Interim Management Statement

RNS Number : 8212J

MITIE Group PLC

13 August 2012

 

13 August 2012

MITIE Group PLC

Interim Management Statement

MITIE Group PLC ("MITIE"), the strategic outsourcing and energy services company, releases its Interim Management Statement for the period from 1 April 2012 to date.

Trading update

MITIE has made a good start to the year.  With the successful commencement of our new contract with Lloyds Banking Group, we are well placed to achieve good levels of organic growth in the current financial year, in line with management's expectations. At 30 June 2012, 87% (30 June 2011: 85%) of budgeted revenues for this financial year had already been secured.

Continued organic growth

MITIE continues to see good opportunities for organic growth across its markets. The investments we have made in our integrated facilities and energy management capabilities will deliver further growth, underpinned by our record order book and significant pipeline of sales opportunities.

In the private sector the sales pipeline remains buoyant and we have been awarded and retained work across a range of markets and sectors, including a new contract to provide front of house services at RBS for a term of five years, with an expected total value of £30m. Our five year, £775m partnership to deliver integrated facilities management services for Lloyds Banking Group is progressing well and the contract commenced, on schedule, on 1 August 2012.

In the public sector, we remain focused on the justice, health, local authority and social housing markets. We have continued to see a steady flow of contract awards and retentions, including an expanded contract to provide Integrated Facilities Management services to the Scottish Government and its collaborative partners over five years, with a total contract value of at least £30m and a contract to provide technical facilities management for the City of London Corporation, for a five year period with an expected total value of £26m. 

Supporting growth opportunities through acquisitions

On 31 July 2012, MITIE acquired a 51 per cent stake in one of the UK's leading independent events and leisure catering companies, Creativevents Limited ("Creativevents"), from the management team. The business will help support our overall catering proposition to our clients. Creativevents provides catering and hospitality services to a broad range of clients in the exhibition, sporting, festival, culture and heritage sectors as well as events and outdoor catering. 

Creativevents had revenue of £14.8m in the year ended 31 August 2011. The initial consideration payable is a maximum of £6.0m, with £5.2m paid in cash on completion, and the remainder payable in cash dependent on certain conditions.  The earn-out of the remaining 49 per cent stake will bring total consideration payable to a maximum of £12.0m, which is dependent on long-term performance.  MITIE's investment has been financed through its Entrepreneurs Fund.

On 7 June 2012, MITIE acquired the facilities management (FM) business of Dalkia Energy & Technical Services AS ("Dalkia FM") in Norway. MITIE has acquired the FM contracts and the majority of the employees of Dalkia FM for a total maximum cash consideration of NOK 10m (£1.06m) subject to certain conditions being satisfied over the period to 7 September 2012. 

Financial position

There has been no material change in the Group's financial position since 31 March 2012.

Our strong balance sheet continues to provide us with capacity for the development of organic growth and for further value creating acquisitions should they arise.

Outlook

The financial year has started well, despite a backdrop of continued global economic uncertainty and challenging conditions in certain of our cyclical markets.   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.

-ENDS-

Future reporting dates

MITIE Group PLC will announce its interim results on Monday 19 November 2012.

For further information, contact:

John Telling, Group Corporate Affairs Director, MITIE Group PLC

T: 0203 123 8673           M: 07979 701 006         E: [e-mail]

Erica Lockhart, Head of Investor Relations and External Affairs, MITIE Group PLC

T: 0203 123 8179           M: 07979 784 488          E: [e-mail]

Notes for editors

What is MITIE?

We're the strategic outsourcing and energy services company. What does that mean in practice? We manage facilities, energy and properties for our clients across the UK and beyond.

We work with our clients in three ways; some take full advantage of our whole range of expertise, others may only need one aspect of what we do:

Strategy and consultancy

+ Facilities and energy management

+ Service delivery

Our strategic input can add value at the highest level by helping clients to manage their assets, while our practical management expertise can save customers money and reduce their carbon emissions.  We work with a vast number of clients in every industry across both the public and private sectors and deliver the broadest range of services that can be found in one place: from integrated facilities management to engineering maintenance to lifecycle energy management and much more.

There's a lot more to MITIE than you probably think. We're a big company with big ambitions - a leading FTSE 250 support services business, with more than 65,000 people, revenues of £2.0bn, and a reputation for being the best.

Visit us at www.mitie.com

 

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