Client trend towards cutting costs through outsourcing benefits maintenance specialist
Maintenance specialist Mitie has posted an 11% rise in full-year profit and said the outlook for the year ahead is good as clients look to cut costs through outsourcing.
The group reported a pre-tax profit of £78.4m for the year to 31 March, compared with £70.6m in 2008. Turnover was £1.52bn, up 8.2% on last year's figure of £1.4bn. Margins rose to 5.3% during the year, up from 5.1% in 2008, and the group's order book grew 11.4% to £4.9bn.
Chief executive Ruby McGregor-Smith said: “We are making strong progress as clients increase outsourcing in their drive for efficiency at this stage in the economic cycle. We are benefiting from a sustained level of outsourcing and asset management opportunities as contracts become more sophisticated, larger and longer-term and client strategies respond to the challenges of the global low carbon economy.”
Profit rose by 10.8% at the firm's facilities management division, following wins including Building Schools for the Future contracts in Derbyshire and Kent.
In the property management business, profit grew 19.3%, while at the asset management business profit rose 1.2%.
The firm said parts of its business, including interior fit-out, retail engineering and plumbing, had been affected by the recession but said its exposure to these areas was “minimal” and it had focused on moving skills from these sectors into public sector work.
Mitie added that acquisitions were a “key part” of its strategy and it was looking out for firms that would complement its existing business.