Induction
MITIE at a glance We re the strategic outsourcing and asset management company; FTSE 250 listed support services business with a track record of more than 20 years of growth; Revenues in excess of 1.72bn; More than 56,500 people; One team, with an integrated and focused approach to growing the business with one vision.
Results for the year ending 31 March 2010. Strong revenue and earnings growth Strong revenue growth of 13.0% to 1,720.1m Operating profit before other items up 15.5% to 93.0m Operating profit margins before other items improved to 5.4% (2009: 5.3%) Dividend up 13.0% to 7.8p 155.7m invested on acquisitions of Dalkia FM and EPS Ltd, Continued investment in sales capability and technology platforms Strong balance sheet with low gearing. Net debt of 86.6m and committed banking facilities of 230.0m until 2012 provide opportunity for further acquisitions Strengthening of European management capability
Results for the year ending 31 March 2010. Excellent revenue visibility Long-term order book increased to 6.4bn (2009: 4.9bn) 75% of 2010/11 budgeted revenue secured (2009: 74%) Unprecedented tender pipeline to drive acceleration in growth Outstanding prospects for long-term growth Drive for cost and carbon efficiencies creates demand across our markets Well-balanced portfolio providing strong growth opportunities: public sector 45% and private sector 55% of 2010 revenue Shift towards integrated contracts continues with 57% of revenue within the Group now from either multi-service or FM contracts (2009: 33%) Strategic outsourcing opportunities increasingly combine all of MITIE s asset, property and facilities management capabilities
Vision and mission VISION: To be a company of world-class people, delivering a world-class service. MISSION: To responsibly deliver quality services, opportunities for our people, and sustainable growth.
Our values People MITIE is a people business; Our people do their jobs to the very best of their ability - that s what makes us different. Passion People + passion is what MITIE is all about; This means something special for our customers and us. Fresh thinking Our people are always having ideas; We innovate to help our clients and keep ahead of competitors; We develop services so we can enter new markets. Exciting futures We develop and motivate our people to be the best; We make sure we plan for career progression; We always give recognition and reward a for a job well done.
Structure
Facilities Management Focused on FM and multi-service offerings and on the integration between existing service lines; Integrated sales and marketing teams; More outsourcing opportunities as businesses look to reduce costs; Economic climate providing an impetus for the move towards multiservice and FM contracts. Revenue: +5.5% 824.6m Operating profit: +7% 50.5m Margin: -0.1% 6.1% Integrated Facilities Management (FM) and a range of services including: energy management, space planning, document management, front of house, catering, cleaning, landscaping, pest control, security, waste and environmental management.
Facilities Management Selected contract awards Thames Water Integrated facilities management and asset management contract; BAA Cleaning, waste management and restricted mobility passenger assistance across BAA s London airports; Cable & Wireless - FM and M&E maintenance, including cleaning, security, office services, helpdesk and other ancillary services; Eurostar - Customer support, searching of passengers and trains and 24-hour access control; Barclays - Cleaning, security, waste management, front of house and engineering maintenance.
MITIE Technical Facilities Management In August 2009, we acquired Dalkia FM for a total consideration (including costs) of 119.5m. This acquisition complemented our existing engineering maintenance capabilities and we have integrated the business with our engineering maintenance business and the enlarged business is now operating successfully as MITIE Technical Facilities Management
Property Management Focused on providing services that create and maintain better working and living environments; Focus on social housing; National offering in each of our service lines. Revenue: -1.0% 295m Operating profit: +12.8% 20.2m Margin: +0.8% 6.8% Framework and partnering agreements, project management, roofing, repairs & redecoration, interior fit-out, plumbing & heating, social housing maintenance & refurbishment and fire protection.
Property Management Selected contract awards Sentinel Housing Association - social housing; FirstRand Bank - interior fit-out; Siemens - roofing; BT - repairs and redecoration;
Asset Management Organisations are incorporating the drive to reduce energy consumption within their strategic plans for upgrading their estates, regardless of the economic position; Helping to mitigate the impact of legislation and comply with measures such as the Carbon Reduction Commitment; Focus on long-term partnerships and framework agreements. Revenue: 35.8% 600.5m Operating profit: +44.8% 22.3m Margin: +0.2% 3.7% Provision, integration, management and maintenance of technical assets meeting the demands of the low-carbon economy. Energy design, generation and certification, mechanical and electrical infrastructure, data and life systems.
Asset Management Selected contract awards 200 Aldersgate Street - Mechanical services including the refurbishment of the infrastructure and a fit-out of two show floors; Sainsbury s - Installed two wind turbines that will provide renewable energy to be used on-site; Great Ormond Street Hospital - Further infrastructure works following on from our work with them as principal contractor on the initial redevelopment project; University of Plymouth - Ongoing framework agreement where we have worked on three prestigious new buildings during the year. We provide mechanical and electrical engineering together with substantial refurbishment works.
Strategic Outsourcing Strategic Outsourcing is a team lead by Patrick Stirland that brings together the capabilities of all four divisions and works with clients to develop and implement their business strategies. The team will be developing MITIE s UK strategic relationships and bidding large transformational contracts in both the private and public sectors.
Overseas and Emerging Markets We have developed an overseas management and business development team in response to increasing demand from clients to manage and deliver services overseas. The team is lead by Roger Goodman and Paul Yearley, and they will be working with Service Management International and/or its partners to develop our overseas capability. We have recently increased our shareholding in SMI to 50% to underline our commitment.
MITIE proposition MITIE is the strategic outsourcing and asset management company; We work with our clients in three ways: - strategy & consultancy - facilities & project management - services MITIE+ - There s more to MITIE than you might think.
Services
Sector split Our three divisions work within the following market sectors: Sector % revenue Public sector Government 18% Education 9% Social housing 8% Healthcare 6% 41% Private sector Finance and professional 14% Manufacturing 9% Retail 7% Property management 7% Technology and communications 6% Utilities 5% Transport and logistics 5% Leisure 3% Construction 3% 59%
Strategy To deliver stakeholder value through a focus on sustainable profitable growth. This will be achieved by a seven-point plan: Clients People Risk Responsibility Integration Profitability Acquisitions
Slide 21 More than 20 years of growth and we ve only just started.