£775m Lloyds contract puts Mitie in a strong position

The Bristol-based group, whose services include office cleaning and maintenance, airport baggage screening and shop design, said that as at June 30 it had secured 87 per cent of budgeted revenues for the financial year to March 31, 2013, compared to 85 per cent at that point last year. Mitie – which stands for Management Incentive Through Investment Equity – said its five-year, £775m deal to deliver facilities management services for Lloyds was “progressing well” after commencing on August 1.

The FTSE 250-group will provide catering, reception, engineering maintenance, cleaning, security, waste management and office space management for Lloyds’ branch and office estate.

In the private sector, Mitie said the sales pipeline remains “buoyant” and it recently secured a new contract to provide front of house services at Royal Bank of Scotland for five years with an expected total value of £30m.

In the public sector, the group said it remains focused on the justice, health, local authority and social housing markets.

It said it has a steady flow of contract awards, including an expanded contract to provide services to the Scottish Government worth at least £30m.

Looking ahead, the group said: “The financial year has started well, despite a backdrop of continued global economic uncertainty and challenging conditions in certain of our cyclical mar- kets.

“We remain very positive about the range of outsourcing and energy services opportunities across our key markets and continue to see a growing order book and strong pipeline of sales opportunities.

“We are confident that we will continue to build on our long track record of sustainable profitable growth.”

Shares in the group fell nearly 2 per cent after the update was published.

Andrew Gibb, analyst at brokers Investec, said: “The private sector sales pipeline continues to be very active and the public sector is seeing a steady flow of contract opportunities.”

The group has contracts across Yorkshire, including painting, roofing, catering and cleaning arrangements with Yorkshire Water.

It also has a catering deal with Bradford’s Hallmark Cards, plus a cleaning contract with Hull and East Yorkshire Hospitals NHS Trust.

In total, Mitie employs 14,000 of its 63,600-strong workforce throughout the North of Eng-land.

The group, which is led by chief executive Ruby McGregor-Smith, was founded in 1987.

Shares closed last night at INSERT HERE