MITIE Group reports first-half revenue growth

18th Nov 2013 09:48

- Profits up 9.5 per cent- Revenue grows 10.5 per cent- Dividend raised 6.5 per centBritish outsourcing and energy services company MITIE Group posted a 10.5 per cent rise in revenue to 1.04bn in the first half, driven by growth in the Facilities Management division. Headline pre-tax profit increased 9.5% to £55.3m in the six months through September. Headline operating profit increased by 13.3% to £62.3m as the operating profit margin rose to 6% from 5.8% a year ago. The Facilities Management division experienced strong organic revenue growth of 10.1%, as the company scored significant contracts with Mitchells & Butlers and Bank of Ireland. Basic earnings per share jumped 9.3% to 11.8p. "The first half of the year has seen strong operational and financial performance for MITIE," said Chief Executive Ruby McGregor-Smith. "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."The order book has decreased by 5.4% to £8.7bn while the sales pipeline rose slightly to £8.8bm from £8.7bn. With new contracts won since the year end and existing contracts successfully retained, revenue visibility continues to be "extremely positive". The group has 99% of budgeted revenue for 2013/14 secured, compared to 98% last year, and 74% of forecast revenue for 2014/15 secured (2012: 72%). The dividend was lifted 6.5% to 4.9p per share. Shares rose 0.06% to 314.20p at 10:42 on Monday.RD