“This has been a ‘transformational’ 25th year for MITIE,” explained group CEO Ruby McGregor-SmithCBE. “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.”
The multiple award-winning McGregor-Smith went on to state: “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.”
In conclusion, the CEO stated: “Financially robust, we have a clear strategy for the development of our business which is supported by a buoyant sales pipeline and an order book that stands at record levels. We’re confident that the exceptional track record of sustainable, profitable growth we’ve achieved for 25 years will continue.”
Excellent financial performance
- Strong revenue growth of 5.9% to GB pound 2,002.5 million, of which 5.4% is organic
- Operating profit before other items
1,2up 7.2% to GB pound 111.7 million (2011: GB pound 104.2 million excluding GB pound 4.1 million pension credit) - Operating profit margin before other items1,2 remains strong, at 5.6% (2011: 5.5%)
- Excellent conversion of EBITDA to cash of 83.7%, above stated long-term KPI of 80% (2011: 86.7%)
- Total dividend for the year up 6.7% to 9.6 pence per share (2011: 9.0 pence per share)
- Low leverage with net debt of GB pound 106.9 million at 0.81x EBITDA (2011: GB pound 76.5 million, 0.65x EBITDA)
- Strong balance sheet and long-term committed financing facilities will support growth
Delivering on strategy with a series of transformational contract awards
- Market-leading integrated facilities and energy management capabilities have resulted in exceptional progress in key bidding areas and will drive further growth with existing client base
- Contract signed to deliver facilities management services for Lloyds Banking Group (worth GB pound 775 million over five years, this will be one of the biggest private sector contracts of its type) (see below for further information)
- In the private sector, MITIE Group significantly expanded existing relationships with the Cumbrian Collaboration and Diageo
- In the public sector, MITIE Group secured key contracts with the Ministry of Justice, Essex County Council and the West Midlands Construction Framework
- Total potential value of contracts awarded with these six clients ranges between GB pound 1.5 billion and GB pound 2.2 billion
Tremendous prospects for growth demonstrated by record order book and buoyant sales pipeline
- Excellent progress in organic order book development – up 26% or GB pound 1.8 billion to GB pound 8.6 billion (2011: GB pound 6.8 billion)
- Pipeline of potential bid activity remains buoyant and currently stands at GB pound 11.2 billion (2011: GB pound 11.4 billion)
- 83% of 2012-2013 budgeted revenue secured (prior year: 81%)
Comprehensive energy services offering is a key differentiator
- Energy proposition supports every key energy issue faced by MITIE Group’s clients – security of supply, renewable energy, reduction of carbon emissions and value through lower costs
- Energy services generated 34% of revenues in 2012, with MITIE ranking in the top two energy services companies in the UK
- Acquired Utilyx in January 2012, a specialist energy and carbon consultancy which helps businesses manage the impact of energy consumption and rising energy costs
- Appointed preferred bidder to develop a major new innovation centre that will 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
1Operating profit before other items in the year ended 31 March 2011 included non-recurring income of GB pound 4.1 million arising from an amendment to the past service cost of certain defined benefit pension schemes following the change from RPI to CPI for the valuation of certain pension scheme liabilities.
Operating profit before other items, margin and related growth statistics stated above exclude the GB pound 4.1 million from the prior year result in order to reflect the underlying operational performance of the group
2Other items comprised the amortisation of acquisition related intangible assets of GB pound 9.1 million (2011: GB pound 8.9 million) and other acquisition related and restructuring items of GB pound 0.9 million (2011: GB pound 9.9 million) incurred during the year
MITIE signs ‘groundbreaking’ contract to provide integrated facilities management for Lloyds Banking Group
MITIE Group plc recently agreed a “transformational partnership” to deliver facilities management services for Lloyds Banking Group.
The contract, signed for a five-year term, has a possible one-year extension period and has an expected value of approximately GB pound 155 million per annum.
MITIE will be providing a complete range of facilities management services across the bank’s entire UK branch and office estate. Services to be delivered include catering, reception, engineering maintenance, cleaning, security, waste management, minor capital reactive works, office space management and a range of other services.
MITIE will also manage utilities expenditure under the contract along with a comprehensive energy management and carbon emissions reduction plan.
Commenting on the deal, Ruby McGregor-Smith CBE said: “This partnership will deliver a new style of facilities outsourcing in the UK. It will be one of the biggest private sector facilities management contracts of its type and is a great example of two organisations working collaboratively. We’re very excited to be building on our long-term relationship with Lloyds Banking Group and to be providing them with world-class outsourced and energy services in the coming years. We welcome the new team to MITIE.”