Mears Group PLC Acquisition of IRT Surveys Limited (9363V)
August 15 2022 - 2:00AM
UK Regulatory
TIDMMER
RNS Number : 9363V
Mears Group PLC
15 August 2022
Mears Group PLC
("Mears" or the "Group" or the "Company")
Acquisition of IRT Surveys Limited
Mears Group PLC, the leading provider of services to the Housing
sector in the UK, is pleased to announce the acquisition of IRT
Surveys Limited ("IRT"), for a total consideration of up to GBP4.1m
(the "Acquisition").
Headquartered in Dundee, IRT provides a range of data-led
services focussed on addressing fuel poverty, decarbonisation and
energy efficiency. IRT has developed over several years a
proprietary technology platform ("DREam"). DREam has been
engineered to simplify and accelerate the domestic property
retrofit journey, by assessing the energy performance of housing
portfolios, optimising budgets and providing solutions on the most
efficient way to complete retrofits, within the affordable housing
sector.
IRT is well-known and respected in the sector, with over 30
Registered Social Housing provider clients spanning the UK and
having surveyed over 350,000 domestic properties. IRT will continue
to service existing IRT clients. In addition, IRT has an active
sales pipeline underpinning its growth forecast, which will be
enhanced further upon joining the Group and through the
opportunities that will subsequently exist.
The Board believes there are significant opportunities in the
structurally growing field of carbon reduction, which will be
complementary and additive to the services already provided by
Mears. The requirement to decarbonise an ageing housing stock,
especially in affordable housing, is accelerating in the current
environment given the significant increases in energy costs, and
the agenda to meet the Government's targets of achieving net zero
by 2050.
Acquiring the innovative IRT platform is an important part of
the Group's retrofit solution and will enable Mears to conduct
stock analysis modelling for carbon reduction work, enabling
opportunities to be progressed quickly, and to help identify and
access grant funding support available. The Acquisition will
provide Mears new skills and capabilities in this area, bringing
new expertise in-house, supporting pre-sales activity and helping
to unlock the Group's ability to deliver carbon retrofit work,
which has been identified as a significant market.
IRT is being acquired on a cash free, debt free basis,
consisting of an initial consideration of GBP3.0m, and subsequent
contingent consideration of up to GBP1.1m, payable over a two-year
period following completion, subject to satisfactory performance
against business development targets. The Acquisition consideration
will be settled in cash and funded out of Mears' existing cash
resources.
In the year to 31 December 2021, IRT reported revenues of
GBP0.4m and an operating loss of GBP0.1m. The business is on-track
to deliver revenues of GBP0.8m in FY22 and an operating profit of
GBP0.2m.
Commenting on the acquisition, David Miles, Chief Executive
Officer of Mears, said:
"I am delighted to have completed the acquisition of IRT, as we
look at ways of providing greater scale to Mears, drive our ESG
agenda, and provide a broader range of services to new and existing
clients. This deal is completely aligned with our strategy,
utilising innovation and technology to drive positive change in the
sphere of carbon reduction. We are excited to welcome IRT and its
employees into the Group."
For further information, contact:
Mears Group PLC
David Miles
Lucas Critchley
Andrew Smith
Joe Thompson, Investor Relations Tel: +44(0)7980 844 580
www.mearsgroup.co.uk
About Mears
Mears is the leading provider of services to the Affordable
Housing sector in the UK: responsible for the maintenance of c.10%
of the UK's social housing stock; and managing over 10,000 homes
for local and central government.
Mears currently employs around 5,500 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.
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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