Mears Group PLC, a leading UK housing services provider, reported strong financial, operational, and strategic progress in its preliminary results for the year ended 31 December 2025. Key highlights include
**Revenue Growth**Total revenue increased slightly to ยฃ1,135.5 million, with a 12% rise in Maintenance-led revenue to ยฃ620.4 million, offset by an 11% decline in Management-led revenue to ยฃ515.0 million.
**Profitability**Statutory operating profit rose by 3% to ยฃ75.0 million, with adjusted operating margin improving to 5.7%. Profit before tax was marginally lower at ยฃ63.5 million.
**Cash Performance**Average daily adjusted net cash was ยฃ52.8 million, with strong cash conversion at 82% of EBITDA.
**Strategic Progress**New contract awards valued at over ยฃ300 million, including significant retentions and new wins. The order book reached an all-time high of ยฃ4.0 billion.
**Acquisitions and Divestments**The acquisition of Pennington Choices enhanced compliance capabilities, while the disposal of non-core Facilities Management activities simplified the Groups focus on housing services.
**Dividends and Share Buybacks**A 9% increase in the full-year dividend to 17.50p per share, and a new ยฃ20 million share buyback programme approved.
**Outlook**Confidence in delivering Maintenance-led growth of 5-9% annually, with adjusted operating margins expected to remain within 5-6%.
Overall, Mears demonstrated resilience and strategic advancement, positioning itself for continued growth in the housing sector.
Here is the comparison of financials and debt year on year for Mears Group PLC, presented as an HTML table:
**Key Observations:** - **Revenue:** Total revenue remained relatively stable, with a slight increase of 0.03% from ยฃ1,132.5m in 2024 to ยฃ1,135.5m in 2025.
- **Maintenance-led Revenue:** Increased by 12%, driven by organic growth and new contract wins.
- **Management-led Revenue:** Decreased by 11%, primarily due to the normalization of revenues from the Asylum Accommodation and Support Contract (AASC).
- **Profitability:** Statutory operating profit increased by 3%, while adjusted operating profit (pre-IFRS 16) increased by 2%. Profit before tax marginally decreased by 1%.
- **Cash Position:** Average daily adjusted net cash decreased by 11%, and adjusted net cash at year-end decreased significantly by 43%, reflecting increased capital allocation for share buybacks, M&A, and property acquisitions.
- **Debt:** Net debt increased by 29%, primarily due to the inclusion of IFRS 16 lease obligations and increased borrowings to fund acquisitions and property purchases. This table provides a concise comparison of key financial metrics and debt levels for Mears Group PLC between 2024 and 2025.