MITIE Group PLC Preliminary announcement of results for the year ended 31 March 2012

A transformational 25th year, strong organic growth and a record order book

Revenue 2,002.5 1,891.4 5.9
Operating profit before other items 1,2 111.7 104.2 7.2
Profit before tax and other items 2 104.5 105.7 (1.1)
Profit before tax 94.5 86.8 8.9
Basic earnings per share before other items 2 22.6 22.6 0.0
Basic earnings per share 20.5 18.6 10.2
Dividend per share 9.6 9.0 6.7

Excellent financial performance

  • Strong revenue growth of 5.9% to £2,002.5m, of which 5.4% is organic
  • Operating profit before other items1,2 up 7.2% to £111.7m (2011: £104.2m excluding £4.1m pension credit)
  • Operating profit margin before other items1,2 remains strong, at 5.6% (2011: 5.5%)
  • Excellent conversion of EBITDA to cash of 83.7%, above stated long-term KPI of 80% (2011: 86.7%)
  • Total dividend for the year up 6.7% to 9.6 pence per share (2011: 9.0 pence per share)
  • Low leverage with net debt of £106.9m, at 0.81x EBITDA (2011: £76.5m, 0.65x EBITDA)
  • Strong balance sheet and long-term committed financing facilities will support growth

Delivering on our strategy with a series of transformational contract awards

  • Our market leading integrated facilities and energy management capabilities have resulted in exceptional progress in key bidding areas and will drive further growth with existing client base
  • Contract signed to deliver facilities management services for Lloyds Banking Group, which at £775m over five years, will be one of the biggest private sector contracts of its type
  • In the private sector, we also significantly expanded existing relationships with the Cumbrian Collaboration and Diageo
  • In the public sector, we secured key contracts with Ministry of Justice, Essex County Council and West Midlands Construction Framework
  • Total potential value of contracts awarded with these six clients ranges between £1.5bn and £2.2bn

Tremendous prospects for growth demonstrated by record order book and buoyant sales pipeline

  • Excellent progress in organic order book development – up 26% or £1.8bn to £8.6bn (2011: £6.8bn)
  • Pipeline of potential bid activity remains buoyant and currently stands at £11.2bn (2011: £11.4bn)
  • 83% of 2012/13 budgeted revenue secured (prior year: 81%)

Comprehensive energy services offering is a key differentiator

  • 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
  • Energy services generated 34% of revenues in 2012 and ranked in the top two energy services companies in the UK
  • Acquired Utilyx in January 2012, a specialist energy and carbon consultancy which helps businesses manage the impact of energy consumption and rising energy costs
  • Appointed preferred bidder to develop a major new innovation centre to power the world famous Cambridge Biomedical Campus (Addenbrooke’s Hospital) and awarded a contract to create Scotland’s largest self-sufficient energy community in Cardenden, Fife

Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, commented:

Ruby McGregor-Smith
Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC

“This has been a transformational 25th year for MITIE. We have made excellent progress on all of our key strategic objectives, achieved sector-leading organic growth and been awarded a number of significant contracts that are enhancing our business.

“This success is an endorsement of our long-term strategy to invest in our integrated facilities and energy management capabilities, which will underpin the continued growth of our business. As governments and businesses seek cost and energy efficiencies, our track record for service delivery, innovation and efficiency will continue to differentiate us.

“Financially robust, we have a clear strategy for the development of our business, supported by a buoyant sales pipeline and an order book that stands at record levels. We are confident that the exceptional track record of sustainable, profitable growth that we have achieved for 25 years will continue.”

  • (1)  Operating profit before other items in the year ended 31 March 2011 included non-recurring income of £4.1m arising from an amendment to the past service cost of certain defined benefit pension schemes following the change from RPI to CPI for the valuation of certain pension scheme liabilities. Operating profit before other items, margin, and related growth statistics stated above exclude the £4.1m from the prior year result in order to reflect the underlying operational performance of the group
  • (2)  Other items comprised the amortisation of acquisition related intangible assets of £9.1m (2011: £8.9m) and other acquisition related and restructuring items of £0.9m (2011: £9.9m) incurred during the year
  • To download a pdf of the entire results announcement, please click here.

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