Government contracts stack up Mears Group revenue and profits
Housing services provider Mears Group has seen revenue and profit tick higher for 2023 on the back of increased government contracts in 2023.
Revenue at the group was up 14 per cent to £1bn, while profit before tax grew 34 per cent to £46.9m. Its top and bottom lines received a boost from the launch of rented accommodation projects for the Ministry of Defence.
The company hiked its dividend per share 24 per cent to 13p as adjusted, diluted earnings per share swelled 27 per cent to 31.24p.
Mears Group’s net cash also grew to £109m from £100m the year prior.
The board has recommended a final dividend of 9.30p, bringing the full-year dividend for 2023 to 13.00p, reflecting continued strong cash performance and the board’s confidence in the company’s future.
The company said it completed £33m of share buybacks in 2023, which accounted for 12.2m ordinary shares.
However, the company sought to temper expectations, adding that it anticipates “a reduction in management-led revenues” as the elevated activity level seen across 2023 normalises, although the timing remains uncertain.
The company said it is confident any gains eroded through the normalisation can be clawed back through efficiency improvements within the business.
Adjusted profit before tax in the 2024 financial year is expected to be similar to that achieved in 2023.
Lucas Critchley, chief excutive officer of the Group, said: “We are delighted to have delivered strong growth in revenues, profits and cash generation in 2023.
“The group is recognised as a leading housing specialist, and we continually look to evolve our capabilities to further strengthen our market position.
“The board believes that the Group is well-positioned for the future and is pleased that the strong trading momentum built in 2023 has continued into 2024.”
Mears provides a range of services to around 450,000 homes across the UK and works predominantly with central and local governments, typically through long-term contracts.