The FM contract company MITIE has brought out its latest results for the six months to September 2012.
The company said it had ‘mobilised’ major contracts including our five year, £775m contract with Lloyds Banking Group; and had been awarded significant new contracts with BSkyB for £100m over five years and Golding Homes for £70-120m over ten years. Security is part of the largest, facilities division, which saw a 14.1 per cent rise in revenue from £454m in 2011 to £518m in 2012. The firm pointed in its half-yearly financial report to growth in its Facilities Management division in particular, which according to the contractor reflects the continuation during the period of clients’ demand for outsourcing.
Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, said: “This has been a positive start to the year for MITIE. We have won and retained key contracts and expanded our healthcare offering via the purchase of Enara. We are particularly pleased to have successfully mobilised and started our largest ever contract, with Lloyds Banking Group.
“We have made this progress in the face of a tough economic climate and a difficult macroeconomic outlook, with continuing challenges within our more cyclical markets. However, we remain positive about the range of outsourcing and energy services opportunities across our key markets and continue to see a growing order book as well as a strong pipeline of sales opportunities. We expect total revenue growth to be higher in the second half as a result of both the organic revenue contribution from new and expanded contracts including Lloyds Banking Group, and the acquisition of Enara.
“We are confident that we will continue to build on our long track record of sustainable, profitable growth.”
She said that as the group grows larger the company is increasing focus on higher margin services that provide long-term, sustainable revenue streams. On the prisons decisions by the Ministry of Justice on November 8, which according to MITIE indicated a shift in its prison outsourcing strategy, the contractor said: “Whilst we were not awarded any work as part of the recent tender process, we are encouraged by the Ministry’s decision to retain core custodial services within the public sector, and we anticipate that a market competition for facilities management services across the prison estate will proceed early next year. This should create significant opportunities going forward.”
On the BSkyB contract, featured in the December print issue of Professional Security, 700 people will be delivering services at two main campuses in London and Scotland as well as 12 regional offices, two data centres and 80 internet exchange points. The services MITIE are providing include building fabric maintenance, engineering maintenance, energy management, catering, security, cleaning, mail room and couriers, helpdesk, switchboard, shuttle buses, grounds maintenance and internal landscaping.
