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Mitie Group PLC
Company typePublic
IndustryFacilities Management
Founded1987
HeadquartersLondon, United Kingdom
Key people
Derek Mapp, Chairman
Phil Bentley, CEO
RevenueIncrease £4,055.1 million (2023)[1]
Decrease £162.1 million (2023)[1]
Increase £91.1 million (2023)[1]
Number of employees
64,000 (2024)[2]
Websitewww.mitie.com/

Mitie Group PLC (pronounced "mighty") is a British strategic outsourcing and energy services company. It provides infrastructure consultancy, facilities management, property management, energy and healthcare services. It has a head office at The Shard in London and more than 200 smaller offices throughout the United Kingdom and Ireland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

History[edit]

Mitie was founded by David Telling and Ian Stewart as MESL in 1987.[3] One year later, the company was listed on the London Stock Exchange for the first time.[3] It merged with Highgate & Job in 1989, after which it was renamed the Mitie Group.[4]

Throughout the 2000s, the company pursued a strategy of growth through the acquisitions of various other businesses. In March 2006, it acquired Initial Security, a leading security business.[5] During 2007, Mitie acquired Robert Prettie & Co. Ltd in exchange for £32.7m and incorporated the specialist plumbing, heating and mechanical services business into their Property Services division.[6] In 2008, Mitie continued its strategy through the acquisition of Catering Partnership[7] and DW Tilley; the latter purchase allowed Mitie to expand its roofing services nationwide.[8] During 2009, Mitie completed the acquisition of Dalkia Facilities Management in exchange for £130m,[9] which bolstered its Technical Facilities Management capability; it also expanded into social housing through the purchase of Environmental Property Services (EPS) for £38.5m.[10] During 2010, Mitie acquired the integrated facilities management business of Dalkia in Ireland.[11]

Mitie made its first acquisition in the health and social care sector in October 2012, when it spent £111 million on the homecare firm Enara.[12] In April 2013, Mitie's chief executive, Ruby McGregor-Smith, was made non-executive director to the board of the Department for Culture, Media and Sport.[13] During February 2014, Mitie introduced its new visual identity.[14]

Between 2013 and 2015, cleaning staff employed by Mitie at various high-profile locations, including the Royal Opera House, the Houses of Parliament, the law firm Clifford Chance, First Great Western train services, and various NHS hospitals, held demonstrations against low pay.[15][16][17]

In February 2014, Mitie announced an eight-year contract with the Home Office, making it the largest provider of immigration removal centres in the United Kingdom.[18][15] Almost two years later, Mitie came under fire for its management of the immigration centres after the prison inspectorate stated that the facilities were "dirty", "rundown" and "insanitary".[19]

The firm secured a cleaning contract with Royal Cornwall Hospitals NHS Trust during June 2014 valued at £90m over seven years. Sick pay cost £1.2m in its first eight months, compared with £280,000 for the NHS in the previous financial year; UNISON blamed the rise on staff stress, which it claimed had been caused by mistakes on pay.[20] In November 2014, Mitie acknowledged that its homecare business was less profitable than had been anticipated and that it was struggling to recruit and retain sufficient numbers of care workers.[21]

During 2016, shares in Mitie fell to a four-year low after the company warned that an expected boom in outsourced services was not happening. Throughout both 2015 and 2016, it was reported that Mitie was one of the most shorted stocks in the FTSE 250.[22][23] McGregor-Smith announced in November 2016 that the company was withdrawing from the healthcare business (providing home care for the elderly) in response to spending cuts and rising employment costs that had made the sector unviable.[24]

In November 2017, the Financial Reporting Council (FRC) announced an investigation into the financial statements for the year ended 31 March 2016. This led to the disclosure in the Annual Report for 2017 that there had been errors in the impairment testing of healthcare goodwill and that, if certain judgements had instead been treated as errors, the amount of the prior year adjustment disclosed in the 2016 results would have increased by £44.0 million. This disclosure had addressed the FRC's concerns.[25]

During December 2017, following a string of three profit warnings in the space of four months,[26] McGregor-Smith stepped down from her role with the outsourcing group; she was replaced by former managing director of British Gas and current Chief Executive Phil Bentley.[27]

In June 2020, Mitie announced it was to buy Interserve's 40,000-strong facilities management business in a cash and shares deal worth £271m, later revised downwards to £190m. The deal, following its ratification by Mitie's shareholders,[28] was completed on 1 December 2020.[29]

During the COVID pandemic, Mitie added a wide range of services, including running Covid-19 testing sites, cleaning offices and major transport services, and providing security for new quarantine hotels.[30] The firm continued to work with Government departments such as the National Health Service, Department for Work and Pensions, the Ministry of Defence, and education providers.[31] During January 2021, the firm was publicly criticised over the management of a Covid-19 testing site it was contracted to run in Inverness after several workers there contracted the virus.[32]

Operations[edit]

A Mitie maintenance van

Mitie stands for Management Incentive Through Investment Equity. Mitie's business model was originally about taking 51% equity stakes in startup businesses that fell into its broad fields of activity. The management of the new business typically invested the remaining capital, and if targets were met it was able to sell the balance of the business to Mitie after a fixed period for a sum based on the profits achieved (an earn out). Payment was made in a mixture of cash and Mitie shares. The managers usually remained with Mitie after the earnout.[33]

