Mears Group has warned of job losses by the end of the year after reporting a projected loss for the first six months of the year.

The Gloucester-based housing and care providers said it expected to report a £6million loss over the period.

Revenue in the maintenance arm of the company, which fell 23 per cent to £250million, took the biggest hit with overall group revenue falling eight per cent.

But the trading statement said the coronavirus pandemic was not fully to blame for the results with contract renewals and delays adding to the issue.

A company statement said: "Action has been taken to exit contracts which, both pre and during Covid, the group has identified as not fitting the criteria key to Mears way of working.

"As such, the group will be completing restructuring through the second half-year that will lead to some reduction in staff numbers.

"These developments are not wholly a result of COVID but also through the ongoing drive for continuous improvement and ensuring the group's longer term success."

The firm did not give any details of numbers for potential cut.

Chief executive David Miles said he expected to see recovery in activity throughout the second half if coronavirus remains at a relatively low level.

He said: "While it has been essential for the group to maintain a sharp focus on short term operational and financial management, it is pleasing that the group has also taken positive and considered actions during this period to drive improvements which will deliver better value to the business over the longer term."

Interim results are due to be announced on August 18.