LONDON (ShareCast) - Mears reported improved half year results, following progress across all of its major divisions, and said is Morrison acquisition is delivering synergies.

The social housing repairs and maintenance provider said adjusted pre-tax profit rose 15% to £15.5m while turnover was up 49% to £457.8m. Normalised diluted earnings per share rose 7% to 12.23p.

Pre-tax profit plunged to £3.98m from £10.3m after exceptional costs of £6.5m, primarily relating to the integration and restructure following the Morrison acquisition.

Mears said it is set to return the Morrison Facility Services business back to profit after buying the financially struggling firm last November.

Revenue at its social housing division grew by 76%, including organic growth of 17% to £378.9m. Its care division delivered an 8% increase in revenue to £60.5m as a result of the acquisition of ILS.

The group's order book has increased to £3.8bn from £2.7bn a year earlier.

Mears said it has a solid pipeline of new opportunities with full visibility of consensus forecast revenue for 2013 and in excess of 85% for 2014.

Chief Executive David Miles said: "We delivered both record revenue and record operating profits. The integration of the Morrison social housing business is now substantially complete. As anticipated, integrating Morrison is realising valuable synergies."

"I believe that the opportunities for us in social housing remain very strong...in Care... we remain very well placed strategically as the current changes in the market play out."

"The long-term opportunities for Mears within Care look encouraging. The ageing population and the fundamental desire of people to stay in their own homes remain the foundations for this sector."

The dividend has been increased 9% to 2.5p per share.



CJ

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