18th Nov 2013 10:08
LONDON (Alliance News) - MITIE Group PLC Monday reported higher profits and revenues for the first half of its fiscal year, driven by new contract wins and strong growth at its facilities management division.
The outsourcing company reported a pretax profit of GBP42.8 million for the six months to end-September, up from GBP36.6 million a year earlier as revenues rose to GBP1.09 billion, from GBP1.03 billion. Net profit rose to GBP31.7 million from GBP27.4 million.
It raised its interim dividend to 4.9 pence, from 4.6p.
"The successful re-positioning of the business means we are in a stronger and better position than ever to deliver higher growth and maintain strong margins. We look ahead with confidence," Chief Executive Ruby McGregor-Smith said in a statement.
The company's order pipeline stands at GBP8.8 billion, up from GBP8.7 billion at the end of March, although its order book decreased 5.4% over the six months to GBP8.7 billion.
The company is restructuring, selling construction and engineering services businesses to focus on four business areas where it thinks it can achieve profitable growth. Revenues grew 10.3% and operating profit 10% at its facilities management unit, which offset a 4.8% drop in profit at property management and a 51.6% decline in revenues at its energy business. It said its healthcare business, created with the acquisition of Enara in October last year, is being integrated successfully.
The company's facilities management unit won new contracts with the likes of Mitchells & Butlers and Bank Of Ireland during the fiscal first half, while property management started a housing repairs and management contract with Hammersmith & Fulham council.
MITIE shares were down 0.2% at 313.4 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Mitie