MITIE Group in Line for Strong Second Half
LONDON -- MITIE Group released its interim management statement this morning for the third quarter of trading, lifting the shares 3.5% to 291 pence in the process.
The statement confirmed that MITIE is performing in line with management's expectations, despite "ongoing weak economic conditions affecting our more cyclical markets and some delays in energy infrastructure projects." Total revenue growth is expected to be higher in the second half than seen in the first half.
The strategic outsourcing company reported strong organic growth, driven by new and expanded contracts, including its 775 million-pound, five-year partnership for Lloyds Banking Group, an integrated FM services for British Sky Broadcasting Group worth over 100 million pounds across five years, the 110.8 million-pound acquisition of health-care group Enara on Oct. 9, and a 3 million-pound waste-management contract with Kings Health Partners, among others. MITIE has also retained a 4.7 million-pound cleaning and environmental services contract with East Hull Primary Care Trust.
The core facilities management businesses are performing exceptionally well and are expanding their order books, while the group's balance sheet remains strong and will enable MITIE to "invest in organic growth and take advantage of value creating opportunities as they arise."
Today's news continues MITIE's good track record of steady financial performance -- notable across the past five years, especially, because of the turbulent economy, led by acquisitions and transformational contracts (worth between 0.7 billion pounds to 1.3 billion pounds in 2011 alone), while 2012 saw market capitalization reach 1 billion pound and revenues surpass 2 billion pounds.
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