Mitie on track for higher second half revenue

Outsourcing firm Mitie said it was performing in line with management expectations as strong organic growth was driven by new and expanded contracts.

It continues to expect total revenue growth to be higher in the second half than seen in the first.

This confidence was down to both organic revenue contributions, including its facilities management contract with Lloyds Banking Group, and its healthcare acquisition, Enara Group, the firm said.

Mitie said despite on-going weak economic conditions affecting its more cyclical markets and some delays in energy infrastructure projects, the company remained very positive about the range of outsourcing opportunities across its key markets.

"We are confident that we will continue to build on our long track record of sustainable profitable growth," the statement said.

But the firm added that going forward, it would actively seek to sell off cyclical businesses which were unable to reach margin targets in the long term.

"Over the last five years we have seen fundamental changes in our sectors which in some cases we believe are structural," Mitie said.

"Whilst we see significant opportunities in many areas - for example, within energy and integrated facilities management as well as healthcare - we believe some other areas will continue to be challenged."