Social housing firm Mears hit by Grenfell Tower fall out

Safety checks in the wake of the Grenfell Tower tragedy will hit profits this year as building works are delayed, social housing firm Mears said on Tuesday.

At least 80 people died in the June blaze, which triggered a wave of fire safety testing in high-rise buildings by councils and housing associations across the country.

Shares in Mears dived 8%, or 36.9p, to 441p as it said around £30 million in discretionary works, such as new kitchens, bathrooms and central heating systems, were likely to be delayed this year. That will reduce housing revenues to £800 million, squeezing profit margins.

Chief executive David Miles said Mears’ order book stood unchanged at £2.8 billion. “Whilst the likely revenue shortfall for the full year is frustrating, it is entirely understandable in the circumstances,” he said. First-half profits edged up 1% to £18.3 million. The interim dividend rises 5% to 3.45p.