Interim Results

MITIE Group PLC
10 December 2001



                               MITIE Group PLC
                   INTERIM RESULTS FOR THE 6 MONTHS' PERIOD
                            ENDED 30 SEPTEMBER 2001
                                       
                            STRONG GROWTH CONTINUES

Pre-tax profit up 29.5% to £14.1m (2001 - £10.9m)
Turnover up 21.2% to £241.6m (2001 - £199.3m)
Interim dividend per share up 27.3% to 0.7p (2001 -  0.55p)
Earnings per share up 32.9% to 2.9p (2001 - 2.2p)


David Telling, Chairman, reports 'I am gratified that the MITIE Group strategy
and business model has continued to produce strong, profitable growth in these
less certain times.  The Board remains confident that your Company looks set
for another good year.'

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


FOR FURTHER INFORMATION:
On 10 December 2001
Ian Stewart, Chief Executive, MITIE Group PLC            Mobile:  [phone]
John Urquhart, Corporate Affairs, MITIE Group PLC        Mobile:  [phone]
at UBS Warburg, I Finsbury Avenue                  Switchboard:  020 7567 8000
                                                               / 020 7568 2128
Subsequently -
MITIE Group PLC, Head Office                              01934 862006

                                       
                                       
                                INTERIM RESULTS
The following are the results for the six months ended 30 September 2001,
together with figures for the same period in 2000.

                                 Six months   Six months    Year to 31
                                     to           to           March
                                     30           30           2001
                                  September   September          
                                    2001         2000        (audited)
                                 (unaudited)  (unaudited)       £000's
                                   £000's       £000's
                                                                 
Group turnover                    241.564       199.293       415.375
                                                                 
Operating profit                   13.889        10.857        25.027
Net Interest received                 185            12            48
                                                                 
Profit before taxation             14.074        10.869        25.075
Taxation                           (4.416)       (3.534)       (8.420)
                                                                 
Profit after taxation               9.658         7.335        16.655
Minority interest                  (1.495)       (1.302)       (2.703)
                                                                 
Profit for the period               8.163         6.033        13.952
Dividend                           (2.008)       (1.537)       (3.497)
                                                                 
Retained profit                     6.155         4.496        10.455
                                                                 
Earnings per share                  2.9p          2.2p          5.0p
                                                                 
Diluted earnings per share          2.8p          2.1p          4.9p
                                                                 
Earnings per share before           3.0p          2.2p          5.1p
goodwill amortisation


Dividend
The Board has declared an interim dividend of 0.7p per Ordinary Share (2000:
0.55p).  The dividend will be payable on 2 April 2002 to all shareholders
registered on 8 March 2002.

Taxation
We have adopted the new financial reporting standard FRS 19, and have made
provision for deferred tax using the incremental liability approach.  The
effects of this change are not material.  We have also taken into account the
forecast effective rate for the year ending 31 March 2002.

Earnings per Share
The calculation of basic and diluted earnings per share, using the principles
of FRS 14, is based on the profit for the period attributable to holders of
Ordinary Shares. The weighted average number of Ordinary Shares in issue for
the period was 281,067,736 (2000: 276,028,450) and fully diluted 286,439,696
(2000: 283,766,292).

The calculation of earnings per share before goodwill amortisation follows the
guidelines set down by the Institute of Investment and Research (IIMR) and is
based on the profit after deduction of tax and minority interest but before
goodwill amortisation of £255,000 (2000: £176,000, year to 31 March 2001:
£73,000).

The calculation of earnings per share has been adjusted to reflect the
subdivision of shares from 5p each to 2.5p each which took place on 2 April
2001.

The figures for the year to 31 March 2001 have been extracted from the full
accounts for the year which received an unqualified auditor's report and which
have been lodged with the Registrar of Companies.

A copy of this statement will be posted to all shareholders and will be
available to members of the public from the Company's Head Office: The Stable
Block, Barley Wood, Wrington, Bristol, BS40 5SA.
 

                          Summary Group Balance Sheet


                                     At 30          At 30       At 31
                                   September      September     March
                                     2001           2000         2001
                                  (unaudited)    (unaudited)  (audited)
                                    £000's         £000's       £000's
                                                                   
Fixed assets                                                       
Intangible assets                    13.602          8.988        8.597
Tangible assets                      50.267         44.319       48.123
                                     63.869         53.307       56.720
                                                                   
Current assets                      113.418         86.152      100.744
Creditors  (amounts falling due    (100.982)       (84.122)     (94.182)
within one year)                            
                                                                   
Net current assets                   12.436          2.030        6.562
                                                                   
Total assets less current            76.305         55.337       63.282
liabilities                           
Creditors (due after more than         (715)          (721)        (788)
one year)
Provision for liabilities and        (2.383)        (1.677)      (2.191)
charges
                                                                   
