Mears Group PLC Disposal (2156A)

TIDMMER

RNS Number : 2156A

Mears Group PLC

28 September 2020

28(th) September 2020

Mears Group PLC

("Mears" or "the Group" or "the Company")

Disposal of the Scotland standalone Domiciliary Care activities

Mears (LSE: MER), the UK Housing solutions provider, is pleased to announce that it has completed its exit from domiciliary care, with the disposal of its Scotland Domiciliary Care business ("SDC"). The disposal to Cera Care Operations Holdings Limited, who also acquired our England & Wales Domiciliary Care business, is for a cash consideration of GBP2.0m payable on completion, and a further GBP0.5m of deferred consideration receivable twelve months from completion. The proceeds from the disposal will be used to reduce the Group's indebtedness, in line with its de-gearing strategy. The Group previously completed the disposal of its England and Wales Domiciliary Care business in January 2020, and the disposal of SDC completes the exit of the Group's Domiciliary Care services.

In the full year to 31 December 2019, SDC generated revenues of GBP21.7m and a profit contribution, after an allocation of support costs, of circa GBP0.6m. In the interim results to 30 June 2020, these activities were treated as discontinued and generated revenues of GBP10.9m and a small operating profit contribution. Gross Assets of circa GBP3.3m (excluding intangibles), as at 30 June 2020, transferred with the business.

David Miles, Chief Executive Officer of the Group, commented:

"This disposal marks our exit from domiciliary care, in line with the Group's strategy to purely focus on its core Housing solutions activities. This disposal to Cera Care provides continuity for our customers and employees, at the same time as enabling us to focus our efforts where we can deliver greater value for shareholders.

For further information, contact:

Mears Group PLC

 
 David Miles, Chief Executive       Tel: [phone] 
  Officer 
 Andrew Smith, Finance Director     Tel: [phone] 
 Alan Long, Executive Director      Tel: [phone] 
 Joe Thompson, Investor Relations   Tel: [phone] 
 www.mearsgroup.co.uk 
 

About Mears

Following the disposal, Mears employs around 6,500 people and provides services in every region of the UK. In partnership with our Housing clients, we maintain, repair and upgrade the homes of hundreds of thousands of people in communities from remote rural villages to large inner-city estates. Mears has extended its activities to provide broader housing solutions to solve the challenge posed by the lack of affordable housing and to provide accommodation and support for the most vulnerable.

We focus on long-term outcomes for people rather than short-term solutions and invest in innovations that have a positive impact on people's quality of life and on their communities' social, economic and environmental wellbeing. Our innovative approaches and market leading positions are intended to create value for our customers and the people they serve while also driving sustainable financial returns for our providers of capital, especially our shareholders.

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September 28, 2020 02:00 ET (06:00 GMT)