FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The FM provider has released its latest trading update for the three-month period (Q3 FY25) and the nine-month period (Q3 YTD) ended 31 December 2024.
Mitie reports it has continued good strategic progress with record quarterly revenue in Q3, up 15% year on year to £1,317m (Q3 FY24: £1,146m). This reflected strong organic growth of 11% – inclusive of 2% contract pricing – through key account growth, scope increases and projects upsell.
Infill M&A contributed a further 4% of inorganic growth, including two strategic acquisitions completed during the period: Argus Fire – a leading fire systems business, for £37m; and Grupo Visegurity – a leading Spanish security business, for €9m.
Revenue also grew sequentially quarter-on-quarter, reflecting good trading momentum and the benefits from investments in the foundation year of Mitie’s Three-Year Plan. Q3 FY25 revenue was 4% ahead of Q2 FY25 (£1,266m), and 13% ahead of Q1 FY25 (£1,164m).
In Q3 YTD revenue of £3,747m was 14% ahead of the same period last year (£3,278m).
Divisional performance:
- Business Services – Revenue up 15% to £577m (Q3 FY24: £501m).
- Technical Services – Revenue up 12% to £521m (Q3 FY24: £464m).
- Communities – Revenue up 21% to £219m (Q3 FY24: £181m).
Mitie also reports total contract value of wins/renewals/extensions in the year to date rose by 37% to £4.8bn (FY24 YTD: £3.5bn).
Notable Q3 FY25 wins included security for DVLA and Walgreens Boots Alliance, engineering for First Group, IFM for HMRC and cleaning for Pladis Global. Notable contract renewals and extensions included security for Byte Dance, Deutsche Bank and Marks & Spencer, IFM for St George’s Hospital and Thales, and cleaning and landscaping for the Co-operative Group.
Looking ahead Mitie says it expects good revenue momentum to continue in Q4 (typically its strongest quarter), albeit against a strong prior year comparative for projects work, and with a reduced contribution from ‘surge response’ security work and M&A. As such, Mitie expects Q4 revenue growth to moderate, resulting in low double-digit growth in FY25, which is “comfortably ahead” of Mitie’s annual high single digit revenue growth target.
Mitie adds the good performance in Q3 underpins the company’s confidence in delivering operating profit before other items of c.£225m in FY25.
Commenting on the results, Phil Bentley, CEO, said: “In the foundation year of our new Facilities Transformation Three-Year Plan (FY25 – FY27), we have continued to make good strategic, operational and financial progress, reflecting our focus on growth markets and underpinned by attractive macro trends.
“Revenue growth in Q3 was slightly ahead of the half year outturn, and included the benefits from transformational projects work, scope increases and record new contract wins in earlier periods. Our contract wins and extensions/renewals are a leading indicator of future growth, and our strong performance once again in Q3 is therefore encouraging.
“Looking ahead, the investments we are making will enhance our growth and resilience by strengthening our market leading position, expanding our £25bn pipeline (+36% year-to-date) and driving cross-sell opportunities. We are confident in both the outlook for the full year, as well as our progress towards our ambitious medium-term targets.”
FMJ has partnered with Watco to deliver a webinar on Thursday 30th January where we will be grilling a panel of experts on how facilities managers can maintain a safe workplace while balancing shrinking budgets.
The webinar follows the Lifting the Lid report series that the industrial paint and repair products specialist has been developing over the past few years based on research conducted with FMs across the UK. The research explored core responsibilities of the FM role, including how they have evolved in the past decade, and the associated challenges to manage.
Watco’s Sales Director and key contributor to the reports, Chris Budd, will be joined by a panel of experts including Phil Pinnington, Head of Audit & Consultancy at the British Safety Council, Nick Bray, Head of HSEQ, ISS UK and Ireland and Jenni Gallop, Director of Estates and Facilities at Provide Community.
With decades of combined experience in the introduction and management of health and safety in complex, demanding environments, the panel will provide the audience with recommendations broken down into steps that can be introduced immediately.
The panel will discuss the research data from FMs across the UK, the evidence they have seen of those experiences across industries and their first-hand recommendations on how to manage those challenges and ease the pressure.
Click here to sign up for the webinar.