Net assets employed                  73.207         52.939       60.303
                                                                   
Capital and reserves                                               
Called up share capital               7.139          6.963        6.991
                                                                   
Share premium account                21.616         13.440       13.738
                                                                   
Other reserves                         (509)          (519)        (514)
                                                                   
Profit and loss account              36.106         24.002       29.951
                                                                   
Equity Shareholders' funds           64.352         43.886       50.166
Minority interest                     8.855          9.053       10.137
                                                                   
                                     73.207         52.939       60.303



                                       
                            Summary Group Cash Flow

                                 Six months     Six months     Year to
                                     to             to         31 March
                                     30             30           2001
                                  September      September         
                                    2001           2000        (audited)
                                 (unaudited)    (unaudited)                   
                                    £000's         £000's       £000's
                                                                   
Net cash inflow from operating     15.397         15.015        33.111
activities
                                                                   
Returns on investments and            185             36           (32)
servicing of finance
                                                                   
Taxation paid                      (2.464)        (1.929)       (6.763)
                                                                   
Capital expenditure                (7.309)       (10.139)      (18.940)
                                                                   
Acquisitions                         (522)          (248)         (490)
                                                                   
Equity dividends paid                 -              -          (3.194)
                                                                   
Net cash inflow before financing    5.287          2.735         3.692
                                                                   
Issue of share capital                590            244           590
                                                                   
Cash (outflow)/inflow from            (76)            72            48
(decrease)/increase in debt
                                                                   
Increase in cash in the period      5.801          3.051         4.330
                                                                   
                                                                   
Reconciliation of net cash flow to movement in net debt:
                                                                   
Increase in cash in the period      5.801          3.051         4.330
                                                                   
Cash inflow/(outflow) from             76            (72)          (48)
increase/(decrease) in debt
                                                                   
Movement in net debt in the         5.877          2.979         4.282
period
                                                                   
Opening net funds                   5.318          1.036         1.036
                                                                   
Closing net funds                  11.195          4.015         5.318

                                       
                                     
                         Summary Group Cash Flow continued
                                       

                                 Six months     Six months     Year to
                                     to             to         31 March
                                     30             30           2001
                                  September      September         
                                    2001           2000        (audited)
                                 (unaudited)    (unaudited)  
                                   £000's          £000's       £000's
                                                               
Reconciliation of operating profit to operating cash flows:
                                                                   
Operating profit                   13.889         10.857        25.027
                                                                   
Depreciation                        5.499          5.040        11.784
                                                                   
Amortisation of goodwill              255            176            73
                                                                   
Profit on sale of tangible           (334)          (130)         (789)
fixed assets
                                                                   
Increase in work in progress       (6.873)        (6.287)      (17.141)
and debtors
                                                                   
Increase in creditors               2.961          5.359        14.157
                                                                   
Net cash inflow from operating     15.397         15.015        33.111
activities


                                       
                             Chairman's Statement

Financial Overview
I am pleased to report an encouraging first half.  Your Company continues to
grow strongly and to consolidate its position as a leading provider of
services to the owners and occupiers of commercial, industrial and government
property.

Pre-tax profit for the first half year amounted to £14.1m, an increase of
29.5% over the same period last year.  This was achieved on turnover of
£241.6m, up 21.2%, of which 20.2% was accounted for by organic growth.
Earnings per share rose by 32.9% from 2.2p to 2.9p.  During the period, the
Group generated operating cash flow of £15.4m.

Proposed lnterim Dividend
Your Directors are proposing an interim dividend of 0.7p per share, an
increase of 27.3% from the corresponding period of the previous year. This
dividend will be paid on 2 April 2002 to shareholders on the register on 8
March 2002.

Segmental Analysis

                           Turnover     Pre-Tax       Pre-Tax
Six months to 30            £000's       Profit       Profit
September 2001                           £000's      Margin %
Building Services           143.545       7.337         5.1
Support Services             98.019       6.737         6.9
Total                       241.564      14.074         5.8
                                                         
Six months to 30
September 2000
Building Services           114.318       5.335         4.7
Support Services             84.975       5.534         6.5
Total                       199.293      10.869         5.5


BUILDING SERVICES
The Building Services Division consists of Engineering Services, Property
Services and Access Systems. Collaborative arrangements are becoming the norm
in the industry and MITIE, because of its customer focused attitude and track
record, is a sought after partner for this type of project. The Government's
investment in the infrastructure of public services provides MITIE Group
companies in this Division with further opportunities for growth.  In the
private sector there is a little hesitancy, in some sectors, for clients to
confirm orders but this has not impacted on our forward workload, which
continues to be healthy.

