Mitie lifts profit guidance as it wins more Covid contracts
Facilities management company Mitie Group lifted annual profit guidance after a strong second quarter boosted by the award of more Covid-19-related contracts and a return to office work after lockdowns.
The group, which provides services from Covid testing sites to office security, said it expected operating profit before other items to be £145m - £155m, despite an expected slowdown in revenue from pandemic work.
“Current market expectations for full-year 2023 are unchanged, pending full recovery of our discretionary variable and project work in our technical services business to pre-Covid levels and until any further Covid-related work is judged to be likely in full-year 2023,” Mitie said in a trading update on Friday.
Excluding Covid work, Mitie said its business continued to perform in line with expectations, with the gradual recovery of the economy and the return to work.
It added that it had agreed terms with DNB, Lloyds Bank, Santander, Landesbank Baden-Württemberg and National Westminster Bank for a new £150m revolving credit facility (RCF) 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 pandemic in June 2020, and "is on significantly more favourable terms", Mitie said.