Mears built up sturdy revenue last year, dipping only nine per cent
Housing and care provider group Mears built up a sturdy revenue of £805.8m last year, dipping only nine per cent, but was still struck by profit losses like most firms in 2020.
The group, which manages and maintains 17,000 homes for local and central governments, reported £15.2m worth of losses of £15.2m, for the year ending 31 December 2020, which starkly contrast with its 2019 profits of 20.3m.
The second half of 2020 was a stronger season for Mears, which saw the group return to profitability with a £4.8m profit before tax.
This morning, the group’s shares were up 3.49 per cent at 192.5p per share.
“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,” CEO, David Miles, said.
“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.”
Reduced activity due to the pandemic meant maintenance-led revenues were also down 19 per cent to £536.9m, £123.9m less than the group’s 2019 figure.
However, management-led revenues were up 40 per cent, raking in £253.8m, due to the impacts of the Asylum Accommodation and Support Contract (AASC) which was formed in September 2019.
The group order book stands at £2.6bn, up from 2019’s book worth £2.5bn, thanks to new contract extensions.