The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Mitie Reports 2021 Revenue Rise

11 June 2021
 

FM company Mitie has forecast a strong 2022, despite low annual profits and the loss of public sector contracts in the last year.

Group revenue increased by 18 per cent to £2.56 billion and it has successfully renewed or extended all major Interserve contracts that were due for renewal.

In its Q3 trading update in January 2021, the company reported a nine-month organic revenue of £1,546.4 million was 4.3 per cent cumulatively lower than the same period in the prior year. 

The decrease was due to the loss of the Ministry of Justice (MOJ) contract and the reduced scope of the NHS Properties contract from 31 March 2020.

Phil Bentley, Chief Executive of Mitie, commented:  

“FY21 was a defining year for Mitie and completes our four-year transformation.  The Group showed great resilience during the COVID pandemic; we strengthened our balance sheet; and the Interserve acquisition is performing well. Mitie is now the market-leading provider of intelligent technology-led facilities management, with a clear pathway to deliver growth and sustainable free cash flow.

“Although COVID has challenged us all, our business has been far more resilient than we originally expected, with revenue, excluding the contribution from Interserve, just 1.6 per cent lower than the prior year.  The second half of the year was significantly better than the first half, with 6.5 per cent year on year growth, as variable projects and discretionary spend works picked up and cleaning and security demand increased. 

“Interserve is performing strongly as part of Mitie and we have successfully renewed or extended all major Interserve contracts that were due for renewal. We have also realised £6.2m of synergies in FY21 and have identified additional cost synergies to take our forecast run rate from £35m to £42m by end FY23. 

 ​Picture: a photograph of Phil Bentley

Article written by Ella Tansley | Published 11 June 2021

Share


Related Tags


Related Articles

Mitie Refutes Claims of Lack of Cooperation Amid Strike Action in Carlisle 

As over 70 cleaners, porters and other support staff at Carlisle’s Cumberland Infirmary prepare to strike over a decade-long pay dispute, Mitie says it has never...

 Read Full Article
Mitie Attains Contracts Worth Over £770m in Last Three Months

In its Q3 trading update, Mitie has revealed an organic revenue of £573.9 million, 6.7 per cent ahead of the same period last year. The firm also said it had won...

 Read Full Article
Mitie Completes its Acquisition of Interserve

Today marks Mitie’s acquisition of Interserve's Facility Management business. The Competition and Markets Authority cleared the deal to proceed in...

 Read Full Article
Mitie's Acquisition of Interserve Cleared to go Ahead

The Competition and Markets Authority has cleared Mitie's acquisition of Interserve to proceed, subject to the approval of Mitie's...

 Read Full Article
£81m Off – Mitie and Interserve Renegotiate Terms of Sale

The terms of the sale of the merger of Interserve’s Support Services division with Mitie have been renegotiated, with the transaction now valued at £190m...

 Read Full Article
CMA Launches Investigation Into Interserve and Mitie Deal

The Competition and Markets Authority is investigating whether the deal between Interserve Support Services and Mitie might reduce competition in the FM sector. The...

 Read Full Article
Mitie Appoints Integration Director to Support Interserve Merger

Mitie has today announced that Karen Thomas-Bland will take up a newly created role as Programme Integration Director for Mitie’s merger with Interserve’s...

 Read Full Article
Funds from Rights Issue Expected To Support Interserve Acquisition, says Mitie

The acquisition of Interserve’s Facilities Management business is conditional on the approval of Mitie’s shareholders, and expected to be completed in or...

 Read Full Article
Interserve Support Services Merges with Mitie

Interserve and Mitie have announced the merger of Interserve’s Support Services division with Mitie, to make the largest facilities management company in...

 Read Full Article
Mobilising NHS Nightingale With CAFM

FSI and Interserve Group worked together to ensure the team at NHS Nightingale Hospital North West had a CAFM solution they could rely on at a crucial time. The impact...

 Read Full Article