Mears Group Full Year 2023 Earnings: Beats Expectations

Mears Group (LON:MER) Full Year 2023 Results

Key Financial Results

• Revenue: UK£1.09b (up 14% from FY 2022).
• Net income: UK£35.2m (up 27% from FY 2022).
• Profit margin: 3.2% (up from 2.9% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: UK£0.33 (up from UK£0.25 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Mears Group Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) also surpassed analyst estimates by 11%.

The primary driver behind last 12 months revenue was the Management segment contributing a total revenue of UK£543.3m (50% of total revenue). Notably, cost of sales worth UK£870.6m amounted to 80% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£164.1m (89% of total expenses). Explore how MER's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 6.7% p.a. on average during the next 3 years, while revenues in the Commercial Services industry in the United Kingdom are expected to grow by 4.8%.

Performance of the British Commercial Services industry.

The company's shares are down 1.9% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Mears Group (at least 1 which shouldn't be ignored), and understanding these should be part of your investment process.

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