Mears blames suicide bids for Connaught and Rok failures

Grant Prior 13 years ago
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Social housing repair specialist Mears enjoyed increases in profit and turnover last year as its two main rivals collapsed.

Chairman Bob Holt described 2010 as a “watershed” year for the sector as rivals Rok and Connaught imploded.

Holt blamed the failure of both firms on suicide bidding which he said continued to blight the industry.

Holt said: “The Social Housing sector has recently seen a number of very public corporate failures.

“A contributing factor to these failures was, and continues to be,  the practice of tendering at unsustainable prices which lead to consequences that benefit no one.”

Holt said the firm is continuing its hunt for acquisition targets as the cut in public spending leads to outsourcing opportunities and more work is created by energy efficiency programmes.

During 2010 Mears won new social housing contracts across the country worth £750m.

Group turnover for the year rose 11% to £523.9m as operating profit jumped 27% to £31.3m.

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