- Revenue growing by 10%
- Contract wins up over 80%
- Operating margin to rise
Facilities management group Mitie (MTO) delivered a pleasing first-quarter trading update showing double-digit revenue growth and a solid order book thanks to new contract wins.
The shares eased 1.7p or 1.4% to 121p, having notched up gains of 25% year-to-date, as the overall market got off to a soggy start.
BIG WINS WITH BIG CLIENTS
For the three months to the end of June, Mitie recorded revenue of £1.16 billion, a 10.5% increase on the same period last year, as it benefited from an increase in projects and variable work, higher pricing and previous acquisitions.
During the quarter, the group won contracts with a total value of £2 billion, including extensions and renewals, almost double the amount it won in the same period a year ago, with several key account wins with big customers.
Notable new wins included security services for British Airways, Aldi and Lidl, facilities management work for EY, Home Office scope increases and a prison contract with the Ministry of Justice, while extensions included a three-year agreement with Lloyds Banking (LLOY), the firm’s biggest private-sector customer.
‘The good trading momentum from last year has continued into the first quarter of FY25, with double-digit revenue growth from our projects business, including the benefit from the previous year's acquisitions,’ commented chief executive Phil Bentley.
He added: ‘We have made a good start to our new programme of margin enhancement initiatives which will raise the operating margin over the medium-term, and we remain on track to deliver our high-single digit revenue growth expectations for the year.’
