Home Office awards £1bn revenue contracts

8 January 2019

Mears Group PLC

("Mears" or "the Company" or "the Group")

Contract award - Home Office awards £1bn revenue contracts to the Group

Mears (LSE: MER), the provider of support services to the Social Housing and Care sectors in the UK, announces that the Home Office has awarded the Group three new contracts to provide accommodation and support for asylum seekers. The new contracts, the Asylum Accommodation and Support Services Contracts (AASC), replace the existing ones and are on substantially different terms. Mears has been awarded three regions: Scotland, Northern Ireland and the North East, Yorkshire and the Humber. The Group has existing operations in these areas. The contracts are estimated to deliver revenues in excess of £1.0 billion over their 10 year term.  

The contracts are part of the way in which the UK Government meets its duty to provide asylum. To deliver the contracts, the Group will draw on its extensive track record of providing housing, housing maintenance and care services all across the UK, with a strong footprint in the regions concerned.  The work includes considerable liaison with the relevant local authorities, in which the Group is highly experienced. The contracts also build on the Group's work in housing with the UK Ministry of Defence.

Mears is committed to ensuring that asylum accommodation is safe, habitable and fit for purpose.  All accommodation will meet the contractual and regulatory quality standards.   Moreover, Mears understands the importance of supporting each person whilst living in its accommodation and to ensure that as a company it works with the communities in which it delivers services.

During the mobilisation period, up to 1 April 2019, Mears will work with the Home Office and service users to make sure that accommodation to be used meets the required quality standards.  Mears will establish operational teams in each of the areas, combining some of the existing workforce with Mears' staff, so that it is in a position to provide the best possible performance, within the terms of the contract.  This will include identifying support needs, managing community cohesion issues, and developing strong partnerships with local authorities and in communities, as well as delivering suitable accommodation. 

Commenting, David Miles, Chief Executive, Mears, said:

"Mears provides housing and care to many thousands of people all across the UK. This experience, combined with our expertise in housing repairs and maintenance, means we are a strong partner for the Government to deliver asylum accommodation and support that is safe, habitable and fit for purpose.  We are delighted to have secured these contracts having already allocated significant time and resources to this. We will immediately start work on the mobilisation so that we are ready to meet the needs of asylum seekers and their host communities."

For further information, contact:

Mears Group PLC

Buchanan

Mark Court/Sophie Wills/Catriona Flint                       Tel: +44(0)20 7466 5000

[email protected]

About Mears

Mears employs over 10,000 people and provides services in every region of the UK. In partnership with our Housing clients, we maintain, repair and upgrade the homes of hundreds of thousands of people in communities from remote rural villages to large inner city estates. Mears has extended its activities to provide broader housing solutions to solve the challenge posed by the lack of affordable housing. Our Care teams provide support to over 15,000 people a year, enabling the elderly and those living with disabilities to continue living in their own homes.

We focus on long-term outcomes for people rather than short-term solutions, and invest in innovations that make a positive impact on people's quality of life and on their communities' social, economic and environmental wellbeing.