit before tax for FY25 would be at the top end of previous market guidance[1].\n \n· Mears expects to report Maintenance-led revenues for FY25 in excess of £610m (2024: £556m), reflecting organic growth of c.10%. This growth includes the full year impact of new contracts secured with North Lanarkshire Council and Moat Homes, underpinned by an outstanding period of contract renewals which has seen a near-100% retention rate.\n \n· Mears expects to report Management-led revenues for FY25 in excess of £500m (2024: £577m), reflecting the reduction in Asylum Accommodation contract ('AASC') revenues. A further decrease in AASC revenues continues to be expected during 2026, although the speed of this reduction remains difficult to predict.\n \n· The Company expects to report a FY25 Operating Margin (pre-IFRS 16) at levels broadly consistent with the prior year (2024: 5.6%), having absorbed additional investment in business development and IT capability, and adjusted profit before tax of no less than £62.5m (2024: £64.1m).\n \nBusiness Development\n \n· In September 2025, the Group announced the acquisition of Pennington Choices Limited (PCL). The integration of this business is on track. Since the acquisition, the business has enjoyed a strong period of securing orders with new clients. In addition, the Group has seen new opportunities created by the acquisition with both existing Mears and PCL clients, as a result of the increased scope of the Group's compliance capabilities and an enlarged customer list.\n \n· The strong period of contract retentions has included t...