Outsourcing firm MITIE hailed a growing order book and string of contract wins as it revealed a continued appetite for snapping up other firms.
The service group, which counts the provision of cleaning services at the Scottish Parliament building at Holyrood amongst a string of high-profile contracts, said it was confident of posting more profit growth when it reveals interim results in November.
Bristol-based MITIE said it had made a “positive start” since the beginning of its financial year in April, with 89% of revenues targeted for this financial year having already been secured.
It stood ready to expand through acquisition where the right opportunities arose, with particular aspirations in the energy and healthcare sectors.
New private-sector deals include a security tie-up with BAE Systems, a cinema cleaning contract at Cineworld’s estate in the south of England, and management and project support at the head offices and manufacturing plant of breakfast cereals giant Kelloggs.
It also hailed a £38 million deal to provide a full waste management and cleaning service to pub firm Mitchells & Butler, which has a string of pubs across Tayside and Fife including Broughty Ferry’s Cambustay, the Glover Arms at Perth and Bridge of Allan’s Meadowpark among its operated brands.
Public-sector efforts are focused on the justice, local authority and social housing markets.
“The financial year has started well and we have a growing order book as well as a strong pipeline of sales opportunities,” the company said in a trading statement.
“We are positive about the range of outsourcing opportunities across our key markets, and confident that we will continue to build on our long track record of sustainable profitable growth.”
It added: “Our strong balance sheet continues to provide us with capacity for the development of the business and for further value-creating acquisitions should they arise, particularly in niche markets within the healthcare and energy sectors.”
Deals through the group’s MiHomecare brand have included multi-million-pound contracts in Leicestershire, Worcestershire and Richmond-upon-Thames, while the firm will also be responsible for lighting London’s streets following a £6m deal with the Greater London Authority.
It will also increase its contract cleaning operation on the London Underground, following a fresh three-year, £4m agreement with Transport for London.
The group also announced the establishment of MITIE Local Services, a new contract cleaning business for SMEs based in the London area, and the rebranding of its existing waste management business as stand-alone company MITIE Waste & Environmental Services.
“The management team will take an equity stake in the business, motivating them to grow the business and share in its future success,” MITIE said.
The group also announced non-executive director Terry Morgan is to step down from the firm’s board at the end of October.