MITIE Group plc has issued its Q3 Interim Management Statement for the period 1 October 2013 to date.
The company has made “positive progress” over recent months, with “good organic growth” being driven by new and expanded contracts.
A statement issued this morning says: “We are continuing to successfully re-position the group to target higher growth and higher margin areas. Our long-term strategy is focused on growing in our core markets of facilities and property management, which are differentiated by our specialist energy consulting services. Healthcare is the other key part of our growth strategy where we are concentrating on the homecare market.”
The statement continues: “In addition, we are continuing with our phased exit from the lower-margin, cyclical elements of our business, including our mechanical and electrical engineering contracting businesses and the construction element of our asset management business.”
Ruby McGregor-Smith CBE: CEO at MITIE Group plc
As reported at the interim results, 99% of budgeted revenues for the current financial year had already been secured at that time (prior year: 98%).
Developments in Facilities Management
MITIE Group plc’s FM division is continuing to deliver strong organic growth, with the company witnessing an uplift in the level of bid activity across its businesses in both the public and private sectors.
There’s a “robust sales pipeline” and increased potential to further benefit from the trend towards bundling and service integration. MITIE Group plc states: “This division has a number of exciting growth opportunities and is well positioned to deliver further growth.”
MITIE Group plc has successfully secured and extended a number of contracts for new and existing clients, including the Eurotunnel project where there has been a retention and expansion of a Total Security Management contract with a total value of £12 million over three years.
For the National Grid plc, there’s a new Total Security Management contract in place. Here, there’s a total value of £4 million across six years.
MITIE Group plc’s balance sheet “remains strong” and enables the company to invest in organic growth and “take advantage of value creating opportunities” as they arise.
The financial year is “progressing well”. The company statement adds: “We continue to re-position the group away from low growth, low margin activities and we remain very positive about the range of outsourcing opportunities across our key markets.”
MITIE Group plc is well positioned to deliver good organic growth, particularly in facilities management and healthcare, as well as maintain strong margins. “We are confident that we will continue to build on our long track record of sustainable profitable growth.”
MITIE will announce its full year results on Monday 19 May 2014.