Mitie announces its half-yearly results for the six months ended 30 September 2015.
Financial highlights
| HY16 Headline1 |
Period on period % change | HY16 Statutory |
Period on period % change | |
| Revenue | £1,123.1m | 2.6 | £1,123.1m | 2.2 |
| Operating profit | £58.1m | (9.5) | £53.1m | 800.0 |
| Profit/(loss) before tax | £50.1m | (12.1) | £45.1m | n/a |
| Operating profit margin | 5.2% | (0.7)ppt | 4.7% | +4.2ppt |
| Basic earnings per share | 11.1p | (10.5) | 9.9p | n/a |
| Dividend per share | 5.4p | 3.8 | 5.4p | 3.8 |
| Cash conversion | 101.2% | +20.9ppt | 91.4% | (37.2)ppt |
- Headline revenue growth of 2.6%, of which 2.1% is organic; overall performance will be weighted to the second half of the year
- Headline operating profit of £58.1m declined 9.5%, largely reflecting a deterioration in the results of the Healthcare division
- Following completion of the group's restructuring activities statutory operating profit increased from £5.9m to £53.1m for the first six months of the year
- Strong headline cash conversion of 101.2%
- Net debt at 30 September 2015 was £221.8m or 1.5x EBITDA (HY15: £233.8m or 1.5x EBITDA)
- Continued good dividend growth of 3.8% reflects confidence in future performance
Good overall performance
- 100% contract retention rate in integrated FM: retained Rolls-Royce for a further five years, extended Sky for an additional five years and retained RWE npower
- Awarded a range of new integrated FM contracts including with dmg media, Deloitte, Thales Group and a high street bank - combined total annual value in excess of £50m
- Rated as the top overall service provider* in the UK FM industry for the third year running
- Strong organic revenue growth in Property Management, driven by good growth with existing clients
- In our Healthcare division we have exited unprofitable contracts and consolidated branches; recent contract awards with the Royal Borough of Kensington and Chelsea and the London Borough of Hammersmith and Fulham, show the beginning of a more positive trend and we expect to see a return to profitability over the next 18 months
- Positive about the introduction of the National Living Wage, which will ensure that many of our people are better rewarded and feel more motivated to do the jobs they do, as well as improve retention rates across our business; no material impact on future earnings is anticipated
Well-positioned for the long term
- Healthy order book at £8.5bn (March 2015: £9.0bn) and sales pipeline at £9.2bn (March 2015: £9.7bn)
- 97% of 2015/16 budgeted revenue secured (prior year: 98%) and 68% of 2016/17 forecast revenue secured (prior year: 72%)
Ruby McGregor-Smith CBE, Chief Executive of Mitie, commented:
"Mitie has had a positive start to the year. Our focus on the services sector, primarily in facilities management, will ensure we continue our long-term track record of sustainable profitable growth.
"We are the market leader in integrated FM and are particularly pleased with recent contract awards and retentions. This gives us confidence we will deliver a good full-year performance."
1 Headline results exclude Other items; see note 3.
* i-FM brand survey
