27th Jan 2022 10:51
(Alliance News) - Mitie Group PLC on Thursday said it performed "strongly" during its third quarter and lifted its full-year guidance for operating profit.
Shares were up 5.4% at 62.80 pence each on Thursday in London.
The London-based outsourcing and energy services company said revenue for its third-quarter ended December 31 stood at GBP1.01 billion, up 51% from GBP667 million a year before and a 1% increase on its second-quarter revenue.
"Mitie has performed strongly in the third quarter of the year, with revenue growing sequentially each quarter during year," it noted.
The company explained the revenue jump with new contract wins at Lincolnshire Police, John Radcliffe Hospital, IFM services Ltd, with a major British manufacturer and Hitachi Rail Ltd. As a result, its new total contracted value amounted to GBP550 million.
Additionally, multiple contract renewals contributed to the improved results. Mitie's renewal and extension rate remained at over 90%, with renewals or extensions from Co-Op Ltd, Heathrow Airport Ltd and Deutsche Bank AG in the quarter. Altogether, these renewals had a total contracted value of GBP2.3 billion.
Mitie now expects full-year revenue in the range of GBP3.8 billion to GBP3.9 billion. In the previous financial year, it posted revenue of GBP2.59 billion, so this guidance would represent a 47% to 51% increase, year-on-year.
The outsourcing and energy services company also raised its guidance for operating profit before other items to GBP160 million to GBP165 million, from its previous outlook of GBP145m to GBP155 million.
By Abby Amoakuh; [email protected]
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