Mears Group PLC Pre-Close Trading Update (3015U)
January 17 2017 - 1:00AM
UK Regulatory
TIDMMER
RNS Number : 3015U
Mears Group PLC
17 January 2017
For Immediate Release 17 January 2017
Mears Group PLC
("Mears" or "the Group")
Pre-Close Trading Update
Mears, the provider of support services to the Social Housing
and Care sectors in the UK, today issues a pre-close trading update
ahead of its preliminary results for the year ended 31 December
2016, which will be released on 21 March 2017.
Mears continues to deliver a solid trading performance and
anticipates reporting results for the full year in line with
management expectations. The Group expects to report a small net
debt balance at 31 December 2016.
Our Housing division experienced a record number of new contract
starts during 2016. Following a successful period of mobilisations,
these contracts are fully bedded down.
The rationalisation of our Care business, which we announced in
August, is substantially complete, allowing greater focus to be
placed upon higher quality contracts with sustainable margins.
The Group has good visibility of future revenues with 93% and
82% of the market consensus revenue forecast for 2017 and 2018 of
GBP1.01bn and GBP1.06bn respectively (PY 94% and 82%).
Commenting, David Miles, Chief Executive of Mears, said:
"Our Housing business has delivered a solid performance in the
year. I am particularly pleased by the quality of the newly
mobilised contracts and the continued strong progress being made by
our Housing Management business where the pipeline of bidding
opportunities remains particularly exciting.
"Whilst the trading environment within Care remains challenging,
the business has substantially completed the branch closures which
has placed the business on a better footing. While the recruitment
of sufficient numbers of good quality care workers remains our
biggest challenge, we continue to see significant opportunity in
the Care sector long-term.
"I am pleased with the overall progress of Mears in 2016. The
Group is well positioned to take advantage of future opportunities
and we look forward to updating the market with further
successes."
For further information, contact:
Mears Group PLC
David Miles, Chief Tel: +44(0)7778 220 185
Executive
Andrew Smith, Finance Tel: +44(0)7712 866 461
Director
Alan Long, Executive Tel: +44(0)7979 966 453
Director
Bob Holt, Non-Executive Tel: +44(0)7778 798 816
Chairman
www.mearsgroup.co.uk
Buchanan
Richard Darby/ Sophie Cowles Tel: +44(0)20 7466 5000
www.buchanan.uk.com
About Mears
Mears is a leading provider to Local Authorities, Registered
Social Landlords and the NHS. We deliver repairs and maintenance
services and personal care services directly into communities and
people's own homes.
Increasingly our growth is coming from Housing management
services, that help reduce homelessness and more complex and
integrated care solutions to the NHS that enable people to stay in
their own homes for longer.
Mears employs in excess of 15,000 people and provides
maintenance and repairs services to circa 15% of the UK social
housing stock. Mears also provides care, on a daily basis, to over
25,000 service users.
This information is provided by RNS
The company news service from the London Stock Exchange
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