Mitie : Annual Report and Accounts 2021

The

Exceptional,

Every Day

Mitie Group plc Annual Report and Accounts 2021

Welcome to Mitie

Annual Report and Accounts 2021

We are the UK's leading facilities management company, providing a range of services to a large, diverse, blue-chip client base. Our expertise, care, technology and insight create amazing work environments, helping our customers be exceptional, every day.

During this year,

we have worked hard to be…

report Strategic

Governance

The voice of the frontline

Our people give their best when we show them that we care. We are creating a great working environment. We are seeking to be the employer of choice.

1. standard bearer of the industry

We work best with our customers when we collaborate. We aim to be the trusted partner for our customers, helping them create exceptional workplaces.

1. technology leader

Technology is changing our industry. Mitie's vision is to harness its 'science of service' to generate social value through everyday operations.

statements Financial

Strategic report	Governance	Financial statements
02	Financial highlights	68	Chairman's introduction to governance and	130	Independent auditor's report to the
04	At a glance		the Board		members of Mitie Group plc
06	Chairman's statement	69	Board of Directors	139	Consolidated income statement
08	Our business model	72	The Code: Board leadership and company	140	Consolidated statement
10	Market review		purpose		of comprehensive income
12	Strategy	82	The Code: Division of responsibilities	141	Consolidated balance sheet
14	Key performance indicators	85	The Code: Composition, succession and	143	Consolidated statement of changes in equity
18	Spotlight: Interserve Facilities Management		evaluation	144	Consolidated statement of cash flows
19	Chief Executive's strategic review	87	The Code: Audit, risk and internal control	146	Notes to the consolidated
22	Operating review	90	The Code: Remuneration		financial statements
26	Finance review	91	Nomination Committee report	204	Company balance sheet
30	Environmental and Social Value Summary	94	Audit Committee report	205	Company statement of changes in equity
32	Non-financial information statement	99	Directors' remuneration report and policy	206	Notes to the Company financial statements
33	Spotlight: Plan Zero	121	Social Value & Responsible Business	211	Appendix - Alternative Performance
34	Environment and Social Value		Committee report		Measures (APMs)
42	Section 172 statement	123	Disclosure Committee report	214	Shareholder information
46	Operating responsibly	124	Directors' report
48	Stakeholder engagement	128	Statement of Directors' responsibilities

1. Principal risks and uncertainties

1. Viability statement

Mitie Group plc|  Annual Report and Accounts 2021

01

Financial highlights

Financial highlights

(for the year ended 31 March 2021)

-

£2,589m

Revenue including share of joint ventures and associates1

19.1% higher than the prior year

-

£2,560m

Group revenue1 (FY20 £2,174m)

-

£63.4m

Operating profit before other items1,2,3 (FY20 £86.1m)

-

£8.3m

Operating profit1,3 (FY20 £64.6m)

-

£47.1m

Average daily net debt (FY20 £327.6m)

• Good trading resilience through COVID-19: revenue including share of joint ventures and associates1 of £2,589m, up 19.1%; excluding the contribution from Interserve, revenue was 1.6% lower
• Group revenue1 of £2,560m (FY20 £2,174m)
• Operating profit before other items1,2,3 of £63.4m (FY20 £86.1m) - impacted by revenue mix and reduced project work due to COVID-19
• Operating profit1,3 of £8.3m, reflecting the additional impact of other items for the year
• Order book now stands at £7,202m (FY20 £4,294m)
• Interserve Facilities Management ("Interserve") acquisition performing better than expected, accelerating value creation. £6.2m cost and revenue synergies achieved in FY21. Cost synergies raised to £42m (from £35m) achieved by FY23 - at same cost
• Strengthened balance sheet: £190m rights issue; £250m RCF refinanced; and BBB Investment Grade credit rating achieved
• Average daily net debt significantly reduced to £47.1m (FY20 £327.6m) post-IFRS 16

1. From continuing operations.
2. Other items are as described in Note 4 to the consolidated financial statements.
3. Operating profit includes share of profit after tax from joint ventures and associates.

02 Mitie Group plc|  Annual Report and Accounts 2021

The voice of the frontline

Our people give their best when we show them that we care. We are creating a great working environment. We are seeking to be the employer of choice.

-

55%

Employee engagement

-

+50

Net Promoter Score (NPS)

Strategic report

1. Financial highlights

1. At a glance

1. Chairman's statement

1. Our business model

1. Market review

1. Strategy

1. Key performance indicators

1. Spotlight: Interserve Facilities Management
2. Chief Executive's strategic review

1. Operating review

1. Finance review

1. Environmental and Social Value Summary

1. Non-financialinformation statement
2. Spotlight: Plan Zero
3. Environment and Social Value

1. Section 172 statement

1. Operating responsibly

1. Stakeholder engagement

1. Principal risks and uncertainties

1. Viability statement

report Strategic

Governance

statements Financial

Mitie Group plc|  Annual Report and Accounts 2021

03