- Mears Group shares rose more than 8% on Thursday afternoon
Mears Group shares rose more than 8 percent on Thursday after the company said annual profit and revenue were ‘marginally’ ahead of forecasts.Thank you for reading this post, don't forget to subscribe!
The group, which specializes in maintenance and repair work for local authorities and housing associations, said annual revenue and adjusted pre-tax profit are expected to exceed £1.05 billion and £43 million respectively.
It reported strong conversion of EBITDA to operating cash flow, resulting in a net cash position of £105 million at 31 December, and average daily net cash for the year of approximately £75 million.
Upside: Mears Group saw its share price rise sharply on Thursday
Mears Group shares rose 8.47 per cent, or 26.50p, to 339.50p on Thursday, having risen more than 66 per cent in the last year.
The group made shareholder distributions of approximately £49 million during the year, including ordinary dividends and share purchases.
Lucas Critchley, chief executive of Mears Group, said: ‘We are delighted to achieve strong revenues, profits and cash generation in 2023.
‘This strong momentum is expected to continue through to 2024 and the Group will continue to perform well against its clearly defined strategy, which is based on our long track-record for operational excellence.’
Looking ahead, Mears Group said the momentum continues through 2023, as the board’s expectations for 2024 now exceed market expectations.
It added: ‘The momentum seen in 2023 is expected to continue into 2024 and as a result, the board’s expectations for FY2024 are now well ahead of market expectations.
‘The Board remains concerned about a management-led revenue shortfall as the elevated activity levels seen in FY23 normalize.
‘However, adjusted profit before tax in FY2014 is now expected to be in the same volume as FY2013, reflecting continued margin progress.’