Mitie Group PLC (LON:MTO) shares were higher on Tuesday after the facilities management group said its business had proved “more resilient than expected” in its first quarter despite the pandemic.
In a trading update for the three months ended June 30, the company reported revenues for the period of £458.3mln, down 11% year-on-year and including the loss of a Ministry of Justice contract and the reduced scope of an NHS Properties contract which together represented 3 percentage points of decline.
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The company’s technical services division, representing around 35% of total revenues, saw the greatest impact from the pandemic as discretionary variable work and demand for engineering projects was “significantly reduced”.
However, the company said its fixed technical services contracts had been more resilient than expected, as well as its cleaning and security services and public sector contracts.
Mitie also said it had recently brought over 40% of its 7,000 furloughed staff back to work as its customers resumed operations.
The firm added that it has also won new contracts in the first quarter relating to coronavirus testing centres, renewed its Groupe PSA contact with additional services and won a new integrated (IFM) contract with insurer Royal London Group.
Mitie also said out of nine strategic accounts seven have already been extended and the final two are under discussion, with the company “confident of extending”.
The group also said integration plans for the acquisition of Interserve Facilities Management have commenced with the transaction expected to close in the fourth quarter of 2020.
The shares were up 0.5% at 37.5p in mid-morning trading.