MITIE Group
Encyclopedia
MITIE Group PLC is a British
strategic outsourcing
and energy services company with their head office in Bristol
, and more than 200 smaller offices throughout the UK and Ireland. MITIE operates mainly in the UK and Ireland with a growing presence in Europe. It provides infrastructure consultancy, facilities management, property maintenance and a range of energy management services to its customers. It is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index
.
and Ian Stewart as MESL in 1987. It was first listed on the London Stock Exchange
in 1988. It merged with Highgate & Job in 1989 and was renamed the MITIE Group.
Their strategy of growth through acquisition has seen MITIE acquire several businesses over the past few years and in 2006 it acquired Initial Security, a leading security
business. Following on in 2007 MITIE acquired Robert Prettie & Co. Ltd for £32.7m and incorporated the specialist plumbing, heating and mechanical services business into their Property Services division. In 2008 MITIE continued its acquisitions strategy through the acquisition of Catering Partnership, and DW Tilley. The purchase of DW Tilley allowed MITIE to extend their roofing services nation-wide. 2009 saw the acquisition of Dalkia Facilities Management for £130m to bolster its Technical Facilities Management capability and an expansion into Social Housing with the purchase of Environmental Property Services (EPS) for £38.5m. In 2010, MITIE acquired the integrated facilities management business of Dalkia in Ireland.
stakes in start-up businesses that fall into its broad fields of activity. The management of the new business invests the remaining capital and if certain targets are met they may sell the balance of the business to MITIE after a fixed period for a sum based on the profits achieved (an earn out
). Payment is made in a mixture of cash and MITIE shares. The managers usually remain with MITIE after the earn out.
As a result of this business model MITIE has a large number of group businesses that have significant managerial autonomy but share internal systems, Human Resources
, IT and marketing resources.
and Asset Management.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
strategic outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
and energy services company with their head office in Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
, and more than 200 smaller offices throughout the UK and Ireland. MITIE operates mainly in the UK and Ireland with a growing presence in Europe. It provides infrastructure consultancy, facilities management, property maintenance and a range of energy management services to its customers. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
MITIE was founded by David TellingDavid Telling
David Malcolm Telling was the founder of MITIE Group, which is now one of the United Kingdom's largest facilities management companies. Born in Harrow, North London on 12 August 1938 and brought up in Cleeve in Somerset, David Telling was educated at Cheltenham College...
and Ian Stewart as MESL in 1987. It was first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1988. It merged with Highgate & Job in 1989 and was renamed the MITIE Group.
Their strategy of growth through acquisition has seen MITIE acquire several businesses over the past few years and in 2006 it acquired Initial Security, a leading security
Security
Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...
business. Following on in 2007 MITIE acquired Robert Prettie & Co. Ltd for £32.7m and incorporated the specialist plumbing, heating and mechanical services business into their Property Services division. In 2008 MITIE continued its acquisitions strategy through the acquisition of Catering Partnership, and DW Tilley. The purchase of DW Tilley allowed MITIE to extend their roofing services nation-wide. 2009 saw the acquisition of Dalkia Facilities Management for £130m to bolster its Technical Facilities Management capability and an expansion into Social Housing with the purchase of Environmental Property Services (EPS) for £38.5m. In 2010, MITIE acquired the integrated facilities management business of Dalkia in Ireland.
Operations
MITIE stands for Management Incentive Through Investment Equity, and the company's managers own a substantial minority stake in the business. MITIE's business model is based on taking 51% equityOwnership equity
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
stakes in start-up businesses that fall into its broad fields of activity. The management of the new business invests the remaining capital and if certain targets are met they may sell the balance of the business to MITIE after a fixed period for a sum based on the profits achieved (an earn out
Earn out
Earn out is a variable part of price paid for a company.Price paid for a company, i.e. for owning the company's equity can be either fixed or variable....
). Payment is made in a mixture of cash and MITIE shares. The managers usually remain with MITIE after the earn out.
As a result of this business model MITIE has a large number of group businesses that have significant managerial autonomy but share internal systems, Human Resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
, IT and marketing resources.
Company structure
MITIE is split into four divisions: Facilities Management, Technical Facilities Management, Property ManagementProperty management
Property management is the operation, control of ususally on behalf of an owner, and oversight of commercial, industrial or residential real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its usable life and condition...
and Asset Management.