Mitie hopeful on outsourcing growth

23rd Nov 2009 07:21

Support services and asset management firm Mitie posted a rise in profits in the six months to September 30 and said efficiency drives in the private and public sector will create further opportunities for growth in the next year.Mitie, whose services include roofing, catering and painting, saw pre-tax profits climb to £42.3m from £37.6m over the same period the previous year on revenues that rose to £801.1m from £760.7m. The interim dividend was lifted to 3.7p from 3.3p.'In the private sector clients continue to seek efficiency through multi-service and integrated facilities management contracts while budgetary pressures in the public sector will create substantial facilities management outsourcing opportunities, although the timing of these is currently difficult to predict,' said chief executive Ruby McGregor-Smith.Mitie was helped by its acquisition of outsourced services group Dalkia Energy and Technical Services, for which it will pay up to £130m.The government is expected to rely heavily on outsourcing in the coming period as it seeks to balance the budget following stimulus measures that were prompted by the economic crisis.'We anticipate considerable impetus in the public sector over the next two years as all public sector bodies will be challenged to maintain front line service delivery with reduced budgets,' Mitie said. 'This will certainly provide opportunity especially in the areas of health, justice, education and local government. We have responded to this by enhancing our public sector expertise and expect to see a higher level of public sector revenues in the future, although the timing of these is currently difficult to predict.'