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28 Sep 2020 | 07:23

Mears sells Scotland domiciliary care business

(Sharecast News) - Housing provider Mears has completed its exit from domiciliary care, with the disposal of its Scotland Domiciliary Care (SDC) business, it announced on Monday.

The London-listed firm said the disposal to Cera Care Operations, which also acquired its England and Wales Domiciliary Care business, was for cash of £2m payable on completion, and a further £0.5m of deferred consideration 12 months after completion.

It said the proceeds would be used to reduce the company's indebtedness, in line with its de-gearing strategy.

The group previously completed the disposal of its England and Wales Domiciliary Care business in January, with the disposal of SDC completing the exit of its domiciliary care services.

In the full year ended 31 December, SDC generated revenues of £21.7m and a profit contribution, after an allocation of support costs, of around £0.6m.

Mears said that in the interim results to 30 June, the activities were treated as discontinued and generated revenues of £10.9m and a "small" operating profit contribution.

Gross assets of about £3.3m, excluding intangibles, as at 30 June, transferred with the business.

"This disposal marks our exit from domiciliary care, in line with the group's strategy to purely focus on its core housing solutions activities," said chief executive officer David Miles.

"This disposal to Cera Care provides continuity for our customers and employees, at the same time as enabling us to focus our efforts where we can deliver greater value for shareholders."

At 0801 BST, shares in Mears Group were down 3.56% at 108.5p.
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