“Excellent progress has been made in mitigating the financial impact,” the boards said today, and operating losses “will be modest”.
Mears generates two-thirds of its revenues from public and tertiary sector housing maintenance activities. These clients have agreed to defer work and Mears has been operating an emergency service only.
Five percent of revenue normally comes from development activities – these have now been mothballed.
Where Mears has been less impacted is in its housing management activities, which normally account for a quarter of group revenues. “There is no reduction in demand in this area, given the large numbers of vulnerable people, who often need daily support,” the company said. “The challenge is to continue to support vulnerable service users whilst adhering to the strict rules around how our employees can safely interact with colleagues and service users.”
Mears has taken advantage of government support scheme, furlough staff and deferring its latest VAT payment for a year.
Chief executive David Miles said: "The group has made excellent progress in taking the necessary steps to address these current challenges. Whilst it is not possible to predict the future with certainty, I am confident as to the financial stability and the long-term wellbeing of the group. I am extremely proud of the professionalism and hard work shown by the Mears team in the most challenging of circumstances."