Facilities and project management firm reveals strong half-year results despite credit crunch
The Mitie Group has reported a strong set of half-year financial results, demonstrating the resilience of the facilities management market in the economic downturn.
Turnover at the firm grew to £760m in the six months to 30 September 2008, an 11% rise from last year's figure of £682m. Pre-tax profit hit £37m, a 12% rise from £33m last year.
Mitie has several public sector contracts to manage buildings, including a £40m agreement with Land Securities Trillium's Kent Building Schools for the Future programme, and cleaning contracts with BAA and the NHS.
Its property services division grew over the same period, achieving a turnover of £160m, with £9.4m earnings before interest, tax and amortisation. This was done largely through social housing contracts with Gloucester City Homes, Bracknell Forest Homes and Liverpool Mutual Homes. It bought DW Tilley, a roofing contractor, in March 2008.
Ruby McGregor-Smith, chief executive of Mitie, said: “The current unparalleled uncertainty within the economy has an impact on all businesses, but our key markets remain attractive as customers develop their risk management and operational strategies and consider new ways of outsourcing that can provide them with the environmental and cost benefits that legislative, economic and cultural drivers are demanding.”