Final Results

MITIE Group PLC



15 July 2002


                                MITIE Group PLC
                       PRELIMINARY RESULTS FOR THE YEAR
                              ENDED 31 MARCH 2002
                                       
                               GROWTH CONTINUES

Pre-tax profit up 21% to £30.4m (2001 - £25.1m)
Turnover up 25% to £518.9m (2001 - £415.4m)
Earnings per share up 30% to 6.5p (2001 - 5.0p)
Total dividend per share up 28% to 1.6p (2001 - 1.25p)


David Telling, Chairman, reports 'The recent turmoil in world financial
markets makes it difficult to express optimism about economic prospects in
general.  However, trading has been satisfactory in the first months of the
current year and I believe we will continue to achieve profitable growth.'

Notes:
MITIE:    Management Incentive Through Investment Equity.
ACTIVITY: MITIE Group PLC provides Support and Building Services to the owners
          and occupiers of commercial and industrial premises.


FOR FURTHER INFORMATION:
On 15 July 2002
Ian Stewart, Chief Executive, MITIE Group PLC       Mobile: [phone]
John Urquhart, Corporate Affairs, MITIE Group PLC   Mobile: [phone]
at UBS Warburg, I Finsbury Avenue                   020 7568 2128  /          
                                                    Switchboard: 020 7567 8000

Subsequently -
MITIE Group PLC, Head Office                        01934 862006


EXTRACTS FROM THE CHAIRMAN'S STATEMENT


Introduction
The ethos and business model of MITIE Group (MITIE) has proved to be as
resilient as ever in the uncertain conditions of the past 12 months.  The
commitment brought about by individuals' investment of their own money has
worked well for MITIE, for our customers and for our shareholders.

As you will recall, on 2 August last year I handed over the role of Chief
Executive to Ian Stewart and strengthened your Board by appointing four new
Executive Directors.  I am pleased that the change has been seamless and am
gratified by the support that the new Chief Executive has received from all
his colleagues.

Results
Turnover rose to £518.9m, an increase of 25%, and pre-tax profit rose by 21%
to £30.4m. Earnings per share rose by 30% to 6.5p.  All growth was organic.
Your Board is recommending a final dividend of 0.9p per share, making a total
of 1.6p for the year, an increase of 28%.

Corporate Developments
In the year we started two new companies, MITIE Engineering Services
(Liverpool) Ltd as well as a further Engineering Maintenance company in the
South West.  Since the year end we have started two further Engineering
companies and a company within the Property Services Division, MITIE Interiors
Ltd.

As a deliberate strategy we reduced our exposure to capital intensive
activities and sold our majority stake in MITIE Powered Access Ltd to its
management team in February 2002.  Since the year-end, we have also sold the
five companies making up the Access contracting business to another management
buy-out team.

People
I truly believe that the concept of MITIE has given many people the chance to
fulfil their potential.  It is because of their professionalism that the
growth of the Company has been sustained and I would like to thank most
sincerely all the staff for their continued commitment.  We are very fortunate
to have so many people who are passionate about their company to the extent
that they work far beyond the call of duty.

More particularly, I am very pleased to welcome Manish Chande as a Non
Executive Director of the Company following his appointment to the Board on
Friday, 12 July 2002.  He brings with him a wealth of experience of the
Property and Support Services Industries and I am sure he will be of
considerable benefit to MITIE.

Accounting Policies
In the light of investors' current heightened interest, I would like to
reassure our Shareholders that MITIE has always applied conservative
accounting policies.  For example we have always accounted for bidding
expenses in line with the recently introduced UITF 34.

Outlook
MITIE stands to benefit substantially from the Government's continuation of
schemes for the improvement of the public services, particularly health and
education.  Such is the present reputation of the Company that almost every
business in the MITIE Group reports record forward order books from a strong
customer base.  Indeed, the situation is tailor-made for the highly motivated
and entrepreneurial Managing Directors that the MITIE business model attracts.
It is in these people, under Ian Stewart, that I place my full confidence for
another successful year.

The recent turmoil in world financial markets makes it difficult to express
optimism about economic prospects in general.  However, trading has been
satisfactory in the first months of the current year and I believe we will
continue to achieve profitable growth.


