Support services group MITIE has achieved annual revenue of £2bn for the first time, results for the year to March 31 show today.
Pre-tax profits at the Bristol group, which this year celebrates its 25th anniversary, grew from £86.8m to £94.5m on the 5.9% increase in revenue as it won a string of lucrative contracts.
Chief executive Ruby McGregor-Smith declared: "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."
Highlights included strong revenue growth of 5.9% to £2.002bn with operating profit margin before other items remaining strong at 5.6% (2011: 5.5%). Total dividend for the year is up 6.7% from 9p to 9.6p
The year's achievements included a contract 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, MITIE also significantly expanded existing relationships with the Cumbrian Collaboration and Diageo while in the public sector it secured key contracts with Ministry of Justice, Essex County Council and West Midlands Construction Framework
The total potential value of business with these six clients ranges between £1.5bn and £2.2bn.
Meanwhile there has been "excellent progress in organic order book development" – it is up 26% or £1.8bn from £6.8bn to £8.6bn while the pipeline of potential bid activity currently stands at £11.2bn. While this is slightly down on last year's £11.4bn, some 83% of 2012/13 budgeted revenue has been secured compared to 81% a year earlier.
MITIE adds that its comprehensive energy services offering is a key differentiator
- its 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
- in January the group acquired Utilyx, a specialist energy and carbon consultancy which helps businesses manage the impact of energy consumption and rising energy costs
- and it has been 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
In conclusion, Ruby McGregor-Smith described MITIE as financially robust with a clear business development strategy supported by a buoyant sales pipeline and an order book that stands at record levels. She added: "We are confident that the exceptional track record of sustainable, profitable growth that we have achieved for 25 years will continue."
