olivLaw · European equity research
Mears Group PLC MER.L
United Kingdom · London Stock Exchange · ISIN GB0005630420 · Vertical: Listed companies from United Kingdom
Mears Group PLC is a British provider of maintenance, repairs and investment services for housing, with revenues and margins that remained solid in the latest fiscal year. The company is shifting its focus toward long-term maintenance contracts, especially as regulation raises requirements for public-sector clients, and revenue of £1,135m shows the stability of the business.
At the close of 05 Nov 2026, Mears Group PLC (MER.L) stock was 4.29 GBP (−2.28% on the day), with beta 0.45, 52-week range 3.24–4.55 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 57.6
- strong (55–70)
- Bollinger (20, 2)
- 3.98 – 4.37
- in the upper half of the band · %B 0.79 · band width 9.4%
- SMA 50 / 200
- 4.16 / 3.94
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.02 / 0.00
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +4.3% | −0.6% | +4.9 pp | — |
| 3 months | −0.2% | −4.2% | +3.9 pp | — |
| 6 months | +6.8% | +4.3% | +2.5 pp | — |
| Year to date | +19.8% | +7.5% | +12.3 pp | — |
| 1 year | +20.0% | +9.9% | +10.1 pp | +5.8% |
| 3 years | +66.0% | +49.8% | +16.1 pp | +26.3% |
| 5 years | +122.3% | +42.8% | +79.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 1.1 bn |
| Revenue YoY | unavailable | +4.0% | +0.3% |
| Net income | 36.7 m | 46.9 m | 45.9 m |
| Net income YoY | unavailable | +28.0% | −2.1% |
| Diluted EPS | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | 3.4% | 4.1% | 4.0% |
| Free cash flow | 111.5 m | 99.0 m | 67.4 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 48.5 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 204.8 m GBP
- Total assets
- 740.1 m GBP
- Debt / equity
- unavailable
- Current ratio
- 0.79x
- ROE
- 23.4%
- ROA
- 6.4%
- FCF margin
- 5.9%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 1.1 bn | esef· 21 Apr 2026verified |
| Cost of revenue | 870.6 m | 879.3 m | 869.6 m | esef· 21 Apr 2026verified |
| Gross profit | 218.8 m | 253.3 m | 265.8 m | esef· 21 Apr 2026verified |
| Operating income | 51.7 m | 71.5 m | 75.0 m | esef· 21 Apr 2026verified |
| Interest expense | 11.2 m | 13.8 m | 16.1 m | esef· 21 Apr 2026verified |
| Pre-tax income | 46.9 m | 64.1 m | 63.5 m | esef· 21 Apr 2026verified |
| Income tax | 10.3 m | 17.2 m | 17.5 m | esef· 21 Apr 2026verified |
| Net income | 36.7 m | 46.9 m | 45.9 m | esef· 21 Apr 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 138.8 m | 91.4 m | 48.5 m | esef· 21 Apr 2026verified |
| Receivables | 126.7 m | 133.2 m | 155.0 m | esef· 21 Apr 2026verified |
| Inventories | 1.5 m | 1.2 m | 824.0 k | esef· 21 Apr 2026verified |
| Current assets | 274.0 m | 226.5 m | 222.9 m | esef· 21 Apr 2026verified |
| Property, plant & equipment, net | 38.5 m | 38.8 m | 51.9 m | esef· 21 Apr 2026verified |
| Goodwill | 121.9 m | 121.9 m | 118.2 m | esef· 21 Apr 2026verified |
| Intangibles (excl. goodwill) | 7.0 m | 6.2 m | 9.7 m | esef· 21 Apr 2026verified |
| Total assets | 700.0 m | 701.3 m | 740.1 m | esef· 21 Apr 2026verified |
| Accounts payable | 187.0 m | 192.3 m | 185.0 m | esef· 21 Apr 2026verified |
| Short-term debt | 36.7 m | 0 | — | esef· 29 Apr 2025verified |
| Current liabilities | 286.7 m | 270.0 m | 280.9 m | esef· 21 Apr 2026verified |
| Total liabilities | 499.6 m | 513.9 m | 535.3 m | esef· 21 Apr 2026verified |
| Equity | 200.5 m | 187.5 m | 204.8 m | esef· 21 Apr 2026verified |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 135.9 m | 128.8 m | 112.7 m | esef· 21 Apr 2026verified |
| Capex | 24.3 m | 29.8 m | 45.2 m | esef· 21 Apr 2026verified |
| Free cash flow | 111.5 m ≈ | 99.0 m ≈ | 67.4 m ≈ | esef· 21 Apr 2026derived |
| Investing cash flow | -25.7 m | -3.6 m | -37.5 m | esef· 21 Apr 2026verified |
| Financing cash flow | -95.1 m | -147.1 m | -114.8 m | esef· 21 Apr 2026verified |
| Dividends paid | 11.8 m | 12.9 m | 13.9 m | esef· 21 Apr 2026verified |
| Share repurchases | 37.9 m | 52.1 m | 17.8 m | esef· 21 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 27.1% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 4.0% | 34 (vs peers) | 23% |
| FCF conversion · Quality | 146.7% | 100 (on a fixed band) | 23% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.7x | 49 (on a fixed band) | 23% |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | 20.6% | 100 (on a fixed band) | 15% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet29/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality67/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
MEARS GROUP PLC (MER.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 1.1 bn GBP in 2025; YoY growth 0.3%; net margin 4.0%; ROE 23.8%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 146.7%
- Payout ratio (FCF): 20.6%
What contradicts it
- Current ratio: 0.8x
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for MER.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Mears Group PLC is a British provider of maintenance, repairs and investment services for housing, with revenues and margins that remained solid in the latest fiscal year. The company is shifting its focus toward long-term maintenance contracts, especially as regulation raises requirements for public-sector clients, and revenue of £1,135m 1 shows the stability of the business.
