Lucrative Covid-19 contracts drive profits at outsourcer Mitie
Outsourcer Mitie has lifted its profit guidance due to a string of Covid-linked contracts, which saw it clean Heathrow and Manchester airport, alongside Transport for London (TfL).
It now expects operating profit before other items to hit between £145m and £155m, the company said in its half year update.
“In our first quarter trading update we reported that we had made a strong start to the year to March 31 2022, boosted by the delivery of short-term Covid-related contracts,” the outsourcing giant said.
“This performance has continued in the second quarter, supplemented by further Covid-related contract awards.”
Mitie added that, as these contracts are short-term, it expects to see a decline in the second half of the year.
“Excluding Covid-related contracts, the business has continued to perform in line with expectations, with the gradual recovery of the economy and the return to work,” it said.
Its guidance for the financial year ending March 2023 will remain unchanged, until further Covid-related work reveals itself. Mitie’s outlook also depends on whether other work recovers.