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Mitie transformation 'on track' and operating within debt covenants

08 June 2018

Revenue growth of 2.8% was announced by Mitie in its latest financial update and report on the continuing progress of its transformation programme.

It recorded revenues of £2.2bn for 2017/18 period, compared to £2.1bn for the previous financial year of 2016/17.

However, operating profit had fallen by 6% to £77.1m compared with £82m for the 2016/17 financial year, which was attributed to investments made in customer service and internal capabilities.

Its Connected Workspace initiative is now being deployed and "increasingly impacting bid wins", according to yesterday's statement.

Within the overall transformation programme, its commercial and finance reorganisation exercises are how complete, with work on its HR department ongoing.

Further to these results, programmes have also been initiated for the company's IT and Engineering Services workflow technology transformation.

The company stated that the cost of changes in the last financial year had been £35m with in-year benefits of £13.2m and run rate benefits of £27m.

Mitie further stated it was "operating comfortably within debt covenants" and its order book had increased by 2.4% to £4.5bn.

Its shareholders would receive a full-year dividend of 4p per share, matching the 2016/17 figure.

Chief executive Phil Bentley said the company was where it needed to be after its first year of transformation.

"We have made much progress, building the foundations that will ensure that Mitie is at the forefront of the UK facilities management industry," he said.

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