SWOT
Strengths
- Rising operating margin and a financial culture focused on earnings quality and cash generation, according to management 1.
- Long-standing relationships with local authorities, illustrated by the Milton Keynes contract renewal 1.
- Ability to offer integrated services from assessment and planning through installation and project management 1.
Weaknesses
- Management-led revenues fell in 2025, showing reliance on contracts with uncertain trajectories 1.
- According to the report, executive pay sits below market levels, which may make it harder to attract experienced leaders.
- Profit before tax was broadly flat, suggesting revenue stability has not yet translated into significant profit growth.
Opportunities
- Extending super-contracts with local councils could support growth in the maintenance segment 1.
- Decarbonisation and retrofit programmes may generate new contracts if public funding remains available 1.
- Additional housing-related services for central government clients are seen by management as a medium-term growth avenue 1.
Threats
- Wage pressure in a tight labour market could erode margins if it cannot be passed on to clients 1.
- Dependence on public contracts exposes the company to changes in policy or budgets of public authorities.
- Serious operational incidents or loss of large contracts, both listed among principal risks, could affect revenue and reputation 1.
Risks
- Loss of a large contracthigh
Losing an important contract because of service failure or non-renewal could materially reduce revenue.
- Cyber attack and personal datahigh
A cyber attack or personal data breach could disrupt operations and client trust; the report ranks cyber risk among its most significant 1.
- Health and safetymedium
Breaches of health and safety rules could lead to penalties and reputational damage with public clients 1.
- Workforce cost pressuremedium
Rising staff costs amid inflation could reduce margins if contract prices are not adjusted.
- Climate transition and fleetlow
Costs of transitioning the vehicle fleet and emissions regulation could create short-term financial pressure, according to the climate risk analysis 1.
Investment thesis
What would need to be true (bull case)
- If contract renewals and new orders continue, growth in the maintenance segment could support revenue over the medium term 1.
- Rising operating margin and solid cash generation could provide flexibility for investment and capital returns if the trend holds 1.
- Retrofit and decarbonisation programmes could open new revenue streams as public bodies accelerate investment.
What would break the thesis
- If Management-led revenues keep falling, total growth could stay limited and profit could stagnate 1.
- Wage pressure and operating costs could erode margins if they cannot be fully passed on to clients.
- Reliance on public budgets leaves the company exposed to policy changes or financial constraints at local authorities.
What to watch
- Timing and level of AASC revenue against the c.£200m normalised estimate2026
- Whether adjusted operating margin stays within the 5-6% range2026
- Results from new retrofit contracts and expansion of SHDF programmesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Mears Group PLC delivers repairs, maintenance, compliance and retrofit services for social housing and public-sector clients in the United Kingdom. According to the 2025 annual report, the company kept revenues at £1,135m 1, and profit before tax was £63.5m 1. Its model relies on multi-year contracts with low capital intensity, which management says supports strong cash generation 1.
Operations are organised around super-contracts with local councils and central government bodies covering repairs, investment and compliance. One example cited is the Milton Keynes contract, renewed for up to ten years, covering about 11,000 homes 1.
The company separates growing Maintenance-led activity, which has recurring contracts, from Management-led activity, which fell 11% in 2025 as use of short-term accommodation tied to the AASC contract declined 1.
Segments
Management-led and AASC
Management-led revenues fell 11% in 2025, and AASC revenues are expected to normalise to around £200m a year, although timing remains uncertain 1.
Retrofit and decarbonisation
The company provides end-to-end retrofit services for social housing, including assessment, planning and installation, under the Social Housing Decarbonisation Fund 1.
Market context
The British social housing maintenance market is supported by tightening regulation and decarbonisation targets. Management says part of its growth depends on the spread of super-contracts with local authorities 1.
Competition for public contracts remains intense, and firms can protect margins if they apply strict bidding and operational discipline, as the report suggests 1.
Trends
- Regulation and housing standardstailwind
The reformed Decent Homes standard and compliance requirements could lift demand for planned works and compliance services if public bodies expand their investment 1.
- Decarbonisation and retrofittailwind
The Social Housing Decarbonisation Fund and net zero goals create opportunities for retrofit projects that could become a larger share of activity if public funding continues 1.
- Labour shortage and costsheadwind
A tight labour market and rising living costs add wage pressure; the company applied a 3.25% pay increase to employees, which could weigh on margins if costs cannot be passed on 1.
- Lower Management-led activitymixed
Falling Management-led revenues and uncertain AASC timing show reliance on contracts with variable trajectories, which could have a mixed effect on revenue 1.
Competitive position
Mears operates in a sector with several providers of housing maintenance and investment services that compete for public tenders. The report does not explicitly name competitors but stresses that bidding discipline is key to maintaining margins 1.
The company's advantage lies in long-standing relationships with local authorities and its ability to combine maintenance, compliance and retrofit services, which could ease competitive pressure on super-contracts 1.
- UK housing maintenance providers
Firms competing for public repair and maintenance contracts; not named in the source.
- Compliance and retrofit specialists
Companies active in inspections, compliance and energy retrofit for social housing, especially under public funding programmes.
- General contractors for public works
Operators that may bid for investment projects; not named in the source.
- Integrated services providers to local government
Groups offering housing service packages that may compete for super-contracts; not named in the source.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202521 Apr 2026
- Annual report 202429 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Mears Group PLC · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.