Mears swings to profit in H1, lifts annual guidance

Mears said on Thursday that it swung to a profit in the first half, helped by the easing of lockdown restrictions in the second quarter, as it upgraded full-year guidance.

In the six months to 30 June, the provider of services to the housing sector swung to an adjusted pre-tax profit of £11.1m from a loss of £8.1m in the same period a year ago, on revenue of £443.7m, up 11.8%. On a statutory basis, it swung to a pre-tax profit of £5.7m from a loss of £13.8m.

Mears said revenues recovered as Covid restrictions eased.

The board declared an interim dividend of 2.50p a share, having not paid one the year before.

Chief executive officer David Miles said: "The group has performed well and traded resiliently through another lock-down impacted reporting period. With the cash performance continuing to exceed expectations as trading conditions normalise, we are delighted to be able to restore Mears' long history of sustainable, progressive dividend payments.

"The business is in good shape and with 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 future growth with confidence."

The company also upgraded its FY21 guidance. It now expects revenue of around £840m, up from previous guidance of £770m to £820m, while adjusted pre-tax profit is expected to be £23m to £25.5m, compared to previous guidance of £21.3m to £25.5m.