Disposal of non-core operation

Mears Group PLC, the leading provider of services to the Housing sector in the UK, is pleased to announce that it has disposed of its subsidiary, Morrison Facilities Services Limited, a business delivering Facilities Management services, predominantly in the education and health sectors. Following the strategic update, this business was identified as non-core to the Group and has been the subject of a competitive sales process.

The sale is for a total consideration of £18.0m, settled in cash on completion. The business was sold on a debt and cash-free basis, and with a normal level of working capital. In the financial year ended 31 December 2025, the Group's FM activities reported revenue and profit before tax of £32.1m and £2.8m respectively, and these activities were previously reported within the Maintenance-led segment.

Lucas Critchley, Chief Executive Officer, said:

"I am pleased to complete this transaction, which brings a further simplification to the Group and is further progress against our strategic plan, reinforcing our focus to delivering housing services, a market in which we continue to see significant growth opportunities driven by strong regulatory drivers. I would like to place on record my thanks to the Morrison team, and we wish them well under new ownership."

The Group is due to release its results for its financial year ended 31 December 2025 on 26 March 2026