Proactive Investors - Run By Investors For Investors

Mears bags £1bn asylum housing contract from UK government

The ten-year contract will see Sears manage thousands of houses occupied by asylum seekers who are waiting for their claims to be processed
uk border
Fellow outsourcer Serco has also been awarded some asylum housing contracts

Social housing specialist Mears Group PLC (LON:MER) has been handed contracts worth £1bn from the UK government.

It’s a sizeable deal for a company with market capitalisation of less than £400mln.

READ: Mears names financial services veteran as new chairman

As part of the contract, Mears will be responsible for the upkeep of thousands of homes occupied by asylum seekers waiting for their claims to be processed.

The deal is for ten years and covers homes in Scotland, Northern Ireland and the North East, Yorkshire and the Humber.

“We are delighted to have secured these contracts having already allocated significant time and resources to this,” said chief executive David Miles.

“We will immediately start work on the mobilisation so that we are ready to meet the needs of asylum seekers and their host communities.”

The new Asylum Accommodation and Support Services Contracts (AASCs) are replacing the current COMPASS contracts, which were awarded back in 2012

Fellow outsourcer Serco Group PLC (LON:SRP) has also been awarded AASCs worth £1.9bn, which will see it look after asylum housing in the North West of England and the Midlands & East of England.

Mears shares jumped 5.3% to 357p on the back of the news.

View full MER profile View Profile

Mears Group PLC Timeline

Related Articles

May 31 2019
"Stobart Group has a clear focus on developing infrastructure assets in the aviation and energy sectors," chief executive Warwick Brady said.
March 29 2019
RMS is taking action to address the issues at Geocurve and looks forward to “renewed growth in sales to new clients” while it remains "excited by the opportunities at GyroMetric"
Drilling rig
January 10 2019
Since its first half results in August, the drilling services firm has secured two key contract extensions as well as a new delineation drilling contract in Côte d'Ivoire

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use