Mitie Group plc
Half-yearly financial report
for the six months ended 30 September 2015
Financial highlights
Good overall performance
- 100% contract retention rate in integrated FM: retained Rolls-Royce for a further five years, extended Sky for an additional five years and retained RWE npower
- Awarded a range of new integrated FM contracts including with dmg media, Deloitte, Thales Group and a high street bank – combined total annual value in excess of £50m
- Rated as the top overall service provider* in the UK FM industry for the third year running
- Strong organic revenue growth in Property Management, driven by good growth with existing clients
- In our Healthcare division we have exited unprofitable contracts and consolidated branches; recent contract awards with the Royal Borough of Kensington and Chelsea and the London Borough of Hammersmith and Fulham, show the beginning of a more positive trend and we expect to see a return to profitability over the next 18 months
- Positive about the introduction of the National Living Wage, which will ensure that many of our people are better rewarded and feel more motivated to do the jobs they do, as well as improve retention rates across our business; no material impact on future earnings is anticipated
Well-positioned for the long term
- Healthy order book at £8.5bn (March 2015: £9.0bn) and sales pipeline at £9.2bn (March 2015: £9.7bn)
- 97% of 2015/16 budgeted revenue secured (prior year: 98%) and 68% of 2016/17 forecast revenue secured (prior year: 72%)
Ruby McGregor-Smith CBE, Chief Executive of Mitie, commented:
“Mitie has had a positive start to the year. Our focus on the services sector, primarily in facilities management, will ensure we continue our long-term track record of sustainable profitable growth.
“We are the market leader in integrated FM and are particularly pleased with recent contract awards and retentions. This gives us confidence we will deliver a good full-year performance.”
1 Headline results exclude Other items; see note 3.
* i-FM brand survey
Mitie will be presenting its interim results for the period ended 30 September 2015 at 09.30 on Monday 23 November 2015. A live webcast of the presentation will be available online at www.mitie.com/investors at 09.30. The recorded webcast of the presentation and a copy of the accompanying slides will also be available on our website later in the day.
Legal disclaimer
This announcement contains forward-looking statements. Such statements do not relate strictly to historical facts and can be identified by the use of words such as ‘anticipate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, and ‘believe’ and other words of similar meaning in connection with any discussion of future events. These statements are made by the Directors of Mitie in good faith based on the information available to them as at 23 November 2015 and will not be updated during the year. These statements, by their nature, involve risk and uncertainty because they relate to, and depend upon, events that may or may not occur in the future. Actual events may differ materially from those expressed or implied in this document and accordingly all such statements should be treated with caution. Nothing in this document should be construed as a profit forecast.
Except as required by law, Mitie is under no obligation to update or keep current the forward-looking statements contained in this report or to correct any inaccuracies which may become apparent in such forward-looking statements.
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