28th Jul 2020 12:25
(Alliance News) - Mitie Group PLC on Tuesday reported a "resilient" performance in the first quarter of its financial year and strategic progress as it won new contracts.
The facilities management and services company reported revenue from continuing operations in the first quarter ending June 30 of GBP458.3 million, 11% lower year-on-year. This was due to the seasonal nature of the group's business, where the first quarter is normally the slowest, as well as the previously announced loss of a Ministry of Justice contract and reduced scope of a National Health Service properties contract.
Mitie however won new contracts relating to Covid-19 testing centres, renewed a Group PSA contract and won a new integrated contract with Royal London Group, it said.
Business services revenue, which represents just over half of the group total, was GBP243 million in the three months ended June 30, just 1% lower than the same period last year.
Technical services saw the greatest impact from Covid-19 with revenue of GBP163 million, down 24% year on year.
Specialist services suffered a decline of 10% in revenue year-on-year to GBP52.4 million
Average net debt during the quarter was GBP71.0 million, reduced from GBP240.0 million a year ago. This was due to the deferral of GBP133 million in taxes to UK tax collector HMRC. The group is to pay the outstanding sum between this month and April 1, 2021.
Mitie has a new GBP250 million revolving credit facility which commences on August 3 and matures on December 16, 2022.
Mitie said it will not be providing guidance for the financial year ending March 31, 2021, due to the current economic climate.
The stock was up 1.6% at 37.90 pence each on Tuesday midday in London.
By Greg Roxburgh; [email protected]
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