Sales up 10% at outsourcing giant MITIE

Outsourcing group MITIE, which employs more than 15,000 people in the North of England, saw revenues rise by 10% to £1.04bn in half-year sales, citing contract wins and good operational performance for the strong results

MITIE
MITIE

Outsourcing group MITIE, which employs more than 15,000 people in the North of England, saw revenues rise by 10% to £1.04bn in half-year sales, citing contract wins and good operational performance for the strong results.

The firm, which employs more than 70,000 people in a range of services from property management and office cleaning to engineering and waste management, also saw operating profit increase by 13.3% to £62.3m for the six months to 30 September 2013.

The FTSE 250 company, which works on well-known contracts in the North including LV=, Cumbrian Collaboration and Lloyds Banking Group, said new contracts in the period included a five-year £50m contract for engineering maintenance for a leading care provider, a three year deal worth £38m to provide cleaning and waste services at 1,600 Mitchells & Butlers restaurants throughout the UK and a £5m contract to provide facilities management services to food manufacturer Kellogg’s UK.

The firm’s facilities management division brought in £821.2m, up from £744.4m for the same period last year, and the company said the sector is estimated to be worth over £92bn, continuing to grow at some 2% per year.

The healthcare division acquired home care services provider Enara for £110.8m in October 2012 and MITIE said the firm’s integration is progressing well.

The business has since been successfully rebranded as MiHomecare and a strategy has been devised to expand, by building on relationships with local authorities and the NHS in order to significantly grow the brand.

Ruby McGregor-Smith CBE, chief executive of MITIE Group PLC, said: “The first half of the year has seen strong operational and financial performance for MITIE.

“We continue to identify new opportunities with both existing and new clients in all of our key markets.

“The successful re-positioning of the business means we are in a stronger and better position than ever to deliver higher growth and maintain strong margins.

“We look ahead with confidence.

“Across the whole of MITIE, we focus on higher margin, growth markets, with good overall progress being achieved during the period and all four divisions in a strong position to benefit from the current market opportunities.”

McGregor-Smith said outsourcing is a key government strategy to drive efficiency and reduce costs in the public sector, an attractive long-term market for the business with opportunities in health, justice, local authorities and social housing.

She added: “In the private sector, which remains buoyant, we work for clients in a wide cross-section of sectors, from leisure and healthcare to finance and manufacturing.

“Of total revenue generated during the period, the public sector accounted for 35%, including 5% with central government, and the private sector accounted for 65%.

“The first half of the year has seen strong operational and financial performance for MITIE.

“We continue to identify new opportunities with both existing and new clients in all of our key markets.

“The successful re-positioning of the business means we are in a stronger and better position than ever to deliver higher growth and maintain strong margins.

“We look ahead with confidence.”

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