Company posts strong results despite plans to close engineering services in Scotland and South-west
Mitie has reported a 12% jump in profit to 拢47.5m for the half year to 30 September, bucking the trend of outsourcing companies recently hit by government cuts.
Revenue was also up by 14.7% to 拢918.7m. The results came just four days after Capita, the parent company of consultant Capita Symonds, told the City that cuts in public spending were beginning to dampen company growth.
Ruby McGregor-Smith, Mitie chief executive, said that the figures were 鈥渁 strong set of results in turbulent times鈥�.
鈥淭he majority of revenue growth came from acquisitions,鈥� she said, adding that underlying organic growth was 1.6% but that this was expected to increase in the second half of the financial year.
Yet results for the property and asset management divisions of the company were much weaker than for the rest of the group, with the latter鈥檚 revenue plummeting by 17.9%.
Property management revenues grew 2.2% to 拢260.9m while operating profits contracted from 拢13.5m to 拢12.4m.
Mitie said it would end engineering services - part of the property management division of the group - in Scotland and the South-west, at a cost of 拢4m over this financial year.
McGregor-Smith said the company had not 鈥渂een able to win significant amounts of work鈥� and had been hit by 鈥渓ow margins, and more competition鈥� in the sector.
鈥淲e [also] saw some challenges, particularly in the area of plumbing and heating.鈥� The asset management division made a 拢700,000 loss and revenues fell from 拢27.3m to 拢22.4m.
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