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MERG.L — London Stock Exchange Business Support Services

Mears Group PLC

$417,50
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Mcap
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P/E
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EV / Rev
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Div yield
4,44 %
Op margin
6,6 %
ROE
22,9 %
Net margin
4,1 %
Debt / equity
1,58
Beta
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52w range
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Volume
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Day range
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Prev close
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Open
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Next earnings
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Ex-dividend
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TR 1Y
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About

Mears Group maintains a capital structure with a debt-to-equity ratio of 1.58, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.79, suggesting potential short-term liquidity constraints. Free cash flow stands at £65.8 million, which is a positive indicator of operational efficiency and capacity for reinvestment or shareholder returns. Profitability metrics show a return on equity (ROE) of 22.91% and a return on assets (ROA) of 6.25%, both exceeding the typical thresholds for the Business Support Services industry. These figures suggest strong asset utilization and profitability relative to equity. The company's revenue is primarily concentrated in the UK and Ireland, with no disclosed segment breakdown. This geographic concentration may expose the company to regional economic fluctuations and regulatory changes. Looking ahead, Mears Group is projected to maintain a stable growth trajectory, with no significant revenue growth or decline expected in the next fiscal year. Historical revenue trends indicate a consistent performance, with a total revenue of £1.14 billion in the latest reporting period.

Business. Mears Group PLC (MERG.L) is a business support services company operating within the Industrial & Commercial Services sector. The firm provides industrial services and generates revenue through service-based contracts. It is headquartered in the United Kingdom and is primarily listed on the London Stock Exchange. Specific operating segments and geographic breakdowns are not disclosed in the available data.

Classification92 %
SectorIndustrials
Business sectorIndustrial & Commercial Services
IndustryBusiness Support Services
ActivityIndustrial Services
Generated · model-assisted
Sell-side consensus
—consensus pending
— buy— hold— sell
Avg 12m price target—
Upcoming events
— missing data
See all catalysts →

At a glance

Score
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not yet scored
Valuation
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valuation pending
Analysts
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not yet wired
Ownership
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not yet wired
Profitability→
22,9 %
return on equity
Quality
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not yet scored

What drives this business

The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.

— missing data

News & coverage

0
  • No recent newsroom coverage mentioning MERG.

    • Sector rotation

    Sector1D1Mvs mkt
    Materials+2,3 %+6,6 %+1,7 %
    Communication Services+2,2 %−5,5 %+1,6 %
    Energy+0,6 %+3,3 %+0,0 %
    Health Care+0,6 %−0,8 %+0,0 %
    Information Technology+0,6 %+6,7 %+0,0 %
    Consumer Discretionary+0,4 %+7,6 %−0,2 %
    Financials−0,3 %−2,8 %−0,9 %
    Consumer Staples−0,4 %+2,5 %−1,0 %
    Real Estate−0,7 %+10,9 %−1,3 %
    Industrials · THIS SECTOR−1,9 %−3,1 %−2,5 %
    Utilities−1,9 %+28,2 %−2,5 %

    Developing storylines

    No tracked sagas currently linked to MERG.L. Browse all sagas →

    Analysis

    AI analysis
    Generated · analysis pipeline · tier hybrid · as of 2026-08-04 ↑ At a glance

    Opportunity

    — missing data

    Upcoming catalysts

    Scheduled public events. Informational only — not investment advice.

    • Macro
    • Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
    • Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
    • Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
    • Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
    • Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
    • Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
    • Macro & political
    • ElectionSE Swedish Election2026-09-14 · SE
    • ElectionUS U.S. Midterms2026-11-03 · US
    • ElectionFR French Legislative2027-06-01 · FR

    Pre-earnings brief

    — missing data

    Signals & dispatch

    peak dispatch · —

    Composite-score breakdown

    Synthesis

    Business

    Mears Group PLC (MERG.L) is a business support services company operating within the Industrial & Commercial Services sector. The firm provides industrial services and generates revenue through service-based contracts. It is headquartered in the United Kingdom and is primarily listed on the London Stock Exchange. Specific operating segments and geographic breakdowns are not disclosed in the available data.

    Classification92 %
    SectorIndustrials
    Business sectorIndustrial & Commercial Services
    IndustryBusiness Support Services
    ActivityIndustrial Services
    AI synthesis
    GENERATED

    Mears Group maintains a capital structure with a debt-to-equity ratio of 1.58, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.79, suggesting potential short-term liquidity constraints. Free cash flow stands at £65.8 million, which is a positive indicator of operational efficiency and capacity for reinvestment or shareholder returns.

    Profitability metrics show a return on equity (ROE) of 22.91% and a return on assets (ROA) of 6.25%, both exceeding the typical thresholds for the Business Support Services industry. These figures suggest strong asset utilization and profitability relative to equity.

    The company's revenue is primarily concentrated in the UK and Ireland, with no disclosed segment breakdown. This geographic concentration may expose the company to regional economic fluctuations and regulatory changes.

