Mears Group plc’s recent growth, strong balance sheet and very attractive valuation (LON:MER)


Mears Group plc (LON:MER) was the subject of conversations when DirectorsTalk sat down with fund manager, Gervais Williams. We asked Gervais which companies had recently impressed him in The Diverse Income Trust plc (DIVI) portfolio.

“Within the DIVI Investment Trust, we have several businesses that are not only successful, but are hopefully in a position where they can ultimately thrive. A good example of this might be Mears Group, which is involved in social housing repair. There has been a slower period during COVID because some of the optional things have not been done. It focuses on the essentials, but more specifically, they have also grown quite well. They take market share, they have new clients coming in and they’ve dealt with a lot of additional asylum seekers and that’s generated additional volume for them. The assessment isn’t very demanding at all, it’s just above a company with a market capitalization of £225m but it is still on a valuation of less than 10 times earnings and it earns over 4.5 and it has a strong and ag balance sheet feasible. As this business succeeds, it generates more cash, drives dividend growth, and that drives its stock price higher over time.

Mears Group recently announced on August 15, 2022 the acquisition of IRT Surveys Limited (IRT) for a total consideration of up to £4.1 million.

Commenting on the acquisition, David Miles, CEO of Mears, said:

“I am delighted to have completed the acquisition of IRT, as we seek ways to provide greater scale to Mears, drive our ESG program and provide a broader range of services to new and existing clients. This agreement is completely aligned with our strategy, using innovation and technology to drive positive change in the area of ​​reducing carbon emissions. We are delighted to welcome IRT and its employees to the group.

Mears Group plc is a provider of housing and social services. It repairs and maintains over 700,000 social housing units across the UK.


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