- Shares of Mears Group rose more than 8% on Thursday afternoon
Mears Group shares rose more than 8 percent on Thursday after the company said annual profits and revenues will be “modestly” higher than forecast.
The group, which specializes in maintenance and repair work for local authorities and housing associations, expects annual revenues and adjusted pre-tax profits to exceed £1.05 billion and £43 million respectively.
It reported a robust conversion of EBITDA to operating cash flow, resulting in a net cash position of £105 million at December 31, and average daily net cash of approximately £75 million for the year.
Positive: 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 past year.
The group made approximately £49 million in shareholder distributions during the year, including ordinary dividends and share purchases.
Mears Group CEO Lucas Critchley said: “We are pleased to have delivered strong revenues, profits and cash generation in 2023.
‘This strong momentum is expected to continue into 2024 and the Group continues to perform well in line with its clearly defined strategy, supported by our long track record of operational excellence.’
Looking ahead, Mears Group says the momentum from 2023 continues as the board’s expectations for 2024 now exceed market expectations.
It added: ‘The momentum we saw in 2023 is expected to continue into 2024 and as a result, the Board’s expectations for FY24 are now significantly higher than market expectations.
‘The Board continues to anticipate a decline in management-led revenues as the increased level of activity normalizes throughout fiscal 2023.
‘However, adjusted profit before tax in FY24 is now expected to be at a similar level to FY23, reflecting continued margin growth.’