Contract wins mean positive outlook for Mitie

The group, which has offices in Leeds and Barnsley, said its financial year has started well, with both profits and revenues in line with expectations.

Mitie, which provides services from cleaning to engineering, said it has made significant progress in each of its key target markets, with 85 per cent of budgeted revenues for this financial year secured by the end of June, against 78 per cent at the same time a year ago.

Mitie, which has 11,500 staff in the north of England, works on a number of contracts in the region including catering and cleaning services for Yorkshire Water.

Recent contract wins include a five-year contract to provide cleaning services to Hull Royal Infirmary and Castle Hill Hospital in Hull as well as painting work for a number of housing associations.

The group said it is seeing a steady flow of contract awards in the public sector, particularly in local government, justice, health and social housing as the Government and local authorities look to cut costs by outsourcing services.

The pipeline of private sector work, which makes up more than 60 per cent of revenues, also remains buoyant, while contract wins such as the installation of solar panels at social housing projects shows how it is trying to tap into new markets, the company said.

The midcap company said revenues and earnings are in line with its expectations and it is “extremely positive” about the outlook.

Mitie said its energy services business accounted for 34 per cent of the group’s revenues.

In a statement the group said: “While the global economic uncertainties continue to exist, we remain extremely positive about the range of outsourcing and energy services opportunities across all our key markets and continue to see a record order book and strong pipeline of sales opportunities.

“The group is on track to continue its record of sustainable profitable growth.”

Mitie said the private sector pipeline of work remains buoyant, particularly in the financial services and retail sectors.

Recent successes include a facilities and energy management contract with Rolls Royce and a three-year contract to provide hold baggage screening services at Heathrow Airport’s terminals 1, 2, 3 and 4, with a total value of £17m. It has also won a £9m security services contract for BT Group.