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Mears Group's FY pretax profit slips lower

15 March 2016 07:31

Mears Group's FY pretax profit has slipped to GBP25.9m, from GBP29.7m. Sales revenue totalled GBP881.1m, from GBP838.7m. Dividend was 11p a share, from 10p.

Separately, Mears said it had been appointed preferred bidder by Devon County Council for the provision of homecare services. The contract is for an initial five-year period with an option to extend for a further two years and will be worth over GBP100m.

Returning to the results, CEO David Miles said:

"Our Housing business has delivered a strong performance. We are delighted with the progress being made with our developing Housing Management business. The speed of change in this area is particularly exciting and we are well placed to benefit from an extensive pipeline of opportunities.

"We continue to find the Care market challenging. We are placing greater emphasis on maintaining a portfolio of good quality contracts that can provide clear and sustainable margins whilst at the same time delivering a first class experience to our service users.

"The introduction of the National Living Wage has placed further financial pressures on both Care commissioners and providers but I have generally been encouraged by the initial reaction of our clients in recognising their responsibility to reflect the increase in our cost base with matching increases in our fee rates.

"We have significantly increased our focus upon carer retention and recruitment and I am pleased with the progress being made in this critical area. We remain confident that we have the right strategy and that Mears is well placed to take advantage of industry evolution.

"We continue to achieve high levels of service delivery and customer satisfaction. The quality of our service delivery continues to be our key differentiator and underpins our success in winning new contracts in both of our core growth sectors.

"Since the turn of the year, trading remains in line with our expectations for the full year. The Group is well positioned to take advantage of future opportunities and we look forward to updating the market with further successes."

Story provided by StockMarketWire.com

Related Company: MER

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