Mitie reports solid annual results

The UK's number one facilities management provider, Mitie Group has announced its results for the year ended 31 March 2016 showing operating profit before other items of £128.9m, generating a 5.8% margin (2015: £128.6m, 5.7%).

For the period, the firm has reported operating profit has grow 100.9% to £112.5m, generating basic EPS growth of 119.6%.

Facilities Management business (84% of group revenues) showed a very strong operating profit margin of 6.3%.

Market leading integrated FM business, which accounts for one-third of revenues, experienced a successful period of retentions and extensions, with no major rebids until 2019.

The group's Property Management business (13% of group revenues) delivered solid growth and substantial margin improvement.

Recovery is underway for Mitie's Healthcare business, which accounts for 3% of group revenues.

The company's sales pipeline is buoyant at £9.1bn (2015: £9.7bn) and the order book remains strong at £8.5bn (2015: £9.0bn).

Ruby McGregor-Smith, Chief Executive of Mitie Group plc, commented, 'Mitie has had a good year, with strong margins and profits. I am delighted that the dividend is increasing for the 27th consecutive year.

'We are a pure services business with a strong position in our chosen markets. We operate long-term contracts for a blue chip client base and are well diversified across the private and public sectors.

'Our business model is flexible, resilient, low risk and has proven to be responsive to client needs and market conditions over three decades.

'We continue to see a range of good outsourcing opportunities across our key markets and anticipate modest growth in the coming year. We remain positive about the group's prospects for the future.'