Mears Group Plc, which maintains low-income housing for U.K. government clients, said profit rose 5.7 percent last year as it added people-care contracts through the acquisition of Supporta Plc.
Net income was 14.76 million pounds ($23.7 million), or 16.57 pence per share, compared with 13.96 million pounds, or 17.94 pence, in 2009, the Gloucester, England-based company said in a statement.
Mears acquired Supporta in February 2010 to expand in home care, a move that also gave it more business in central London. Further government contracts were taken on from collapsed companies such as Connaught Plc.
The Supporta acquisition “gives us coverage inside the M25” London orbital road, Chief Executive Officer David Miles said in a telephone interview. “It also gives us national coverage.”
The company’s shares fell 21.75 pence, or 7.2 percent, to 280.25 pence at the 4:30 p.m. close in London. They have declined 7.5 percent so far this year, giving the company a market value of 238 million pounds.
Miles said Mears expects 10 million pounds in revenue this year from its venture with Centrica Plc’s British Gas unit for energy-efficiency projects such as heat-pump and solar-panel installation in social housing. The agreement was signed last September.
Miles, formerly the chief operating officer, became chief executive in November.
Social-housing sales gained 7 percent to 379.4 million pounds, while home-care revenue increased 67 percent to 100.4 million pounds, the company said.