Mitie hails record contract wins as H1 profits rise

Mitie reported a jump in first-half profits and revenue on Thursday as it hailed record contract wins and renewals.

In the six months to 30 September, operating profit before other items rose 14% to £101m, with revenue also up 14%, to £2.4bn. This includes 8% organic growth, driven mainly by new contract wins, scope increases and pricing, alongside a 6% contribution from acquisitions.

The company pointed out that its organic growth was "significantly ahead" of core facilities management market growth of around 4% per year.

Mitie highlighted record contract wins and renewals, up 54% to £3.7bn total contract value. The renewals rate fell to 64% from 79%, which Mitie said reflects the loss of two notable public sector contracts.

The outsourcer declared an interim dividend of 1.3p a share, up 30%.

Chief executive Phil Bentley said: "We are in the foundation year of our new Facilities Transformation Three-Year Plan (FY25 - FY27); a year in which we are making investments in technology, sales & marketing and our projects capabilities. These investments will enhance our growth by strengthening our market leading position, increasing our pipeline and driving cross-sell opportunities.

"During the first six months of our new Plan, we have delivered good strategic progress and financial performance as our investments start to bear fruit. We have delivered high-single-digit organic growth, in part driven by our ability to stand up a 'surge response' team to protect public safety; progressed our programme of margin enhancement initiatives; continued to build our capabilities through targeted acquisitions; and achieved record contract wins and renewals/extensions."