Final Results

MITIE Group PLC
17 July 2000


                          MITIE Group PLC
                 PRELIMINARY RESULTS FOR THE YEAR
                        ENDED 31 MARCH 2000
                                 
                         GROWTH CONTINUES

-    Pre-tax profit up 32% to £19.2m (1999 - £14.5m)
-    Turnover up 31% to £346.5m (1999 - £264.4m)
-    Total dividend per share up 25% to 2.0p (1999 - 1.6p)
-    Earnings per share up 25% to 8.1p (1999 - 6.5p)
-    Margin improved


David Telling, Chairman, reports 'We remain committed to being a
growth company provided always that it is associated with quality
clients and quality earnings.  MITIE is determined to be the best
in everything it does.  The current year has started well and your
Directors are confident that once again we will produce a
satisfactory result.'

Notes:
MITIE:    Management Incentive Through Investment Equity.
ACTIVITY: MITIE Group PLC provides Support and Building Services
          to the owners and occupiers of commercial and industrial
          premises.

FOR FURTHER INFORMATION:
On 17 July 2000
David Telling, Chairman, MITIE Group   020 7772 2592
PLC
John Urquhart, PR & Marketing, MITIE   020 7772 2582
Group PLC
at Merrill Lynch International         020 7772 1000 (switchboard)



Subsequently -
MITIE Group PLC, Head Office           01934 862006
EXTRACTS FROM CHAIRMAN'S STATEMENT



Financial Overview

I am pleased to report that your company has had another good
year. Pre-tax profits have increased from £14.5m to £19.2m, an
increase of 32%, and earnings per share from 6.5p to 8.1p, up by
25%. Turnover increased by 31% from £264m to £347m, and your
Directors are proposing a final dividend of 1.1p making a total of
2p, an increase of 25%. This leaves the dividend covered four
times.

New Companies

In addition to the four new Access Systems and Engineering
Services companies mentioned in my last statement, we have started
MITIE Business Services Ltd in London which provides mail room and
reprographic services to major companies within the M25.

While we have made no significant acquisitions during the year
under review, since the year end we have acquired the assets of
Roofing Services Ltd, forming MITIE Roofing Services Ltd, located
in the Midlands, Lancashire and Yorkshire. The management has
subscribed for £45,500 of equity and loan stock, representing an
equity interest of 30%. We have also purchased, for £2.8m, 60% of
The McCartney Group Ltd whose principal activity is the supply and
installation of contract fire protection in the United Kingdom.
The balance is subject to management earn-out according to normal
MITIE practice.

We have additionally started two new businesses within Engineering
in niche markets in the pharmaceutical industry and in cleanrooms,
which are required for the computer manufacturing, medical and
food processing industries.

Segmental Analysis

Activity    Turnover  Turnover  Pre-Tax    Pre-Tax   Pre-Tax   Pre-Tax
            £'000     £'000     Profit     Profit    Profit    Profit   
            2000      1999      £'000      £'000     Margin %  Margin %
                                2000       1999      2000      1999
   
Building  210,462     148,132   10,442     7,693     5.0       5.2
Services                    
Support   136,052     116,323   8,798      6,815     6.5       5.9
Services    
          346,514     264,455   19,240     14,508    5.6       5.5
      


Building Services

The Building Services Division consists of Mechanical and
Electrical Engineering Services, Property Services, Access Systems
and MITIE Lindsay Ltd.  It has made excellent progress with a 42%
increase in turnover. This translates into a pre-tax profit
increase of 35.7%, albeit at slightly lower margins than in the
previous year.

The Engineering discipline has continued with its policy of
selective tendering and has secured approximately 50% of its work
through partnering and negotiation rather than competitive
tendering. The largest project completed was for Credit Suisse
First Boston, valued at £7m. This was the flagship contract in the London fit
out sector which continues to be buoyant and in which your company
has a good forward order book.  Contracts have been secured during
the period for BT, Crown Estates, British Aerospace and ICL.
Further contracts were secured with Cine UK, Cannon Leisure,
Showcase Cinemas and several retailers including Woolworths,
Primark and others.

