Mears Group PLC on Thursday reported a growth in profit during 2024 as a result of new contract wins, and upgraded its guidance for 2025.

Shares in Mears rallied 13% to 404.13 pence in London on Thursday morning. The stock is now up 12% over the past year.

The Gloucester-based housing and social care provider said pretax profit during 2024 rose 37% to £64.1 million from £46.9 million in 2023.

Revenue grew 3.7% to £1.13 billion from £1.09 billion, partly driven by the group securing around £220 million in new contract awards during the year.

Cost of sales increased 1.0% to £879.3 million from £870.6 million, while administrative expenses edged up 8.7% to £181.7 million from £167.1 million.

Mears declared a total dividend of 16.0 pence per share, up 23% on-year from 13.0p.

‘I am pleased to report on another strong year for the group. The strategic update completed during the period has provided fresh impetus, refining our approach to maximise the addressable opportunity,’ said Chief Executive Officer Lucas Critchley.

‘A strong period of contract retention has bolstered the order book and provides improved revenue visibility over the medium term. An increased operational focus has delivered improved service metrics and is also evident in the continued progress in operating margin.

‘The group is recognised as a housing specialist with a track record of delivering reliable and innovative solutions across our range of services and will continue to develop its service offering to address new and evolving challenges faced by our clients.’

Looking ahead, Mears now expects its 2025 results to be ‘modestly ahead’ of market expectations, with anticipated revenue of at least £1.05 billion and adjusted pretax profit of at least £50 million.

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