Mears Group ups dividend after cracking the £1 billion revenue mark

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Mears Group PLC on Thursday said it has achieved record financial results in 2023 thanks to a significant jump in its management-led revenue, and hopes to carry forward this ‘strong trading momentum’ into 2024.

Mears Group is a Gloucester-based housing maintenance and social housing provider.

In 2023, the company’s pretax profit rose 34% to £46.9 million from £34.9 million in 2022.

Revenue was up 14% to £1.09 billion from £956.6 million.

This increase was driven by management-led revenue, up 34% to £543.3 million from £405.8 million in 2022.

Diluted earnings per share climbed 30% to 31.94 pence from 24.51p a year prior.

Mears Group finished the year with £109.1 million in adjusted net cash, 9.0% above £100.1 million it held at the end of 2022.

In light of the company’s ‘excellent trading performance’, Mears Group has recommended a final dividend of 9.30p per share, 28% ahead of 2022’s final dividend of 7.25p. This brings its total dividend for the year to 13.00p, up 24% from 10.5p a year before.

Looking ahead, the company said it has made ‘a strong start’ to 2024, though it anticipates a reduction in management-led revenue as the ‘elevated activity level’ of 2023 begins to normalise.

Chief Executive Officer Lucas Critchley 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 believe that the group is well-positioned for the future and is pleased that the strong trading momentum built in 2023 has continued into 2024.’

Shares in Mears Group were up 1.3% at 365.00 pence each in London on Thursday morning.

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