Following the restructuring and re-branding of the regional
companies, Property Services settled down to a good year with
satisfactory increases in turnover, profit and net margin. The
award of the decorating contract for all DSS properties throughout
the UK with Trillium produced work valued at over £1m in the year
under review.  This should yield further opportunities in the next
financial year.

Repeat business has been won from Rolls Royce, the Universities of
Bristol and Warwick, the Home Office, HM Prison Service, Philips,
Glasgow Rangers FC and numerous local authorities and housing
associations.  We are proud to be able to add CGU, Chivas
Distillers, Coventry University, Edinburgh Royal Infirmary and
First Great Western to our client list for the first time.

The Access Systems discipline has consolidated its position as a
national access provider through an active market penetration
policy. MITIE Powered Access Ltd now operates from six locations
around the country. Markets have seen a recent softening of rental
rates although machine utilisation remains high.

MITIE Generation Ltd, which hires and sells non-mechanical access
equipment, improved margins through broadening its product range
and the rental business sustained growth in line with budgets. It
will continue to look at developing new products for sale and hire
in an industry increasingly driven by Health & Safety
requirements.

The scaffold contracting arm continues to gain market share
through its new businesses, whilst the southern operation, having
moved to new locations, has increased both its turnover and
profitability. It has recently won a major contract to provide a
temporary roof at Norwich Castle.

MITIE Lindsay Ltd contributed its first full year to the Group's
figures and produced its expected level of profit.  A new company
has been formed, MITIE HydroCat Ltd, specialising in the use of
HydroCatT equipment and a substantial investment has been made in
the purchase of the environmentally friendly Ultra High Pressure
water jetting machines for use on ships, oil tanks and similar
large structures.

Throughout the year under review the major contract on the flight
deck of HMS Ark Royal continued satisfactorily, with all deadlines
being met. The contract also included containment and painting.
The refits of HMS Sceptre and HMS Spartan were completed and major
work continues on other submarines as well as the under-bridge
access scaffolding contract for the upgrade of the Tamar Bridge.
Forward orders have been won for both the Royal and French Navies
and HydroCatT continues to work in Rotterdam for merchant shipping
and commercial enterprises.

Support Services

The Division consists of Cleaning, Catering, Security, Engineering
Maintenance, Managed Services and our most recent addition,
Business Services. Turnover increased by 17% and pre-tax profit by 29%. This
was achieved through a creditable increase in margin from 5.9% to 6.5% for the
full year.

Cleaning continues to be one of our most important core businesses
and since its inception has grown to become the fourth largest
provider in the UK.  Cleaning's major new successes within the
year included additional contracts from Rolls Royce for their
English plants, WHSmith, Scottish Widows, Yorkshire Bank, John
Smiths, McKinsey & Co, Halifax, Hampden Park Stadium, London Eye
and Microsoft, the last being cross-referred by Engineering
Maintenance.

We continue to encourage our clients to move to full-time, rather
than part-time, cleaning which provides a better standard of
service and value for money for them, career prospects for
employees and helps us to overcome the problems associated with
employing large numbers of part-time staff.

The Engineering Maintenance discipline continues to perform well.
The contracts listed as having been won at the interim stage have
all been started successfully and two further MOD contracts, each
in excess of £500,000, have been added at RAF Coltishall and RAF
Neatishead. In the retail sector, a nationwide contract for
Wilkinson's hardware stores has been secured and started, together
with one for Whiteleys of Bayswater at the London Shopping Centre
which complements those held at Brent Cross and Thomas Neals.

A major success of the year was the award of a five year contract
at London City Airport. This has an annual value of around £1m and
was won in close co-operation with MITIE Cleaning who were the
incumbent contractors in their specialisation; a further good
example of the fruits of the drive for inter-company co-operation.

