Mears Group PLC Disposal of England and Wales Domiciliary Care (6625B)
February 03 2020 - 2:00AM
UK Regulatory
TIDMMER
RNS Number : 6625B
Mears Group PLC
03 February 2020
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 GBP4.0m payable on
completion, and a further GBP1.0m 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 GBP36.0m and a profit
contribution, after an allocation of support costs, of circa
GBP1.7m. The disposal will result in around 1,500 employees leaving
the Group across 18 branches. Gross Assets of circa GBP4.8m
(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
David Miles, Chief Executive Tel: +44(0)7778 220 185
Officer
Andrew Smith, Finance Director Tel: +44(0)7712 866 461
Alan Long, Executive Director Tel: +44(0)7979 966 453
www.mearsgroup.co.uk
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.
END
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