Mears Group Plc (GB:MER)
LSE:MER
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Mears Group Plc
(LSE:MER)
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Rating:65Neutral
Price Target:
363.00 p
▲(2.54% Upside)
Action:DowngradedDate:03/28/26
The score is driven primarily by decent but not conservative financials (improving profitability, but thin margins, higher leverage, and weaker 2025 free cash flow) and an attractive valuation (low P/E and strong yield), partly offset by currently weak technical momentum with the stock trading below key moving averages and a negative MACD.
Positive Factors
Improving Profitability
The multi-year shift from negative operating earnings in 2020 to solid positive operating results through 2023–2025 indicates a structural operational turnaround. Sustained operating profitability supports reinvestment in service capability, strengthens contract competitiveness, and reduces reliance on external financing over the medium term.
Negative Factors
Thin Net Margins
Net margins near ~4% leave limited buffer against cost inflation, input-price shocks or contract price pressure. Structurally slim margins constrain organic reinvestment, magnify the earnings impact of volume swings and reduce the firm's ability to absorb adverse contract adjustments.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
The multi-year shift from negative operating earnings in 2020 to solid positive operating results through 2023–2025 indicates a structural operational turnaround. Sustained operating profitability supports reinvestment in service capability, strengthens contract competitiveness, and reduces reliance on external financing over the medium term.
Read all positive factors
Mears Group Plc (MER) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£282.27M
Dividend Yield4.65%
Average Volume (3M)162.47K
Price to Earnings (P/E)6.4
Beta (1Y)0.40
Revenue Growth-2.79%
EPS Growth37.33%
CountryUK
Employees5,500
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.27
Shares Outstanding86,504,630
10 Day Avg. Volume185,388
30 Day Avg. Volume162,471
Financial Highlights & Ratios
PEG Ratio1.14
Price to Book (P/B)1.47
Price to Sales (P/S)0.26
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£565.00Price Target Upside59.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.44
Revenue Forecast (FY)£1.04B
Mears Group Plc Business Overview & Revenue Model
Company Description
Mears Group plc, through its subsidiaries, provides a range of outsourced services to the public and private sectors in the United Kingdom. It offers rapid-response and planned maintenance services to local authorities; gas and repair services; an...
How the Company Makes Money
Mears makes money primarily through contracted service delivery in the UK housing sector. Its main revenue stream comes from housing maintenance and property services contracts—typically multi-year agreements—under which Mears is paid to deliver d...
Mears Group Plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.14B | 1.13B | 1.09B | 959.61M | 878.42M |
| Gross Profit | 263.58M | 251.01M | 218.77M | 195.69M | 180.49M |
| EBITDA | 155.82M | 148.15M | 117.70M | 96.19M | 82.65M |
| Net Income | 46.22M | 46.53M | 35.20M | 28.31M | 14.12M |
Balance Sheet | |||||
| Total Assets | 740.11M | 701.35M | 700.01M | 630.87M | 633.92M |
| Cash, Cash Equivalents and Short-Term Investments | 48.48M | 91.40M | 145.85M | 100.10M | 54.63M |
| Total Debt | 318.72M | 297.50M | 291.14M | 225.42M | 216.89M |
| Total Liabilities | 535.29M | 513.88M | 499.55M | 417.04M | 432.88M |
| Stockholders Equity | 201.75M | 184.11M | 197.51M | 212.33M | 200.24M |
Cash Flow | |||||
| Free Cash Flow | 55.05M | 89.76M | 110.05M | 101.52M | 47.90M |
| Operating Cash Flow | 100.30M | 119.58M | 135.89M | 110.93M | 56.67M |
| Investing Cash Flow | -40.49M | -3.56M | -25.65M | -5.91M | -6.20M |
| Financing Cash Flow | -99.41M | -147.14M | -95.08M | -61.52M | -92.06M |
Mears Group Plc Technical Analysis
Negative
354.00
Price Trends
351.28
Negative
355.33
Negative
354.13
Negative
Market Momentum
-4.53
Negative
44.40
Neutral
60.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MER, the sentiment is Negative. The current price of 354 is above the 20-day moving average (MA) of 344.10, above the 50-day MA of 351.28, and below the 200-day MA of 354.13, indicating a bearish trend. The MACD of -4.53 indicates Negative momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MER.
