Mitie expects flat organic growth for the year
Outsourcer Mitie said today that its organic growth for the financial year would be flat but earnings would be line with guidance.
The company said today revenue growth in the nine moths to 31 December was six per cent.
This was driven by Mitie’s £14m acquisition of security business VSG from Compass.
The company said organic growth was flat overall which it attributed to reduced spend in its technical services division and the “planned rationalisation” of its continental European businesses.
Mitie said it expected organic growth to be flat for the year, which it blamed on soft public sector spending.
It said it had won new contracts in the private sector, including a £150m facilities contract with Glaxosmithkline.
Mitie said earnings for financial years 2019-2020 and 2020-21 were likely to be in line with guidance.
It said this was helped by “good momentum” in its cost efficiency programme.
The company said its balance sheet “continues to improve” with average daily debt in the third quarter falling by £58m.
It said this was driven by the receipts of the sale of its catering business which it offloaded to CH&CO in an £85m deal.
The sale of the catering business was part of chief executive Phil Bentley’s turnaround plan which was launched after the company posted a loss in 2018 amid struggles with spiralling debts.