Mears reports record revenue after Morrison buy

Social housing and home care contractor Mears has reported record revenue of £680m following its acquisition of competitor Morrison last November.

In its accounts for the year to 31 December 2012 the firm reported a 15% rise in revenue to £680m from £589m in 2011.

It also reported a small rise in pre-tax profit to £31.7m from £31.5m. The rise in pre-tax profit would have been greater, rising to £33.6m, but Morrison delivered a pre-tax loss of £1.9m denting profit.

Mears acquired competitor Morrison in November 2012 for £24m.

David Miles, chief executive of Mears Group, hailed the “record” results.

He said: “The first half year saw an intense period of new contract mobilisations.  In the second half, we reinforced our market leading position in Social Housing with the transformational acquisition of our most significant competitor, Morrison.” 

Miles said Mears had received positive feedback from Morrison’s customers following the acquisition and that combining the best practices of both Mears and Morrison was improving service for customers.

He added: “I believe that the opportunities for us in social housing are stronger today than at any time since I joined the business.”

The firm’s biggest division was its social housing division which reported a rise in revenue from £415m to £460m over the period with operating margin only dipping slightly from 5.8% to 5.7%.

Mears’ care business also performed well with revenue growing from £109m to £113m over the period and operating margin increasing from 8% to 8.3%.