Mitie increases his forecasts because he intends to benefit from Covid contracts
Subcontractor Mitie has raised its profit forecast due to a series of contracts linked to Covid.
The company said it now expects operating profit before other items to reach between £ 145m and £ 155m.
“In our Q1 trade update, we reported that we had a good start to the year through March 31, 2022, boosted by the delivery of Covid-related short-term contracts,” Mitie said in an update. update to shareholders on Friday morning.
He added: “This performance continued in the second quarter, complemented by new contract awards related to Covid.”
However, the advantage is expected to fade in the coming months, but Mitie said he is still confident in increasing the forecast.
The profit is said to be an increase from the £ 49.4million it made in the year ending March 2021, as the rest of the business goes as planned.
“Excluding contracts related to Covid, the business continued to operate as expected, with the gradual recovery of the economy and the return to work,” the company said.
The Interserve facilities management business that Mitie bought from his subcontractor colleague for £ 120million almost a year ago “is performing well,” the update says.
The unit integrates as expected.
Guidance for the fiscal year ending March 2023 is unchanged and will remain so until the company can determine whether it will secure Covid contracts that year and whether other work recovers.
Mitie said he has agreed to a new £ 150million loan facility with five of his banks, which has replaced a £ 250million facility since the early days of Covid.
The new deal is “on much more favorable terms,” Mitie said.
Mitie will present its results for the six months until the end of September on November 18.