Financial highlights

• Headline revenue growth of 5.8%, of which 4.9% was organic
• Headline operating profit of £128.6m, generating a 5.7% operating profit margin
• Excellent headline cash conversion of 95.1% (2014: 102.4%) and statutory cash conversion of 126.5% (2014: 107.3%); above target KPI of 80%
• Strong dividend growth of 6.4% to 11.7 pence per share
• Net debt of £177.8m or 1.2x headline EBITDA (2014: £186.6m or 1.3x headline EBITDA)
• Return on capital employed of 18.6% (2014: 16.9%)

Organic growth driven by facilities management

• Strong organic growth of 6.1% in FM, with margins at 6.0% and an excellent retention rate of 96%
• Transformational partnership delivering integrated FM for Lloyds Banking Group extended until 2022
• Our homecare and social housing businesses have been impacted by market pressures. We remain confident of longer-term opportunities in these businesses

De-risked the business by completing business exits

• We have completed the exit from our mechanical and electrical engineering construction and Asset Management businesses. Exceptional charges incurred were £15.9m and £45.7m respectively (2014: £13.6m and £25.4m), in line with previous guidance; there will be no further provisions or exceptional charges relating to either of these businesses
• Significantly reduced the potential volatility of the group’s earnings going forward

Well positioned for growth

• 85% of 2015/16 budgeted revenue secured (prior year: 84%)
• Sales pipeline buoyant at £9.7bn (2014: £8.2bn) and order book remains strong at £9.0bn (2014: £8.7bn)
• Launching a £20m entrepreneurial fund to back management teams under the 'Mitie Model', to start up new businesses or invest in and grow existing small businesses

Ruby McGregor-Smith CBE, Chief Executive of Mitie Group plc, commented:

“Mitie has made good progress this year. We have repositioned the business and lowered our risk profile. Our facilities management business accounts for c.85% of group revenue and is a UK market leader.

“We see considerable opportunities across our markets, to provide clients with higher quality, innovative services that save them money. We also see this as a positive environment in which to start and grow businesses, and we plan to back entrepreneurs to do this through our £20m ‘Mitie Model’ entrepreneurial fund.

“We are only as good as all our people, and supporting and developing them is critical to our ongoing success.

“We are focused on generating profits backed by cash, maintaining strong margins and growing the dividend. With a substantial order book and sales pipeline, we are now well placed to deliver good growth. We look ahead with confidence.”

1 Headline results exclude other items. Other items comprised: exceptional charges in relation to design and build contracts in Energy Solutions of £45.7m (2014: £25.4m); the results of the mechanical and electrical engineering construction business, with revenue of £7.6m (2014: £78.5m) and a trading loss of £15.9m (2014: £13.6m loss); acquisition related and integration costs of £0.9m (2014: £5.1m); and the amortisation of acquisition related intangible assets of £10.1m (2014: £11.0m).

For further information please contact:
Erica Lockhart, Executive Affairs Director
M: +44 (0) 7979 784488 E: erica.lockhart@mitie.com
John Telling, Group Corporate Affairs Director
M: +44 (0) 7979 701006 E: john.telling@mitie.com

Mitie will be presenting its preliminary results for the year ended 31 March 2015 at 09.30 on Monday 18 May 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. Mitie expects to publish its Annual Report and Accounts (containing financial statements that comply with IFRS) in June 2015 and copies will be available from Mitie’s registered office and on its website www.mitie.com. Mitie’s Annual General Meeting will take place at 14.30 on 13 July 2015.

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 18 May 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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