Mitie boosted by private sector contract wins

Mitie has issued a positive trading statement for the three months to 30 June 2010, after winning several private sector contracts.

The construction and maintenance outfit said it has secured 78% of budgeted revenues for the year to 31 March 2011, identical to the level at 30 June 2009.

Contract successes include: preferred bidder status on a facilities and energy management agreement to support Rolls-Royce across its estate in the UK and mainland Europe; a £15m mechanical and electrical project for the London offices of a large investment bank; a three-year, FM contract for RWE NPower with an annual value of £9.2m; a technical FM contract for the national portfolio of retail outlets for Lloyd's Pharmacy with an annual value of £5.6m for a three-year period.

Mitie's statement said: “In the private sector, demand for innovation and efficiency is generating opportunities to add value to our clients' organisations through the provision of large scale and extended scope outsourced services.”

The firm has expanded further into Europe, extending its shareholding in FM provider SMI from 33% to 50% at a cost of £500,000, and acquiring Dalkia FM's Irish business for £10.4m.

Mitie has committed funding lines of £230m in place until January 2012.

The statement said Mitie has experienced “challenging conditions” in capital spend-based markets, such as new build housing and fit out, resulting in uncertainty on project timing.

However, it added: “We have not experienced any material changes in our public sector markets and the majority of our central government bid activity is directed towards contracts that will commence in the next financial year.”

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