Mitie grows 10% on back of private sector contracts

Mitie has reported annual revenue of £1,891.4m, up from £1,720.1m the previous year. Profit before tax was £86.8m and operating margin improved from 5.4% to 5.7%.

Some 75% of contract awards during the year came from the private sector.

Contract awards described as transformational for the business included:

• Rolls-Royce: pan-European total facilities and energy management
• Vodafone: total facilities and energy management for entire UK and Irish property portfolio
• UK Home Office, Campsfield House Immigration Removal Centre: custody, detention, facilities and energy management
• Major decentralised energy projects: Royal Free North Hampstead Hospital, Waitrose and a waste-to-energy plant
• Solar energy: completed a pilot project of photovoltaic panels on 200 properties which provide free daytime electricity for social housing tenants, with potential for up to 15,000 further properties during calendar 2011.

The technical facilities management division, which includes energy management services, grew particularly strongly, with revenues up 27% to £437.1m and operating profit up 59% to £24.6m.

The company said that there was also a move towards more integrated facilities management, not only in the UK but also overseas. Around 40% of Mitie’s top 100 clients are multinationals and are increasingly looking for Mitie to provide support in other countries, the company said.

Chief executive Ruby McGregor-Smith commented: "These are very good results and this year we have been awarded a number of transformational contracts. We have secured some significant work in the private sector where we have excellent relationships with our clients and are differentiated by our energy services capabilities and use of technology. We have been appointed to several large public sector frameworks and have a strong pipeline of opportunities in local government, social housing, justice and health.

"The opportunities in outsourcing and energy services in the UK and abroad are significant. Our strong balance sheet and excellent cash conversion, as well as a record order book and sales pipeline, will enable us to achieve our growth aspirations. The business is well positioned for continued sustainable, profitable growth."

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