Catering and Security are developing satisfactorily allowing us to
increase the range of services we can offer our clients. Catering
renewed its high profile MOD contract with 29 Regiment Royal
Logistic Corps, where levels of service received warm appreciation
from the Commanding Officer.

Managed Services continues to develop and has secured new
contracts for Bristol Myers Squibb's UK HQ at Hounslow as well as
five regional offices for Pfizer Pharmaceuticals. The company also
won a long term contract for Global Crossing's 'Telehouse' for
telecom and dot com occupants at the old Financial Times building
in Docklands.

Managed Services has been at the forefront of accelerating the
Group's cross-selling initiative and is now bundling services with
25 Group companies from both Divisions.  This is in line with our
anticipation of market needs and the trend is expected to
continue.

MITIE Business Services Ltd was launched in January, but did not
contribute to profits in the year under review.

Quality

MITIE Cleaning (North) Ltd's public sector team was the overall
winner for the best-cleaned premises in the education sector in
the year's Golden Service Awards. Its work at Oldham Sixth Form
College was recognised both by the judges and the client, who
renewed the contract for a second five year term.

Conclusion

MITIE Group PLC is more than just a commercial company. It has an
element of social and economic vision that provides what is still
probably a unique opportunity for men and women with ambition,
talent and motivation to build a successful business within a
supportive framework.

MITIE is determined to be the best, quality company in everything
it does.  We realise that this needs not only the dedication of
the present generation of senior management but also a clear plan
for the future.  We are continuously addressing this challenge in
order to provide for a smooth transfer of responsibilities when
the time is appropriate.

A clear indication of this approach is our sponsorship of more
than 40 of our middle managers through a Business Development
course at Henley Management College.  Meanwhile we remain
committed to being a growth company provided always that it is
associated with quality clients and quality earnings.

The current year has started well and your Directors are confident
that, once again, we will have a satisfactory year.

DAVID M TELLING
Chairman

                        
                                 
                                 
                          MITIE Group PLC
                                 
             Group Profit and Loss Account (Unaudited)
                 for the year ended 31 March 2000
                                 
                                 

                                                    
                                                 2000        1999
                                                 £'000       £'000     
                                       
Turnover                                         346,514     264,455        
Cost of sales                                   (266,711)   (204,270)         
Gross  Profit                                    79,803      60,185       
                                                
Administrative expenses                         (60,315)    (45,555)        
Operating Profit                                 19,488      14,630     
Interest                                        (248)       (122)      
Profit on Ordinary Activities Before Taxation    19,240      14,508  
                                        
Taxation on Profit on Ordinary Activities       (6,080)     (4,676)
Profit on Ordinary Activities After Taxation     13,160      9,832
Minority interest                               (2,067)     (1,134)
Profit for the Financial Year                    11,093      8,698
Dividends - equity                              (2,751)     (2,166)
Retained Profit for the Financial Year           8,342       6,532     
                                           
Earnings per Ordinary Share - basic              8.1p         6.5p    
                            - diluted            8.0p         6.5p
                         


                
                                 
                          MITIE Group PLC

                  Group Balance Sheet (Unaudited)
                        as at 31 March 2000



                                                       
                                                 2000        1999
                                                 £'000       £'000    
                                                  
Fixed Assets                                       
Intangible assets                                4,283       2,367     
Tangible assets                                  39,090      30,672     
                                                 43,373      33,039
                                                       
                                          
Current Assets                                         
Work in progress and stocks                      17,511      13,760         
Debtors                                          56,855      43,482       
Cash at bank and in hand                         2,102       8,294  
                                                 76,468      65,536
                                                       
                                           
Creditors - due within one year                 (75,964)    (64,718)         
Net Current Assets                               504         818     
                                           
Total Assets less Current Liabilities            43,877      33,857   
                                          
Creditors - due after one year                  (661)       (4,451)    
Provision for liabilities and charges           (1,566)     (1,092)       
                                                 41,650      28,314
                                                       
