Mears Group Manages Strategic Growth Despite Losses

Mears Group Manages Strategic Growth Despite Losses

Mears Group has announced a significant strategic progress, despite having slipped to a pre-tax loss in its full year results. The listed company reported a statutory loss before tax on continuing items, after the amortisation of acquisition intangibles and exceptional items, of £15.2 million for the year ended 31 December 2020, compared to a profit of £20.3 million in 2019.

In the second half however, the company returned to profitability, with a £4.8 million adjusted profit before tax, after posted a £8.2 million loss in H1. In comparison, Group revenue was £805.8 million, down from £881.5 million the previous year.

Despite this news, Gloucester-headquartered Mears Group said “significant strategic progress” had been made during the year in positioning the group as a low capital-intensity housing services specialist. This included the disposals of Terraquest and Domiciliary Care businesses for up to £70 million and £7.5 million, respectively.

“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,” commented David Miles, chief executive at Mears Group.

“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 circa 20 per cent share of outsourced contracts and a long-standing reputation for service quality, technology, workforce management and social value.

“Our range of services within housing management continues to grow and evolve with successful contracts underway providing housing solutions for many of society’s most vulnerable groups.”

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