Security Demand and AI Projects Fuel Mitie's Growth
Outsourcing and energy services company Mitie has reported a significant revenue surge, propelled by rising demand for security guards in shops and a boom in artificial intelligence data centre projects. The FTSE 250 firm announced an overall revenue increase of 10.4 per cent to £2.7 billion for the six months to the end of September.
Shoplifting Crisis Drives Security Revenue
The company experienced a notable 12 per cent rise in revenue from its security services, which reached £580 million. This growth was fuelled by a wave of new contract wins with major high-street names, including chemist Boots and the supermarket chain Co-op. Mitie's chief executive, Phil Bentley, did not mince words, stating, "There is a shoplifting epidemic", and highlighting that high theft rates are contributing to rising prices for consumers.
Beyond retail, the firm also secured significant contracts to provide services for insurance giant Aviva, the Home Office, the Metropolitan Police Authority, the Tate Gallery, and sports retailer Decathlon.
AI Data Centre Expansion Powers Projects Division
Another major growth engine for Mitie was its projects division, where revenue jumped an impressive 30 per cent to £167 million. This surge was led by new partnerships with tech titans Microsoft and Google. The company revealed that its projects order book has grown by as much as 50 per cent.
Phil Bentley explained that the company is now expanding its data centre work into Europe, often at the request of satisfied clients. He emphasised the transformative impact of AI, noting, "The whole design of data centres is changing around the AI impact and how much energy the chips use up. The power requirement to run Nvidia chips for AI is much higher." To illustrate the scale, he cited one project north of Basingstoke that is expected to consume more power than the entire town of Basingstoke itself.
Financial Performance and Strategic Acquisition
Despite the strong revenue growth, Mitie's pre-tax profit saw a 12 per cent decline to just under £50 million. Following the announcement, the company's shares dipped 2.9 per cent to 152p in early trading, though the stock remains up by 37 per cent since the start of the year.
In a separate strategic move, Mitie also announced the acquisition of specialist refrigeration business Forest Group for £7 million. The deal, comprising an initial £4.5 million cash payment and potential performance-related payments of up to £2.5 million, is aimed at strengthening Mitie's ties with key hospitality clients. Forest Group's client base includes prominent pub chains such as Mitchells & Butlers, Greene King, and Wetherspoon.
