The FTSE 250 company employs in excess of 74,000 people across the United Kingdom and Europe, and has posted a 5.6% revenue increase to GB pound 1,026.6 million. 4.3% of that growth is organic in nature.
Operating profit before other items has risen by 2.5% to GB pound 52.9 million. The operating profit margin before other items stands at 5.2% (2011: 5.3%).
MITIE Group also reports an “excellent conversion of EBITDA to cash” of 83.1% on a rolling 12-month basis, which is above the company’s stated long-term target KPI of 80%
Interim dividends are up 4.5% to 4.6p (the corresponding statistic in 2011 was 4.4p).
Continuing to deliver on the integrated FM strategy
The company has uccessfully mobilised major contracts including a five-year, GB pound 775 million contract with the Lloyds Banking Group. It has also been awarded significant new contracts with BSkyB (worth GB pound 100 million across five years) and Golding Homes (for GB pound 70 million- GB pound 120 million over ten years).
There’s a “significant order book and sales pipeline”. Excellent progress has been made in terms of organic order book development. This is up 4.7% (or GB pound 0.4 billion) to GB pound 9.0 billion (March 2012: GB pound 8.6 billion).
MITIE Group plc’s strong pipeline of potential bid activity currently stands at GB pound 10.5 billion (March 2012: GB pound 11.2 billion).
98% of 2012/2013’s budgeted revenue was secured at 30 September 2012 (prior year: 97%), while 72% of the 2013/2014 forecast revenue has already been accrued (the same figure for the prior year was 68%).
Significant future opportunities
The company firmly believes that its market-leading integrated FM capabilities will drive further growth with the existing client base.
Its energy proposition, meanwhile, supports every key energy issue faced by the company’s clients – security of supply, renewable energy, reduction of carbon emissions and value through lower costs.
There’ll be a determined focus on providing better quality services, more innovation and more efficiency to differentiate MITIE’s operation in the marketplace, while the “robust balance sheet and strong financial position” will help to support growth.
Commenting on this latest set of financials, Ruby McGregor-Smith CBE – the CEO of MITIE Group plc, said: “This has been a positive start to the year for MITIE. We have won and retained key contracts, successfully started work on others and expanded our healthcare offering via the purchase of Enara. We’re particularly pleased to have successfully mobilised and delivered the start of our largest ever contract with Lloyds Banking Group.”
The CEO went on to state: “We have made this progress in the face of a tough economic climate and a difficult macroeconomic outlook, in addition to continuing challenges within our more cyclical markets. However, we remain positive about the range of outsourcing and energy services opportunities across our key markets and continue to see a growing order book as well as a strong pipeline of sales opportunities. We expect total revenue growth to be higher in the second half as a result of both the organic revenue contribution from the expanded Lloyds Banking Group contract and the acquisitive growth from Enara.”
In conclusion, McGregor-Smith outlined: “We’re confident that we will continue to build on our long track record of sustainable and profitable growth.”