Article 18 November 2021

21/22 Half Year Results Update

Phil Bentley with city backdrop

On the morning of 18 November 2021, we announced our first half financial results to the end of September 2021. I’m delighted to report a good start to the year. You’ve all contributed to this – thank you. You can watch a replay of the presentation on the Investors page of our website now.

I’m very proud of the work we are doing to support the Government in the fight back against COVID, and this was a key reason behind our good performance, but encouragingly as a business, we have now fully recovered back to pre-COVID levels.

We’ve got a clear vision that everyone is part of: we want to be the strategic partner to our clients, and a “Great Place to Work”. We’re aiming to be the market leader in Cleaning & Hygiene, Security, and Technical Services, and to lead in the ‘Science of Service’ in a post COVID world. And we do – we have an Intelligent Security Operations Centre (iSOC) in Northampton; we’ve just opened a new Technical Services Operations Centre (TSOC) in Manchester; and next month we’ll be opening our new Cleaning & Hygiene Centre of Excellence (CHCE) in Birmingham. This is what we mean by the ‘Science of Service’!

The good news is that we are doing well, by focusing on growth, enhancing our margins, and improving cash generation.

Here are some headline figures for the past six months:
• Revenue was £1,912m, up 103% on this time last year. This result was boosted by Interserve’s contribution of £629m, and £259m from short-term COVID-related contracts. But even without Interserve, revenue was up 36%

• The total contract value of our new business wins was £881m – including the Scotland & Northern Ireland Future Defence Infrastructure Services Contract, and new Immigration Centres.

• We’ve sold our Document Management business and bought faster-growing businesses in telecoms, decarbonisation, and intelligent security. DAEL Ventures brought us construction and maintenance of telecoms infrastructure; Rock Power brings us leadership in High Voltage and electric vehicle charging design and construction, and Esoteric is a niche provider of counter-espionage services.

Our business divisions are doing well.

• Jason Towse’s Business Services division had a strong six months – mobilising projects for the UK Government at short notice in response to COVID and responding to increased demand for deep cleans from existing customers. Our Fire & Systems projects business has also grown and we’ve just won Westfield as a new client

• Brian Talbot’s Central Government & Defence division had great success retaining and extending contracts – with a 100% success rate so far this year, and we are now mobilising two big military contracts in Scotland

• Alice Woodwark’s Communities division grew, with new wins and renewals at Swansea University, Southwark Council and recently, the John Radcliffe Hospital in Oxford

• Carlo Alloni’s Technical Services division has reported revenue up 45% as clients recover from COVID. New wins include City of Edinburgh Council and Legal & General

• In Specialist Services, Care & Custody won a contract for Dungavel Immigration Removal Centre (IRC) and renewed a number of contracts with police forces. Landscapes and Waste bothshowed strong revenue growth. And our new business in Spain was boosted by COVID-testing work at airports

We really do value every one of our colleagues and we are on a journey to create a Great Place to Work. And we’ve introduced additional benefits for our frontline colleagues. As well as life assurance, there’s 24/7 Virtual GP and free flu vaccinations. We’ve launched a new SAYE scheme, a more generous Share Incentive Plan, and given £4m in free shares to our colleagues. We plan to do the same again this year.

We know that our colleagues want to work for a company that cares about its people – and about the environment. Mitie has the best rating for environmental and social issues of any FM company in the world, a position we are proud to hold. And we are well on our way to be “Net Zero” by 2025.

Did you know that Mitie has the largest electric vehicle (EV) fleet in Britain? We have over 1,700 EVs, and an additional 1,800 electric vans are on order. Over the past six months, we have installed charging points for employees at home and in our offices, with a goal that new offices will have 50% of their parking bays with charging infrastructure.

In short, we are all working for a good company – and a company that cares.

These results wouldn’t have been possible without you.

A sincere thank you to you all and to your family and friends who support you. Keep telling us what we’re doing well – but I recognise we don’t always get it right – so tell me what we can do to make the company even better on

As the festive season approaches, please keep safe, and thank you for being ‘Exceptional, Every Day’.

You are all heroes in this company – and I am humbled by all you do.

Ordinary people doing extraordinary things – that’s Mitie!