Date: Wednesday 03 Jun 2015
LONDON (ShareCast) - Social housing and care services provider Mears Group said it performed well across its core divisions during the first quarter of the year, in-line with management expectations.
As a result, the group was expecting revenue to reach £881m in 2015 and £930m in 2016 thanks to new contracts in its social housing division.
Despite bidding opportunities remaining slow in developing, Mears secured £62m worth of new social housing contracts during the first six months of the year, including a 10-year deal with Croydon Churches worth £30m and the acquisition of the Care at Home division of Care UK.
Bidding activity will improve in the second half of the year, the company said.
The care business secured £26m worth of new contracts since the start of the year.
The provider of accommodation and management services has exceeded its expectations since the acquisition of Omega Group in November, securing deals for lettings, housing management and temporary accommodation services.
Chief executive David Miles said: "Whilst, as we anticipated, new bidding opportunities in Social Housing have been subdued in the first half of 2015, I am excited by a number of material contract opportunities that are now reaching an advanced bidding stage that bring together a broader range of our Housing services."
Shares were up 0.12% to 429p on Wednesday at 11:09.
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