Mears posts full-year loss but sets sights of further growth
By Matt Hall | 12th May 2021
Gloucestershire-based facilities management specialist Mears Group has revealed a pre-tax loss in its latest full-year results, but said 'strategic progress' had been made.
The firm revealed a loss before tax of £15.2m for the year to December 31, after the amortisation of acquisition intangibles and exceptional items. In contrast, Mears posted a £20.3m profit the year before.
However, Mears returned to profitability in the second half of the period, delivering £4.8m adjusted profit before tax compared to the £8.2m loss in the first half.
Group revenue remained resilient overall, falling just nine per cent to £805.8m from £881.5m in 2019.
Mears said 'significant strategic progress' made during the year, including the disposal of Terraquest and Domiciliary Care businesses, helps to position itself as a low capital-density housing services specialist.
It added that the board sees growth opportunities driven by increasing investment in the affordable sector, the Social Housing White paper's call for higher standards and engagement, continued demographic pressure, increasing housing waiting lists and Government commitments to raise the carbon efficiency of all social housing stock.
Chief executive officer David Miles said: "The Mears' business responded with great responsibility and professionalism during the pandemic, both in terms of the ongoing resilience of our operations and supporting the communities where we work.
"The strength of our people, our infrastructure and our client relationships have served us well through Covid-19, while the urgent need for the services Mears provide has only been heightened by it.
"Today, Mears looks after more homes than any other organisation across Local and increasingly Central Government. We have clear leadership in the maintenance market with c.20% share of outsourced contracts and a long-standing reputation for service quality, technology, workforce management and social value.
"Together with our strengthened balance sheet and good cash generation, we look forward with confidence."
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