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Outsourcing gains steam yet again: MITIE turns out huge profits

MITIE has been an outsourcing cookie monster in recent years, and the results are … surprising? (We couldn't bring ourself to write exciting ...

Freddie Pierce
|Nov 23|magazine5 min read
MITIE has been an outsourcing cookie monster in recent years, and the results are … surprising? (We couldn't bring ourself to write exciting here, because after all it is still outsourcing!)

The MITIE Group gobbles up small businesses that fit well under its operational umbrella and then it exploits (in a good way) them for their service. The result for the United Kingdom-based outsourcing group has been a 12 percent jump in profits from £42.3m to £47.5m. Revenues for the half-year to September rose nearly 15 percent to £918.7m, up from £801.1m in 2009.

MITIE, which stands for Management Incentive Through Investment Equity, offer management advice for its clients in four areas: Facility, Technical, Property and Asset. The company also specializes in cutting carbon emissions.

MITIE is trying to become more economically viable, and as a result it is processing and securing as many public sector clients as private ones. MITIE has more than 56,000 full and part-time staff Private sector Rolls- Royce, Manchester Airport and the Royal Opera House, alongside a deal to provide facilities for Vodafone.

But now the company is striking up deals in the public sector as well, including a three-year deal worth £80.4m with Tesco and a four-year, £15.2m cleaning and waste contract for the Scottish Government, according to reports.

MITIE is also tendering for contracts at the Ministry of Justice, including prisoner escorting and community service and facilities management services, according to a release.

“Our well diversified portfolio of public and private sector work and high quality client base has demonstrated strength and resilience against a backdrop of economic uncertainty and political change. This has given us the capacity and confidence to maintain our investment in people, technology and new materials all of which have been major contributors to the development of our strong pipeline and contract base during the period,” said Ruby McGregor-Smith, Chief of Executive of MITIE Group said in a press release