Turnover for the first half of 2025 slipped 4% to £559m, with a planned slowdown in asylum accommodation work dragging on management-led activity.

But revenues in its expanding housing maintenance division jumped 8% to £302m, helped by regulatory pressures and renewed spending from housing providers.

Operating margin rose to 5.6% from 5.2%, driven by tighter branch-level performance reviews and strict cost control. The board now expects full-year profit to come in modestly ahead of market expectations.

Mears, which secured 100% contract retention over the past year, said it had won new orders worth £1.5bn, including the mobilisation of a deal with Moat Homes covering 22,000 properties.

In addition, Mears secured new works with London Borough of Brent and Aberdeenshire Council

Chief executive Lucas Critchley said: “We have continued to make progress against each of our key strategic goals — delivering growth in maintenance activities, developing a full compliance and asset management offer, and positioning the group to deliver additional housing services to Central Government.”

The housing upkeep contractor is channelling investment into compliance, asset management and IT systems as it eyes growth in new regulatory services around fire, gas, electrical, and water safety.

Despite a £5m hit from National Insurance hikes coming in the second half, Mears said efficiency gains from its branch reviews should help protect margins.