Gloucestershire property firm predicting profits of £50m
Gloucestershire property firm Mears is predicting profits of around £50m after it enjoyed a strong start to the year.
The group has experienced strong trading in the first half of its financial year and expects profit before tax to be ahead of both the prior year and the board’s expectations.
The strong first half performance has benefited from continued improved revenues in its management-led activities, further improvement in operating margins and strong cash generation.
The board expects the outturn for the full year to be modestly ahead of current market expectations1.
Lucas Critchley, chief executive, said: “Trading in the first half has been excellent across the group and this will be reflected in a strong set of interim numbers in August.
“We have made good progress in the first-half, with a focus on developing and broadening the range of services we offer to clients. In addition, an increased operational focus, making fuller use of the Group’s IT system capabilities, is resulting in operational and commercial improvements, and is reflected in the continued progress in operating margins.”
Mears will announce its interim results for the six months ended 30 June in August.
Adrian Kearsey from Panmure Gordon said: “Mears enjoyed a strong performance in the first half, with management-led volumes better than expected.
“In addition, margins continue to expand. As a consequence, Mears has confirmed that “the outturn for FY24 [will] be modestly ahead of current market expectations” and we are raising our FY24 PBT from £46.9m to £50.0m.
“Most of this performance has been driven by the Asylum contract volumes. That said, Mears has secured additional Management-led volumes elsewhere.
“On 14 May, Mears confirmed that it had been awarded the Housing & Corporate Maintenance Contract with North Lanarkshire council. The 12-year contract is worth £125m annually, which is more than double the previous contract.”
