Mitie feels the pinch of covid-contract drop-off
Outsourcing firm Mitie said a drop-off in high-margin Covid contracts had dented profits in the first half of the year despite new contract wins and price inflation helping lift revenues.
Operating profit before other items came in at £68m for the six months to the end of September, down 20 per cent on last year.
Revenues jumped to £1.92bn, up from £1.912m however on the back of new contract wins, acquisitions and price inflation.
Group chief Phil Bentley said the firm’s performance reflects “good underlying performance across all divisions”.
“New contract wins, recent acquisitions and pricing have more than replaced the short-term revenue boost from COVID-related contracts in the first half of last year,” he said.
“Our strategy is delivering underlying revenue growth and cost savings from our margin enhancement initiatives, whilst inflationary pressures are being carefully managed.”
He added that the firm had invested £19m in “three fast growing, high margin businesses” in the first six months was now eyeing up “bolt-on” acquisitions in the months ahead.