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Outsourcing boom boosts Mitie

A succession of large “transformational contract” wins have helped Mitie grow its turnover by nearly 6 per cent.

Significant wins with Essex County Council, Sellafield, the West Midlands Construction Framework and the Ministry of Justice saw the group’s order book jump 17 per cent to £8 billion in the six months to 30 September.

Operating profit was up 6.6 per cent to £51.6m while revenue increase 5.8 per cent to £971.7m.

Margins remained constant at 5.3 per cent and debt edged up to £119.3m from £110.6m in the same period last year.

Mitie chief executive, who was last week named Orange Leader of the Year at the National Business Awards, said strong results were down to the company’s strategy to invest in integrated facilities and energy management.

She said:  “Looking ahead, our focus is on developing existing client relationships and maximising opportunities to deliver value in energy services. This will ensure that all of our clients receive great value, high quality services, both in the UK and overseas.”

Mitie group corporate affairs director John Telling said energy services now accounted for roughly one third of the company’s business, with the figure likely to grow to a half within five years.

 Both public and private sector have proved lucrative for the outsourcer in the last six months, with Mr Telling pointing to an trend of larger contracts designed to capitalise on efficiency savings, with a particular focus on energy management.

Ms McGregor Smith added:  “We are mindful of the challenging economic environment. However, the search for greater cost and energy efficiency is central to the strategies of governments and businesses in all our markets – and delivering better quality services, innovation and efficiency lies at the heart of what we do.”

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