Profit before tax at Mears Group increased by 34% in 2023, jumping to £46m in the last financial year.

The housing services provider also saw its revenue reach £1.1bn in the same period, an increase of 14% from £959.6m in 2022.

Of this revenue, 40% was contributed to contracts signed with the Asylum Accommodation and Support Contract (AASC) with the Home Office.

At the time that the contract was won, Mears Group said it expected to report annual revenues of around £120m, which under normal conditions, would account for around 15% of group revenues.

However, the firm experienced elevated volumes as a result of a backlog linked to the challenges of the COVID pandemic.

Mears Group hiked its dividend per share by 24% to 13 pence and also completed £33m worth of share buybacks, accounting for £12.2m in ordinary shares.

Looking forward, the firm said that its adjusted profit before tax for 2024 is expected to be similar to that achieved in 2023.

Chief executive officer at Mears Group, Lucas Critchley, said: "We are delighted to have delivered strong growth in revenues, profits and cash generation in 2023. The group is recognised as a leading housing specialist, and we continually look to evolve our capabilities to further strengthen our market position. The board believe that the group is well-positioned for the future and is pleased that the strong trading momentum built in 2023 has continued into 2024."

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