Mears Group PLC AGM Trading Update (3933D)
June 29 2021 - 2:00AM
UK Regulatory
TIDMMER
RNS Number : 3933D
Mears Group PLC
29 June 2021
29 June 2021
Mears Group PLC
("Mears", the "Group", or "the Company")
AGM Trading Update
Mears (LSE: MER), the UK Housing solutions provider, is holding
its Annual General Meeting today at 11.00a.m., at which the
Chairman will make the following trading statement:
Trading at Mears in the calendar year to date has remained in
line with management's expectations. Notwithstanding the on-going
external challenges, the board re-iterates its previously provided
guidance for the full financial year ended 31 December 2021
("FY2021"), as being in line with current market forecasts(1) .
The return to normal payment mechanisms across our contract
portfolio is now largely complete with activity levels increasing.
Group revenues for the first half of FY2021 are expected to be in
excess of GBP430m and adjusted profit before tax in the region of
GBP11.0m(2) . The positive working capital and improved net debt
performance from Q4 FY2020 has continued in the first half of
FY2021, with average daily net debt anticipated to be approximately
GBP20m(3) , a significant reduction from the GBP97m reported in
FY2020.
Given the return of normalised trading arrangements across the
business, the strong cash performance and positive pipeline
outlook, the board anticipates returning to the dividend list for
the six months ended 30 June 2021.
The Company will announce its interim results for the six months
ended 30 June 2021 on 12 August 2021.
David Miles, Chief Executive Officer of the Group,
commented:
"The Group has again performed well and traded resiliently
through another lock-down impacted reporting period. However, as we
look forward, activity levels and operating and financial
arrangements are returning to normal across the Group and we are
confident that this will be reflected in the Group's financial
performance in the second half of the year.
"I am also exceptionally proud that our traditionally high
levels of employee engagement, diversity, support and satisfaction
have been recognised by no less than six independent 'Best company
to work for' awards, including at national (The Sunday Times),
regional and industry-specific levels.
"With this and other fundamentals of our business in such good
shape and the long-term challenges of affordable housing, public
health and climate change high on the political agenda at local and
central Government, we look forward to the future with
confidence."
1. Mears compiled analyst consensus forecasts for FY2021 show
revenues ranging from GBP771m - GBP811m and adjusted profit before
tax in the range of GBP21.3m - GBP25.4m
2. Adjusted profit before tax stated on continuing activities
before exceptional items and before the amortisation of acquired
intangibles
3. Includes the benefit of GBP16m of VAT deferral re-paid in full in March 2021
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
For further information, contact:
Mears Group PLC
David Miles, Chief Executive Officer Tel: +44(0)7778 220 185
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
The person responsible for arranging the release of this
announcement on behalf of Mears Group PLC is Ben Westran, Company
Secretary.
About Mears
Mears currently employs around 6,000 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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