Mears Group has reported recovery and a positive trading outlook in its final year results.
The Gloucestershire-based housing and social care provider in a trading statement said its revenues were up year-on-year by 9% to £959m. Adjusted profit before tax increased by 37% to £35.2m.
Bosses at the AIM-listed business, which employs more than 5,000 people, were forced to hold releasing the results earlier this month due to the “unanticipated” absence of a senior auditor.
Citing difficult trading conditions in the form of inflation, skills shortages and supply chain issues that affected the wider industry in 2022, the firm announced that it had managed to maintain sustained high levels of both customer satisfaction, 88% (2021 86%) and employee engagement level.
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Mears' order book now stands at £2.9bn, reflecting the good progress on contract retentions and extension. The group said that it is now well placed in bidding for the new North Lanarkshire contract estimated to generate more than £1.5bn of revenues over 12 years; it is due to commence in 2024.
David Miles, chief executive of the group, commented: "I am delighted with the strong performance of the group, and these are a terrific set of financial results. Our market leading position, based on a clear strategy and resilient operating platform, has underpinned this performance, and positions the group for further sustainable growth in the medium-term."
In the company's results and statements, chair Keiran Murphy announced that this would be his final term as chairman, and he would not be putting himself forward for re-election at the 2023 AGM.
Mr Murphy said: "This period has seen both significant change for the group and a reaffirmation of the positive qualities which have for many years made Mears a force for good.
"Over the course of the last five years, Mears' contract estate has been significantly improved. Within the housing business. there has been considerable growth in the provision of accommodation and support services and the group is now a UK leader in that activity, reflecting the considerable efforts which have been made to develop effective, successful, and profitable relationships with central government departments.
"In parallel, the financial performance and business mix of the housing business has been improved. The group has also progressively exited other activities, namely domiciliary care, property data management and housebuilding. Taken together, these initiatives have transformed the group's financial position: cash generation has returned, and debt has been eliminated."
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