21st Nov 2019 10:20
(Alliance News) - Facilities management and professional services firm Mitie Group PLC on Thursday reported strong profit growth in the first half of its financial year.
Mitie's pretax profit in the six months to September rose 22% to GBP14.6 million, helped by revenue rising by 11% to GBP1.08 billion.
Revenue growth mainly came from the acquisition in October 2018 of Vision Security Group, topping up organic growth.
Southwark-based Mitie kept its interim dividend flat on the previous year at 1.33 pence per share.
Chief Executive Phil Bentley said: "Our strategy remains to focus on our core businesses and our strategic accounts, where our investment in technology distinguishes our offer and improves customer service and margins.
"During the last six months, we have seen modest organic revenue growth with a higher level of extensions and significant new wins, including our largest integrated facilities management account win for several years and our largest IFM account extension."
"The Catering disposal to our strategic partner CH&CO has strengthened our balance sheet and sharpened our focus on those business lines where we can secure a leading market position, underpinned by technology. Although still early days, we can see the success of this approach in our Security business where we continue to win market share," Bentley added.
Technical Services and Business Services make up the majority of Mitie's revenue. The figure rose 21% in Business Services to GBP490.7 million, with Technical Services up 1.2% to GBP470.6 million.
Mitie's other division, Specialist Services, achieved a 15% rise in revenue to GBP116.7 million.
Looking ahead, Mitie said the market remains challenging. For the full-year, it sees organic revenue growth in line with the first half. Operating profit for the year is guided to rise by mid-single digits.
For the following year, Mitie has guided for revenue growth in line with its current year, and the same for operating profit.
Mitie shares were down 1.3% to 140.80 pence in London on Thursday.
By George Collard; [email protected]
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