LONDON (ShareCast) - (Sharecast News) - Mears Group said revenue at its housing division had stabilised after clients delayed work following the Grenfell Tower fire.


In a trading update the social housing and care support service company said it was making solid progress and annual results would meet its expectations.

Mears lost sales in its previous financial year as local authorities ran checks to make sure their housing was safe after 72 people died in the fire at the West London tower block in June 2017.

Reporting on the six months to the end of June, Mears said: "Revenues in the Housing division have stabilised during the first half as clients have now completed the assessment of their housing portfolios with an increased focus towards safety and compliance."

The housing division has picked up £70m of new work, including a £62m contract to repair and maintain 11,500 properties owned by Riverside Housing Association for five years with the option of extending for a further five years. Mears is also in the running for two other big contracts.

Mears's care division had a good first half as operating margins increased as a result of better quality contracts.

David Miles, Mears' chief executive, said: "I am satisfied with the progress made in the first half of 2018. The current pipeline of opportunities is particularly exciting. The strategic evolution of our business means we are gaining access to opportunities that previously would have been out of our reach and the senior team is very focused on converting these into secured orders. The Mears operation is performing very well."

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