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Wed October 28 2020

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Mears enjoys growth in profit and revenue

9 Mar 10 Mears has announced a 12% increase in revenue for the year ending 31 December 2009, from £420m to £470m.

Mears has announced a 12% increase in revenue for the year ending 31 December 2009, from £420m to £470m.

This was chiefly due to social housing turnover climbing 26% to £355m.

Profit before tax also grew, from £16.6m a year ago to £18.4m.

Mears’ M&E business reported a 30% fall in revenue to £54.8m, after experiencing “difficult trading conditions”. The division has recently started work on the London 2012 Athletes Village, which has reduced the margin in the division as no profit is recognised in the early stages of the contract.

Domiciliary care, Mears’ other main business, saw a modest rise revenue rise to £60.1m from £54.6m in 2008.

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The group’s order book stands at a record £2bn, and the firm is currently bidding for work worth £3.9bn.

Mears’ net cash position at 31 December 2009 was £6.5m (2008: £6.6m).

Bob Holt, chairman, Mears Group said: “Our two growth markets, social housing and domiciliary care, which account for close to 90% of Group revenues, are defensive sectors where spend is largely non-discretionary and is therefore unlikely to be affected by any public sector cutbacks.

“It should also be noted that a significant proportion of our social housing revenue is derived from Housing Associations who would be less affected by a reduction in public sector spending. We are seeing unprecedented levels of opportunity within the public sector and drivers such as budgetary pressures are more likely to encourage our Local Authority clients to consider more innovative and higher scale partnerships.

“Mears is well placed to benefit from this and regardless of the outcome of the forthcoming election we believe that the demand and opportunity for our two growth markets will continue to be strong.”
 

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