Revenue ramps up at Mitie

Outsourcing firm Mitie said today that it expected total revenue growth to be higher in the second half, as it was buoyed by several new contracts.

Over the six months to September the company – which runs services from maintenance and cleaning to baggage screening – reported revenue growth of 5.6 per cent to £1.03bn. Operating profit rose 2.5 per cent to £52.9m over the period.

New contracts include a £775m deal with Lloyds Banking Group, plus a £100m five-year contract with BSkyB and a contract worth between £70 and £120m with Golding Homes over 10 years.

In a trading update, 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.

“We have made this progress in the face of a tough economic climate and a difficult macroeconomic outlook, with continuing challenges within our more cyclical markets,” chief executive Ruby McGregor-Smith said this morning, adding that Mitie continued to see a growing order book and a “strong pipeline of sales opportunities”.

“We are confident that we will continue to build on our long track record of sustainable, profitable growth."