Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Mears picks up rivals' work as part of £3bn bids

Mears has announced it is currently bidding for work worth more than £3 billion, of which £1.7bn of tender opportunities applies to schemes starting before April 2013.

The social housing contractor announced increases in revenue and operating margin as well as a bid pipeline of more than £3 billion in its half-yearly update to 30 June 2012.

Revenue has increased to £307.2m for 2012 H1, up 5 per cent from £292.6m in 2011 H1. Adjusted profit before tax was £14.3m in 2012 H1, up from £14.1m in 2011 H1.

The firm has pointed to a “continuing theme over the last two years” where competitors are having contracts terminated early.

It pointed to a recent deal with the London Borough of Southwark where it has displaced Morrison on an £11 million repairs and maintenance deal, as reported by CN last month.

Mears has also secured a £3m deal with Notting Hill Housing Trust on a similar basis, due to an early termination of a contract.

The firm said its pipeline is strong with key target opportunities falling in the second half of the year but its new contract win rate over the last twelve months was 35 per cent and there is currently over £1.3 billion of new contracts at pre-qualification or tender stage.

Mears Group chief executive David Miles said: “I am delighted at the progress made by the group in recent months particularly with very strong cash management and new contract mobilisations resulting in a 12 per cent like for like organic growth in our core social housing repair and maintenance operation which is a clear market leader in the UK.

“The first half of 2012 has seen the most intense period of new contract mobilisation in our history with seven significant new contracts commencing in this period with an annual value of in excess of £50 million.

“The quality of these mobilisations and the subsequent service delivery has exceeded our high expectations. As anticipated, the large volume of new works has diluted the social housing operating margin in the short term as we expense the cost of this range of new work directly during the period and we will see the benefits of this significant growth as we progress through each contract.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.