Mitie Group delivers 'strong trading momentum' in Q1

(Sharecast News) - Facilities manager Mitie Group said on Tuesday that it had witnessed "strong trading momentum" in Q1, with revenues up double digits in the period. Mitie said revenues grew by 10.1% in the three months ended 30 June to £1.28bn, including 8.0% organic growth driven by net wins and scope increases, project growth and pricing.

The FTSE 250-listed firm delivered contract wins and extensions/renewals with a total contract value of £1.2bn in the quarter, down from a record prior year comparative £2.0bn, including "several notable new key accounts".

Mitie also said it had a record £29.0bn pipeline of bidding opportunities, up 22% over the period, and stated it had made continued progress with margin enhancement initiatives.

Closing net debt of £240.0m was up £41.0m quarter-on-quarter, reflecting capital deployments, a seasonal working capital outflow, and leases. Q126's average daily net debt of £238.0m was a marked increase on Q125's £173.0m average.

Chief executive Phil Bentley said: "In the first quarter of our new fiscal year, we have maintained strong trading momentum, with double-digit revenue growth. Our core facilities management offer grew by 7.3%, as we secured and extended a number of key accounts, whilst facilities transformation - delivered through client projects work - grew by 12.8%, against a strong prior year comparative.

"With today's strong update, we remain on track to deliver our ambitious strategic plan, pivoting Mitie from being the UK leader in facilities management to the leader in technology and project-led facilities transformation."

As of 0810 BST, Mitie shares were up 1.89% at 140.0p.

Reporting by Iain Gilbert at Sharecast.com