Excellent progress across each of our key growth markets
Strong headline financial performance
Total headline revenue growth of 10.5%, of which 5.1% was organic
Headline operating profit up 13.3% to £62.3m (2012: £55.0m), of which 4.5% was organic
Headline operating profit margin increased to 6.0% (2012: 5.8%)
Excellent conversion of EBITDA to cash of 116.3% (2012: 84.6%), well above stated long-term KPI of 80%, with headline cash conversion of 106.7% (2012: 83.9%) on a rolling 12-month basis
Net debt at 30 September 2013 of £221.8m or 2.0x statutory EBITDA (1.5x headline EBITDA) on a rolling 12-month basis (2012: £132.9m, 1.1x statutory EBITDA or 1.0x headline EBITDA), which we expect to reduce in the second half of the financial year
Interim dividend up 6.5% to 4.9 pence per share (2012: 4.6 pence per share)
All four divisions in a strong position to benefit from the current market opportunities
Facilities Management (FM) continuing to drive strong organic revenue growth - 10.1% during the period, driven largely by our integrated FM portfolio
Awarded significant new FM contracts, including with Mitchells & Butlers valued at £38m and Bank of Ireland
Property Management showing good performance, and the commencement of our housing repairs and maintenance contract with Hammersmith & Fulham Council in November will have a positive impact on the second half results - this contract together with our painting contract have a total value of £28m per annum
Appointed preferred bidder by Southampton City Council to deliver energy efficiency works under the Government's ECO and Green Deal Scheme, for an initial value of £30m over a 19 month period
Comprehensive energy proposition supports every key energy issue faced by our clients, with a focus on higher margin consultancy following the integration of Utilyx and our Asset Management business
Integration of Enara going well, it has been rebranded as MiHomecare and is performing in line with expectations
Well positioned for growth
Excellent opportunities in our core markets of integrated FM, property management, energy and healthcare
The exit from our cyclical mechanical and electrical engineering contracting businesses continues. Revenue was £41.2m and losses were £4.3m during the period, and first half revenues for the business have now declined by 50% compared to the prior period. We currently anticipate losses to be lower in the second half of the financial year
Robust balance sheet and strong financial position will support growth and enable further strategic acquisitions
Order book remains healthy and now stands at £8.7bn (2012: £9.0bn)
99% of 2013/14 budgeted revenue secured (prior year: 98%) and 74% of 2014/15 forecast revenue secured (prior year: 72%)
Pipeline of potential bid activity remains buoyant at £8.8bn (March 2013: £8.7bn)
Ruby McGregor-Smith CBE, Chief Executive of MITIE, commented:
"The first half of the year has seen strong operational and financial performance for MITIE. We continue to identify new opportunities with both existing and new clients in all of our key markets.
"The successful re-positioning of the business means we are in a stronger and better position than ever to deliver higher growth and maintain strong margins. We look ahead with confidence."
