Tuesday 15 January 2019 1:34 pm | Updated: Monday 03 June 2019 2:09 am

Housing services provider Mears Group shares down on reports of under-pressure budgets

Housing and care services provider Mears’ shares fell five per cent this morning as it forecast financial results in line with expectations in “competitive trading environments”.

Spending by customers in both sectors was “broadly stable,” the company said, but added budgets were “always under pressure”.

Mears’ order book stands at £3.2bn and expected revenues for next year are £1.03bn.

The company last week won a major £1bn contract from the Home Office to provide a decades-worth of accommodation and support for asylum seekers in Scotland, Northern Ireland and the North East, Yorkshire and the Humber.

The company missed its debt target, with average daily net debt standing £5m higher than hoped, at £115m. This was “primarily due to the timing of certain development activities” which will mature in the next few months, it said.

Mears will issue its full year results on Tuesday 19 March.

David Miles, Mears’ chief executive, said: “We ended the year with an acquisition and, more recently, were awarded three large contract wins which, together, add over 20% to our revenue on an annualised basis. I am grateful for the support shown in our recent equity fund raising in connection with the MPS acquisition.”

"We expect to make further progress in 2019, helped by our continuing cost reduction programme and the long term relationships with our customers. The positive impact of the new work announced recently will come through fully in 2020 and beyond."