A host of new contracts in the Midlands has helped outsourcing specialist MITIE to a 12 per cent jump in profits as it steps up efforts to secure more contracts from public sector clients.
The firm, which employs 8,500 people in the region, said it was focusing “additional resources and expertise” on areas such as justice, health, education and local government in a drive to benefit from the current wave of cost cutting in the public sector.
MITIE has also secured work in the private sector after winning contracts with Rolls-Royce, Manchester Airport and the Royal Opera House, alongside a deal to provide facilities and energy management for Vodafone in UK and Ireland.
In the region, it has won a three-year contract to clean ambulances and over 78 building sites for the West Midlands Ambulance Service and a contract to deliver cleaning for Tesco stores.
Revenues for the half-year to September 30 rose almost 15% to £918.7 million, while profits on an underlying basis lifted 12.3% to £47.5 million.
MITIE - which stands for Management Incentive Through Investment Equity - has more than 56,000 full and part time staff with several thousand employees holding equity stakes in the business
Chief executive Ruby McGregor-Smith said: “MITIE has delivered another set of strong results underpinned by progressive revenue development, continued investment and strong cash flows. We have enhanced the Group’s growth potential through our continued focus on organic growth, supplemented by selective acquisitions and through the development of our integrated business model overseas in line with our strategy.
“Our well diversified portfolio of public and private sector work and high quality client base has demonstrated strength and resilience against a backdrop of economic uncertainty and political change. This has given us the capacity and confidence to maintain our investment in people, technology and new markets all of which have been major contributors to the development of our strong pipeline and contract base during the period.
“Overall, market conditions in the medium term remain positive for outsourcing. Our integrated models offer innovation and provide tangible evidence of the cost and carbon efficiencies that we can achieve to meet the demands of both our public and private sector clients. We retain our focus on our strategy of delivering sustainable, profitable growth and are confident that full year earnings will be in line with management expectations.”