Mears wins 10-year Manchester maintenance contract

Mears has won one of its largest repairs and maintenance contracts from Manchester City Council outright, which was said to be worth £86m over a potential 10-year period.

The FTSE Small Cap-listed company won the contract to carry out repairs, empty property and servicing work to 13,500 homes in the north of the city from the council's ALMO Northwards Housing arm.

Mears, which won the contract following a four-stage tendering process against three other firms, will also carry out new adaptation work to all Manchester City Council homes.

Broker Peel Hunt said the win was notable in that Mears has won the contract outright, having previously had a joint venture type relationship with the council.

Analysts said it was one of Mears larger contracts and "confidently assume" it was on the usual margins, increasing visibility and confirming Mears leading market position.

The City analyst consensus forecasts for the coming year had been for pre-tax profits of £50.7m.

Shares in Mears were up 1% to 485p by 0925 GMT on Wednesday.