Disposal of England and Wales Domiciliary Care
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3 February 2020 |
Mears Group PLC
("Mears" or "the Group" or "the Company")
Disposal of the England and Wales Domiciliary Care business
Further to the announcement on 21 January 2020, Mears (LSE: MER) is pleased to announce that it has completed the disposal of its England and Wales Domiciliary Care business to Cera Care Operations Holdings Limited for a cash consideration of £4.0m payable on completion, and a further £1.0m of deferred consideration receivable over the coming twelve months. The proceeds from the disposal will be used to reduce the Group's indebtedness.
In the year ended 31 December 2019, the activities subject to the disposal generated revenues of circa £36.0m and a profit contribution, after an allocation of support costs, of circa £1.7m. The disposal will result in around 1,500 employees leaving the Group across 18 branches. Gross Assets of circa £4.8m (excluding intangibles), as at 31 December 2019, transferred with the business.
David Miles, Chief Executive Officer of the Group, commented:
"We can be extremely proud of our achievements in care in terms of improving service delivery, workforce pay and conditions but the sector remains underfunded and it has proved impossible to generate an adequate financial return. I am pleased to have completed the disposal of the England and Wales Domiciliary Care business to Cera Care. This will provide continuity for our customers and employees, at the same time as enabling us to focus our efforts where we can deliver superior returns for shareholders."
For further information, contact:
Mears Group PLC
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David Miles, Chief Executive Officer |
Tel: +44(0)7778 220 185 |
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Andrew Smith, Finance Director |
Tel: +44(0)7712 866 461 |
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Alan Long, Executive Director |
Tel: +44(0)7979 966 453 |
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www.mearsgroup.co.uk |
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Buchanan
Mark Court/Charlotte Slater Tel: +44(0)20 7466 5000
mears@buchanan.uk.com
About Mears
Mears currently employs around 9,000 people and provides services in every region of the UK. In partnership with our Housing clients, we maintain, repair and upgrade the homes of hundreds of thousands of people in communities from remote rural villages to large inner city estates. Mears has extended its activities to provide broader housing solutions to solve the challenge posed by the lack of affordable housing and to provide accommodation and support for the most vulnerable. Following the disposal of the Group's stand-alone Domiciliary Care activities, the employee number will reduce to around 6,500.
We focus on long-term outcomes for people rather than short-term solutions, and invest in innovations that have a positive impact on people's quality of life and on their communities' social, economic and environmental wellbeing. Our innovative approaches and market leading positions are intended to create value for our customers and the people they serve while also driving sustainable financial returns for our providers of capital, especially our shareholders.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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