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Mitie has announced positive Interim Results for the six months to 30 September 2024 for both strategic progress and financial performance. Revenues are up 14 per cent to £2,430m, operating profit up 14 per cent to £101m and the company has made record contract wins and renewals. However, the services provider anticipates increased costs from April 2025 due to the changes in employers’ National Insurance, announced in the recent budget.
Phil Bentley, Group Chief Executive confirmed that Mitie is in the foundation year of a new Facilities Transformation Three-Year Plan (FY25 – FY27 with investments in technology, sales and marketing and projects capabilities.
He said: “During the first six months of our new Plan, we have delivered good strategic progress and financial performance as our investments start to bear fruit. We have delivered high-single-digit organic growth, in part driven by our ability to stand up a ‘surge response’ team to protect public safety; progressed our programme of margin enhancement initiatives; continued to build our capabilities through targeted acquisitions; and achieved record contract wins and renewals/extensions.”
He maintained that growth has been underpinned by highly attractive macro trends across both the public and private sectors. Clients are increasingly looking to reduce their carbon footprint, modernise their buildings, implement power upgrades and grid connections, and support their growing data centre and other critical environment requirements as building regulations change.
The services provider is also supporting the government in its commitment to invest in the UK’s defence capabilities and the modernisation of its built estate, alongside significant capital funding for schools and the NHS.
Commenting on the impact of the recent budget he said:
“We have reflected on the changes to employers’ National Insurance announced in the Autumn Budget, which take effect from April 2025. We have a strong track record of managing inflationary costs – including annual increases in the National Living Wage; contractual protections in place on many of our contracts; and strong customer relationships where negotiations are necessary.
“Our current estimate is a c.£25m impact of additional costs in FY26, after contractual and commercial recovery through pricing, which we plan to mitigate through new margin enhancement initiatives and other management actions.
He concluded:
“Our financial and operational performance has been good, and I’m pleased that this momentum has continued into the second half of the year. This underpins our confidence that we will deliver the Board’s expectations for the full year, as we progress towards our ambitious medium-term targets.”
