Outsourcer Mitie ups full-year guidance

Outsourcer Mitie lifted its full-year operating profit guidance on Thursday as it posted a rise in interim revenues but a drop in profit amid fewer Covid-related contracts.

In the six months to 30 September, pre-tax profit fell to £43.1m from £49.2m in the same period a year earlier. However, revenues ticked up to £1.92bn from £1.91bn as new contract wins, acquisitions and price inflation offset the boost in the same period last year from short-term Covid-related contracts.

Excluding the Covid-related contracts, revenue grew 16%, with good momentum across all divisions, the company said.

Chief executive Phil Bentley said: "Our strategy is delivering underlying revenue growth and cost savings from our margin enhancement initiatives, whilst inflationary pressures are being carefully managed.”

Mitie said that although inflationary pressures will continue into the second half, historically its H2 performance is stronger, with increased revenues from projects, seasonal winter work, and the ramp-up of margin enhancement savings coming through as the year unfolds.

As a result, it now expects to deliver operating profit before other items of at least £145m for FY23.