Mitie, the FTSE 250 strategic outsourcing company, has been awarded a renewed contract with a base value of more than 75m pounds over a five-year period to provide integrated facilities management for Network Rail.
The news came as the group gave an update on its recent performance, which it said had been strong, particularly in Facilities Management (FM), and that its underlying full-year results would be in line with market expectations.
"We continue to successfully re-position the group to focus on higher growth and higher margin sectors. We are focused on driving our core UK FM business to its full organic growth potential and being the number one provider in our chosen markets," a statement from the group said.
"At the same time, we will invest and grow in adjacent markets - healthcare is a particular focus and we aim to take the leading position in the homecare market. The strength of our business in both of these areas will enable us to further build on our track record of sustainable, profitable growth."
The group has made progress with its exit from the mechanical and electrical engineering contracting businesses and said the losses for the second half of the year will be in line with previous indications at some £3m-£5m higher than those reported in the first half of the year.
It said the repositioning of the company had strengthened its business, which has in turn allowed it to concentrate on the FM and healthcare markets that offer strong growth potential, reduce its exposure to cyclical markets and generate long-term secured revenues, underpinned by strong margins.
National Rail contract win
Under the contract renewal deal, Mitie will continue to deliver services across Network Rail's UK property portfolio, and as part of this will be responsible for delivering a comprehensive range of services including fabric and engineering maintenance, energy management, security, cleaning, mailroom & couriers, helpdesk, waste and pest services.
Mitie was awarded the contract extension based on its "innovative and technology driven self-delivery capabilities", combined with a "distinct cultural approach", it said.
Ruby McGregor-Smith CBE, the Chief Executive of Mitie, added: "We are delighted to be building on our long-term strategic partnership with Network Rail and supporting them in delivering better value and efficiency across their business.
"Safety, reliability and efficiency are central to Network Rail's vision for Britain's rail infrastructure. We look forward to further developing a tailored and innovative FM strategy, and providing high quality services to support this vision."