Outsourcing giant Mitie has announced record-breaking annual sales, following the acquisition of new projects with the UK Government and the development of AI-led security to tackle retail crime.
The FTSE 250-listed company, which provides services such as cleaning, security, engineering, and construction to major firms in the UK and worldwide, revealed an 11% increase in revenues to £4.5billion for the year ending March, up from £4.1billion the previous year. This surge was partly fuelled by a growing workload with the UK Government, including the Department for Work and Pensions (DWP) and the Ministry of Defence (MoD).
Mitie disclosed that it had initiated a £100million programme to enhance the security infrastructure across the DWP, and also carried out "critical" refurbishment and construction work to support the MoD's defence estate. However, the firm admitted to losing several contracts over the year, partially due to the pricing of its contracts in a "highly competitive environment".
The company also attributed its revenue growth to work across its technology services, where it collaborates with companies such as Amazon, BAE Systems, Lloyds Banking Group and Network Rail. One of the most significant projects completed last year was a complete re-fit of a century-old turbine engine manufacturing site for Rolls Royce, the company added.
Mitie has announced that its collaboration with retailers and the Home Office on a new initiative called Project Pegasus, aimed at tackling retail crime, is picking up speed. "Retailers are facing unprecedented levels of crime, with the estimated cost to the sector having almost doubled over the past year to £3.3billion per annum," the company stated.
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The firm highlighted its use of "cutting-edge technologies" such as artificial intelligence (AI) video analytics and biometrics to enhance security measures and help pinpoint criminals. These advancements have boosted revenue in Mitie's business services division, which also benefits from consistent cleaning and security contracts with major corporations.
Mitie reported a pre-tax profit of £156.3million for the latest year, a significant increase from £105.5million the previous year. Phil Bentley, chief executive of Mitie, commented: "We have secured a number of new contracts and projects in the fourth quarter of the 2024 financial year, and first quarter of the 2025 financial year, which give us good business momentum and we expect to offset, in the medium-term, the contracts lost and ending in 2024."
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