Mears on target to tender £2bn of new work this year

Aaron Morby 11 years ago

Social housing specialist Mears has started on a record seven new contracts this year helped by two jobs snapped up after rivals firms had work terminated early.

The firm added there was a huge pipeline of work coming up in the second half of 2012 and said it was on target to bid £2bn of potential new contracts this year.

The surge in orders has seen like-for-like organic growth of 12% in the firm’s core social housing repair and maintenance operation and it now claims to be a clear market leader in the UK.

David Miles, chief executive of the Mears Group said: “It is a continuing theme over the last two years that we have witnessed a number of early contract terminations for our competitors within the social housing sector on the back of poor operational performance.”

The two new housing repair jobs worth around £14m are with the London Borough of Southwark and Notting Hill Housing Trust.

He said: “The first half of 2012 has seen the most intense period of new contract mobilisation in our history with seven significant new contracts commencing in this period with an annual value of in excess of £50m.

“As anticipated, the large volume of new works has diluted the social housing operating margin in the short term as we expense the cost of this range of new work directly during the period and we will see the benefits of this significant growth as we progress through each contract.

“The pipeline is strong with our key target opportunities falling in the second half of the year with over £1.1 bn of new contracts at PQQ or tender stage and we remain on target to tender £2bn of new contract opportunities in 2012.”

The improved workload helped Mears to lift group turnover 5% to £307m in the first half of the year, with pre-tax profits up 2% at £14.3m.

Mears group interim results

Social Housing £215m (2011: £207m) £10.7m (2011: £11.5m)
Domiciliary Care £56m (2011: £51.7m) £4.5m (2011: £3.9m)
Other Services £36.1m (2011: £33.7m) (loss £361) (2011: £294)

Latest news

Structural steel and rebar prices fall sharply

Structural steel prices fall 31% and rebar down 16% from peak, but still above historical levels
1 day ago

Acquisitive OCU swoops for London multi-utility specialist

Modus will be OCU's fifth acquisition in 12 months
1 day ago

Gove goes after Grenfell cladding supplier Arconic

Housing secretary fires off another letter to a Grenfell supplier saying pay up for cladding crisis
2 days ago

Family owned builder files administration notice

Clement Dickens lodges court notice
1 day ago

New street works regime to clamp down on pothole pain

New regs come into force over stricter inspection regime for utility street works road reinstatements.
1 day ago

Steel trade body opens quality scheme to all steelwork firms

BCSA admits non-members to key steelwork registration scheme
1 day ago

Mace raises carbon ‘handprint’ savings target for clients 10-fold

Mace hikes client carbon savings target it will deliver from 1m to 10m tonnes
1 day ago

Squibb confirms appeal against bid rigging fine

Demolition specialist joins Keltbray in appealing against CMA penalty
2 days ago

Bigger projects help Wates hit record turnover

Size of average construction contract taken on hits £43m
2 days ago

12 firms in fight to renew £1bn North West Construction Hub deal

Race starts for medium value building framework covering projects between £3m-£8m
2 days ago

Former Inland Homes chief to invest £2.5m in cash raise

Cash-strapped developer hopes to raise £4.6m in share sale closing today
3 days ago

Ten firms sign £3bn L&Q homes upgrade deal

15-year deal will include fire safety, energy retrofits, bathroom and kitchen upgrades
2 days ago

Groundworks firm Conlon saves piling specialist

Work restarts on Abbey Pynford sites after acquisition
3 days ago

BAM Farrans JV installs Great Yarmouth bridge leaves: Video

Watch civil engineering feat in action as 770 tonne bridge leaves lowered into place
3 days ago

Gove invites Kingspan for talks on fire safety compensation

Insulation firm urged to pay for its part in cladding crisis after unveiling record profits
3 days ago

Galliford Try and Midgard bag 350 homes deal at Brent Cross

Galliford Try will build 249 BtR flats and Midgard 107 flats for sale
3 days ago

Sizewell C project gains key environmental permits

Waste permits allow client NNB Generation Company to move to site investigation and construction environmental approvals
3 days ago

Cost of Robertson school contract soars to £100m

Construction to start next month after cost jumps from original £60m
3 days ago

House building cost inflation eases as build out rates fall

Housing cost inflation expected to grow by 1.4% this quarter
3 days ago

Modular builder ilke Homes hires Deliveroo chief to drive profit push

David Scott charged with making business profitable
3 days ago

£500m Leeds South Bank scheme gets green light

Leeds City Council approves plan for 1,350 flats in mixed-use South Bank development
5 days ago

Galliford Try takes rebid £150m Carlisle Southern Link Road

Main construction works are due to start on 8km road in June
5 days ago

Arup takes stake in graphene-enhanced concrete venture

New concrete additive Concretene™ promises 30% savings in CO2 emissions
4 days ago

Winners revealed on £1.42bn materials framework

Thirteen builders merchants land places on huge procurement deal for social landlords
4 days ago

Travelodge eyes plans for another 300 hotels

Hotel giant writes to local councils offering partnership deals with a £3bn investment target
4 days ago

Balfour Beatty to invest £60m in pop-up EV chargers

New Urban Fox JV will roll out 35,000 charge points across the UK over the next decade.
5 days ago

Leading Channel Isles builder goes bust

Jersey-based construction firm Camerons placed in liquidation
4 days ago

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
6 days ago

Worker dies on major warehouse site in Stafford

Main contractor Glencar halts work while tragedy is investigated
5 days ago

Sellar switches London flats/hotel plan for 444 student rooms

Developer buys Southwark's King’s Place site for major student room block rising to 11 storeys
5 days ago

Contractor services