MITIE posts mighty profits rise

23rd May 2011 07:24

Outsourced service provider MITIE said it is benefitting from both private companies and government looking to drive down costs in the current tough climate as it posted a sharp rise in profits for the year to 31 March.Pre-tax profits jumped to £86.8m from £79.7m the previous year on revenues that were up to £1.89bn from £1.72bn. The company, which is engaged in activities such as cleaning, pest control and gritting roads, is paying a full-year dividend of 9p a share, up from 7.8p the previous year.Important contracts were won with clients such as the aero-engineer Rolls-Royce, the telecoms group Vodafone and the Home Office."The opportunities in outsourcing and energy services in the UK and abroad are significant," said chief executive Ruby McGregor-Smith. "Our strong balance sheet and excellent cash conversion, as well as a record order book and sales pipeline, will enable us to achieve our growth aspirations."In the private sector, where companies are seeking to drive down costs, MITIE's ability to deliver integrated services is helping it win business, the company said. In the public sector, the ability of outsourcers to reduce costs while also improving services leaves it well positioned to help the government's efforts to address the deficit, the company said.MITIE said 75% of its contract awards this year have come from the private sector.---RG