industry news

Repairs giant wins £86m Manchester contract

Mears has won a 10-year repairs and maintenance contract worth £86m from Northwards Housing, Manchester’s arms- length management organisation. The contractor will carry out repairs

and servicing work to 13,500 council homes in the north of the city. The contract begins in April and will initially run until 2021 with plans for three-year extensions. Sue Abbott, chair of the Northwards

board, said: “Mears offers good value for money, with the pre-set price of each repair job decreasing by 3.01 per cent. They’ve also agreed to fix this cost for four years, which is great at a time where funding for services is uncertain.” Des Morris, managing director of

Mears North West, added: “ We can now build on the foundations already established over the last 10 years through the Manchester Working joint venture to deliver excellent services, value for money and tenant satisfaction.”

“Mears will carry out repairs and servicing work to 13,500 council homes”

Lincs HAs to merge

Two Lincolnshire associations have agreed in principle to form a new 12,700-home landlord. Shoreline, which owns 7,900 former council

homes in north east Lincolnshire, and the 4,800-HA Boston Mayflower, have agreed to merge after a three-month evaluation. The new partnership could be launched in

Repairs contractor posts a £31.7m loss

Housing repairs and maintenance contractor Lakehouse has posted a £31.7m operating loss for last year as part of its annual results. Problems with the firm’s property services

division, which works in the social housing sector, and other costs saw the firm rack up £43.2m in “exceptional and other items” during the year despite underlying profit before tax standing at £9.9m. Underlying revenues fell to £305.8m from £336.6m. It lowered the value of its framework

contracts to £370m from £540m in 2015. The group order book also fell by £52m from £595m to £543m in 2016. The firm’s results show it also spent £1m in

redundancy packages for 100 staff in the property services division and £1.5m covering the costs of the departure of former directors. The firm also recorded a £17.4m loss on goodwill of contracts by the group’s Foster Property Maintenance arm. Bob Holt, chair of Lakehouse, believes the

firm has turned the corner, saying “[It] has been a challenging year for Lakehouse but one we believe will prove to be transformational, having focused on reviewing the strategy of the group, stabilising operational performance with a view to improvement and controlling costs at every level, while retaining a high quality of client service.”

October if the boards agree to tie-up in summer. Shoreline chief executive Tony Bramley

commented: “While we are both robust organisations, we believe that during these challenging times, we will be stronger together collectively protecting and enhancing our services for the benefits of our tenants and the local communities we serve.” Chief executive of Boston Mayflower, Murray Macdonald, added: “Remaining locally based,

“The new partnership could be launched in October if the boards agree to tie-up in summer”

we will be strongly placed to meet housing needs, provide new homes and deliver better services throughout Lincolnshire.”

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18 | HMM March 2017 |

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