Mitie sales growth picks up in second quarter

15th Oct 2024 08:51

(Sharecast News) - Mitie, the FTSE 250-listed facilities management and professional services company, reported an acceleration in top-line growth in the second quarter, helped by new contract wins and increased work in the 'surge response' security market.

Revenes totalled £2.4bn in the six months to 30 September, up 13% on last year and 7% higher on an organic basis due to new contract wins and scope increases, pricing and projects, Mitie said on Tuesday.

Revenue growth picked up to 16% in the second quarter, from 10.5% in the first, helped by higher volumes for the Immigration Escorting Services contract, as well as the provision of 'surge response' security services for the Home Office during the summer.

The company ended the half with record contract wins and extensions/renewals, rising 45% year-on-year to £3.5bn in total contract value, despite not renewing two public sector contracts ending next year.

"Overall, we have made good progress against our strategic objectives, with revenue growth of c.13% in H1; at least £20m of full year cost savings identified from margin enhancement initiatives; and the completion of two acquisitions," said chief executive Phil Bentley.

"We therefore remain confident in meeting expectations for the current year and delivering our Three-Year Plan targets."

Mitie's shares were down 0.7% at 120.4p by 0902 BST.