Mitie revenue boosted by key contract wins

REVENUE at outsourcing firm Mitie jumped 5.6 per cent over the six months to September, as it hailed recent contract wins for the boost.

Turnover jumped to £1.03bn as the FTSE 250-listed company was flattered by several large contract wins, including a £775m deal with Lloyds Banking Group, thought to be its largest-ever contract.

Total revenue growth is expected to accelerate in the second half of the year, Mitie said yesterday, largely thanks to new contracts and the acquisition of home care company Enara in October. New contracts for the firm, which runs services from maintenance and cleaning to baggage screening, include a £100m five-year contract with BSkyB and a contract worth between £70-£120m with Golding Homes over 10 years.

Following on from the acquisition of Enara, the outsourcing firm added that the £8bn home care market had “excellent organic growth opportunities” and was a good entry point into the wider healthcare market.

Mitie’s order book stood at £9bn at the end of September, up 4.7 per cent from the £8.6bn in March.

Chief executive Ruby McGregor-Smith yesterday welcomed the results in a “tough economic climate and a difficult macroeconomic climate”, adding that there is a “strong pipeline of sales opportunities”.

“We remain positive about the range of outsourcing and energy services opportunities across our key markets,” she said.

Pre-tax profit rose 1.9 per cent to £48.8m, excluding exceptional costs.