Mitie delivers strong performance as investments ‘bear fruit’

UK Facilities Management (FM) company, Mitie Group, has delivered a strong financial performance as it implements its new three-year strategic plan.

The company is now six months into its new Three-Year Plan (FY25 – FY27) by making investments in the business to develop its Facilities Transformation offering

Its investments in technology, sales & marketing and its projects capabilities hope to strengthen Mitie’s market position and increase its pipeline.

The group’s chief executive Phil Bentley claimed the first six months of the plan has helped the company deliver a good strategic progress and financial performance as its investments start to ‘bear fruit’. 

Revenue for the six months to 30 September 2024 rose 14 per cent to £2.4 billion (H1 FY24: £2.1 billion), generating a pre tax profit of £94.5 million (H1 FY24: 84.3 million).

The firm reported 8 per cent organic growth was driven by new contract wins, scope increases and pricing, and 6 per cent contribution from acquisitions.

Contract wins and renewals hit a record high, up 54 per cent to £3.7 billion TCV (H1 FY24: £2.4 billion).

Meanwhile, the firm completed three acquisitions year-to-date for £49 million, with ESM Power, a high voltage electrical engineering business, for £8.5 million, as well as Spanish security firm Visegurity for £7.5 million, and JCA Engineering for £31.5 million.

CEO Phil Bentley said: “We are in the foundation year of our new Facilities Transformation Three-Year Plan

“We have delivered high-single-digit organic growth, in part driven by our ability to stand up a ‘surge response’ team to protect public safety; progressed our programme of margin enhancement initiatives; continued to build our capabilities through targeted acquisitions; and achieved record contract wins and renewals/extensions.

“Our customers are increasingly looking to Mitie to reduce their carbon footprint, modernise their buildings, implement power upgrades and grid connections, and support their growing data centre and other critical environment requirements as building regulations change. 

“We are also well positioned to support the government in its commitment to invest in the UK’s defence capabilities and the modernisation of its built estate, alongside significant capital funding for schools and the NHS.

“This underpins our confidence that we will deliver the Board’s expectations for the full year, as we progress towards our ambitious medium-term targets.”

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