Housing firm predicts profits of £43m for the year ahead

Specialist housing and property firm Mears has reported a strong end to the year.

The Gloucestershire business specialises in maintaining and managing social housing across the UK.

It said the strong financial performance reported in the interim results in August continued through the second half of the year.

As a result the board anticipates reporting results for the full year that are modestly ahead of market expectations.

Revenues and adjusted profit before tax are expected to be in excess of £1,050m and £43m respectively.

The group delivered a strong conversion of EBITDA to operating cash flow, with net cash at 31 December 2023 of £105m and an average daily net cash over the 12-month period of £75m, both of which are ahead of previous guidance.

The momentum seen in 2023 is expected to continue into 2024 and, as a result, the board’s expectations for the full year now sit materially ahead of market expectations.

The board continues to anticipate a reduction in management-led revenues as the elevated activity level seen across 2023 stabilises.

However, adjusted profit before tax in 2024 is now expected to be of a similar quantum to 2023, reflecting continued margin progression.

Chief executive Lucas Critchley said: “We are delighted to have achieved strong revenues, profits and cash generation in 2023. This strong momentum is expected to continue into 2024 and the Group continues to deliver well against its clearly defined strategy, underpinned by our long track-record for operating excellence.”