19th Nov 2020 11:41
(Alliance News) - Mitie Group PLC on Thursday reported a significant profit decline in the first half of its financial year, with its Technical Services unit worst hit by the Covid-19 pandemic.
Shares in Mitie were down 3.4% at 39.98 pence in London in late morning trading.
The Glasgow-based facilities management company posted a GBP2.1 million pretax profit for the six months ended September 30, a fraction of its GBP14.6 million profit a year before.
Revenue dropped 10% to GBP972.4 million from GBP1.08 billion.
"Technical Services has seen the greatest impact from Covid-19 as discretionary variable work and demand for engineering projects has significantly reduced, with reported revenue in the first six months down 22% against the same period last year of which a third of the decline was due to the loss of the [Ministry of Justice] and NHS Properties contracts. Specialist Services reported revenue 10% lower than the same period last year," said Mitie.
No interim dividend was declared for the period, Mitie having declared a 0.69p per share dividend the year before.
Chief Executive Phil Bentley said: "Strategically we continue to make good progress against our Phase 11 transformation, 'accelerated value creation'. Strengthening our balance sheet with the rights issue and refinancing of the revolving credit facility in June placed us in a strong financial position to acquire Interserve Facilities Management. With completion of this acquisition at the end of the month - subject to shareholder approval - we can drive faster growth and greater cost synergies, despite the challenges of Covid-19."
By Anna Farley; [email protected]
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