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27 April 2018
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MITIE POSTS ‘MODEST GROWTH’ RESULTS 

web_Phil-Bentley
Phil Bentley © Mitie

16 March 2018 | Martin Read


Mitie has seen only a “limited impact” on its business as a result of competitor or industry activity following the collapse in January of Carillion.

 

The FM service provider made the comment in a trading update that detailed interim financial results showing a modest growth in overall sales. The firm’s operating profit was in line with expectations, albeit slightly down as the result of “investment in customers, IT and capability”.

 

Likely revenue growth will be around 2 per cent, with the figures including the performance of the group’s property management division following the decision to withdraw that division from sale in December.

 

Mitie pointed to the 10- year, £525 million detention and escorting contract through its Care & Custody division as the highlight of the trading year to date. 

 

CEO Phil Bentley said that the company’s cost-saving programme, called Project Helix, is starting to deliver cost savings it was set up to provide.

 

“We are one year into our Transformation Programme and we are making progress. Our order book is solid and revenue is up year-on-year. 

 

“We have upgraded our sales and customer service capability, and we continue to invest in talent and technology.

 

“The liquidation of Carillion has raised some fundamental questions about the outsourcing industry. Managing the buildings and the workplaces of our clients is a complex business, but our expertise, scale and focus continue to be valued by our clients.

 

”We remain focused on delivering exceptional FM services and rolling out our Connected Workspace technology to provide advanced analytics, delivering trusted advice and valued insights.

 

“The year ahead will remain challenging as we continue to transform Mitie, but we expect to see modest revenue growth with improved profits and cash flow generation."

 

In the trading update statement, the company suggested that the facilities management sector “has been in the spotlight in the last few months. Mitie has actively engaged with its customers and stakeholders during this period, providing context and assurances”. 

 

“We remain fully focused on our transformation programme and the execution of our strategy. Potential Brexit impacts are expected to be minimal, though could be felt in wage inflation, and we have budgeted for increasing remuneration costs in FY18/19.”

 

Mitie’s full year results are scheduled to be published on 7th June.