Mitie revenues double in first quarter, boosted by acquisition

Mitie said on Tuesday that group revenues doubled in the first quarter following the acquisition of Interserve's facilities management business, sending shares in the outsourcer sharply higher.

In an update on trading for the three months to 30 June, the company said revenue rose 104% from the same period a year prior to £930m.

Revenue excluding Interserve rose 36% to £618m. The company put this down to £110m of revenue from short-term Covid-related government projects, new wins, and the gradual re-opening of UK businesses, which it said had "a positive effect on discretionary projects and variable works".

Mitie bought Interserve Facilities Management last year for £190m.

Revenue in Technical Services was ahead 27.5% at £204m, while the business services segment saw growth of 46.8% to £357m. Revenue in Specialist Services was 9.6% higher at £57m.

"Although the performance in the first quarter was boosted by shorter-term Covid-related contracts, recent high-quality wins, the re-opening of customers' premises and the gradual recovery of the economy provide a strong underlying trading momentum which gives the board considerable confidence for the second half and delivery of its full year expectations," Mitie said.

"Our growth, margin enhancement and cash generation strategy, allied with improving sales performance, and the accelerated uptake of our Connected Workplace and Science of Service offering, are expected to position the company strongly for the future."

At 1220 BST, the shares were up 4.8% at 65.58p, having risen to as high as 66.65p immediately after the announcement.