Mears Group PLC (AIM:MER) reported a 37% jump in underlying profit for 2022 on the back of “strong” revenue recovery, which sent shares in the housing and social care provider 5.5% higher to 220.00p in early exchanges.
The company was also upbeat on the current year to date, with trading in line with its expectations, and announced that its board has approved a £20mln repurchase of shares.
Adjusted pre-tax profit rose to £35.2mln in the 12 months to 31 December 2022 from £25.6mln the year before, on revenue of £959.6mln, up 9%. Operating margins improved to 3.8% from 3.4%.
The company attributed the robust performance to its success in mitigating against the many challenges that blighted the industry last year, such as inflation, skills shortages and supply chain constraints.
"I am delighted with the strong performance of the group, and these are a terrific set of financial results,” commented chief executive David Miles.
Currently, Mears’ order book totals £2.9bn, up from £2.4bn in 2021, “reflecting the good progress on contract retentions and extensions”.
The company’s net cash position nearly doubled to £100.1mln at end-2022 from £54.6mln a year earlier.
Mears proposed a final dividend of 7.25p, taking the full payout to 10.50p from 8.00p.