DAVID M TELLING
Chairman



EXTRACTS FROM THE CHIEF EXECUTIVE'S STATEMENT


Introduction
This is my first review as Chief Executive of MITIE Group (MITIE) and I would
like to outline my primary goal for the Company at the outset.   My aim is for
MITIE to become the first choice provider of Support and Building Services to
the owners and occupiers of industrial, commercial and government buildings.
I am confident that we can achieve this without sacrificing our unique
entrepreneurial culture or compromising on quality.

To achieve this aim we decided that a limited amount of restructuring had to
be effected and have already taken action to strengthen the Group's
competitive position.  We have disposed of the most capital-intensive
businesses, namely MITIE Powered Access Ltd and the Access contracting group
of companies.  Following the buy-in of the minority stake in MITIE Managed
Services Ltd, we have promoted certain senior people to improve our strategic
management capability.

Markets
The traditional, and often conservative, markets in which MITIE used to
operate have changed enormously over the last five years.  Pressure to perform
has forced our clients to consider ways of driving costs out of their
infrastructure and one of the solutions has been to enter into larger, often
national, services contracts for longer periods.  This has brought a degree of
stability to the markets in which we operate and better visibility and
security of earnings to service companies such as MITIE.

A further development, particularly in Building Services, is the welcome
growth of less adversarial relationships arising from the formation of joint
ventures, partnerships and framework agreements with our clients.  This new
way of doing business provides tremendous opportunities for companies within
MITIE.  The great strengths of MITIE companies include not only the unique
equity ethos, which motivates all concerned to achieve ambitious targets, but
also the pool of skilled and semi-skilled labour which each employs.  This is
the envy of their competitors in the present climate of skills shortages.  I
strongly believe that our core skills are in the management of people
intensive projects, which is why we disposed of the two capital-intensive
businesses to their management teams.

The MITIE business model, by its very nature, makes considerable demands on
individual Managing Directors.  Our planning process revealed a need to
release some key people to address the strategic development of the MITIE
Group more explicitly.  As a result the Board approved the buy-in of the
minority shares in MITIE Managed Services Ltd and subsequently appointed Colin
Hale, who was responsible for building that company, to the role of Strategic
Development Director for the MITIE Group as a whole.  We are now better placed
to manage change and exploit development options and new opportunities as they
arise.

Segmental Analysis

Activity  Turnover    Turnover    Pre-      Pre-    Pre-Tax    Pre-Tax
                                   Tax       Tax     Profit     Profit
             £'000      £'000   Profit    Profit     Margin     Margin
              2002       2001    £'000     £'000     % 2002     % 2001
                                  2002      2001
Building   290,980    249,765   14,041    12,493        4.8        5.0
Services

Support    227,872    165,610   16,316    12,582        7.2        7.6
Services
           518,852    415,375   30,357    25,075        5.9        6.0


Building Services Division
Building Services is made up of Engineering Services, Property Services and
Access Systems.

Engineering Services
Engineering Services continues to concentrate on building long-term
relationships with customers.  Developing sound collaborative arrangements
based on mutual trust is conducive to more successful, stable and efficient
business relationships which in turn can lead to better financial returns for
both parties.

These relationships have already been fruitful and are developing well with
key clients in specific target markets, including education, leisure and
retail.  Supply chain relationships in framework agreements have enabled
negotiated reductions in our tender costs whilst protecting our margin.

Engineering Services is in the forefront of the new way of doing business.  It
has embraced the customer-oriented culture developed in our Support Services
Division and rejected the traditional confrontational and litigious attitudes
of the Construction Industry.  The ability to operate anywhere in the UK and
the hard-earned reputation for consistent excellence in delivery, help greatly
as more national contracts are offered. There is considerable potential to
grow the business further.

The discipline has already secured 75% of its budgeted turnover for the
current year, such orders coming as a result of highly selective marketing.
Understandably, it remains optimistic about its prospects for the forthcoming
year.

Property Services
Customers' continual drive to outsource non-core services has created a
vibrant market for Property Services, which is in a strong position through
being able to offer a broad range of skills and deliver a quality product by
means of a directly employed labour force.

