Construction Enquirer News Housing maintenance specialist expects to make a £6m loss in first half

Mears has joined the ranks of firms revealling plans to make redundancies across the business.

The firm said the programme of cost-cutting would start this year but has not said how many jobs were at risk.

In a trading statement this morning covering performance in the first six months of the year, Mears said it expected to report a £6m loss after revenue at the maintenance arm plunged 23% to £250m.

Overall group revenue was less impacted down 8% to £405m.

Mears said it had originally expected this year to be a particularly important period for contract renewals, with around one-third of the group’s maintenance business, by value, coming up for re-bid.

The impact of Covid-19 has resulted in several of these existing contracts being extended, with tender processes deferred in the short-term. 

Similarly, a number of new bidding opportunities have seen delays meaning that new order intake for the current year would be low.

In its statement, Mears said: “Action has been taken to exit contracts which, both pre and during Covid, the group has identified as not fitting the criteria key to Mears way of working.

“As such, the group will be completing restructuring through the second half-year that will lead to some reduction in staff numbers. 

“These developments are not wholly a result of Covid but also through the ongoing drive for continuous improvement and ensuring the group’s longer term success.”

David Miles, Chief Executive Officer, said that he expected to see a recovery in activity levels during the second half of the year, assuming that infection levels remain relatively low, as working arrangements in the core maintenance business progressively returned towards more normal levels by the end of the year.

 

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