                                           
Capital and Reserves
Called up share capital                          6,851       6,761            
Share premium account                            7,067       5,222     
Revaluation reserve                             (524)       (552)      
Profit and loss account                          19,506      11,192          
Equity Shareholders' funds                       32,900      22,623        
Minority interest                                8,750       5,691       
                                                 41,650      28,314
                                                       
             
                                 
                                 
                          MITIE Group PLC
                                 
               Group Cash Flow Statement (Unaudited)
                 for the year ended 31 March 2000


                                                           
                                                   2000         1999
                                                   £'000        £'000         
   
                                            
Net cash inflow from operating activities         17,781       23,230         
                                              
Return on investments and servicing of finance            
Interest received                                 159          445           
Interest paid                                    (492)        (449)           
Interest element of finance lease rentals        (14)         (21)            
                                                 (347)        (25)
                                                           
Taxation                                                   
UK corporation tax paid                         (6,556)      (3,632)          
  
Capital expenditure                             (359)        -
Payments to acquire intangible fixed assets     (17,777)     (14,399)        
Payments to acquire tangible fixed assets        1,993        1,196          
Receipts from sales of tangible fixed assets    (16,143)     (13,203)        
                                             
Acquisitions and disposals                                 
Payments to acquire subsidiary undertakings     (218)        (3,727)          
Net (Overdraft)/cash acquired with              (8)             683           
subsidiary undertakings                         
                                                (226)        (3,044)
                                                           
Equity dividends paid                           (2,451)       (1,877)         

Cash(Outflow)/inflow before financing           (7,942)     1,449      
                                              
Financing                                            
Issue of ordinary share capital                  1,402       1,785       
Net unsecured loans received                     267         207              
Capital  element  of  finance  lease  rental    (104)       (210)         
payments                                      
Repayment of unsecured loans                    (94)        (82)         
                                                 1,471       1,700
                                                          
(Decrease)/Increase in cash in the period       (6,471)     3,149       
                                              


                   
                                 
                          MITIE Group PLC

       Net cash inflow from operating activities (Unaudited)


                                                       
                                                  2000        1999
                                                  £'000       £'000           
 
                                            
Operating profit                                  19,488      14,630      
Depreciation                                      8,603       5,888
Amortisation of intangibles                       859         34     
Profit on sale of tangible fixed assets          (727)       (401)    
(Increase) in work in progress and stocks        (1,452)     (2,491)         
(Increase) in debtors                            (18,597)    (7,295)        
Increase in creditors                             9,607       12,865 
                                                  17,781      23,230
                                                       
                                                       
                                        


NOTES:

1. Dividend
   The Directors are recommending a final dividend of 1.1p per
   Ordinary Share, making a total dividend for the year ended 31
   March 2000 of 2.0p per share.  If approved at the Annual
   General Meeting, the final dividend will be paid on 2 October
   2000 to Shareholders on the register on 8 September 2000.

2. Earnings Per Share
   Earnings per share are calculated by reference to the profit
   after tax for the financial year of £11,093,000 (1999:
   £8,698,000) and on the weighted average number of Ordinary
   Shares in issue during the year of 136,163,653 (1999:
   133,963,928).

3. The consolidated profit and loss, consolidated balance sheet
   and cash flow statement have been prepared on a basis
   consistent with the accounts for the year ended 31 March 1999.
 
4. The Annual General Meeting will be held at The Stable Block, Barley Wood,  
   Wrington, Bristol, BS40 5SA, on 14 September 2000 at Noon.

5. The financial information set out above does not comprise the company's    
   statutory accounts.  Statutory accounts for the previous financial year    
   ended 31 March 1999 have been delivered to the Registrar of Companies.  The
   auditors' report on those accounts was unqualified and did not contain any 
   statement under Section 237(2) or (3) of the Companies Act 1985.