Repeat business accounted for 60% of turnover with the remainder coming from
new clients, who have, in particular, wanted us to take on multi-service
refurbishment projects.  Refurbishment capabilities have been expanded
considerably and Property Services is one of the country's leading
organisations in this field.  This has been achieved by selective tendering, a
highly incentivised management team and an experienced and well-trained labour
force.  Performance has been improved by tight cost controls and by ensuring
that quality is delivered first time, largely eliminating the costs of
re-working.  We are developing better ways of working together with our
customers for mutual benefit.

Property Services has an infrastructure in place to manage growth wherever
there are opportunities and to widen the range of services.

Access Systems
MITIE Generation Ltd, our remaining plant company, is a well-respected hire
and sale business with a good range of scaffolding products and a well-
motivated staff.   With a greater management emphasis on national accounts, it
has increased its sales force and also formed alliances with suppliers to
increase turnover and margin. New products have been launched and the search
continues to find innovative, cost-saving equipment that will appeal to buyers
and hirers alike.

A reorganisation of the discipline followed the sale of the other capital
intensive businesses.  A graduate of our own MBA course at Henley Management
College, Mark Clifford, has been appointed head of this Discipline.

Support Services Division
The Division consists of Engineering Maintenance, Cleaning and Managed
Services.

Engineering Maintenance
Engineering Maintenance has maintained its excellent growth rate.  Many new
orders were received, including a national contract for Rolls Royce.  All
major contracts due for renewal were retained, with others such as Nokia
extended to operate on a national basis.

There is no shortage of work.  The skill lies in picking the right contracts
as more and more clients expect the service provider to accept greater
operational risk.  Securing good engineers with commercial acumen is a major
restricting factor in this fast growing market, estimated to be £3 billion, of
which MITIE Engineering Maintenance Ltd has at present a share of only around
2%.

Engineering Maintenance continues to be a good example of the efficiencies of
the MITIE business model, with a commendable record or profitable growth.  In
addition to the services it provides, its strengths include its operational
management, IT, reporting and client liaison skills. It has an excellent
record in Health & Safety, which gives confidence to existing and prospective
customers.

Managed Services
Managed Services is the facilities management arm of MITIE and brings together
the service offerings of all disciplines in the Group. During the year there
was a substantial increase in turnover.  A notable contract was started with
Standard Chartered Bank, which is for a term of five years with a total value
of some £30 million.  I am particularly happy to announce that the original
five year contract with Land Securities Trillium for the Department of Work
and Pensions estate was extended for a further 10 years: MITIE's first £100
million contract.

MITIE Business Services Ltd has also done well, winning new contracts with the
London Stock Exchange and Barclays Bank in Canary Wharf, which should provide
an excellent entree into that exciting business community.  This is the
reprographics and document handling business, which also provides reception,
telephonist and messenger services.  It also has an important role in the
contract with Standard Chartered Bank, which illustrates yet another example
of success in cross-selling.

Many of MITIE Managed Services Ltd's competitors appear to have geared
themselves exclusively for PFI involvement, perhaps at the expense of
attention to the Private Sector, where we continue to develop our business
profitably.  Managed Services has exploited the synergy between disciplines
and has the advantage of a wide range of services, each of which is capable of
finding the entry point for the subsequent delivery of many other services.
MITIE Managed Services Ltd has an experienced management team that is
selective and cautious about the work it undertakes.  It has achieved an
enviable track record of profitable growth.

Cleaning
The cleaning industry is no exception to the changing way in which business is
being procured.  Big companies are asking for additional services to be
provided in order to reduce their supply chain and to become more efficient, a
process known as bundling services.  MITIE Cleaning is therefore consolidating
its existing relationships, as contracts move from a three year average to a
five to ten year average duration.

MITIE's own multi-skilled offering and avowed intention to maintain service
quality continue to help to win large contracts. MITIE Cleaning has had a
particularly good year in the Midlands and in London, where further good
prospects have arisen out of a valuable flagship contract with a major
financial institution that is a benchmark for our service delivery.

Margins were slightly impacted by the sheer size and scale of the start-up
costs incurred in the mobilisation of some very large new contracts, for
example RBS NatWest and the additional 30 sites gained in the national
contract with BAE Systems. This is a normal feature of our operations.  The
situation improved in the second half as these contracts settled into their
expected performance pattern.

