Mitie completes review of PPP/PFI market

Mitie announced its interim results this morning, showing turnover 15% higher at £280m. Pre-tax profit was £1m stronger at £15m.

Mitie's building services division generated an operating margin of 5.2% while support services weighed in with a figure of 6.4%. Mitie's forward orderbook for next year already stands at 54%, with the current year's orderbook target 94% secured.

Mitie has completed a detailed review of the PFI/PPP market. David Telling, chairman, said: "Our conclusion is that the cash-flow implications, bid costs and political uncertainty within the market make it unattractive for a pure service provider like Mitie to be involved as an equity investor.

"We will, however, continue to offer services to this market on a contract basis, when our normal selection criteria are met."

Mitie's managed services business has been awarded contracts at Total's headquarters in Watford and with IMS Healthcare. It is Land Securities' facility management supplier for the Landflex project.

The property sector has seen some private clients take a cautious approach to spending, particularly in the South East. Mitie has long-term contracts with city councils in Birmingham, Bournemouth and Portsmouth as well as with the Royal Mail and Suffolk County Council.

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