LONDON, UNITED KINGDOM – Outsourcing giant Mitie has reported record-high annual sales, driven by securing new projects with the UK government and advancements in artificial intelligence for security measures to combat retail crime.
The FTSE 250-listed company, which provides cleaning, security, engineering, and building services to major firms, reported an 11% increase in revenues, reaching £4.5 billion ($5.7 billion) up to March, compared to £4.1 billion ($5.2 billion) the previous year. This growth came despite losing contracts due to its prices in a highly competitive environment.
A significant factor in this increase was the growing pipeline of work with the UK government, including contracts with the Department for Work and Pensions and the Ministry of Defence.
Mitie initiated a £100-million program to upgrade security measures across the DWP and undertook critical refurbishment and construction work to support the MoD’s defense estate.
AI-backed security target retail crime surge
Mitie’s revenue growth was further propelled by its technology services for clients including Amazon, BAE Systems, Lloyds Banking Group, and Network Rail. One of their biggest projects completed last year was a full refit of a 100-year-old turbine engine manufacturing site for Rolls Royce.
Mitie has adopted “cutting-edge technologies” to improve its service offerings, as evidenced by their involvement in Project Pegasus, a new retail crime plan with retailers and the Home Office.
“Retailers are facing unprecedented levels of crime, with the estimated cost to the sector having almost doubled over the past year to £3.3 billion per annum,” the firm said. Mitie utilized artificial intelligence video analytics and biometrics to improve security measures and identify criminals.
Strong business momentum
This work contributed to increased revenue from Mitie’s business services division. Phil Bentley, Mitie’s chief executive, stated, “We have secured a number of new contracts and projects in the fourth quarter of the 2024 financial year, and first quarter of the 2025 financial year, which give us good business momentum and we expect to offset, in the medium-term, the contracts lost and ending in 2024.”
Mitie’s pre-tax profit reached £156.3 million in the latest year, up from £105.5 million a year ago.
