Outsourcing specialist MITIE posted a 10 per cent rise in profits today after an "excellent" year for its support services operations.
The Bristol-based group saw underlying profits climb from £31 million to £34.1 million in the 12 months to March 31, marking its sixteenth consecutive year of profitable growth. Bottom line pre-tax profits were £31.8 million.
While its building services arm made steady progress, turnover from support services activities raced ahead 14 per cent to £260 million as the various companies in the division worked more closely together to provide "bundled" services to customers.
The trend towards mixed contracts saw the group land its biggest ever contract in January this year - a deal worth more than £100 million with aerospace group Rolls-Royce including maintenance, cleaning, catering, security and waste management among other things.
Within its support services arm, MITIE said it had seen continued progress in its cleaning operations, with a string of major contracts, while its catering business saw a year of "consolidation".
But its managed services business continued its rapid expansion, landing two large contracts with the Home Office covering 540 buildings in the north and south west of England.
Meanwhile MITIE's building services arm saw revenue grow a more modest 5 per cent to £306 million with solid foundations laid for the future with an increase in the number of framework contracts in the public sector.
Unlike traditional one-off contracts, framework deals offer a steady stream of work in the longer term.