In its latest Interim Management Statement for the period from 1 April 2010 to date, .Mitie Group PLC, the strategic outsourcing company, said it has had a positive start to the year with 78% of 2010/11 budgeted revenues already secured.
Mitie also achieved the same percentage of forward sales at the same point in the last financial year. The Group statement said it had a strong balance sheet and committed funding lines of £230m in place until January 2012, giving Mitie the capacity for acquisitions and other opportunities for growth.
The update said current trading and group earnings are developing in line with management's expectations, with no material changes in its public sector markets. The majority of Mitie’s central government bid activity is directed towards contracts starting in the next financial year.
Although Mitie’s business has been traditionally focused on UK markets, the company said it was seeking to develop its capabilities in territories which are strategically important to the Group as clients looked to support their European property portfolios through pan-European procurement and FM strategies. The Group has significantly enhanced its pan-European presence via the attainment of preferred bidder status for Rolls-Royce European facilities management (FM), the acquisition of Dalkia’s FM business in Ireland and an increased stake in Service Management International Limited.
The Group said it continued to see good growth opportunities in the majority of its markets. In the private sector, demand for innovation and efficiency is generating opportunities to add value to clients’ organisations through the provision of large scale and extended scope outsourced services.
Since the announcement of its preliminary results for the year ended 31 March 2010 on 17 May 2010, Mitie has successfully retained and expanded a number of existing contracts and secured new work across the business.
The group said it is expecting further profit growth in the year ahead, with the statement adding:
“Mitie is well-positioned to support its clients to drive down their costs through large scale and scope outsourcing programmes, and with a diverse client base and sector exposure remains positive about the opportunities for growth.”
“Whilst recognising uncertainties in certain markets, the group is on track to continue its record of sustainable profitable growth.”
Thames Water Utilities Ltd is one of Mitie’s biggest clients in the water sector. The Group has a six-year contract to deliver an integrated facilities management contract with an estimated value of over £100m, which covers TWUL’s entire estate, totalling over 3800 buildings, including their head office and laboratory as well as operational buildings throughout the Thames region.