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Mears expects to make small annual profit
StockMarketWire.com
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Housing services provider Mears said it expected to eke out a small annual pre-tax profit after its performance improved in the second half.
Revenue for the year through December was expected to be around £825 million, including £407 million recorded for the first half, down from £982.6 million recorded in 2009.
The small pre-tax profit would mean the company had recovered from a £5.8 million loss in the first half, but it would be down from the £25.2 million recorded in 2019. Mears said work volumes strengthened steadily through the third quarter in its social housing maintenance contracts, reaching 79% in October, up from 25% in June.
'The group did not see a significant impact on work volumes in November during the second national lock-down and this resilience provides the Board reassurance when looking forward to 2021,' Mears said.
'The group's central government contracts, notably Key Worker and AASC, have continued to perform strongly through the second half, with the group adapting well to changing service user needs and the higher work levels,' it added.
Looking forward, Mears said near-term forecasting remained difficult.
'However, 2021 should see the group transition back to our more normalised levels,' it said.
'Our central case is that work volumes in maintenance remain at or near current levels at around 80% until spring.'
'By contrast, continued Covid-related restrictions are likely to keep user numbers elevated within our central government contracts before returning to more normalised levels in the second half of 2021.'
Story provided by StockMarketWire.com
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