Revenues to rise to in excess of £900million at Gloucester-based listed company
By James Young | 21st January 2020
Mears are in the advanced stages of selling its Domiciliary Care division in a move that will see 1,500 members of staff leave the Gloucester-based housing and care providers.
In a trading statement released to the Stock Exchange ahead of their full year results this morning, Mears reported that underlying profits are expected to be in line with board expectations.
Mears CEO David Miles said: "Our exit from standalone Domiciliary Care will enable us to focus our efforts where we can deliver superior returns for shareholders.
"In line with this, we also continue to make progress unwinding our exposure to Development activities.
The statement said that revenues, excluding the standalone Domiciliary Care activities, will be more than £900 million, up from £773million in 2018 - a rise of 16 per cent.
The firm also confirmed that their order book, adjusted to reflect continuing activities is down from £3billiion in 2018 to £2.5billion "due to the "timing of existing contracts coming up for renewal."
Mears announced the acquisition of MPS Housing Ltd from Mitie PLC in November of 2018 and the firm said that the revenues of MPS helped drive revenues up by £115million.
Mr Miles added: "2019 was a very busy year for Mears.
"A significant amount of time and focused effort has been directed towards the integration of MPS and the mobilisation of the asylum housing contract.
"I am confident that we are well placed to benefit from this upfront investment in our core business.
"We continue to see a good pipeline of opportunities providing Housing with Care, in the majority of cases to provide, manage and maintain accommodation and to care for the service users.
The statement also added that Mears expect to complete the sale of its Scotland Domiciliary Care business during 2020, which will see 1,000 staff across 16 branches leave the firm.
In January last year, the Gloucester-based firm won three government contracts to provide accommodation and support for asylum seekers, across the North East, Northern Ireland and Scotland.
A mobilisation period where Mears worked alongside the government through to April 2019 was "executed successfully."
Revenues of £45million were delivered in 2019 with future expected revenues to be in excess of £100million.
Substantial changes were made to the contract's property portfolio during the fourth quarter allowing for improved returns with further improvements expected in 2020.
Based on Gloucester Business Park in Brockworth, Mears Group PLC employ around 12,000 staff across the UK in the care and housing sectors.
The company reported revenues of £869.8million in 2018 - figures that included the soon-to-be-sold domiciliary care division - and profits of £40.8million.
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