DJ Mears Group PLC Disposal of England and Wales Domiciliary Care
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
Mark Court/Charlotte Slater Tel: +44(0)20 7466 5000
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.
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(END) Dow Jones Newswires
February 03, 2020 02:00 ET (07:00 GMT)