Trading Statement

RNS Number : 3834J

MITIE Group PLC

30 March 2010

 



30 March 2010

MITIE Group PLC - Pre-close Trading Update

MITIE Group PLC ("MITIE" or the "Company"), the strategic outsourcing and asset management company, will enter a close period on 1 April 2010, in advance of announcing its preliminary results on Monday 17 May 2010.

Trading performance

MITIE has experienced good progress and seen an excellent contribution from its recent acquisitions in the second half of the year.  Group earnings for the year ended 31 March 2010 remain in line with the Board's expectations.

We are continuing to win and retain new work across a range of sectors and MITIE's ability to deliver savings for, and add value to, our clients in this challenging economic environment has enabled us to continue to grow the business.  We are experiencing good growth in our Facilities Management business where the drive for consolidation and efficiency has provided opportunities for us to expand our portfolio, scope and scale of services with our clients.  In our Asset Management and Property Management businesses, we have been encouraged by the development of our social housing and energy linked businesses where new opportunities, bolstered by our acquisitions, continue to offer growth going forward.  However, as we have previously reported, we have continued to experience delays to the commencement of secured and prospective project work in some parts of those businesses. 

Our recently acquired businesses of Dalkia Technical FM (DTFM) and EPS are trading well and in line with the Board's expectations, and their integration into MITIE is on track to deliver the expected synergies.  The acquisition of DTFM was made some seven months ago.  We have been particularly pleased with the progress made by our teams in that time in creating a fully integrated technical FM business within a newly defined business model that complements the capabilities and skills of our traditional soft FM services business.  Further, the group wide launch of the CarbonCare service line that was brought into MITIE through the DTFM acquisition is attracting very positive interest from our clients.  We remain excited by the prospects and enhanced carbon efficiency credentials that DTFM has brought to MITIE.

Outsourcing is changing in response to market conditions with cost and carbon reduction still high on our clients' agendas.  Integrated contracts are being utilised by clients to achieve scale based efficiency, and we continue to see larger scale single and multi-services contracts where corporate consolidation activities are being driven by service line.  MITIE is, and will remain, a beneficiary of the market's demand for cost and carbon reduction programmes and has a clear strategic advantage in being able to adapt its flexible service delivery offerings and contracting structures to meet the changing needs of our clients.  

Examples of contracts secured since the publication of our last Interim Management Statement include:

·      In the finance sector, a large financial services organisation has appointed MITIE as the sole provider of cleaning services across the entire property portfolio. This contract will help them to harmonise work and deliver one consistent look and feel across their entire estate;

·      In the professional services sector, we have retained a contract with a big four accounting firm to assist them with their document management and distribution services. The contract value is in excess of £40m for an extension until June 2014;

·      In the retail sector, we have retained a contract to supply retail guarding for Marks & Spencer's wholly owned mainland UK stores;

·      In the education sector, we have been awarded preferred bidder status on the Building Schools for the Future (BSF) facilities management programme in Cambridgeshire.  In Derbyshire, our energy specialists will be implementing small wind farm trials to help meet carbon targets for three schools currently being constructed under BSF in that area; and

·      In the transport sector, we have been appointed to provide security and checking services for Eurotunnel at their UK terminal and we have retained two contracts with London Buses for the posting of timetables and for cleaning and maintaining bus stops.

Outlook

MITIE's strategy of pursuing organic and acquisition-led growth is unchanged, and we believe that the Group is well positioned to deliver material further growth going forward.  We are seeing new opportunities developing as the result of the continued drive for efficiency in both the public and private sectors, although the timing of some public sector opportunities remains difficult to estimate.  We have a strengthening order book and are experiencing exceptional levels of demand for our services as well as great interest in our carbon and energy efficiency offerings. 

We have seen excellent results from the acquisitions made this year and have greatly enhanced the capabilities of the Group.  Our strong balance sheet and cash flows ensure we are well placed to make further value creating acquisitions should the opportunity arise. 

We look forward to another strong year of growth.

Results

MITIE will announce its results for the year ended 31 March 2010 on Monday 17 May 2010.

For further information please contact:

Erica Lockhart, Investor, Media & Public Relations Manager

T: 020 7022 8438 M: 07979 784 488

John Telling, Group Corporate Affairs Director

T: 020 7022 8413 M: 07979 701 006

Conference call

MITIE Group PLC will be holding an investor / analyst conference call today at 8.30am which can be accessed within the UK and internationally by dialling [phone].

 

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