    Looking ahead, Mears Group is projected to maintain a stable growth trajectory, with no significant revenue growth or decline expected in the next fiscal year. Historical revenue trends indicate a consistent performance, with a total revenue of £1.14 billion in the latest reporting period.

    Risk factors include a medium liquidity risk due to the current ratio and a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no immediate pressure for share issuance. However, the company's reliance on debt financing could pose a credit risk if interest rates rise or if the company's credit rating is downgraded.

    Recent events include the latest financial filing, which disclosed the company's financial position and performance. No significant events or earnings call transcripts were reported in the provided data.

    Key takeaways
    • Mears Group has a strong ROE of 22.91%, indicating effective use of equity capital.
    • The company's liquidity position is medium, with a current ratio of 0.79.
    • Free cash flow of £65.8 million supports operational flexibility and potential shareholder returns.
    • Revenue is concentrated in the UK and Ireland, exposing the company to regional economic risks.
    • The debt-to-equity ratio of 1.58 suggests a moderate reliance on debt financing.
    • No significant dilution risk is currently present, with low dilution potential.

    Bull / Bear case

    Generated · model-assisted
    — missing data

    In focus — financials by report

    Valuation

    Market price
    $417,50
    Market cap
    —
    Enterprise valueⓘ
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    P/Eⓘ
    —
    Non-GAAP P/Eⓘ
    —
    EV / Revenueⓘ
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    EV / Op incomeⓘ
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    EV / OCFⓘ
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    P / Bⓘ
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    P / Tangible bookⓘ
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    Tangible book
    $201.7M
    Net cashⓘ
    -$318.7M
    Current ratioⓘ
    0.8
    Debt / equityⓘ
    1.6
    ROAⓘ
    6.2%
    ROEⓘ
    22.9%
    Cash conversionⓘ
    244.0%
    CapEx / revenueⓘ
    -4.1%
    SBC / revenueⓘ
    —
    Dilution ratioⓘ
    0.0%

    Revenue by segment

    Market share

    — missing data

    Business relationships

    — missing data

    Supply chain

    — missing data

    Peer comparison

    — missing data

    Market position

    Stress test

    — missing data

    Predictor forecast

    Options

    — missing data

    Short squeeze

    — missing data

    Earnings-call key lines

    — missing data

    Consensus distribution

    sell-side coverage
    Recommendation distribution6 analysts
    Strong buy3
    Buy3
    Hold0
    Sell0
    Strong sell0
    12-month price target$492,80 · Median $499,00
    Low $440,00High $565,00
    Operating income · consensus58,9M GBP
    EPS surprise
    +20,9 %
    reported vs consensus · beat
    Revenue surprise
    +9,4 %
    reported vs consensus · beat

    Estimate revisions

    consensus EPS · 26-week trend
    — missing data

    Sell-side observations

    — missing data

    Themes

    — missing data

    ESG

    — missing data

    Risk factors

    Dilution riskLow
    Liquidity riskMedium
    Filing-based flags
    • Net cash is negative after subtracting total debt.

    Benchmarks vs cohort

    Op Margin6,6 %Below median
    Net Margin4,1 %Below median
    ROE22,9 %Best in class
    Capex / Rev-4,1 %Below median
    D/E1,58Bottom quartile
    Cash Conv2,44Above P75

    Corporate actions / M&A

    — missing data

    FX exposure

    — missing data

    Comparable transactions

    — missing data

    Derivatives & instruments

    — missing data

    Actions

    Ask Handelsavisen

    — missing data
    Data sources
    • Market data
    • Market data cache
    • Issuer disclosures
    • Public news
    • Earnings transcripts
    • Consensus estimates
    • ESG data
    How metrics are computed
    • Dilution Ratio
      (shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
    • Net Cash
      cash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
    • Capex To Revenue
      capital_expenditure / revenue
    • Return On Equity
      net_income / total_equity
    • Debt To Equity
      (short_term_debt + long_term_debt) / total_equity
    • Cash Conversion Ratio
      operating_cash_flow / net_income
    Source documents
    • Mears Group PLC Market data — financials · 2026-05-28

    Ownership & reference

    Insider activity

    — missing data

    Short positioning

    — missing data

    Geographic breakdown

    — missing data
    Listings · one canonical issuer all listings resolve to the canonical
    MERG.LCanonical
    London Stock Exchange · USD

    Intel & risk

    peak dispatch · —
    OSINT findings
    Dilution riskLow
    Liquidity riskMedium
    Net cash is negative after subtracting total debt.

    Evidence & claims

    From filings & derived data
    — missing data

    The Thread

    Everything we know, in order
    — missing data
    Sources filings · IR · transcripts · market data · tier hybrid · as of 2026-08-04 Market data · Issuer disclosures · Public news · Earnings transcripts · Consensus estimates · ESG data Premium coverage