Property group launches £20m share buyback scheme

Property group Mears has launched a £20m share buyback scheme, weeks after raising its profit forecast for a second time this year.

The Gloucester-based social housing contractor has already invested £70m since the start of 2023 in share buybacks and share purchases by its employee benefit trust.

Earlier this month, Mears reported a 44% increase in half-year profits, to £30.5m, and raised its full-year profit guidance again, to £53m-£55m. Its 2024 revenues are expected to reach £1.1bn.

Its share price reached a five-year high at the start of the summer, and last night’s closing price values the company at over £350m.

Mears has already returned £53.2m to shareholders through three buyback programmes over the last 18 months, which has reduced the issued shares by 16%.

It has also invested £16.8m through the group’s Employee Benefit Trust to use in the future to settle share-based employee remuneration.

The buyback programme will be run by Deutsche Numis and Panmure. All of the shares purchased will be cancelled.