Strong half for Maintenance wins

Research evidence excerpt

Strong half for Maintenance wins

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Mears Group Plc 30 June 2026

Company Update

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 29 Jun 2026 (GBP) 406.50

MERG.L MER LN LSE MERG

Price Target (GBP) 520.00

Business Services

422.50 -

52-week range (GBP)

311.50

Valuation & Risks

David Brockton

H1 traded well with strong period for Maintenance wins Research Analyst

Mears’ H1 trading update confirms the business has continued to trade well +44-20-754-11721

through its first half, with strong new order conversion in its Maintenance business.

James Beard

Research Analyst

£1.5bn of Maintenance awards that underpin future growth outlook +44-20-754-56765

In addition to previously announced contract wins Mears has confirmed a new Steve Woolf

award with Rooftop Housing Group in South Worcestershire and North Research Analyst

Gloucestershire, with estimated value of £150m over 10 years, worth c.2% of group +44-20-754-54604

revenues. As a result, new orders worth £1.5bn have now been secured with local

Bharat Rajesh, CFA

government through the first half that underpin future growth. As new contracts are

Research Associate

mobilised in H2, we believe there is increasingly good prospect for the Maintenance

business to be towards the upper end of its targeted growth of 5-9% for the full year

(DBe +5%). Price/price relative

Growth opportunities in Compliance and Central Government 400

The integration of the Pennington business is also well advanced, accelerating the

development of Mears’ Compliance offer. Management also reiterates that the

business remains well positioned to deliver additional housing services to Central 200 2024 2025 2026

Government, such as in defence.

Mears Group Plc – (Rebased)