Interim Management Statement

RNS Number : 2650A

MITIE Group PLC

31 July 2008

 



MITIE Group PLC - Interim Management Statement

MITIE Group PLC ('MITIE') today releases its Interim Management Statement for the period from 1 April 2008. 

MITIE also holds its Annual General Meeting (AGM) today at The Merchants' Hall, The Promenade, Clifton Down, Bristol. 

Trading update

MITIE has had a good start to the year, building on our excellent performance in 2007/8 and is trading in line with management's expectations. 

Trading conditions in our markets remain favourable. Outsourcing is a recognised way for companies to reduce costs.  Consequently, we continue to see opportunities to grow as our customers look to outsource more services to achieve economies of scale and to drive efficiency across their estates. Our extensive expertise, ability to manage through-life costs and quality of service make us an attractive partner to organisations looking to strategically outsource their non-core services.

We have secured new work in all areas of our business and have continued to see clients add extra MITIE services or increase the geographic scale of contracts to take advantage of the operational efficiencies that can be made through larger contracts.

Contracts secured during the period include:

• In the transport sector, we have been building on our relationship with BAA, securing new work across airports in the South East to take the total annual value of our work with BAA to over £29.0m. At Heathrow, we have added to our cleaning, waste management, pest control and passive fire protection services in Terminal 5 by securing a cleaning contract at Terminal 1 and Passengers with Restricted Mobility (PRM) contracts at Terminals 1, 2 and 4. At Gatwick, we have secured a cleaning contract for the North and South terminals, whilst at Stansted we have been awarded a new contract for PRM services;

• In the government sector, we are working with Suffolk County Council on a contract to improve more than 730 managed buildings in Suffolk as part of a new £6.0m, four-year redecoration and repairs contract; 

• In the social housing sector, we have secured a four-year, £17.5m Decent Homes contract with a newly-formed not-for-profit housing association which manages 5,600 local council properties. Our contract will involve us fitting new kitchens and bathrooms across half of our client's portfolio as well as carrying out electrical work;

• Building on our recent success in the science and technology sector, we have secured a project with Digital Realty Trust (DRT), a world leader in the provision of data centre space. The contract is to fit out and install a new data centre, including all fabric and engineering works. This state of the art data centre, based in High Wycombe, will be a key data centre in DRT's UK portfolio. With a value of circa £10m, the project covers 2,000 square metres of technical space and is supported by the highest levels of resilience on all power and cooling systems. The facility will be provided by DRT to clients within the data storage and financial services industry; and

• In the utilities sector, MITIE has established a strategic partnership with EDF Energy, one of the UK's largest energy companies, to undertake the installation of renewable technologies in the household market.  We will be working together to help around five million customers make their homes more energy efficient and more affordable to heat under the Government-set Carbon Emission Reduction Target (CERT) funding scheme. 

Financial position

MITIE continues to benefit from a strong balance sheet with low gearing and has seen no significant change in its financial position in the period since 1 April 2008. Our strong cash flow continues to give us significant financial flexibility to take advantage of any acquisition opportunities that may arise. At the AGM, MITIE will be seeking shareholder approval to renew the authority to purchase up to 10% of its issued share capital. 

Outlook

We have secured a record 83% (2007: 81%) of the current year's budgeted revenue and our forward order book remains strong. We remain confident in MITIE's prospects for the year ahead.

Future reporting dates

MITIE will be releasing its half-yearly results for the six months to 30 September 2008 on Monday 24 November 2008.

For further information, please contact: 

David Revis, Investor Relations and PR Manager 

T: 020 7034 7306 M: 07979 702465 

John Telling, Head of Corporate Affairs 

T: 020 7034 7304 M: 07979 701006

 

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