Mitie Q1 trading 'strong', revenues grow

Mitie said revenues from new contract wins and acquisitions had helped it deliver first-quarter revenues of £945.0m, up 3% year-on-year, with revenues, excluding Covid-related contracts, 16% higher than during the same period in 2021.

New contract wins, renewals, and extensions led to Mitie recording £778.0m in total contract value in the quarter, while average daily net cash balances hit £6.0m, a marked improvement on the £69.0m of net debt reported a year earlier.

Mitie also highlighted that during the quarter it had acquired three small, but high-growth, high-margin businesses - telecoms site acquisition and maintenance companies, P2ML and 8point8, and Custom Solar, which it stated would enhance its decarbonisation offering.

"We are encouraged by the strong start to the year, which reflects the group's strategic focus on accelerated growth. A number of margin-enhancing initiatives are in flight which will increase margins in the second half of FY23. Labour and parts inflation remains an issue but is being managed through pricing and other efficiencies," said Mitie.

"The board, therefore, remains confident in the group's ability to deliver on its expectations for the year."

As of 0820 BST, Mitie shares were up 0.38% at 73.58p.

Reporting by Iain Gilbert at Sharecast.com