The good news continues at building support services company MITIE which reported pre-tax profits up 32% to £19.2m (1999 - £14.5m) on increased turnover of £346.5m (1999 - £264.4m) yesterday MITIE's Building Services division contributed 61% of turnover and 54% of pre-tax profits. Support Services, which includes the Managed Services operation, accounted for just under 40% of turnover (up 17% at £136m) and 46% of profits (up 29% at £8.8m). Margins in support services were increased from 5.9% to 6.5%

MITIE chairman David Telling

The company launched MITIE Business Services in January, to provide mailroom and reprographic services to major companies within the M25. Since the year-end, MITIE acquired the assets of Roofing Services Ltd, forming MITIE Roofing Services Ltd, located in the Midlands, Lancashire and Yorkshire. The company also purchased, for £2.8m, 60% of The McCartney Group Ltd whose principal activity is the supply and installation of contract fire protection in the United Kingdom. The balance is subject to management earn-out according to normal MITIE practice.

MITIE has also started two new businesses in niche markets in the pharmaceutical industry and
in cleanrooms required for the computer manufacturing, medical and food processing industries.

Managed Services secured new contracts for Bristol Myers Squibb’s UK HQ at Hounslow as well as five regional offices for Pfizer Pharmaceuticals. The company also won a long-term contract for Global Crossing’s co-location facility for telecom and dot.com companies.

According to the company, Managed Services has been at the forefront of accelerating the Group’s cross-selling initiative and is now bundling services with 25 Group companies from both Divisions. MITIE says this is in line with their analysis of market needs and expects the trend to continue.

Commenting on the results, Chairman David Telling hinted at succession planning: "MITIE Group is more than just a commercial company. It has an element of social and economic vision that provides what is still probably a unique opportunity for men and women with ambition, talent and motivation to build a successful business within a supportive framework.

MITIE is determined to be the best, quality company in everything it does. We realise that this needs not only the dedication of the present generation of senior management but also a clear plan for the future. We are continuously addressing this challenge in order to provide for a smooth transfer of responsibilities when the time is appropriate."

Richard Byatt