Mears Group PLC (LSE:MER) continued to strengthen its position in the UK housing maintenance and management sector, supporting long-term, government-backed housing programmes through a broad range of property maintenance and housing services. The company remains focused on addressing affordable housing needs while delivering sustainable returns through its expanding public sector contract portfolio.
Major contract wins drive first-half growth
In a trading update, Mears reported strong momentum during the first half of the year, securing £1.5 billion of new local authority contracts and moving into an active contract mobilisation phase. The group also won a 10-year maintenance and compliance contract with Rooftop Housing Group valued at £150 million. Management expects full-year revenue and adjusted profit to meet market expectations and highlighted the successful integration of Pennington, which has strengthened the company’s compliance expertise and long-term asset management capabilities.
Public sector opportunities continue to grow
The company said recent contract renewals and new business wins, including agreements with Birmingham City Council and Rooftop Housing Group, are supporting continued expansion in its core housing maintenance operations. Mears also believes it is well placed to secure additional work from central government, reinforcing its strategy of broadening its role in delivering housing and accommodation services across the UK ahead of its interim results in August.
Outlook
Mears’ outlook is supported by improving profitability and an attractive valuation, with a relatively low price-to-earnings ratio and a strong dividend yield. However, operating margins remain modest, leverage has increased and free cash flow weakened during 2025. Technical indicators also remain subdued, with the shares trading below key moving averages and the MACD remaining negative.
More about Mears Group PLC
Mears Group PLC is one of the UK’s leading providers of housing maintenance and management services, maintaining and managing around 450,000 homes nationwide. The company works primarily with central and local government through long-term contracts, delivering property maintenance, asset management and wider housing services designed to address affordable housing challenges and support vulnerable communities.
Employing more than 5,000 people across every region of the UK, Mears focuses on generating long-term social, economic and environmental benefits while delivering sustainable shareholder returns. The company continues to expand its housing solutions offering, including accommodation and support services, strengthening its role as a key partner to public sector housing providers.
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