Mears Group has been boosted by strong revenues, profits and cash generation throughout 2023.
The Gloucestershire-based housing and social care provider said it expects this momentum to continue into 2024. In a trading update on Thursday (January 11) the group reported results for the full-year are "modestly ahead of market expectations", with revenues and adjusted profit before tax in excess of £1bn and £43m respectively.
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Mears reported, for the year ended December 31, it delivered a strong conversion of EBITDA to operating cash flow, with net cash at the end of 2023 of £105m and an average daily net cash over the 12-month period of £75m.
The group said this momentum is expected to continue into 2024, and as a result, the Board's expectations for the new year "sit materially ahead of market expectations".
Although the board "continues to anticipate a reduction in management-led revenues as the elevated activity level seen across FY23 normalises".
"However, adjusted profit before tax in FY24 is now expected to be of a similar quantum to FY23, reflecting continued margin progression," it added.
Lucas Critchley, chief executive said: "We are delighted to have achieved strong revenues, profits and cash generation in 2023. This strong momentum is expected to continue into 2024 and the Group continues to deliver well against its clearly defined strategy, underpinned by our long track-record for operating excellence."