19th May 2014 07:50
LONDON (Alliance News) - Mitie Group PLC Monday said its full-year pretax profit increased by 21% due to a "steady flow" of contracts within its key facilities-management business, but it also incurred significant losses from its ongoing exit from its mechanical and electrical engineering construction business and from the design-and-build element of asset management.
In a statement, the outsourcing and energy services company said it made a GBP68.4 million pretax profit in the year ended March 31, compared with GBP56.3 million a year earlier. Revenue increased to GBP2.22 billion from GBP2.12 billion, while administrative expenses narrowed to GBP243.2 million from GBP249.6 million.
Meanwhile, Mitie said its results include GBP33.9 million of non-recurring items, which include GBP13.6 million of trading losses incurred due to exiting its loss-making mechanical and electrical engineering construction business and GBP25.4 million in respect of reducing exposure to the design-and-build element of its asset management business.
Mitie said it will focus on its core facilities management business and continuing to grow and invest in "adjacent" markets, such as healthcare. In January, Mitie acquired Complete Group for GBP9.0 million.
"We are very well-positioned as one of the UK's leading integrated facilities management providers, and we have also invested in higher-margin markets which will support our growth aspirations," Ruby McGregor-Smith, chief executive, said in a statement.
"We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access bundled and integrated services. We are confident that we will continue to build on our track record of delivering sustainable, profitable growth," McGregor-Smith added.
Mitie increased its full-year dividend 6.8% to 11.0 pence from 10.3 pence.
Mitie shares were Monday quoted at 314.40 pence, up 1.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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