Housebuilder Mears has recorded a 42% jump in profit in its interim results, thanks mainly to the growth in social housing spending.
The company reported a pre-tax profit of £4.6m for the period, compared with £3.2m last year. Turnover rose 1% to £96m in the same period.
Chairman Bob Holt said that the increase was largely because of the government’s increased commitment to social housing spending. He said: “Social housing is a fragmented sector with relatively few large service providers. More and more local government clients are exploring the benefits of working with private sector providers and in developing long-term partnerships with a smaller number of large service providers.”
Holt said that he expected results to be boosted by continued growth in social housing. He also expected growth in the repairs and maintenance sector.
He said the company believed the government would extend its Decent Homes Standard beyond 2010. Holt said: “The available spend from central government is also very healthy, with at least £3.5bn to be committed annually to the Decent Homes Standard. We believe the Decent Homes commitment is likely to last until 2015.”
Holt added that the management team had been strengthened in recent months. He said: “We made a number of significant appointments in the first half of the year to further strengthen the business. Stuart Black, our chief executive, has strengthened the sales and marketing departments to ensure that the group continues to be seen as a preferred supplier of services.”