OUTSOURCING group Mitie has hailed a strong start to the year, powered by a lucrative contract with taxpayer-backed Lloyds Banking Group.
The Bristol-based group, whose services include office cleaning and maintenance, airport baggage screening and shop design, said that as at June 30 it had secured 87% of budgeted revenues for the financial year to March 31 2013, compared to 85% at that point last year.
Mitie – the acronym stands for Management Incentive Through Investment Equity – said its five-year £775m deal to deliver facilities management services for Lloyds was “progressing well“ after commencing on August 1.
The FTSE 250-group will provide catering, reception, engineering maintenance, cleaning, security, waste management and office space management for Lloyds’ branch and office estate.
In the private sector, Mitie said the sales pipeline remains “buoyant” and it recently secured a new contract to provide front-of-house services at Royal Bank of Scotland for five years with an expected total value of £30m.
In the public sector, it remains focused on the justice, health, local authority and social housing markets and has a steady flow of contract awards, including an expanded contract to provide services to the Scottish Government worth at least £30m.
Looking ahead, the group said it remained positive about the range of opportunities and “continue to see a growing order book and strong pipeline”.
Shares in the group fell nearly 2% after the update was published yesterday.
Andrew Gibb, analyst at brokers Investec, said: “The private sector sales pipeline continues to be very active and the public sector is seeing a steady flow of contract opportunities.”