Business
Trading Update and Board Changes
Trading Update and Board Changes.
About this update from Mears Group Plc
[{"type":"text","content":"\n \n \n \n Mears Group PLC\n \n \n \n \n (\"Mears\", the \"Group\", or \"the Company\")\n \n \n \n \n \n \n \n \n \n Trading Update and Board Changes\n \n \n \n \n \n \n \n \n \n Trading Update\n \n \n \n \n \n Mears (LSE: MER), the UK Housing solutions provider, today provides an update on current trading and the outlook for its financial year to 31 December 2022.\n \n \n \n \n \n \n \n Since the half year results which were announced on 4 August 2022, the Group has continued to experience strong trading. Based on the performance to date, and with good visibility through to the end of the year, the Board now expects that the Group will deliver revenues for the full financial year to 31 December 2022 of c.£950m and\n adjusted profit before tax of c.£33.5m, both above the current range of market expectations. This better-than-expected trading performance has been driven by the continued elevated volumes within the Group's Management-led contracts. Average daily net cash for the 11 months to 30 November 2022 of c.£40m is also ahead of previous guidance.\n \n \n \n \n \n The Group has been bidding several material contract opportunities during the second half and is pleased to have been short-listed\n in respect of the re-tender of the North Lanarkshire Future Integrated Housing Service contract, estimated at £1.8bn over 15 years\n . The anticipated commencement date for the new contract is January 2024. In addition, the Group is awaiting the outcome of the Community Accommodation Services (CAS3) tender to the MoJ. Mears currently delivers services within two pilot areas in the UK, and the new bid relates to a national roll-out. Mears bid on 8 of the 10 areas, with an aggregate annual contract value of more than £20m.\n \n \n \n \n \n The Board is confident in the outlook for 2023 and is focused on continuing to improve the operating margin and delivering strong cash generation.\n \n \n \n Board Changes\n \n \n \n \n Chairman succession\n \n \n \n \n \n \n \n \n Kieran Murphy joined the Board as Chairman in January 2019, led the Board through a very challenging period, and oversaw a strategic transformation of the business that resulted in the simplification of the Group, the disposal and closure of non-core businesses, and a very significant strengthening of cash flow generati...