FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
In its latest trading update, Mitie Group has reported a “continued strong trading performance for the year”, and a new Revolving Credit Facility (RCF).
In the group’s first quarter trading update (on 27 July 2021) Mitie reported that it had made a “strong start” to the year to 31 March 2022 (FY22), boosted by the delivery of short-term Covid-related contracts. This performance says Mitie has “continued in the second quarter, supplemented by further Covid-related contract awards”. Although the contribution from these contracts is expected to decline in the second half of the year, given the strong start that Mitie has made, it is increasing its operating profit before other items guidance for FY22 to £145m – £155m.
Excluding Covid-related contracts, the business added it has “continued to perform in line with expectations”, with the gradual recovery of the economy and the return to work.
The Interserve FM business is performing well. The integration says Mitie is “on track”, with the exit of the Transitional Services Agreement expected to be completed in November, and synergies are being delivered in line with the group’s plan.
Current market expectations for FY23 are unchanged, pending full recovery of the group’s discretionary variable and project work in its Technical Services business to pre-Covid levels and until any further Covid-related work is judged to be likely in FY23.
In addition, Mitie has agreed terms with DNB (UK) LTD, Lloyds Bank PLC, Santander UK PLC, Landesbank Baden-Württemberg (LBBW) and National Westminster Bank PLC for a new £150m revolving credit facility for a period of four years from September 2021, with the option to extend for a further year. This new RCF replaces the £250m facility put in place in the early days of the Covid pandemic in June 2020, and is on “significantly more favourable terms” says Mitie.
Mitie’s half year results to 30 September 2021 will be published on Thursday 18 November 2021, and will be presented for the first time using the new divisional structure, following the integration of the Interserve FM business.
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