Mears forecasts return to profit after £15m loss last year

Aaron Morby 3 years ago

Housing maintenance contractor Mears is forecasting a return to strong profit this year after plunging into the red in 2020 because of Covid disruption.

Miles said Mears has a strong opportunity to grow from its strong base of 20% of the outsourced housing maintenance market
Miles said Mears has a strong opportunity to grow from its strong base of 20% of the outsourced housing maintenance market

The firm reported a pre-tax loss of £15m last year after group revenue slid 9% to £806m with maintenance-led revenues of down 19% to £537m.

Despite Covid restrictions, Mears continued to restructure the group to focus on housing activity, exiting standalone domiciliary care and selling its planning solutions business Terraquest.

These disposals improved net cash for the year-end to £57m and reduced average daily net debt from £114m to £97m.

David Miles, chief executive officer,  said: “Even with the potential post-Covid economic challenges, housing is a sector that will be invested in to support economic recovery and indeed to meet longer term challenges, such as those posed by climate change.

“There is clear opportunity to grow both our maintenance-led and management-led work and indeed we see an increasing number of opportunities that will integrate all of our services.

He added: “Today, Mears looks after more homes than any other organisation across local and increasingly Central Government.

“We have clear leadership in the maintenance market with 20% share of outsourced contracts and a long-standing reputation for service quality, technology, workforce management and social value.”

He added the board expected to see revenue remain stable at around £800m this year, returning a pre-tax profit of up to £25m.

Over last year Mears secure a three-year contract extension with Milton Keynes Council, which will see it continue to provide services, with an annual value of around £40m a year, until at least April 2024.

It was also confirmed as the preferred bidder by Cornwall Council, to be a strategic partner to deliver to the Council up to 750 new extra care units across the County over the next 7-10 years.

Latest news

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
2 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
2 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
2 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
2 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
2 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
2 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
3 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
3 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
4 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
3 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
3 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
3 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
3 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
4 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
4 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
4 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
4 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
5 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
5 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
5 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
5 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
5 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
5 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
6 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
5 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
6 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
6 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
5 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
6 days ago

Contractor services