Our Cleaning Companies received a Winning with People Award in London and two
more Kimberly Clark Golden Service Awards, for the contracts at the Palace of
Westminster and the British Airways London Eye. These brought the number of
such awards won over the past five years to nine and gained further public
recognition of our drive for quality.

MITIE Catering Services Ltd continued to trade satisfactorily during the year
following the award of a number of high profile contracts.  Its management has
been strengthened by the appointment of a senior industry professional, Robin
Hay, as Managing Director.

Conclusion
MITIE is now even more a service-oriented company than this time last year,
having disposed of most of its capital-intensive businesses.  It has greater
forward visibility of earnings as a result of longer, larger contracts and an
encouraging order book going forward.

We are better organised to address the issues of longer term growth and to
develop new services to meet customers' requirements. The increase in cash
resources of £13.4m from the recent disposals is available to grow the
business as and when the right opportunities arise.

Above all, after a period when others down-sized their workforces and
outsourced their services, it has a substantial resource in the form of a pool
of skilled and motivated management and labour, in trades and professions that
are in great demand.

My first year as Chief Executive has been busy and demanding.  I am fortunate
to have experienced, executive colleagues who are not only well-respected as
proven performers but are, I believe, individually the best in their fields.
It, therefore, gives me great confidence for the future that the opportunities
provided by the market and the commitment and the passion of everyone within
MITIE, will combine to drive the next stage of growth.


IAN R STEWART
Chief Executive

                                       
      
                                       
                                MITIE Group PLC
                                       
                   Group Profit and Loss Account (Unaudited)
                       for the year ended 31 March 2002
                                       
                                       

                                                       
                                            2002        2001        
                                           £'000       £'000
Turnover                                               
         Continuing operations           493,829     393,738
         Discontinued operations          25,023      21,637
                                                       
                                         518,852     415,375
                                                       
Cost of sales                           (397,954)   (315,328)
                                                       
Gross profit                             120,898     100,047
                                                       
Administrative expenses                  (90,931)    (75,020)
Operating profit                                       
        Continuing operations             29,040      24,945
        Discontinued operations              927          82
                                                       
                                          29,967      25,027
Interest                                     390          48
Profit on ordinary activities before tax  30,357      25,075
                                                       
Tax on profit on ordinary activities      (9,027)     (8,420)
Profit on ordinary activities after tax   21,330      16,655
Minority interests                        (2,712)     (2,703)
Attributable  profit  for  the  financial              
year                                      18,618      13,952
Dividends - equity                        (4,623)     (3,497)
Retained profit for the financial year    13,995      10,455
                                                       
Earnings per ordinary share - basic          6.5p        5.0p
                            - diluted        6.4p        4.9p


                                       
                                       
                                MITIE Group PLC

                        Group Balance Sheet (Unaudited)
                              as at 31 March 2002



                                                       
                                            2002        2001
                                           £'000       £'000
Fixed Assets                                           
Intangible assets                         14,724       8,597
Tangible assets                           45,082      48,123
                                                       
                                          59,806      56,720
                                                       
Current Assets                                         
Work in progress and stocks               23,706      24,244
Debtors                                   87,137      70,365
Cash at bank and in hand                  25,106       6,135
                                                       
                                         135,949     100,744
                                                       
Creditors - due within one year         (110,987)    (94,182)
Net Current Assets                        24,962       6,562
                                                       
Total Assets less Current Liabilities     84,768      63,282

Creditors - due after one year               (27)       (788)
Provision for liabilities and charges     (1,496)     (2,191)
                                                       
                                          83,245      60,303
                                                            
Capital and Reserves
Called up share capital                    7,220       6,991
Share premium account                     25,483      13,738
Revaluation reserve                         (503)       (514)
Profit and loss account                   42,291      29,951

Equity shareholders' funds                74,491      50,166
Minority interest                          8,754      10,137
                                                       
                                          83,245      60,303


                                   
                                       
                                       
                                       
                                MITIE Group PLC
                                       
                     Group Cash Flow Statement (Unaudited)
                       for the year ended 31 March 2002


                                                            
                                                2002         2001        
                                               £'000        £'000
Net cash inflow from operating activities     37,295       33,111
                                                            