Engineering Services
MITIE Engineering Services is now equipped to handle complex projects,
particularly in the public sector's search for Best Value. Formal partnering
agreements are in place with BT, Cornwall County Council and Bristol
University and have resulted in contracts valued at £4m or more with each.
Growth has been driven by orders for the education sector, local health
authorities and county councils.  New contracts include University College
Cardiff, Newbury College, Somerset College of Art and Technology, Dawlish
Hospital and Cornwall Fire Stations as well as Gartree Prison and The Home
Office.

In the private sector, relationships with our valued clients Cannons Leisure,
Primark, Vodafone, Warners, BT and The Savoy Group continue to produce orders.
Additional major contracts have been won for Hutchison Telecom, Manchester
Arndale Centre, Thompson & Capper and Whatley Manor Hotel. All regions report
a strong forward workload for the second half of the year and 40% of next
year's targeted turnover has already been secured.  While it is sensible to
temper optimism with caution, we have seen few cancellations of orders and are
reasonably confident that the market for our services remains strong because
we have concentrated on niche markets and on working direct to our end-user
clients whenever possible.

Property Services
MITIE Property Services' contracts are increasingly longer in term, affording
visible forward earnings.  The unique ability to provide a nationwide service
opens up good opportunities for large, central and local government contracts
that may extend over a period of years.  Some of those won recently, such as
Brent and Birmingham Councils, and Pathfinder projects for converting Job
Centres for Trillium, are now contributing to growth as anticipated. Other
significant contracts have been won for Vodafone, Virgin Trains, Canary Wharf
Contractors Ltd, HM Prison Service and the MoD and the outlook for this
discipline remains bright.

Access Systems
MITIE Access Systems has consolidated its position following the opening of
the new branches referred to when we announced our full year results in July.
New accounts include Radisson Hotels in Glasgow, Higgins Group and Newcastle
City Council.  We have seen a continuing improvement in hire rates achieved by
MITIE Powered Access.  Our hire and sale business, trading as MITIE
Generation, continues to achieve high utilisation rates though we did see a
temporary decline in direct sales immediately after 11 September. However the
hire income continues to hold up well.

SUPPORT SERVICES
Support Services' principal disciplines are Cleaning, Engineering Maintenance
and Managed Services.  Catering and Security are managed within the Cleaning
discipline, while Managed Services incorporates Business Services and PFI.

All parts of this Division have continued to benefit from the development of
outsourcing as an established business process, providing our customers with
expertise in non-core activities.

Cleaning
Cleaning continues to win business by developing national customers.   In
recent reports we mentioned securing major national contracts with RBS
NatWest, BAE Systems and Barclays.  These contracts have been successfully
mobilised and we anticipate seeing full income flow from these in future
results.  There has been an increase in work won in the education sector,
including Sheffield City Council, Morrison FM for West Lothian Schools and New
College, Durham.  A major contract for a leading financial institution in
London was started in the period, while Shell, Halifax and Ikea, all existing
clients, have shown their confidence in MITIE by awarding additional
contracts.  Bundled service packages continue to be required, enabling us to
cross-sell further services.

Engineering Maintenance
The Engineering Maintenance discipline has continued to grow profitably by
successfully winning large, quality clients while retaining its existing ones.
Contracts for Nokia and Xerox have been expanded and are now national.  The
value of new work shows a substantial increase over the same period last year.
We have strengthened our position in the retail sector, winning two new
contracts at shopping centres for Prudential, as well as three for Standard
Life.  The Foreign & Commonwealth Office contract was successfully re-tendered
for a further three years and a new national contract for Ernst & Young is now
in place.

Managed Services
Managed Services continues to perform well with new facilities contracts
started at Bloombergs, Vizzavi and Global Switch. Our long-term partnership
with Trillium goes from strength to strength and we have recently entered a 5-
year contract to supply an integrated services package with them for the BBC's
Scottish estate.

Our partnering agreement with Sainsbury's entered a new phase as we relocated
3,000 of their staff into their new Holborn Business Centre and supplied a
further integrated package directly to their IT suppliers, Accenture, in
Southwark.

MITIE Business Services, the reprographics and document handling company, is
also involved in both contracts, providing further evidence of successful
cross-selling and the synergies which exist between many of our businesses.
It has additionally won new contracts with Dresdner Kleinwort Wasserstein,
Latham & Watkins, White & Case and The Financial Times as well as providing
postal services for the BBC's London estate.

MITIE PFI/Special Projects is proving to be an attractive partner to many
consortia and has built on its early successes by signing 25-year contracts
for West Lothian Schools and Highland Schools.  We are endeavouring to
accelerate our growth in this sector and have established a healthy pipeline
of opportunities.

Outlook
I am gratified that the MITIE Group strategy and business model has continued
to produce strong, profitable growth in these less certain times.  The Board
remains confident that your Company looks set for another good year.

DAVID M TELLING
Chairman