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Mitie builds cash store for further growth

Outsourcing and energy services company Mitie has identified significant potential for growth in overseas markets.

In its Interim Management Statement, the company hailed its wins in the public, private and energy sectors as being behind a successful financial year to date, and said it had the capacity to complete further acquisitions in the future.

According to the statement, revenues and earnings are “developing in line with management’s expectations”, and that at 30 June it had achieved 85% of budgeted revenue for the year compared with 78% a year earlier.

Among its public sector contract wins, Mitie will design, develop and maintain a combined heat and power decentralised energy centre for the Royal Marsden NHS Foundation Trust. And the acquisition of Service Management International in July was part of its strategy to develop support for clients overseas and allow the firm to compete for pan-European integrated facilities management contracts.

In July, Mitie completed a transition to new banking facilities and has in place £250m of “secured banking facilities”, which will fall due for renewal in September 2015. It has the potential to extend that facility through an accordion arrangement to £400m. Mitie is also funded by a further £100m of US private placement loan notes that were issued in December 2010 and fall due for repayment between December 2017 and 2019.

In a statement, the company said: “The financial year has started well and as expected. While the global economic uncertainties continue to exist, we remain extremely positive about the range of outsourcing and energy services opportunities across all our key markets, and continue to see a record order book and strong pipeline of sales opportunities.

“The group is on track to continue its record of sustainable profitable growth.”

Original report from our sister title Construction News

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