Mears has announced a 12% increase in revenue for the year ending 31 December 2009, from 拢420m to 拢470m.
This was chiefly due to social housing turnover climbing 26% to 拢355m.
Profit before tax also grew, from 拢16.6m a year ago to 拢18.4m.
Mears鈥� M&E business reported a 30% fall in revenue to 拢54.8m, after experiencing 鈥渄ifficult trading conditions鈥�. The division has recently started work on the London 2012 Athletes Village, which has reduced the margin in the division as no profit is recognised in the early stages of the contract.
Domiciliary care, Mears鈥� other main business, saw a modest rise revenue rise to 拢60.1m from 拢54.6m in 2008.
The group鈥檚 order book stands at a record 拢2bn, and the firm is currently bidding for work worth 拢3.9bn.
Mears鈥� net cash position at 31 December 2009 was 拢6.5m (2008: 拢6.6m).
Bob Holt, chairman, Mears Group said: 鈥淥ur two growth markets, social housing and domiciliary care, which account for close to 90% of Group revenues, are defensive sectors where spend is largely non-discretionary and is therefore unlikely to be affected by any public sector cutbacks.
鈥淚t should also be noted that a significant proportion of our social housing revenue is derived from Housing Associations who would be less affected by a reduction in public sector spending. We are seeing unprecedented levels of opportunity within the public sector and drivers such as budgetary pressures are more likely to encourage our Local Authority clients to consider more innovative and higher scale partnerships.
鈥淢ears is well placed to benefit from this and regardless of the outcome of the forthcoming election we believe that the demand and opportunity for our two growth markets will continue to be strong.鈥�
听
Got a story? Email news@theconstructionindex.co.uk