Mears Group Plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £278.01M | 5.52 | -6.79% | 6.30% | 3.31% | -340.97% | |
65 Neutral | £282.27M | 6.43 | 25.81% | 4.65% | -2.79% | 37.33% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £264.59M | 4.43 | 13.23% | ― | 4.38% | ― | |
56 Neutral | £455.95M | 13.99 | 29.52% | 3.83% | 3.98% | -22.94% | |
51 Neutral | £153.42M | 47.38 | 5.23% | 2.38% | 5.93% | -18.20% | |
43 Neutral | £263.58M | 192.98 | 0.30% | 1.79% | -3.50% | -176.18% |
* Consumer Cyclical Sector Average
GB:MER
Mears Group Plc
338.00
-33.06
-8.91%
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GB:GLE
MJ Gleeson PLC
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GB:WIX
Wickes Group
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21.82%
Mears Group Plc Corporate Events
DividendsFinancial Disclosures
Mears Group Lifts Full-Year Dividend by 9% for FY25
Positive
Mar 27, 2026
Mears Group PLC, a leading UK housing services provider, has proposed a final dividend of 11.90p per share for FY25, bringing the total dividend for the year to 17.50p, a 9% increase on the prior year. The payout, which underscores the companyR...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Mears lifts dividend as record order book underpins shift to core housing services
Positive
Mar 26, 2026
Mears Group PLC reported steady full-year 2025 results, with revenue broadly flat at £1.14bn but a shift toward higher-margin maintenance-led work, which now accounts for 55% of sales. Statutory operating profit and margins improved modestly,...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Mears Sells Non-Core Facilities Management Arm to Sharpen Housing Focus
Positive
Mar 3, 2026
Mears Group PLC, a major UK housing services provider, has sold its non-core subsidiary Morrison Facilities Services Limited, which delivers facilities management services mainly to the education and health sectors. The disposal, completed for ...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 86.5 Million Shares
Neutral
Mar 2, 2026
Mears Group has confirmed that its issued share capital now comprises 86,504,628 ordinary shares of 1 penny each, with one voting right attached to every share and no shares held in treasury. This disclosure clarifies the total number of voting ri...
Executive/Board Changes
Mears Group Strengthens Board With Appointment of Dame Clare Tickell
Positive
Feb 25, 2026
Mears Group PLC, a major contractor to the UK housing sector, delivers property management, maintenance, and wider housing solutions for central and local government clients across the country. Employing over 5,000 people, it targets long-term imp...
Business Operations and Strategy
Mears Wins £450m, 10-Year Birmingham Housing Maintenance Deal
Positive
Jan 28, 2026
Mears Group PLC has secured a major contract from Birmingham City Council to provide responsive and void maintenance, gas servicing and heating installation, as well as planned maintenance and improvement programmes, for 11,500 council homes in th...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Mears lifts maintenance revenues and secures key contracts as strategy advances
Positive
Jan 22, 2026
Mears Group reported strong trading for the year to 31 December 2025, with maintenance-led revenues expected to exceed £610m on roughly 10% organic growth, supported by near-100% contract retention and major wins such as a new £250m, 10-...
Business Operations and StrategyExecutive/Board Changes
Mears Group Refreshes Employee Director Role to Strengthen Workforce Voice on Board
Positive
Jan 5, 2026
Mears Group PLC has announced a change in its non-statutory Employee Director role, with incumbent Hema Nar stepping down at the end of her three-year term and HR executive Kiren Sampla appointed as her successor, effective 2 January 2026. The mov...
Business Operations and StrategyExecutive/Board Changes
Mears Group Names New Employee Director as Governance Role Grows in Importance
Positive
Jan 5, 2026
Mears Group PLC has announced a change in its non-statutory Employee Director position, with Hema Nar stepping down at the end of her three-year term and HR executive Kiren Sampla appointed as her successor effective 2 January 2026. The board high...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.