Total group revenue for 2012 was up 15% to £679.5m (2011: £589.0m) and the order book swelled to £3.8bn by year-end (2011: £2.9bn).
Excluding the Morrison acquisition, pre-tax profit was up 7% to £33.6m (2011: £31.5m). Including the loss-making Morrison, pre-tax profit was up just 1% to £31.7m.
Morrison added revenues of £45.0m for the 2012 accounts. Annual revenues from Morrison in the future are anticipated to be in excess of £200m. The operating loss of £2.3m generated by Morrison in the period between 7 November 2012 (acquisition date) and 31 December was in line with expectations.
Mears now expects to squeeze more profit from the Morrison deal than it originally anticipated, with synergies in excess of the £8.0m originally forecast as a result of combining the Social Housing divisional support functions
Chief executive David Miles said: "2012 has been the most successful in the group's 17 year history. We delivered record revenue and achieved significant growth. The first half year saw an intense period of new contract mobilisations. In the second half, we reinforced our market leading position in Social Housing with the transformational acquisition of our most significant competitor, Morrison.
"We are now at an advanced stage in restructuring the senior operational management and social housing support functions. Whilst this has, as anticipated, realised significant financial synergies, it has also provided an opportunity to combine the strengths of both organisations and enhance operational delivery and control. Our operational, financial and development platforms are stronger than ever."
He added: "I believe that the opportunities for us in social housing are stronger today than at any time since I joined the business.”
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