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Mears targets acquisitions after record 2011 revenue

Mears is targeting acquisitions after recording record revenue for 2011.

Posting its annual results to 31 December 2011, the contractor reported an increase in pre-tax profit from £28.9m to £31.5m, with revenue up 12 per cent from £524m to £589m.

Social housing revenue grew to a record high, up by nine per cent to £415m, with an operating margin of 5.9 per cent (2010: 6 per cent). Care revenue was up from £100.4m to £108.5m, with margin up from 7.5 per cent to 8 per cent.

The care and housing repairs and maintenance specialist is targeting bolt-on acquisitions in both core growth markets as it sees ageing population and economic challenges providing significant opportunities.

Chief executive David Miles - who tolds CN in 2010 he is targeting double digit growth for the year - said:  “We have delivered as we promised we would.

“The well documented challenges in the care market are likely to accelerate in 2012. Mears continues to be at the forefront of seeking solutions to these challenges, both intellectually, in terms of influencing policy makers and critically in terms of investment and training in our operational processes.

“Where appropriate, we will seek acquisitions to broaden our care offerings.”

Mr Miles added:  “In challenging market conditions overall, we continue to believe that our track record of superior customer service, financial strength and service innovation will position us well to meet our customers’ needs in our two growth markets.”

The firm said it has visibility of 94 per cent of revenue for 2012 and 80 per cent for 2013.

Average net debt £58.5m (2010: £48.5m), and net debt at 31 December was £13.4m (2010: £12.2m).

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