Mitie on track to meet full-year expectations

Facilities management company Mitie said on Thursday that it was on track to meet full-year expectations as it hailed continued underlying revenue growth.

In the three months to the end of December, revenue rose 3% on the second quarter and 6% on the first, thanks to increased project revenues, acquisitions, new business wins, and effective pricing of cost inflation.

Revenue of £1bn was in line with the same period a year earlier, while underlying revenue was 12% higher, if you exclude the £109m of revenue from short-term Covid-related contracts a year earlier.

"We expect revenue momentum to continue over the balance of the year, albeit at a slower pace as we lap contracts won late in FY22," the company said.

"Q4 is typically our strongest quarter, as project work increases, and we complete seasonal winter work in Landscapes. This, combined with the ramp up of margin enhancement initiatives and ongoing effective management of inflation, provides the board with confidence that the full year results will be consistent with the recently upgraded guidance for operating profit before other items of at least £145m."