MITIE Group PLC - Preliminary Results

BRISTOL, UNITED KINGDOM--(Marketwire - May 23, 2011) -

MITIE Group PLC

Preliminary announcement of results for the year ended 31 March 2011

Good results and strong growth aspirations

                                                2011     2010  Growth
                                                GBPm     GBPm       %
Revenue                                      1,891.4  1,720.1    10.0
Operating profit before other items1           108.3     93.0    16.5
Profit before tax and other items1             105.7     91.7    15.3
Profit before tax                               86.8     79.7     8.9
                                                2011     2010  Growth
                                                   p        p       %
Basic earnings per share before other items1    22.6     19.5    15.9
Basic earnings per share                        18.6     16.9    10.1
Dividend per share                               9.0      7.8    15.4

Good results

- Strong revenue growth of 10.0% to GBP1,891.4m
- Good progress in underlying organic revenue growth - second half
  5.3%; full year 3.5%2
- Operating profit before other items up 16.5% to GBP108.3m
  (includes GBP4.1m benefit arising from the change from RPI to CPI for
  the valuation of certain pension liabilities)
- Operating profit margin before other items improved to 5.7%
  (2010: 5.4%)
- Excellent conversion of EBITDA to cash of 86.7% against target
  of 80% (2010: 95.2%)
- Total dividend for the year up 15.4% to 9.0 pence (2010: 7.8
  pence)
- Low leverage with net debt of GBP76.5m (2010: GBP86.6m)
- Strong balance sheet and long-term committed finance will support
  growth

Transformational contract awards

- Rolls-Royce: pan-European total facilities and energy management
- Vodafone: total facilities and energy management for entire UK
  and Irish property portfolio
- UK Home Office, Campsfield House Immigration Removal Centre:
  custody, detention, facilities and energy management
- Major decentralised energy projects: Royal Free North Hampstead
  Hospital, Waitrose and a waste-to-energy plant
- Solar energy: completed a pilot project of photovoltaic panels
  on 200 properties which provide free daytime electricity for social
  housing tenants, with potential for up to 15,000 further properties
  during calendar 2011

Strong relationships, energy services and international development to
support aspirational growth targets

- Identified several major opportunities to repeat the growth
  achieved with Rolls-Royce and Vodafone with a number of existing major
  clients over the next two to three years
- Energy services generated 34% of revenues in 2011 - now ranked
  in the top two energy services companies in the UK
- Self-delivery and supply-chain management in six European
  countries allows us to grow organically from this initial footprint
- Acquired the integrated facilities management businesses of
  Dalkia in Ireland

Excellent revenue visibility and market opportunity

- 81% of 2011/12 budgeted revenue secured (2010: 75%)
- Long-term order book increased to GBP6.8bn (2010: GBP6.4bn)
- GBP11.4bn pipeline of identifiable sales opportunities
- Private sector 63% of 2011 revenues

Ruby McGregor-Smith, Chief Executive of MITIE Group PLC, commented:
"These are very good results and this year we have been awarded a
number of transformational contracts. We have secured some significant
work in the private sector where we have excellent relationships with
our clients and are differentiated by our energy services capabilities
and use of technology. We have been appointed to several large public
sector frameworks and have a strong pipeline of opportunities in local
government, social housing, justice and health."The opportunities in
outsourcing and energy services in the UK and
abroad are significant. Our strong balance sheet and excellent cash
conversion, as well as a record order book and sales pipeline, will
enable us to achieve our growth aspirations. The business is well
positioned for continued sustainable, profitable growth."

(1) Other items comprise the amortisation of acquisition related
    intangible assets of GBP8.9m (2010: GBP5.3m), restructuring and
    acquisition costs of GBP9.9m (2010: GBP6.6m) and acquisition related
    finance charges of GBP0.1m (2010: GBP0.1m)

(2) Underlying organic revenue growth is stated after adjusting for
    the full year effect of acquisitions made in the prior year and
    excludes the activities in our discontinued engineering contracting
    business


Erica Lockhart, Head of Investor Relations and External Affairs
T: +44 (0) 20 3123 8675  M: +44 (0) 7979 784488

John Telling, Group Corporate Affairs Director
T: +44 (0) 20 3123 8673 M: +44 (0) 7979 701006


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