Mears Group (MER) Trading Update summary

Trading performance and outlook

• Strong trading in H1 2025 with profit before tax expected to be modestly ahead of the prior year.

• Maintenance-led activities saw solid growth, supported by increased spend from Registered Provider clients and 100% contract retention.

• Management-led activities are normalising as asylum-related solutions transition to long-term accommodation.

• Operating margins and cash flows have strengthened, underpinning profit growth.

• Full-year results anticipated to be modestly ahead of market expectations, with revenues and adjusted profit before tax of at least £1,055m and £54m, respectively.

Strategic progress and operational highlights

• Progress made on key strategic goals: growth in maintenance, compliance and asset management, and expanding housing services to Central Government.

• Interim results for H1 2025 will be announced on 7 August 2025.

• H1 2024 reported revenue was £580m and profit before tax was £30.5m.

• Current consensus analyst forecasts for FY25 prior to this update were revenues of £1,055m and adjusted profit before tax of £50.9m.

Business model and market positioning

• Provides services to the housing sector, managing and maintaining around 450,000 homes across the UK.

• Works mainly with Central and Local Government through long-term contracts.

• Focuses on long-term outcomes, customer satisfaction, and innovative solutions for affordable housing and vulnerable populations.

• Employs over 5,000 people and operates in every UK region.

• Aims to deliver sustainable financial returns and positive social, economic, and environmental impact.