Mears turns around Morrison in six months
Mears has announced that its newly acquired business Morrison will break even in the first six months of 2013, ahead of expectations.
Repairs and maintenance contractor Mears bought troubled rival Morrison in November for £24 million.
In an interim management statement published today for the period from 1 January, Mears announced it expects Morrison, which has a £290 million-a-year turnover, to break even. The most recent accounts filed with Companies House show Morrison made a total operating loss of £19.8 million for the 2011/12 financial year.
The Mears statement said: ‘We anticipate that the Morrison operations will deliver a break-even result for the half-year before the exceptional cost of integration.
‘The speed of this turnaround is ahead of our original expectation.’
Mears also announced it has won £125 million worth of contracts since 1 January. It has an order book of £3.8 billion and a bid pipeline of £3 billion.
David Miles, chief executive of Mears, said: ‘I am delighted with the progress made by the group in recent months.
‘The speed and quality of the integration of the Morrison business has exceeded my expectations and our social housing business is performing very well, delivering excellent visibility to revenues.’
