MITIE announces half-yearly results

Strong organic growth, enhanced order book and an excellent pipeline

Revenue 971.7 918.7 5.8
Operating profit before other items 51.6 48.4 6.6
Profit before tax and other items 47.9 47.5 0.8
Profit before tax 43.3 36.9 17.3
Basic earnings per share before other items 10.4 9.9 5.1
Basic earnings per share 9.4 7.7 22.1
Dividend per share 4.4 4.1 7.3

Strong financial performance

  • Strong revenue growth of 5.8% to £971.7m
  • Operating profit before other items up 6.6% to £51.6m
  • Operating profit margin before other items maintained at 5.3% (2010: 5.3%)
  • Good conversion of EBITDA to cash of 81.0% on a rolling 12-month basis, above stated long-term KPI of 80%
  • Interim dividend up 7.3% to 4.4p (2010:  4.1p)
  • Low leverage with net debt at £119.3m (2010: £110.6m) – 0.9x EBITDA on a rolling 12-month basis

Delivering on our strategy with a series of transformational contract awards

  • Success in key bidding areas reinforces the strength of integrated facilities and energy management capability
  • In the private sector, we have significantly expanded existing relationships with Diageo and the Cumbrian Collaboration
  • In the public sector, we have secured key contracts with Ministry of Justice, Essex County Council and West Midlands Construction Framework
  • Total potential value of contracts awarded with these five clients ranges between £740m and £1.3bn

Tremendous prospects for growth demonstrated by enhanced order book and pipeline

  • Excellent progress in organic order book development – up 17.6% or £1.2bn to £8.0bn
  • Buoyant pipeline of potential bid activity currently stands at £11.7bn (March 2011: £11.4bn)
  • 97% of 2011/12 budgeted revenue secured at 30 September 2011 (prior year: 95%), 68% of 2012/13 forecast revenue secured (prior year: 62%)

Significant future opportunities

  • Market-leading integrated facilities management capabilities will drive further growth with existing client base
  • Energy proposition supports every key energy issue faced by our clients – security of supply, renewable energy, reduction of carbon emissions, and value through lower costs
  • Focus on providing better quality services, more innovation and more efficiency differentiates us in the marketplace

Ruby McGregor-Smith - Chief Executive of MITIE Group PLC

Ruby McGregor-Smith, Chief Executive of MITIE Group PLC, commented:
“The first half of this year has seen us deliver a strong set of financial results. We have been awarded a number of significant contracts which have enhanced our business. This demonstrates the success of our strategy to invest in our integrated facilities and energy management capability.
Looking ahead, our focus is on developing existing client relationships and maximising opportunities to deliver value in energy services. This will ensure that all of our clients receive great value, high quality services, both in the UK and overseas.
We are mindful of the challenging economic environment. However, the search for greater cost and energy efficiency is central to the strategies of governments and businesses in all our markets – and delivering better quality services, innovation and efficiency lies at the heart of what we do.
With a record order book and a strong pipeline of sales opportunities, I am confident that the group will continue its outstanding track record of sustainable profitable growth.”

MITIE  Website

MITIE Half-yearly financial report for the six months to 30 September 2011