Mitie is now split into: Facilities Management, Property Management, Energy Solutions and Healthcare.[34]

Controversy[edit]

In February 2022, The Sunday Mirror revealed a Mitie WhatsApp group relating to immigration management paid by the Home Office that exchanged racist and offensive messages amongst colleagues since March 2020.[35]

References[edit]

  1. ^ a b c "Annual Report and Accounts 2023" (PDF). Mitie. Retrieved 13 February 2024.
  2. ^ "About us". Mitie. Retrieved 13 February 2024.
  3. ^ a b MITIE: History[permanent dead link]
  4. ^ Telling, David (21 March 2001). "The High and MITIE". The Independent. Archived from the original on 26 November 2010.
  5. ^ "UK Business Park - B2B Sales Leads & Company News". ukbusinesspark.co.uk. Archived from the original on 3 March 2014. Retrieved 31 March 2015.
  6. ^ "Mitie Group buys Robert Prettie & Co for 8.6-32.7 mln stg plus debt". AFX News. 2 April 2007. Retrieved 20 June 2018.
  7. ^ "Mitie confident despite softer economy". Construction News. Retrieved 31 March 2015.
  8. ^ journallive Administrator (2 July 2008). "Small/mid-size Company Deal of the Year". journallive. Retrieved 31 March 2015.
  9. ^ "MITIE to buy UK arm of Dalkia for £130 mln, to raise £40 mln via placing". Proactiveinvestors UK. Retrieved 31 March 2015.
  10. ^ "Mitie buys Environmental Property Services for £38.5m". Building. Retrieved 31 March 2015.
  11. ^ "Mitie acquires Irish FM businesses from Dalkia". fm-world.co.uk. Retrieved 31 March 2015.
  12. ^ Maidment, Neil (9 October 2012). "Mitie moves into home care with Enara buy". Reuters. Retrieved 31 March 2015.
  13. ^ "New non-executive directors appointed to the DCMS board". gov.uk. Retrieved 18 September 2015.
  14. ^ "Mitie unveils a new brand logo". fm-world.co.uk. Retrieved 31 March 2015.
  15. ^ a b "Ruby McGregor-Smith, Mitie CEO: Outsourcing's prickly peer". Financial Times. Retrieved 9 April 2016.
  16. ^ Gover, Dominic. "Migrant Cleaners Protest Against Conditions at Top Law Firm Clifford Chance". International Business Times UK. Retrieved 9 April 2016.
  17. ^ "Morning Star :: Mitie cleaners occupy First Great Western HQ - The Peoples Daily". Retrieved 9 April 2016.
  18. ^ "Mitie awarded £180m contract with the Home Office". Retrieved 9 April 2016.
  19. ^ "Mitie criticised for 'insanitary' immigration centre". Financial Times. Retrieved 9 April 2016.
  20. ^ "Sick pay costs rise for Cornwall NHS hospitals private cleaners Mitie". BBC News. 24 June 2015. Retrieved 25 June 2015.
  21. ^ "NHS trust financing woes expected to boost private sector openings". Financial Times. 24 November 2014. Retrieved 25 November 2014.
  22. ^ "Analyst twists the knife as Mitie feels heat on pay". The Times. Retrieved 9 April 2016.
  23. ^ "'Prickly peer' Baroness McGregor-Smith smoothes over Mitie's problems". The Times. Retrieved 9 April 2016.
  24. ^ "Mitie withdraws from healthcare as it issues second profit warning". Guardian. 21 November 2016. Retrieved 15 December 2016.
  25. ^ "FRC announcements in connection with Mitie Group plc's 2016 annual report and accounts". Financial Reporting Council. 20 November 2017.
  26. ^ "Mitie hit by third profit warning in 4 months". Financial Times. Retrieved 13 May 2020.
  27. ^ "Ruby McGregor-Smith quits as boss of Mitie". Financial Times. Retrieved 13 May 2020.
  28. ^ Morby, Aaron (25 June 2020). "Mitie to buy Interserve FM business for £271m". Construction Enquirer. Retrieved 25 June 2020.
  29. ^ "Mitie seals Interserve deal". i-fm.net. 1 December 2020. Retrieved 1 December 2020.
  30. ^ "Covid contracts help Mitie revenues double to £930m". The Times. ISSN 0140-0460. Retrieved 2 December 2021.
  31. ^ "Mitie ups guidance as it counts benefit from Covid contracts". The Independent. 24 September 2021. Archived from the original on 15 May 2022. Retrieved 2 December 2021.
  32. ^ "Mitie workers claim 'failures' led to Covid 19 outbreak". theferret.scot. Retrieved 13 March 2021.
  33. ^ "Mighty job ahead for new boss at MITIE". timesonline.co.uk. Retrieved 31 March 2015.
  34. ^ "At A Glance - Mitie". mitie.com. Retrieved 31 March 2015.
  35. ^ "Home Office probes immigration contractor Mitie over racist text claims". BBC News. 20 February 2022. Retrieved 20 February 2022.

External links[edit]

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