Mitie predicts public sector revenue boom

22nd Nov 2010 07:43

Mitie has grown interim profit by 12% and the outsourcing and asset management group is confident of meeting expectations for the full-year and picking up new government work next year.Profit before tax and one-off items was up to £47.5m in the six months to 30 September from £42.3m a year ago on revenue 15% higher at £918.7m.The company says 95% of current year and 62% of 2011/12 forecast revenue has already been secured.It is also talking with the Cabinet Office and other public sector bodies about outsourcing opportunities following last month's government spending review."The focus on UK public sector spending is expected to lead to an increase in outsourcing within a number of our key public sector markets," Mitie said Monday.The justice, health, education and local government sectors are expected to be especially happy hunting grounds with the potential to grow the group's public sector revenues "considerably".Any contract wins aren't expected until next spring at the earliest."Our well diversified portfolio of public and private sector work and high quality client base has demonstrated strength and resilience against a backdrop of economic uncertainty and political change," boss Ruby McGregor-Smith said."Overall, market conditions in the medium term remain positive for outsourcing. We retain our focus on our strategy of delivering sustainable, profitable growth and are confident that full year earnings will be in line with management expectations."The dividend goes up to 4.1p a share from 3.7p in 2009.