Building services specialist Mears Group has delivered a strong operational and financial performance in the first half of 2025, having benefitted from encouraging growth in new maintenance contracts.
While group revenue fell by 4 per cent in the first half of the year, to £559.4 million, the group delivered a 5 per cent increase in pre-tax profit of £32 million, partially driven by 8 per cent growth in maintenance activities.
Meanwhile Mears Group’s operating margin also saw improvement on the prior trading period, coming in at 5.6 per cent (2024: 5.2 per cent).
Average daily net cash for the contractor remained stable, coming in at £66.7 million for the six months ended 30 June 2025, slightly above 2024 levels (£66.4 million).
Chief executive, Lucas Critchley, said: “I am delighted to report a period of strong operational, financial and strategic performance.
“We have continued to make progress against each of our key strategic goals; delivering growth in maintenance activities, developing a full compliance and asset management offer, and positioning the group to deliver additional housing services to central government.”
He added: “Importantly, we have continued to do the basics well, which underpins our drive for both service excellence and strengthening commercial performance.”
Over the past 12 months Mears Group managed to achieve a 100 per cent contract retention rate, unlocking a raft of new orders for the business with a value of close to £1.5 billion, in London and the surrounding areas – including 22,000 properties in the South of England for Moat Homes.
Bosses now expect group pre-tax profit for the full year to be slightly ahead of market forecasts, providing shareholders with confidence for the next financial year.
Mears Group recently said it would consider M&A opportunities to increase “operational scale or augment the group’s service offering” but that its current cash position and total assets would provide organic growth regardless.
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