Housing group Mears says Grenfell disaster to hit profits

The Grenfell Tower tragedy will hit profits at social housing and support services provider Mears Group this year as clients delay new projects.

Mears had no involvement in the Grenfell Tower disaster. Picture: Victoria Jones/PA Wire

The firm said the fire in West London has meant clients’ attentions have “naturally been diverted towards ensuring their housing portfolios are safe and fully compliant”, rather than on beginning new work.

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“The recent tragic events at Grenfell Tower will impact the housing division later this year as clients review the commissioning and safety practices at their properties,” the group said.

“These unexpected events will inevitably impact the timing of our planned workloads as clients’ attentions have naturally been diverted towards ensuring their housing portfolios are safe and fully compliant.”

As a result, Mears said delays in planned works orders will see housing revenues of about £800 million in 2017, compared with an original expectation of £830m, with a resulting “loss of profit and lower overhead recovery”.

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Mears had no involvement in the Grenfell disaster, but does provide cladding for tower blocks.

The company expects the delays in procurement decisions to be temporary, adding the housing order book is not affected.

Mears made the announcement alongside half-year results, which saw revenue and profit broadly flat at £470.8m and £12.7m respectively.

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