Housing maintenance firm eyes growth after retaining and winning contracts

Mears has reported flat turnover in the first half of the year but has increased its order book to an all-time high after a series of contract wins and successful re-bids.

mears

The social housing maintenance firm, in its half-year results for the six months to 30 June, reported turnover of £560m compared to £559.4m the previous year. Its statutory pre-tax profit rose from £32m to £38m, but profit adjusted for one-off items fell 10% to £28.9m.

The firm in the first half of the year won a £450m repairs contract with Birmingham City Council and a £150m, 10-year deal with Rooftop Housing Group.

It was also re-awarded contract with Cross Keys Homes, Leeds City Council, Livin’ Homes and Thurrock Council. This followed what the firm said was an “intensive” period of re-bids in which more than half of its maintenance contracts were re-procured.

It said: “The visibility of forward revenues is significantly improved, and the group can focus its bidding resources on securing further growth opportunities with new customers. In addition, there is a solid bidding pipeline of new growth opportunities.”

The firm said it has made a “solid start” to the year with the contract retentions and wins giving the board a “high level of confidence” it can meet its maintenance-led growth target of 5-9% for the full year. It said it is well-positioned to meet market expectations off delivering revenue of £1.04bn and adjusted profit of £50.7m in the year.