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Six month-profits rise to £18m-plus at Gloucestershire business Mears Group PLC

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Written by:   | Posted 19-August-2014 10:28

Six month-profits rise to £18m-plus at Gloucestershire business Mears Group PLC

Profits are up 11 per cent to £18.7m at multi-billion pound order book business Mears Group PLC, and that’s just the last six months.

Gloucestershire-based Mears has published its interim results for the six months to the end of June 30, showing new contract wins in excess of £200million.

Not everything has gone entirely its way. Total group revenue is down for the Brockworth headquartered social housing and care provider from £439.1m to £428.1m (three per cent).

Its order book has also shrunk slightly on last year (£3.8blln), but still stands at £3.7blln, with the firm – which employs more than 5,000 staff nationally – blaming changes to housing finance and welfare reforms for a delay in new bidding opportunities.

Nevertheless, come the end of the year the firm famously grown from a fledgling business by Bob Holt expects earnings to be in line with expectations.

David Miles, chief executive of Mears, ranked third in this year’s Gloucestershire Media Top 100 Businesses in Gloucestershire supplement with a turnover of £898.2m, said: “I am pleased with the progress Mears has made in the first half of 2014.

“Our social housing business has long been recognised as the market leader in terms of operational performance and customer satisfaction.

“Although the immediate pipeline has been impacted temporarily from a quieter period of new bidding opportunities, our conversion of new bidding opportunities has increased to 35 per cent.

“We have increased our focus upon positioning for future market growth in housing management and continuing margin improvement.

“I believe the opportunities for us in social housing remain very strong as our clients seek broader solutions to their increasingly complex housing challenges.

“In care, as a robust high quality provider at the forefront of change in the sector, we remain very well placed strategically to take advantage of the long term opportunities.

“I am delighted at the success we have achieved in new contract bidding and importantly, we continue to see a positive move in the structure of tendered opportunities with new contracts being awarded to fewer providers with increasing contract lengths.

“There has been a marked move away from frameworks towards strategic partnerships; this will benefit us disproportionately given our long term partnership ethos.”

Mears also expects to see more growth in its care business, through organic growth supported by acquisitions.

The first six months of the year have seen a five per cent growth in its care business to £63.2m turnover.

Revenue in its housing business stood at £364.9m – three per cent growth on the equivalent six months last year.

 

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