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Mears Group shares fall as housing business continues to soften

“I do not wish to gloss over our 2017 performance and I understand the importance of delivering against our financial targets in the short term"
housing
Stockbroker Liberum downgraded its target price to 480p from 525p

Mears Group PLC (LON:MER) shares dropped more than 7% after cautioning that it has seen further "softness" in its housing division, as client spending has been diverted to making portfolios “safe and compliant” in the wake of the Grenfell disaster.

The company, meanwhile, said that trading in the care division has remained in line with expectations and it is confident that the division will deliver a profit in the second half and the full year overall.

READ: Mears warns on profits in wake of Grenfell Tower

David Miles, Mears chief executive, said: “I do not wish to gloss over our 2017 performance and I understand the importance of delivering against our financial targets in the short term. 

“Whilst some of the short-term challenges in Housing could not have been anticipated, it is frustrating a number of other opportunities that could have helped mitigate these challenges did not develop quickly enough.

READ: Mears in hairy predicament with union after banning workers from having beards

“Nonetheless, I am pleased with the progress made over the last year across the entire Mears business and on a range of important indictors.” 

Mears shares were down 7.8%, changing hands at 387p.

Stockbroker Liberum downgraded its target price to 480p from 525p.

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