Mitie’s business has proved “more resilient than expected”, despite the effects of Covid-19 affecting its performance in the first quarter, according to its results for the three-month period ended 30 June 2020.
This resilience was particularly apparent across its fixed technical services contracts, cleaning and security services and public sector contracts.
Mitie said it has 37,500 employees working daily on the front line, reflecting the critical services it provides to its customers.
It has also recently brought more than 40 per cent of its 7,000 furloughed colleagues back to work as customers have resumed their operations.
Group revenue from continuing operations for the three months ended 30 June 2020 was £458.3 million, which was 11 per cent lower than the same period in the prior year with June’s performance slightly better than the previously announced April and May result.
This revenue decline includes the known loss of the Ministry of Justice contract and the reduced scope of the NHS Properties contract, which together represented 3 percentage points of the decline.
Because the seasonality of the business, the first quarter is generally the lowest quarter in Mitie’s fiscal year, said the company.
As indicated in its recent preliminary results update, technical services – representing 35 per cent of group revenue - has seen the greatest impact from Covid-19 as discretionary variable work and demand for engineering projects has significantly reduced.
Reported revenue was £163 million, down 24 per cent against the same three-month period last year.
Although this represents a significant decline, the fixed maintenance element, excluding lost contracts, only declined 1 per cent year on year, reflecting “strong relationships and the vital services we provide to our customers” said the company.
Mitie stated that its integration plans for the acquisition of Interserve Facilities Management have begun with the appointment of a full-time integration programme director and the standing up of the integration team. Subject to shareholder approval and other conditions precedent, the transaction is expected to close in the fourth quarter of 2020.
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