MITIE Group plc’s results for the financial year ending 31 March 2011 indicate a substantial upward trending in terms of both revenue growth and operating profit.
The former has grown by 10% (to GB pound 1,891.4 million) on the back of “good progress” in underlying organic revenue growth.
Operating profit before other items is up 16.5% to GB pound 108.3 million, while the order book indicates GB pound 6.8 billion in generated revenue (up GB pound 0.4 billion on the 2010 figures).
On top of all that, there’s a reported GB pound 11.4 billion pipeline of ‘identifiable sales opportunities’.
Significant work in the private sector
“These are very good results,” commented Ruby McGregor-Smith, CEO of MITIE Group. “This year we have been awarded a number of transformational contracts. We have secured some significant work in the private sector where we have excellent relationships with our clients, and are differentiated by our energy services capabilities and use of technology.”
As reported by SMT Online, those transformational contract awards have included landmark agreements with both Rolls-Royce (for pan-European total facilities and energy management) and Vodafone (covering its entire UK and Ireland property portfolios).
Energy services have generated 34% of revenues in 2011, with MITIE Group now ranked in the top two energy services companies in the UK.
Large public sector framework appointments
McGregor-Smith added: “We have been appointed to several large public sector frameworks and have a strong pipeline of opportunities in the local Government, social housing, justice and health sectors.”
In conclusion, the CEO explained: “The opportunities in outsourcing and energy services in the UK and abroad are significant. Our strong balance sheet and excellent cash conversion, as well as a record order book and sales pipeline, will enable us to achieve our growth aspirations. The business is well positioned for continued, sustainable and profitable growth.”
The official announcement issued this morning states: “We have had another year of strong progress at MITIE, with double-digit growth in revenue, earnings and dividends. This is an excellent performance against a UK economic backdrop that remains challenging and is a testament to the passion and hard work of our people.”
The statement continues: “During the year, we have made excellent progress on our key strategic initiatives, continuing to invest in our people, technology, facilities management (FM) and energy propositions as well as our overseas capability. We were delighted to retain and expand contracts with Rolls-Royce and Vodafone which confirmed our strategy of providing integrated FM and energy services. We also acquired Dalkia FM in Ireland and made a significant investment in the fast developing decentralised energy market. We start the new financial year in a strong and confident position.”
Closer look at the financials
In terms of the financials, the statement reads: “During the year, revenues grew by 10.0% to GB pound 1,891.4 million (2010: GB pound 1,720.1 million). Operating profit before other items increased by 16.5% to GB pound 108.3 million (2010: GB pound 93.0 million), reflecting an improved margin of 5.7% (2010: 5.4%). Profit before tax and other items increased by 15.3% to GB pound 105.7 million (2010: GB pound 91.7 million). Earnings per share before other items grew by 15.9% to 22.6 pence per share (2010: 19.5 pence per share).”
MITIE Group also comments: “We have retained our strong focus on cash, reporting cash inflows from operations of GB pound 102.5 million (2010: GB pound 98.4 million) for the year, which represents excellent conversion of EBITDA to cash of 86.7% (2010: 95.2%). The balance sheet is extremely strong, with net debt at the year end at 0.65 times EBITDA at GB pound 76.5 million (2010: GB pound 86.6 million) after using debt funding of GB pound 7.3 million for an acquisition.”
Extremely positive outlook
“MITIE is in an excellent position. We continue to focus on organic growth, supplemented by selective acquisitions and the development of our integrated business model overseas.”
“We have a diverse, high quality client base across both the public and private sectors which underpins our consistent track record. This has enabled us to continue investing in our people, technology and new markets, all of which supports our strong order book and growing sales pipeline.”
“There are exciting opportunities in our markets as clients across the board look to introduce further innovation and efficiencies into their businesses. We are financially robust and have a clear strategy for the development of our business. We are confident that MITIE will continue to build on its long track record of sustainable, profitable growth.”
For a full copy of the MITIE Group’s financial report for the year ending 31 March 2011 click the link provided at the foot of this page
