Integrated Systems

Mitie hails FM opportunities

by Mark Rowe

While its contracts have been driven mainly by the private sector, the public sector offers excellent long-term opportunities, according to the contractor Mitie.

The company’s Facilities Management (FM) side is doing better than some parts of the firm, divided into ‘soft FM’ and ‘hard FM’ divisions. By soft FM the contractor means cleaning and environmental services; security; and catering and front of house services, while ‘hard FM’ means technical and building services. In the firm’s half-yearly financial report for the six months to September, the soft FM side is reporting £40.3m profit on revenue of £622.7m, giving a profit margin of 6.5 per cent. The plc’s figures are not broken down to show security’s part in the whole.

The firm is getting out of the mechanical and electrical engineering construction sector, and ‘Asset Management’.

Ruby McGregor-Smith CBE, Chief Executive of Mitie, said: “We have delivered a strong performance in our facilities management business during the first half of the year, and we expect to gain further positive momentum through the rest of the year.

“We have significantly de-risked our group by finalising the exit from our loss-making businesses. We are focused on investing in and maximising the long-term growth potential of our facilities management, property management and healthcare businesses. Our order book and sales pipeline are substantial. We are in a good position to deliver growth and look ahead with confidence.”

As for contracts, the company says that it has retained an integrated FM contract with Vodafone for a further five years, valued at £250m, including security across 2000 of the telecoms company’s sites; and Mitie has begun a contract with the Home Office to run two immigration centres at Heathrow, in a contract valued at £180m over eight years. The contractor has a three-year contract to provide FM services at BBC Worldwide’s new offices in Television Centre, White City, west London, when it opens in 2015. And in healthcare, Mitie was awarded a new contract with the Royal Cornwall Hospitals NHS Trust, valued at £90m over seven years, with a possible three-year extension, to deliver soft FM services including cleaning, portering, catering, post room and security, which began on October 1.

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