Mears Group downgrades profits forecast after Grenfell Tower fire tragedy
SOCIAL housing maintenance firm Mears Group has pushed down its profit forecast following the Grenfell Tower fire.
Mears Group has pushed its profit forecast down following the Grenfell Tower fire
The group today also announced it would be slashing its full-year revenue predictions.
Mears chief David Miles said attentions had “naturally been diverted towards ensuring housing portfolios are safe and fully compliant”.
While the likely revenue shortfall for the full year is frustrating, it is entirely understandable
Its housing revenues this year are likely to be £30 million less than expected at £800 million, with analysts forecasting a £4 million drop in pre-tax profits to about £40 million.
Mr Miles said: “While the likely revenue shortfall for the full year is frustrating, it is entirely understandable in the circumstances and the group will be working closely with its partners and clients at this time to address their immediate priorities.”
The group also announced it would be slashing its full-year revenue predictions
Mears shares fell 36¾p to 448¼p.
Russ Mould, an investment director at AJ Bell, said: “Delays to social housing contracts in the wake of the Grenfell Tower disaster mean that Mears will miss its budgets for the year and add to a litany of woe for the support services sector, where firms such as Aggreko, G4S, Interserve, Carillion, Serco and Mitie have already badly disappointed, albeit for a wide range of different reasons.”