Mears Group has announced that it will sell its domiciliary care division this year, in a move that will affect 2,500 members of staff.
In a trading statement released to the Stock Exchange ahead of its full-year results this morning, the housing and social care provider said it has reached “an advanced stage” in the sale of the domiciliary care units in England and Wales, where it employs 1,500 people across 18 branches.
It also intends to dispose of its Scottish standalone domiciliary care business, where it employs 1,000 people across 16 branches, in 2020.
Mears Group CEO David Miles said the move will enable the group to focus its efforts where it can deliver “superior returns for shareholders”.
“We continue to see a good pipeline of opportunities providing Housing with Care, in the majority of cases to provide, manage and maintain accommodation and to care for the service users,” he added.
“Our deep understanding of the challenges faced by service users and proven ability to support vulnerable customers, many of whom have a care requirement, has been central to our success in Housing, and most recently in securing the asylum housing contract. This bespoke skillset is key to our future success.”
Meanwhile, Mears Group expects to report revenues, on continuing activities which excludes domiciliary care activities, of more than £900 million, up from £773 million last year.
Domiciliary care units in England and Wales generated revenues of £36 million and a profit contribution, after allocation of support costs, of around £1.7 million in 2019.
The Scottish business generated revenues of circa £22 million and a profit contribution, after an allocation of support costs, of around £900,000 in the same year.
Mears said the extra care and supported living elements of the group will remain core to its housing with care strategy and will be retained.
In August 2019, the group launched a toolkit to help its employees and customers to better support people living with dementia.