Mitie, the outsourcer that is catering at the Chelsea Flower Show, said yesterday that switching to longer and more lucrative contracts had triggered a 5.4 per cent rise in pre-tax profit to £111.1m in the year to April.
The FTSE 250 company, headed by Ruby McGregor-Smith, secured contracts including a £775m, five-year deal with Lloyds Banking Group for facilities management of all its offices and branches, and a £30m contract with Hammersmith & Fulham council to repair and decorate 7,500 homes. Revenues rose 8.4 per cent to £2bn.
Ms McGregor-Smith said: “The economic environment is still quite challenging, but we’re still in a good position to grow.”
Mitie is closing two mechanical and electrical engineering contracting businesses at a cost of £22.1m.