Mears Group PLC Disposal (2156A)
September 28 2020 - 1:00AM
UK Regulatory
TIDMMER
RNS Number : 2156A
Mears Group PLC
28 September 2020
28(th) September 2020
Mears Group PLC
("Mears" or "the Group" or "the Company")
Disposal of the Scotland standalone Domiciliary Care
activities
Mears (LSE: MER), the UK Housing solutions provider, is pleased
to announce that it has completed its exit from domiciliary care,
with the disposal of its Scotland Domiciliary Care business
("SDC"). The disposal to Cera Care Operations Holdings Limited, who
also acquired our England & Wales Domiciliary Care business, is
for a cash consideration of GBP2.0m payable on completion, and a
further GBP0.5m of deferred consideration receivable twelve months
from completion. The proceeds from the disposal will be used to
reduce the Group's indebtedness, in line with its de-gearing
strategy. The Group previously completed the disposal of its
England and Wales Domiciliary Care business in January 2020, and
the disposal of SDC completes the exit of the Group's Domiciliary
Care services.
In the full year to 31 December 2019, SDC generated revenues of
GBP21.7m and a profit contribution, after an allocation of support
costs, of circa GBP0.6m. In the interim results to 30 June 2020,
these activities were treated as discontinued and generated
revenues of GBP10.9m and a small operating profit contribution.
Gross Assets of circa GBP3.3m (excluding intangibles), as at 30
June 2020, transferred with the business.
David Miles, Chief Executive Officer of the Group,
commented:
"This disposal marks our exit from domiciliary care, in line
with the Group's strategy to purely focus on its core Housing
solutions activities. This disposal to Cera Care provides
continuity for our customers and employees, at the same time as
enabling us to focus our efforts where we can deliver greater value
for shareholders.
For further information, contact:
Mears Group PLC
David Miles, Chief Executive Tel: +44(0)7778 220 185
Officer
Andrew Smith, Finance Director Tel: +44(0)7712 866 461
Alan Long, Executive Director Tel: +44(0)7979 966 453
Joe Thompson, Investor Relations Tel: +44(0)7980 844 580
www.mearsgroup.co.uk
About Mears
Following the disposal, Mears employs around 6,500 people and
provides services in every region of the UK. In partnership with
our Housing clients, we maintain, repair and upgrade the homes of
hundreds of thousands of people in communities from remote rural
villages to large inner-city estates. Mears has extended its
activities to provide broader housing solutions to solve the
challenge posed by the lack of affordable housing and to provide
accommodation and support for the most vulnerable.
We focus on long-term outcomes for people rather than short-term
solutions and invest in innovations that have a positive impact on
people's quality of life and on their communities' social, economic
and environmental wellbeing. Our innovative approaches and market
leading positions are intended to create value for our customers
and the people they serve while also driving sustainable financial
returns for our providers of capital, especially our
shareholders.
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END
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