Mitie: Shard-based outsourcing giant toasts to double-digit growth
Outsourcing giant Mitie has reported double-digit growth after a record number of contract deals and extensions in the first half of the year.
The FTSE-250 firm said that revenue increased by 13 per cent, to £2.4bn, in the half-year ended 30 September, up from £2.1bn last year.
This was driven by a 45 per cent boost in contract deals and extensions to £3.5bn, plus “scope increases, pricing and projects”, the company said.
The Shard-based firm said that its performance was better in the second quarter than the first, thanks to key contract wins in the first quarter and the provision of “surge response” security services.
Mitie offers a range of facilities management and professional services, including cleaning, security and green energy solutions. It works across a number of sectors including retail, public services and government.
The firm has bounced back from a dire period during the Covid-19 pandemic, when its stock price fell to 22-year lows.
Mitie’s net debt as of 30 September was 195m, up from £81m at the end of March, due to “shareholder returns, investments and increased lease obligations”, although the company said debt was offset by cashflow generation.
Chief executive Phil Bentley said: “We are investing in technology to strengthen our market leading position; in sales and marketing to drive greater wins and renewals; and in our projects capabilities to enhance our upsell opportunities.
“These investments are already starting to deliver tangible results, including a record performance in new contract wins and contract extensions/renewals in the period, ensuring continued growth momentum.
“Overall, we have made good progress against our strategic objectives, with revenue growth of around 13 per cent in the first half of the year; at least £20m of full year cost savings identified from margin enhancement initiatives; and the completion of two acquisitions.
Bentley added that the company remained confident in meeting expectations for the current year.