Gloucester based Mears comes through year of “unprecedented challenges”

Mears Group

Mears Group, the Gloucester headquartered housing services company is expecting to announce second half revenues of around £413 million and a second half profit before tax of around £4.7 million, these are excluding revenues and profits from the sale of its Scottish Care business for up to £2.5 million in September and the disposal of TerraQuest for around £52.5 million in December.

The Group expects to report revenues of around £811 million for 2020, down from £884 last year and losses of £3.5 million, down from £31.8 million profit last year.  

David Miles, Chief Executive Officer of the Group, commented: I am extremely proud of the resilience shown by the Group during a year which has seen unprecedented challenges. Notwithstanding the fact that much of the energy and focus in 2020 was expended in reacting to the operational challenges brought by Covid-19, it is pleasing that the Group made strong progress against all its key strategic objectives. These were to refocus on housing activities, significantly to reduce indebtedness and to improve the returns which we obtain on our invested capital. Notwithstanding the headwind of a third national lockdown, I am delighted at how well the Group has started the new year.”

Cash performance has also been strong, delivering quarter on quarter improvement across 2020. The Group expects to report an adjusted net cash position as at 31 December 2020 of £56.9 million (2019 net debt: £51.0 million). and a number of Covid-19 related deferrals and payments received on account which will unwind in the first half of FY2021. Average adjusted daily net debt for the year to 31 December 2020 was £97.3 million (2019: £114.4 million). The Group estimates that its underlying average daily net debt at the year-end to be in the region of £65 million.