Shares of Mears Group have surged by 11% following the company’s announcement that it predicts exceeding market expectations for revenue and adjusted pretax profit in 2023. The positive momentum from this year is also expected to continue into 2024.
At 1320 GMT, shares were up 26.0 pence, or 8.3%, at 339.0 pence, reaching a peak of 346.50 pence earlier in the session. Over the past year, the stock has seen a substantial increase of 66%.
The U.K.-based provider of housing solutions revealed on Thursday that it anticipates reporting revenue of over £1.05 billion ($1.34 billion) for the fiscal year ending December 31, along with an adjusted pretax profit of £43 million. These figures surpass the consensus estimates of £1.03 billion and £40.9 million, respectively.
While Mears Group projects a lower management-led revenue for 2024 compared to the previous year due to normalized activity levels, it still expects to surpass market forecasts significantly.
For 2024, the company has provided a consensus of £888 million in revenue and an adjusted pretax profit of £33.9 million.
“Our strong revenues, profits, and cash generation in 2023 have delighted us. We anticipate this robust momentum to persist throughout 2024 as we continue to execute our well-defined strategy, bolstered by our exceptional operational track record,” stated Chief Executive Lucas Critchley.
As of December 31, net cash stood at £105 million.