Support services group Mitie (MTO), which is responsible for the maintenance and repair of many of Birmingham’s schools, museums, libraries and art galleries, said it had made a good start to the year with trading in line with management expectations.
In an update on Thursday on the period since April 1, the group said it has secured a record 83 per cent of the current year’s budgeted revenue and the forward order book remained strong.
“We remain confident in Mitie’s prospects for the year ahead,” the board said.
Contracts secured during the period include transport projects at Heathrow, Gatwick and Stansted airports, while in the public sector, it secured a deal with Suffolk County Council to manage more than 700 buildings.
In its social housing sector, it secured a four-year, £17.5 million Decent Homes contract with a newly-formed not-for-profit housing association which manages 5,600 local council properties. Contracts were also secured with Digital Realty Trust in High Wycombe to fit out and install a new data centre, while in the utilities sector, it established a strategic partnership with EDF Energy to help around five million customers make their homes more energy efficient and more affordable to heat.
The group said trading conditions in its markets remained favourable as customers looked to outsource more services to achieve economies of scale and to drive efficiency across their estates.
“We have secured new work in all areas of our business and have continued to see clients add extra Mitie services or increase the geographic scale of contracts to take advantage of the operational efficiencies that can be made through larger contracts,” it said.
Mitie has a strong balance sheet with low gearing and has seen no significant change in its financial position since April 1.
Strong cash flow continues to give the group significant financial flexibility to take advantage of any acquisition opportunities that may arise.
At its AGM this week Mitie said it would be seeking shareholder approval to renew the authority to buy back up to 10 per cent of its shares.
Mitie releases its half-year results for the six months to September 30 on November 24.