Mears reports 9% growth in pre-tax profits

Mears Group saw pre-tax profit increase 9% to £31.5m in 2011, according to its final results for the year to 31 December 2011.

The social housing and care services group reported total revenue of £589m, a 12% increase on its 2010 figures.

However, despite what it described as “record” social housing revenue of £415m, its operating margin in the division slipped from 6.0% in 2010 to 5.8% last year.

Group chief executive David Miles said Mears had performed strongly in a challenging environment and had seen “significant new contract awards”.

“I am particularly pleased by the positive impact we achieved turning-around the contracts we inherited over recent years from failed businesses,” he said.

“As customers continue to seek solutions to social housing’s broad-based underlying challenges, I am confident that we will remain significantly differentiated from our remaining competitors. We continue to seek appropriate bolt-on acquisitions.”

Mears Group’s social housing revenue was 9% up on the 2010 figure, but its results showed a 21% increase in “core maintenance revenue” within the division.

The company said its order book stood at £2.9 billion and demand for our services “continues to be very strong with a bid pipeline in excess of £3.0 billion with immediate bidding opportunity for contracts due to start in the course of the next twelve months in excess of £2.0 billion”.