The loss was caused by an 拢87.2m loss from the discontinued domiciliary care business.
Mears grew its revenues in the year to 31st December 2019 by 13% to 拢982.6m (2018: 拢869.8m) driven by the acquisition of MPS Housing, a maintenance business that added 拢119m to revenue, 聽and the start of three government contracts to house asylum seekers, together work 拢1bn in revenue over 10 years.
However, administrative costs outstripped gross profit, to leave an operating loss for the year of 拢53.7m (2018: operating profit of 拢30.7m).
Adding in finance costs and tax bills left Mears with a bottom line loss for the year of more than 拢66m (2018: 拢24.8m profit).
The red ink was caused by a repositioning of the company, quitting the domestic care business that it thought a good idea to move into just a few years ago.
Care activities have now been accounted for as discontinued, resulting in Mears showing an aggregate loss before tax on discontinued activities, including the impairment of goodwill and fixed assets, of 拢87.2m.
Ignoring all the bad stuff, profit on continuing activities before tax, exceptional costs and the amortisation of acquisition intangibles increased to 拢37.3m (2018: 拢36.8m).
This prompted chief executive David Miles to comment: "I am pleased with the progress of the group in 2019. We have achieved a solid set of results in a year of political and economic uncertainty, along with delivering a significant repositioning of the business into a more simplified structure as the UK's leading provider of housing solutions.鈥�
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