Client trend towards cutting costs through outsourcing benefits maintenance specialist
Maintenance specialist Mitie has posted an 11% rise in full-year profit and said the outlook for the year ahead is good as clients look to cut costs through outsourcing.
The group reported a pre-tax profit of 拢78.4m for the year to 31 March, compared with 拢70.6m in 2008. Turnover was 拢1.52bn, up 8.2% on last year's figure of 拢1.4bn. Margins rose to 5.3% during the year, up from 5.1% in 2008, and the group's order book grew 11.4% to 拢4.9bn.
Chief executive Ruby McGregor-Smith said: 鈥淲e are making strong progress as clients increase outsourcing in their drive for efficiency at this stage in the economic cycle. We are benefiting from a sustained level of outsourcing and asset management opportunities as contracts become more sophisticated, larger and longer-term and client strategies respond to the challenges of the global low carbon economy.鈥�
Profit rose by 10.8% at the firm's facilities management division, following wins including 好色先生TV Schools for the Future contracts in Derbyshire and Kent.
In the property management business, profit grew 19.3%, while at the asset management business profit rose 1.2%.
The firm said parts of its business, including interior fit-out, retail engineering and plumbing, had been affected by the recession but said its exposure to these areas was 鈥渕inimal鈥� and it had focused on moving skills from these sectors into public sector work.
Mitie added that acquisitions were a 鈥渒ey part鈥� of its strategy and it was looking out for firms that would complement its existing business.
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