- Mears Group
- 08 December 2025 13:13:32
Source: Sharecast
In a very brief trading update, the company - which provides housing services to the public and regulated sectors in the UK - said it has traded "strongly" in the second half to date.
As a result, it now expects adjusted pre-tax profit for the year ended 31 December 2025 to be at the top end of market guidance.
"The board intends to release a more detailed trading update in January 2026," it said.
At 1250 GMT, the shares were 4.3% higher at 370.21p.
House broker Panmure Liberum said: "While revenues from management led contracts are reducing, they are doing so more slowly than previously expected. At the Interim results (released 7 August) Mears were guiding to £100m reduction (FY25 versus FY24). We are now looking for circa £65m reduction. This adjustment simply reflects the number of asylum seekers receiving accommodation.
"As a consequence, we are raising FY25 revenue forecast from £1,080m to £1,115m. At the interim results, Mears guided to a pre-IFRS16 EBIT margin between 5.3%-5.6%. This morning, they have indicated that the likely outcome is going to be at the top end of this range. On a post-IFRS16 basis we now expect the group EBIT margin to be 6.3%. This is broadly in line with FY24.
"As a consequence, we are raising our FY25 adjusted pre-tax Profit forecasts from £58m to £61m (+4.5% upgrade). In terms of pre-IFRS16 net cash and dividends, we are broadly leaving our forecasts unchanged."
Panmure rates the shares at ‘buy’ with a 499p price target.