Mitie (LSE:MTO)
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RNS Number : 8247M

MITIE Group PLC

24 September 2021

24 September 2021

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

Mitie Trading Update: Continuing strong performance in H1; new financing facility in place

Mitie Group plc (Mitie or the Group), the UK's leading facilities management company, today announces continued strong trading performance for the year, and a new Revolving Credit Facility (RCF).

In our first quarter trading update (on 27 July 2021) we reported that we had made a strong start to the year to 31 March 2022 (FY22), boosted by the delivery of short-term COVID-related contracts. This performance has continued in the second quarter, supplemented by further COVID-related contract awards. Although the contribution from these contracts is expected to decline in the second half of the year, given the strong start that we have made, we are increasing our operating profit before other items guidance for FY22 to GBP145m - GBP155m.

Excluding COVID -related contracts, the business has continued to perform in line with expectations, with the gradual recovery of the economy and the return to work. The Interserve FM business is performing well. The integration is on track, with the exit of the Transitional Services Agreement expected to be completed in November, and synergies are being delivered in line with our plan.

Current market expectations for FY23 are unchanged, pending full recovery of our discretionary variable and project work in our Technical Services business to pre-COVID levels and until any further COVID-related work is judged to be likely in FY23.

In addition, the Group has agreed terms with DNB (UK) LTD, Lloyds Bank PLC, Santander UK PLC, Landesbank Baden-Württemberg (LBBW) and National Westminster Bank PLC for a new GBP150m revolving credit facility for a period of four years from September 2021, with the option to extend for a further year. This new RCF replaces the GBP250m facility put in place in the early days of the COVID pandemic in June 2020, and is on significantly more favourable terms.

Our half year results to 30 September 2021 will be published on Thursday 18 November 2021, and will be presented for the first time using the new divisional structure, following the integration of the Interserve FM business.

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This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of the Company is Peter Dickinson, Chief of Staff and General Counsel.

For further information

 
 Fiona Lawrence             M: +44 (0)738 443      E: fiona.lawrenceIR@mitie.com 
  Group IR Director          9112 
 Claire Lovegrove           T: +44 (0)203 123      E: claire.lovegrove@mitie.com 
  Head of Media Relations    8716 
                             M: +44 (0)790 027 
                             6400 
                           ---------------------  ------------------------------ 
 Richard Mountain           M: +44 (0)7909684466 
  FTI Consulting 
                           ---------------------  ------------------------------ 
 

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works and is the leading facilities management company in the UK. We offer a range of services to Central Government and Defence customers; Communities (Healthcare, Education and Local Authorities); and Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning and Office Services) to Private Sector clients in Financial Services, Manufacturing, Transport, Retail and Telecoms and increasingly to the public sector. Finally, our Specialist Services (Care & Custody, Landscapes and Waste Management) division serves both the public and private sectors in these niche businesses.

Mitie acquired Interserve's FM business in December 2020 and now employs 75,000 people. We are the champion of the 'Front-Line Heroes' who have kept Britain working during the COVID-19 pandemic. We take care of our customers' people and buildings, through the 'Science of Service', delivering essential services and deploying industry leading technology to create safe and effective workspaces.

The business continues to execute its technology-led strategy and in the past six months has received multiple awards .

Find out more at www.mitie.com .

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(END) Dow Jones Newswires

September 24, 2021 01:59 ET (05:59 GMT)