Mears on acquisition trail as revenue hits new record

Aaron Morby 12 years ago

Social housing specialist Mears saw revenues soar 12% to a record £589m after an exceptional year of contract wins.

The firm, which now maintains more than 10% of the UK social housing stock, bagged nearly half the jobs it bid, pulling in a £700m haul of new work last year.

Tight financial controls on contracts helped convert rising workloads into a a 9% uplift in profits to £31.5m for the year.

David Miles, Chief Executive of Mears Group said: “I am confident that we will remain significantly differentiated from our remaining competitors. We continue to seek appropriate bolt-on acquisitions.

“I am particularly pleased by the positive impact we achieved turning-around the contracts we inherited over recent years from failed businesses.”

The firm said demand for its services continued to be very strong with a bid pipeline in excess of £3bn with immediate bidding opportunities for contracts due to start in the course of the next twelve months in excess of £2bn.

Miles said the social housing business would grow with further contract wins, while its expanding care business would seek acquisitions.

Social Housing Division:

·      Record revenue of £415m (2010: £379m), up 9%.

·      Growth in core maintenance revenue, up 21%

·      Operating margin at 5.8% (2010: 6.0%)

Care Division:

·      Revenue increased by 8% to £108m (2010: £100m)

·      Operating margin increased to 8.0% (2010: 7.5%).

    2011 contract awards

    Barnet Homes Ten-year contract with Barnet Homes worth £69m
    Waverley Borough Council Seven-year contract worth £52m
    Home Group Seven-year contract with Home Group to cover properties in their South West region worth £35m
    Tamworth Borough Council A five-year repair and maintenance contract worth £40m.
    Gateshead Council A three-year partnership contract to provide responsive repairs, void services, gas servicing, worth £60m

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