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Housing and care group Mears saw an 8% dip in turnover while pre-tax profit rose 4%, as it looks to scale back its maintenance work to focus on growing its housing management and development business.

In its interim results for the six months to June 2018, the company said: 鈥淚ncreasingly, the group鈥檚 drive is towards developing opportunities within housing management and housing development.

鈥淲hilst the traditional stand-alone maintenance market still provides potential for growth, the Group has reduced its dependency upon client discretionary spend.鈥�

The Gloucester-based firm said its housing division saw a 7% revenue fall to 拢374.9m, from 拢402.1m for the same period in 2017, however revenue has increased from the second half of last year when the operation posted 拢364m.

Reporting total group turnover for the six months of 拢435.3m, down from 拢470m for the same period, and pre-tax profit of 拢19m, up from 拢18.3m, which it said was in line with management expectations.

While the company said it expects its housing division to deliver annual revenue growth of 5% over the medium term, growth in maintenance is expected to be low compared with housing management which should achieve double digit growth.

Housing development, despite being its smallest revenue stream at the moment, is expected to be the fastest growing area of activity 鈥渄riven by the significant shortage of affordable housing鈥�.

The firm said although it preferred to work with clients on a contracting basis, it was increasingly seeing an opportunity to 鈥渟hare the funding with its Registered Provider partner鈥�. It said: 鈥淎s at 30 June 2018, the working capital invested in housing development amounted to 拢13.7m (2017: 拢4.8m)鈥�.

Mears also said it has been appointed as preferred bidder on a housing with care services contract for an unnamed client worth 拢110m, with 拢50m relating to design and build work. Mears will create four 鈥渆xtra care鈥� housing schemes via a Design, Build, Finance and Operate model.

Mears also confirmed chairman Bob Holt will not be standing for re-election at its 2019 AGM and that a replacement will be identified by the end of October, while announcing the appointment of three new non-executive directors.