26th Sep 2018 10:00
LONDON (Alliance News) - Mitie Group PLC said Wednesday the majority of its businesses are performing "well" and it expects to deliver "modest" top-line growth in its financial year.
The facilities management company said it expects 2% to 3% revenue growth in the first half due to a "solid" performance from the majority of its divisions.
In the half-year ending September 30, Mitie expects its operating profit to be flat to slightly down, which is in line with management forecasts.
The company's outlook for its full year performance to March 31, 2019 is unchanged.
The company said its order book has "declined slightly" since the financial year-end, due to the delivery of long-term contracts, but has secured a number of "significant" wins in the period across a mix of clients.
Mitie said it remains committed to its medium-term target of improving operating profit margins to 4.5% to 5.5% as it makes "good progress" in its Helix Project transformation.
The company is hoping Helix will deliver about GBP40 million cumulative in-year cost savings.
Mitie is due to announce its interim results on November 22.
Chief Executive Officer Phil Bentley said: "The majority of our businesses are performing well and our larger contracts are delivering solid growth in volumes and profitability. We are maintaining our full-year guidance as project work volume is increasing, our in-year sales wins are growing and like-for-like revenue growth has strengthened in the second quarter. Our Pan-Mitie initiatives to re-engineer our processes - Project Helix - are on track and delivering in-year and run-rate savings as previously guided.
"The environment in our industry remains highly competitive, especially when it comes to contract renewals. We see technology, especially in our core businesses, playing an increasingly important part in differentiating our service delivery and improving margins, and therefore we are continuing to invest in the 'Connected Workspace' to accelerate growth."
Shares in Mitie were down 7.0% Wednesday to 143.20 pence each.
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