Strong financial performance
- Strong revenue growth of 5.6% to £1,026.6m, of which 4.3% is organic
- Operating profit before other items up 2.5% to £52.9m
- Operating profit margin before other items at 5.2% (2011: 5.3%)
- Excellent conversion of EBITDA to cash of 83.1% on a rolling 12-month basis, above stated long-term target KPI of 80%
- Interim dividend up 4.5% to 4.6p (2011: 4.4p)
- Low leverage with net debt at period end of £132.9m (2011: £119.3m) or 1.0x EBITDA on a rolling 12-month basis
Continuing to deliver on our integrated facilities management strategy
- Successfully mobilised major contracts including our five year, £775m contract with Lloyds Banking Group
- Awarded significant new contracts with BSkyB for £100m over five years and Golding Homes for £70-120m over ten years
- Strategic acquisition of Enara in the healthcare market on 9 October 2012
- £8bn home care market has excellent organic growth opportunities and is an ideal entry point into the wider healthcare market
- Home care is a natural fit for MITIE's skill set and values
Significant order book and sales pipeline
- Excellent progress in organic order book development - up 4.7% or £0.4bn to £9.0bn (March 2012: £8.6bn)
- Strong pipeline of potential bid activity which currently stands at £10.5bn (March 2012: £11.2bn)
- 98% of 2012/13 budgeted revenue secured at 30 September 2012 (prior year: 97%), 72% of 2013/14 forecast revenue secured (prior year: 68%)
Significant future opportunities
- Market leading integrated facilities management capabilities will drive further growth with existing client base
- Energy proposition supports every key energy issue faced by our clients - security of supply, renewable energy, reduction of carbon emissions, and value through lower costs
- Focus on providing better quality services, more innovation and more efficiency differentiates us in the marketplace
- Robust balance sheet and strong financial position will support growth
Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, commented:
"This has been a positive start to the year for MITIE. We have won and retained key contracts and expanded our healthcare offering via the purchase of Enara. We are particularly pleased to have successfully mobilised and started our largest ever contract, with Lloyds Banking Group.
"We have made this progress in the face of a tough economic climate and a difficult macroeconomic outlook, with continuing challenges within our more cyclical markets. However, we remain positive about the range of outsourcing and energy services opportunities across our key markets and continue to see a growing order book as well as a strong pipeline of sales opportunities. We expect total revenue growth to be higher in the second half as a result of both the organic revenue contribution from new and expanded contracts including Lloyds Banking Group, and the acquisition of Enara.
"We are confident that we will continue to build on our long track record of sustainable, profitable growth."
