23rd Jul 2024 09:42
(Alliance News) - Mitie Group PLC on Tuesday said revenue grew in its first quarter boosted by recent acquisitions, an increase in projects and variable work and pricing.
The London-based outsourcer said revenue in the three months to June 30 increased 11% to GBP1.16 billion from GBP1.05 billion a year prior.
Chief Executive Phil Bentley said the good trading momentum from last year has continued into the first quarter of financial 2025.
"We remain on track to deliver our high-single digit revenue growth expectations for the year," he added.
He noted double digit revenue growth from the Projects business, including the benefit from the previous year's acquisitions.
"Contract wins and renewals also remained high, following a record final quarter in [financial 2024], reinforcing the strength of our market leading, technology and data-rich capabilities," Bentley added.
This progress more than offset net contract losses and the completion of certain short-term public sector contracts in the prior year, the company added.
Revenue in Business Services rose 12% to GBP403 million from GBP360 million year-on-year; in Technical Services by 5.2% to GBP326 million from GBP310 million; in Central Government & Defence by 4.3% to GBP217 million from GBP208 million; and in Communities by 24% to GBP218 million from GBP175 million.
Bentley hailed a programme of margin enhancement initiatives which "will raise the operating margin over the medium-term".
This three-year programme is on track to deliver around GBP20 million of cost savings in financial 2025, Mitie said.
Net debt rose to GBP182 million at June 30 from GBP81 million at March 31 reflecting an expected working capital outflow.
Shares in Mitie fell 0.6% to 121.82 pence in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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