Mitie upbeat on order book

 
City A.M. Reporter
CONSTRUCTION and outsourcing firm Mitie said its financial year had started well, with profit and revenues in line with expectations, and said a record order book means it is extremely positive about the outlook.

Mitie, which provides services from cleaning to engineering, said yesterday it had made significant progress in each of its key target markets, with 85 per cent of budgeted revenues for this financial year secured by the end of June, against 78 per cent a year ago.

The group said it was seeing a steady flow of contract awards in the public sector, particularly in local government, justice, health and social housing, as the government and local authorities look to cut costs by outsourcing services.

The pipeline of private sector work, which makes up more than 60 per cent of revenue, also remains buoyant, Mitie said, while contract wins such as the installation of solar panels at social housing projects shows how it is trying to tap into new markets.

The midcap company, run by chief executive Ruby McGregor-Smith, said revenues and earnings are in line with its expectations and that it was “extremely positive” about the outlook.

Shares in FTSE250-listed Mitie gained 2.5 per cent yesterday, outperforming the wider market.