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Mears records £18.2m profit in first half of 2016 as it sees demand for new-build services increase

Mears has reported a slight dip in pre-tax profit for the first six months of 2016 as it expands new-build services to housing clients.

The services firm posted pre-tax profit of £18.2m for the half-year to 30 June, down 5 per cent on the £19.2m recorded for the same period in 2015.

The company attributed the slight drop to a “high number of new contract mobilisations combined with a lower margin in care”.

Revenue was up 8 per cent year on year, from £430m in H1 2015 to £466.2m in H1 2016, as the firm secured a number of new-build housing deals.

Mears has been contracted to build 29 affordable rented homes on a brownfield site for its client Welwyn and Hatfield Council client, for whom it provides long-term maintenance services.

The project is valued at £5.6m and the contract is due to complete at the end of 2017. Mears will then take over the long-term maintenance of the homes.

The firm has also been picked to build 80 affordable homes across seven infill sites for Milton Keynes Council, under a contract worth around £11m.

Site work will start in spring 2017 and complete in early 2018.

Mears said it had “broadened its service capability to include the provision of new-build services, primarily targeting our existing housing clients”. 

It added: “Mears is not a property developer, general builder or asset holder and will focus on managing assets for the benefit of owners and client public sector bodies.”

Mears CEO David Miles said he was “pleased” with the progress made, but that the firm continues to “find the care market challenging”.

He said: “We remain confident that that we have the right strategy and that the business is best placed to take advantage of industry evolution as it happens.”

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