The social housing contractor also undertook a review of cladding systems installed over the last five years

social housing

Mears Group has said it expects the tragic fire in June at Grenfell Tower in west London to impact its housing division this year.

The firm, in its latest half year results, said delays to its planned workloads and procurement decisions as clients review the commissioning and safety practices at their properties were likely.

This has resulted in Mears revising down its forecasted revenue from its housing division, which makes up 85% of the company鈥檚 total revenue, for 2017 from 拢830m to 拢800m, which it said would also result in a loss of profit and lower overhead recovery.

Mears added that it had also reviewed its contract delivery register to 鈥渆nsure a high level of detail around product specification continues to be captured and can be easily retrieved鈥� following government concerns around Aluminium Composite Material (ACM) cladding systems.

A review of fa莽ade systems installed in dwellings over the last five years was undertaken and the firm reported that it had 鈥渘o instances鈥� of ACM cladding being utilised.

Mears said it would 鈥渃ontinue to monitor this situation closely as a number of key clients complete their compliance reviews over the next few months鈥�, but expected the delays to be temporary.

David Miles, chief executive at Mears, said: 鈥淲hilst 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. Our order book remains strong and the board remains confident in the group鈥檚 future prospects.鈥�

Mears reported slight growth in revenue for the first six months of the year to 拢471m, up from 拢466m for the previous year, while pre-tax profit remained flat at 拢12.7m.

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