Article 29 July 2021

Annual General Meeting and First Quarter Results

On Tuesday, we held our Annual General Meeting. As the name suggests, this meeting is held every year and is open to all our shareholders to ask questions and to vote on ‘Resolutions’ that the Board recommends. I’m delighted to say that all resolutions were resoundingly supported by our shareholders, with mainly over 90% support. We also issued a trading update on Mitie’s performance for the first quarter of our new ‘fiscal’ year, from 1 April to 30 June 2021.

We’ve had a strong performance in the first quarter, more than double our results for the same period last year when we were working our way through the initial impact of COVID-19 and lockdown. This increase is largely driven by COVID-19 projects to support the UK Government, and the gradual re-opening of UK businesses which has driven an increase in projects and ad-hoc activities. In addition, we’ve had some excellent new wins – such as Future Defence Infrastructure Services (FDIS), Home Office and Swansea University.

In particular:

  • Our Business Services division continued strongly, with results up 47% on this time last year, particularly due to our COVID-19 work. New contracts were signed with HMRC, Springfield Fuels and the MOJ, with an expanded renewal Testing Centre contract with the DHSC and COVID-19 quarantine services.
  • Our Technical Services division, which was the worst hit by COVID-19 last year, has seen a 28% increase on income against the same quarter last year. We’ve seen an improvement in projects and variable works, and benefitted from recent contract wins at Magnox and Royal London. We also won a new contract with the City of Edinburgh Council during this quarter, and renewed our Network Rail and Scottish Government contracts.
  • Our Specialist Services division (including Waste, Landscapes and Care & Custody) also grew income by 10% on this time last year. This was primarily driven by Care & Custody, who secured new contracts to deliver forensic medical services to three police forces. Contract wins at New Derwentside and Dungavel Immigration Removal Centres go live later this year.
  • Interserve operations also improved on this time last year, driven by an increase in project work across the Central Government & Defence (CG&D) business. New contracts awarded in this quarter included FDIS, Future Maritime Support (Clyde), East & North Herefordshire NHS Trust and Swansea University, with extensions signed for the Department for Transport and Southwark Council.

We are on track to complete the integration of Interserve by the end of this year.

In summary, our performance in the first three months of the year has been good – thank you for continuing to put your efforts into supporting our customers, your colleagues, and our business.

Returning to Offices

Over the course of the last year, we’ve showed how we’ve been able to adapt to the changing needs of our customers through successful new initiatives like ‘Getting Britain Back to Business’, COVID secure deep cleans, infrared temperature checks, and UV light cleaning, helping our customers return to workplaces safely.

We’ve been asking employees in the UK how they feel about returning to work. More than half (52%) currently working from home said that they are wanting to return to the office, with 43% admitting that they were experiencing work-from-home fatigue. However, over a third (35%) said that they were still concerned that their offices were not COVID-19 secure. This gives us great insight for better supporting our clients – that people are looking for increased safety in their workplaces – and we know we’re exceptionally well placed to support them with our ‘Science of Service’ solutions.

In an internal survey, 71% of Mitie colleagues felt that we’ve done a good job with our COVID-19 communications and updates; 56% of you feel confident that your workplace is secure – but you’d like even better ventilation and increased touchpoint and toilet cleaning and more access to hand sanitiser. However many of you said that, rather than returning to the office every day, in the way we were operating prior to COVID-19, you’d like to have the opportunity to work in a more agile way. The guidance we’ve given our Line Managers is that we expect colleagues to attend the office at least 3-days per week. On the other two days a week, we’ll be flexible provided Line Managers are supportive, and whilst ensuring the needs of our clients, other colleagues and the business can be met.

Thus, we expect colleagues to return to this ‘new normal’ of working patterns from 31 August onward, whilst agreeing agile working arrangements with their Line Managers. So please have the conversation with your Line Manager as soon as possible. It will be great to see you back in the office.

And finally, the dust has settled on Team Talk Live 2021.If you weren’t able to join at the time, make sure you access the recordings on www.teamtalklive.co.uk. There’s some brilliant, diverse and engaging content to discover, that covers every element of our business. You rated TTL’21 a 9.2 out of 10, with 93% of you saying that you feel more connected to Mitie and your colleagues as a result. That’s great to hear. We’re still reading through all your feedback, but we’ll certainly be looking at how we carry on our ‘Conversations with…’ sessions in the future, as you told us those were the most valuable to you.

I’d like to thank each and every one of you for your ongoing commitment, hard work, and support – helping us all to deliver the exceptional, every day. And our shareholders are happy too – our shares went up 8%!