Return   on  investments  and  servicing   of               
finance
Interest received                                469           75
Interest paid                                      -         (100)
Interest element of finance lease rentals         (6)          (7)
                                                            
                                                 463          (32)
                                                            
Tax                                                         
UK corporation tax paid                       (8,783)      (6,763)
                                                            
Capital expenditure
Payments to acquire tangible fixed assets    (15,015)     (20,057)
Receipts from sales of tangible fixed assets   3,364        1,117
                                                            
                                             (11,651)     (18,940)
                                                            
Acquisitions and disposals                                  
Payments to acquire subsidiary undertakings   (1,457)      (1,015)
Net cash acquired with subsidiary                           
undertakings                                       -          525
Receipts from disposals of subsidiary                       
undertakings                                   2,367            -
                                                            
                                                 910         (490)
                                                                
Equity dividends paid                         (2,090)      (3,194)
                                                           
Cash Inflow before financing                  16,144        3,692
                                                           
Financing                                                  
Issue of ordinary share capital                2,838          590
Net unsecured loans received                      35          157
Capital  element  of  finance  lease   rental              
payments                                         (29)         (57)
Repayment  of unsecured loans due within  one              
year                                             (17)         (52)
                                                            
                                               2,827          638
                                                           
Increase in cash in the period                18,971        4,330

  
                                       
                                       
                                       
                                MITIE Group PLC

          Group net cash inflow from operating activities (Unaudited)


                                                        
                                               2002          2001
                                              £'000         £'000
Operating profit                             29,967        25,027
Depreciation                                 11,809        11,784
Amortisation of goodwill                        640            73
Profit on sale of tangible fixed assets        (678)         (789)
Decrease/(increase) in  work  in  progress              
and stocks                                      514        (5,955)
(Increase) in debtors                       (16,706)      (11,186)
Increase in creditors                        11,749        14,157
                       
                                             37,295        33,111


NOTES:

1. Dividend
   The Directors are recommending a final dividend of 0.9p per 2.5p Ordinary
   Share, making a total dividend for the year ended 31 March 2002 of 1.6p
   per share.  If approved at the Annual General Meeting, the final dividend
   will be paid on 1 October 2002 to Shareholders on the Register on 6
   September 2002.  On 2 April 2001, each Ordinary Share of 5p was subdivided
   into two Ordinary Shares of 2.5p each.

2. Earnings Per Share
   Earnings per 2.5p share are calculated by reference to the profit after tax
   and minorities of £18,618,000 (2001: £13,952,000) and on the weighted
   average number of 2.5p Ordinary Shares in issue during the year of
   284,250,155 (2001: 277,603,608).  The diluted earnings per share has been
   calculated on the basic earnings and the weighted number of shares plus an
   additional 4,813,163 (2001: 6,162,684) shares representing the fair value
   of the weighted average number of shares under option during the year.

3. Deferred tax
   We have adopted the new financial reporting standard FRS 19 which has
   involved moving from partial provision basis for deferred tax to full
   provision basis.  This change has resulted in a credit of £463,000
   relating to prior years being taken in this year's Profit & Loss Account.

4. The Group has continued to account for pensions in accordance with SSAP 24
   but has also followed the transitional arrangements contained in FRS 17.

5. The consolidated profit and loss, balance sheet and cash flow statements
   have been prepared on a basis consistent with the accounts for the year
   ended 31 March 2001.

6. The Annual General Meeting will be held at The Stable Block, Barley Wood,  
   Wrington, Bristol, BS40 5SA, on 19 September 2002 at Noon.

7. The financial information set out in the announcement does not constitute
   the Company's statutory accounts for the year's ended 31 March 2002 or
   2001.  The financial information for the year ended 31 March 2001 is
   derived from the statutory accounts for that year which have been
   delivered to the Registrar of Companies.  The auditors reported on those
   accounts; their report was unqualified and did not contain a statement
   under s237(2) or (3) Companies Act 1985.  The statutory accounts for the
   year ended 31 March 2002 will be finalised on the basis of the financial
   information presented by the Directors in this preliminary announcement
   and will be delivered to the Registrar of Companies following the
   Company's Annual General Meeting.




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