Mitie makes "positive start" to year with new contracts

11th Aug 2014 07:37

- 90% of budgeted revenues for full year secured- Full year to be H2 weighted- "Good full-year organic revenue growth" expectedSupport services group Mitie hailed a "positive start" to the new financial year, with good organic revenue growth helped by new and expanded contracts."We have a substantial order book as well as a strong pipeline of sales opportunities, giving us confidence that we will have good full-year organic revenue growth," the group said.By the end of the first quarter ended 30 June, the company had secured 90% of its budgeted revenues for the whole financial year, slightly above the 89% secured at the same time in 2013.However, the company said that the phasing on a number of contracts is expected to result in full-year results being weighted towards the second half.Mitie, whose core market is facilities management (FM), extended a FM contract with telecoms group Vodafone for a further five years. The contract, valued at £250m over the period, is one of the company's largest.The firm is also focused on the healthcare market, where it is concentrating on home-care. During the first quarter, Mitie was also awarded a number of other contracts with companies in the private sector, including Heathrow Airport, Virgin Money and Tesco.Meanwhile, the exit from its loss-making mechanical and electrical engineering construction business is due to be completed this financial year. It continues to reduce its exposure to the design and build unit of its asset management business.BC