LONDON: Mears Group (LSE: MER), the UK Housing solutions provider, has completed its exit from domiciliary care, with the disposal of its Scotland Domiciliary Care business (SDC).
The disposal to Cera Care Operations Holdings Limited, who also acquired the England & Wales Domiciliary Care business, is for a cash consideration of £2.0m payable on completion, and a further £0.5m of deferred consideration receivable twelve months from completion.
The proceeds from the disposal will be used to reduce the Group’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 2020, and the disposal of SDC completes the exit of the Group’s Domiciliary Care services.
In the full year to 31 December 2019, SDC generated revenues of £21.7m and a profit contribution, after an allocation of support costs, of circa £0.6m. In the interim results to 30 June 2020, these activities were treated as discontinued and generated revenues of £10.9m and a small operating profit contribution. Gross Assets of circa £3.3m (excluding intangibles), as at 30 June 2020, transferred with the business.
David Miles, Chief Executive Officer of the Group, commented: “This disposal marks our exit from domiciliary care, in line with the Group’s strategy to purely focus on its core Housing solutions activities. 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.