“The government’s decision to delay reforms to social care funding would appear to leave it with no plan for social care, with funding reform having gone backwards five years,” Mears boss David Miles said yesterday.
“The recent Budget announcement regarding the National Living Wage has further increased pressures on councils, trusts and care providers. The sector has reached breaking point with a number of our competitors looking for the exit.”
Shares in the company, which employs 17,000 people, jumped 3.5 per cent yesterday to 408p after it said pre-tax profit had climbed to £19.2m in the six months to 30 June. The profit rise marks a three per cent increase compared with the same period a year ago. The firm said its improved profit margin was driven by social housing.
Income has been boosted after the company won more contracts this year. During the first half of the year it was awarded jobs in excess of £220m, up from £201m during the same time last year.
The company helps maintain 15 per cent of the UK’s social housing stock. It also provides daily care to 30,000 people. Revenue from care provision was up marginally to £63.5m.