MITIE hails 'transformational' year

published 21 May 2012

Outsourcing and energy services company MITIE Group said 2011 had been a transformational 25th year for the company, with strong growth and a record order book.

The firm posted revenue growth of 5.9% to £2bn in the year to the end of March, of which 5.4% was organic.

Profit before tax increased by 8.9% to £94.5m, while earnings per share were up by 10.2% to 20.5p.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The company pushed its total dividend for the year up 6.7% to 9.6p per share.

MITIE said its sales pipeline currently was down slightly at £11.2bn compared to £11.4bn last year.

But it added that forward revenue visibility was excellent, with contracted revenue for the year ending 31 March 2013 at 83% of budgeted revenue, compared to 81% this time last year.

The firm said it was benefitting from private sector firms outsourcing non-core service to secure cost reductions in order to compete in tough market conditions.

It had also seen some clients taking a pan-European approach to procurement, the firm said.

MITIE said public sector remained under pressure, with central government and local authorities in the UK streamlining their cost bases.

It said trend was is likely to continue for the foreseeable future and was creating significant opportunities for outsourcing.

Chief Executive Ruby McGregor-Smith said the firm's results were an endorsement of its long-term strategy to invest in its integrated facilities and energy management capabilities, which would underpin the continued growth of our business.

"As governments and businesses seek cost and energy efficiencies, our track record for service delivery, innovation and efficiency will continue to differentiate us," she said.