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Mitie has reported good trading momentum in its half year results, with revenue up to around13 per cent £2.4bn (H1 FY24: £2.1bn). Organic growth of 7 per cent was driven by new contract wins and scope increases, pricing and projects and Q2 year on year revenue growth (16 per cent) is expected to exceed Q1 (10.5 per cent), as a result of good Q1 wins and the provision of ‘surge response’ security services
Commenting on the results CEO Phil Bentley said:
“This is the foundation year of our new Three-Year Plan (FY25 – FY27), and we are making investments in the business to develop our Facilities Transformation offering and to drive growth throughout the Plan period. We are investing in technology to strengthen our market leading position; in sales and marketing to drive greater wins and renewals; and in our Projects capabilities to enhance our upsell opportunities.
“These investments are already starting to deliver tangible results, including a record performance in new contract wins and contract extensions/renewals in the period, ensuring continued growth momentum.”
Organic growth included higher volumes for the Immigration Escorting Services contract in Care & Custody, as well as the provision of ‘surge response’ security services for the Home Office during the summer. This emergency provision of services more than offsets the one-off benefit in H1 FY24 from the provision of temporary services in respect of Afghan Relocations and Border Forces.
Notable new wins included security and cleaning services for Community Health Partnerships and Landsec, building maintenance for The Coventry and Rugby Hospital, IFM and projects for EY, engineering services for the Metropolitan Police Authority, and the £400m Millsike Prison contract awarded by the Ministry of Justice.
During the period, Mitie completed the acquisition of ESM Power, a leading high voltage electrical engineering business, for £5.5m initial cash consideration. This acquisition aims to enhances expertise in the growing high voltage power connections market.
