Mitie rise in profits to ^127m for Bristol based outsourcing firm

[whole diary]

[Chris from Nailsea]

From the Bristol Post:

Mitie rise in profits to ^127m for Bristol based outsourcing firm


Mitie chief executive Ruby McGregor-Smith

A Bristol-founded business that makes it money by doing the jobs other firms don^t want to has continued its growth story today posting a six per cent rise in profits for this year.

Profits reached ^127.5 million, up from ^120.3 million while revenue was up 8.2 per cent to ^2.14 billion.

Chief executive Ruby McGregor-Smith said: ^We have made excellent progress, achieving sector-leading organic growth driven by new and expanded contracts, as well as completing a bolt-on acquisition in healthcare.^

Mitie - which stands for Management Incentive Through Investment Equity - was founded 27 years ago and as the name suggests was based on a model of starting small business in which the management hold a financial stake.

It specialises in outsourcing - doing jobs such as cleaning and maintenance in trains, power plants, health centres and more, allowing the other companies to focus on their core business.

The Emersons Green-based organisation has been growing for 25 years and the past 12 months has been no different.

The last year has seen it hang on to key contracts such as a ^75 million five-year deal with Network Rail, and win new ones including a ^180 million eight year contract with the Home Office. It recently moved into the healthcare market.

A blip was the closure of a mechanical and electrical engineering construction business, costing Mitie ^13.6 million in losses.

Mitie, which recently won the Bristol and Bath Women in Business Awards Business of the Year title, employs 79,000 people across the UK^▸ (United Kingdom) with hundreds still based in Emersons Green.

Ms McGregor Smith added: ^We are very well-positioned as one of the UK's leading integrated facilities management providers and we have also invested in higher margin markets which will support our growth aspirations. We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access bundled and integrated services. We are confident that we will continue to build on our track record of delivering sustainable, profitable growth.^

[eightf48544]

Quote "It specialises in outsourcing - doing jobs such as cleaning and maintenance in trains, power plants, health centres and more, allowing the other companies to focus on their core business".


Being contentious I would suggest cleaning and maintenance are a core part of the Railway business.

[Red Squirrel]

It's a moot point - correct me if I'm wrong, but I don't think Mitie get involved in maintaining the track or trains (which activities are clearly core business). On the other hand I'm sure that back in the heyday of the GWR^▸ (Great Western Railway), Swindon considered bolt making to be a core activity...

[eightf48544]

My first holiday job was in the BR^▸ (British Rail(ways)) Motor Works at Slough moving spares around.

We used Swindon made Sand Soap to clean our hands at the end of the day.

We used to send spares out to stations for their vehicles on a parcels train which stopped for 10 minutes on the Down Main at Slough. We trundled a barrow across four tracks under the eyes of the Slough East Signalmen.

Times change!