Brockworth-based Mears Group has swung into a first-half loss after being hit by Covid-19.

Mears, which provides support services to the social housing and care sectors across the UK, saw group revenue for the first six months of 2020 reduced to £407.0m (2019: £439.2m) with a reduction in maintenance revenues to £261.7m (2019: £323.3m).

This was partly offset by an increase in management revenues delivered by the new Asylum Accommodation and Support Contract ('AASC') which commenced in September 2019.

As a result of the impact upon the business of Covid-19, the Group delivered a loss before tax and before the amortisation of acquisition intangibles of £5.8m (2019: profit before tax £16.7m).

Mears said a recovery in activity levels was expected during the second half of 2020, as working arrangements progressively return towards more normal levels. Levels of demand are expected to remain strong, with some easing in the operational challenges.

While the Covid crisis has impacted short-term financial performance, Mears says the business remains resilient, volumes are returning and win rates are healthy.

David Miles, chief executive officer of the Group, said: "The Mears' business has acted with a great sense of responsibility and professionalism during the Covid-19 pandemic, both in terms of ensuring the ongoing resilience of our operations and supporting the communities where we work.

"Our people have performed valiantly in the most challenging of circumstances. Service quality levels to our local and central government clients, and to our many vulnerable service users, have remained at their traditionally high levels throughout the period.

"Inevitably, the Covid-19 crisis has impacted short-term financial performance in these results, particularly as Maintenance contract volumes reduced to emergency-only to protect the safety of staff and service users alike.

"Activity levels are returning to normal, and I am very confident as to the financial stability and the long-term wellbeing of the Group. The Group has taken positive and considered actions during the Covid-19 period to ensure that the Group is stronger than ever and well positioned once the UK sees a return towards normality."