Social housing firm Mears expects to expand its revenue and workforce by 10% over the next year after picking up more than 拢100m of contracts from collapsed rival Connaught, writes David Matthews.

Chairman Bob Holt (pictured) said the Comprehensive Spending Review was 鈥減ositive鈥� for the social housing firm because it would increase local authority outsourcing. He expected
revenue to grow despite cuts of 70% to the housing and regeneration budget.

鈥淲e鈥檝e got about 12,000 employees at the moment, and that should increase by at least 10% by next year,鈥� he said.

He predicted an equivalent 10% rise in revenue over the next 12 months and further growth after that. 鈥淲e expect revenue to increase this year and next,鈥� he said.

But in an interim management statement to the City on Tuesday, Mears admitted that revenue growth in social housing for the current year would be 鈥渕arginally below鈥� previous expectations.

It said it had picked up four former Connaught contracts potentially worth more than 拢100m.

We鈥檝e got 12,000 employees at the moment, and that should increase 10% next year

Bob Holt, Chairman, Mears

These include a 拢48m contract for capital and cyclical works with Homes for Islington, a decent homes contract for the London borough of Lambeth, and two contracts with Exeter council worth up to 拢20.5m.

Mears, which is based in Gloucester, took on an undisclosed number of Connaught鈥檚 contracts for a nominal sum following its collapse in September The four-year Homes for Islington job could beextended to a decade, a move that would increase its value to 拢120m.

Mears added that mobilisation costs for the extra work would come to about 拢600,000.

The company said it remained in discussion with a number of other former customers of Connaught.

It also announced a 拢300m,10-year job for housing association Family Mosaic to provide a 24-hour call centre, as well as responsive repairs and estate management services.

Mears said it had a bid pipeline 鈥渋n excess鈥� of 拢3bn, and an order book of 拢2.6bn.

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