27th Jul 2021 12:53
(Alliance News) - Mitie Group PLC on Tuesday said its financial year started "strong" with rising revenue and new contract wins in the first quarter.
In a trading update, the Glasgow-based outsourcing and energy services company reported up to GBP1.4 billion in new contract wins and renewals in the three months that ended June 30.
Pandemic-related UK government contracts brought in GBP110 million for Mitie in the recent quarter, compared to just GBP11 million in the first quarter of financial 2021.
Revenue soared to GBP930 million in the first quarter, doubling from GBP455 million the year prior.
Mitie shares were trading up 5.9% at 66.30 pence each in London on Tuesday afternoon after the quarterly update.
Excluding income from recent acquisition Interserve Facilities Management, first quarter revenue totalled GBP618 million, 36% higher than the GBP455 million taken in the same period last year.
Mitie said the folding in of Interserve operations continued to progress well, with "business as usual" integration expected by the end of 2021.
The acquired Interserve business took in revenue of GBP312 million in the recent quarter, Mitie said, reflecting increased project work for its Central Government & Defence segment.
With revenues rising, Mitie's average daily net debt was GBP69 million in the first quarter, down from GBP164 million a year prior.
"Although the performance in the first quarter was boosted by shorter-term Covid-related contracts, recent high-quality wins," the company said.
"[However] the re-opening of customers' premises and the gradual recovery of the economy provide a strong underlying trading momentum which gives the board considerable confidence for the second half and delivery of its full year expectations," Mitie concluded.
By Scarlett Butler; [email protected]
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