14th Aug 2018 10:30
LONDON (Alliance News) - Mears Group PLC said on Tuesday profit for the first half of 2018 rose slightly as its Care division returned to profit, in spite of a reduction in revenue for the period.
Mears, which provides support services for the social housing and care sectors, said that pretax profit for the six months to the end of June rose marginally to GBP12.9 million from GBP12.7 million a year before, due to the Care division swinging to an operating profit of GBP1.5 million from a loss of GBP1.0 million.
On an adjusted basis, leaving out exceptional costs coming from a review of central support structures, pretax profit was GBP19.0 million, up 4.0% on year from GBP18.3 million.
Revenue however saw a 7.5% drop in the period to GBP435.3 million from GBP470.8 million in the prior year, mainly due to a fall in Housing to GBP374.9 million from GBP402.1 million.
However Mears said it regarded this as a stabilisation in revenue compared to the second half of 2017, when total revenue fell a steeper 9.4% to GBP429.4 million from GBP473.9 million a year before, due to delays in the timing of planned workloads.
Mears declared an interim dividend of 3.55 pence per share, up 3.0% from 3.45p the year before.
The group said it remains confident of its full-year expectations and long-term prospects.
"Our financial and market position is robust as we seek to build on existing strengths and take advantage of new opportunities. We have sustained a high level of service delivery in Housing and improved the performance in our Care business. Mears is evolving its services, especially in the areas of Housing Management and Development, to align fully with customer demand and to provide additional growth opportunities that will add to shareholder value over time," said Chief Executive David Miles.
Shares in Mears Group were down 2.0% at 348.00 pence on Tuesday.
Related Shares:
Mears