Outsourcer Mitie sees healthy sales pipeline

City A.M. Reporter
Outsourcing group Mitie has posted a small profit rise and said a significant bid pipeline leaves it confident of further growth, as governments and businesses seeking to cut costs sign up for its support services.

Mitie, whose customers include Tesco and London's Royal Opera House, said its pre-tax profit before one-off items for the six months to the end of September was up 0.8 per cent to £48m on revenue up 5.8 per cent to £972m.

The firm, which provides services from maintenance and security to cleaning and energy management, has won a number of re-bid and new contracts this year, including facilities management deals with south England courts, two prisons, Essex council and spirits group Diageo.

"The search for greater cost and energy efficiency is central to the strategies of governments and businesses in all our markets," chief executive Ruby McGregor-Smith said in a statement.

"With a record order book and a strong pipeline of sales opportunities, I am confident that the group will continue its outstanding track record of sustainable profitable growth."

Mitie, which said its pipeline of potential bid activity stood at £11.7bn, added that 97 per cent of this year's revenue had been secured, with 68 per cent of forecast revenue for 2012/13 also secured.

Shares in the FTSE 250 group, which upped its interim dividend by 7.3 per cent to 4.4p, closed at 244p on Friday, valuing the business at around £860m.