MITIE GROUP PLC
Annual Report 2003
MITIE GROUP PLC  Annual Report 2003
MITIE Group PLC, The Stable Block, Barley Wood, Wrington, Bristol BS40 5SA
T 01934 862006  F 01934 862239
www.mitie.co.uk  E information@mitie.co.uk
MITIE is an equal opportunities employer MITIE GROUP PLC
is a unique organisation because 
of its motivational culture of share 
ownership and the range of 
its services.
1 Financial Highlights
2 Chairman’s Statement
4 Chief Executive’s Review
10 Corporate Social Responsibility
12 Group Finance Director’s Review
15 Board of Directors
16 Directors’ Report
18 Remuneration Report
22 Corporate Governance
24 Independent Auditors’ Report
25 Group Profit and Loss Account
26 Reconciliation of Movements in Shareholders’ Funds
26 Note of Historical Cost Profits and Losses
27 Group Balance Sheet
28 Company Balance Sheet
29 Group Cash Flow Statement
30 Accounting Policies
32 Notes to the Accounts
48 Five Year Summary
49 Notice of Meeting
51 Corporate Information
designed by one, print management by am-pm MITIE GROUP PLC ANNUAL REPORT 2003 1
Turnover £ 565. 8m £ 518.9m up 9%
Profit before tax – £34.1m £31.0m up 10%
pre-goodwill
(i)
Profit before tax £31.8m £30.4m up 5%
Earnings per share – 7.3p 6.8p up 8%
pre-goodwill
(ii)
Earnings per share 6.5p 6.5p
Cash £55.0m £25.1m up 119%
Dividend per share 1.9p 1.6p up 19%
“We continue to deliver profitable growth 
by remaining focused on our core activities
and putting our customers first”
David M Telling Chairman
TURNOVER (£m) FINANCIAL HIGHLIGHTS 2002 2003
2003 565.8
518.9 2002
PROFIT BEFORE TAX – PRE-GOODWILL
(i)
(£m)
2003 34.1
31.0 2002
PROFIT BEFORE TAX (£m)
2003 31.8
30.4 2002
EARNINGS PER SHARE – PRE-GOODWILL
(ii)
(pence)
2003 7.3
6.8 2002
EARNINGS PER SHARE (pence)
2003 6.5
6.5 2002
CASH (£m)
2003 55.0
25.1 2002
DIVIDEND PER SHARE (pence)
2003 1.9
1.6 2002
The organisation comprises specialist businesses in
the fields of cleaning, engineering maintenance,
managed services, property services, engineering
services and access systems.
(i) Statutory proforma profit before tax is shown within the Group Profit and 
Loss Account
(ii) Reconciliation of earnings per share is shown in Note 7 to
the Accounts MITIE GROUP PLC ANNUAL REPORT 2003 2
Chairman’s Statement I am pleased to be
able to report that MITIE’s 2003 results show a
sixteenth consecutive year of profitable growth
and very positive cash flow. 
DAVID M TELLING CHAIRMAN
“I know that these positive results have only been
possible because of the hard work, dedication
and motivation of our people, who are
achieving considerable success.”
MITIE Group PLC (“MITIE”) has made
good progress and our Support Services
Division has had a particularly strong
year despite changing economic
conditions that have tightened our
markets over the past twelve months.
Our commitment to delivering service
levels that enable customers to achieve
their own objectives underpins this
continuing success.
Results
Turnover rose to £565.8 million, an increase of
9%, and profit before tax, goodwill amortisation
and impairment rose by 10% to £34.1 million.
Earnings per share (pre-goodwill amortisation and
impairment) rose by 8% to 7.3p (Note 7). We
have increased our cash balance by £29.9 million
to £55.0 million. Your Board is recommending a
final dividend of 1.1p per share, making a total
of 1.9p for the year, an increase of 19%.
Corporate Developments
Development of the MITIE business model has
continued strongly throughout the financial year.
We have started eight new companies. Managed
Services and Engineering Maintenance have
increased their national coverage. We have
introduced our Engineering discipline into niche
markets such as social housing, utilities and
technology and in the South East of England, we
have started a landscape business and an interior
contracting business. 
In January 2003, we signed our biggest ever
contract, worth over £100 million. The contract
with Rolls-Royce provides opportunities for all
of our businesses and is the first major example
of how MITIE companies, working together, can
benefit our customers on a national basis.
We have continued our strategy of reducing 
our exposure to capital-intensive businesses. 
We sold our Access contracting companies in
June 2002 and we are closing both MITIE Lindsay
Ltd and MITIE HydroCat Ltd.
Since the year end, we have completed the
acquisitions of Trident Safeguards Ltd, a manned
guarding security company, and Eagle Pest
Control Services UK Ltd. These acquisitions will
accelerate our development in markets where
we see good potential. MITIE GROUP PLC ANNUAL REPORT 2003 3
People
These positive results have only been possible
because of the hard work, dedication and
motivation of our people, who are achieving
considerable success in difficult times. I would
like to thank all of them for their efforts this year.
MITIE people understand that their own success
comes from satisfying their customers. In order 
to achieve this, they take the time to understand
their customers’ goals and the contribution that
MITIE can make towards reaching them. 
Our management team has been strengthened 
by the appointment of Ruby McGregor-Smith
as Group Finance Director in December 2002
and she has already added considerable value.
We have also increased the number of Non-
Executive Directors. Manish J Chande was
appointed in July 2002, David C Ord in October
2002 and Cullum McAlpine in April 2003.
Between them they have a wide range of skills
and experience that will add considerably 
to the strength of the Board.
Three people who have contributed greatly to
MITIE’s success have retired during the year.
Nigel Swiffen retired as a Non-Executive Director
after 11 years; John Urquhart as Head of
Corporate Affairs after enthusiastically
representing the Company for 10 years; and
Marshall Thomas as Group Chief Accountant
who joined MITIE shortly after its formation in
1987. I thank them all for their period of loyal
service and wish them well in their retirement.
Outlook
MITIE has enjoyed success for over fifteen years
and will, I believe, deliver further profitable
growth over the years to come. The current year
has started in line with expectations and we will
develop by building on the many unique
qualities that MITIE can offer and by continually
seeking to enhance Shareholder value. 
The strength in depth of our management puts us
in a position where, even in the most challenging
of market conditions, we are able to make
progress. We have 23,000 highly talented and
motivated people who understand the MITIE
philosophy of putting customers first. Our capacity
to deliver services nationally ensures that we are
well placed to benefit from the continuing trend
towards outsourcing and the bundling of services.
Our companies are realising significant benefits
from working together and this is a trend I expect
to continue. These attributes, combined with the
extra growth of our start-up companies, mean
that we are well placed for the future.
MITIE is known for quality in services, customers
and earnings. Your Company will remain focused
on its core activities and continue to grow the
business by putting its customers first.
David M Telling
Chairman MITIE GROUP PLC ANNUAL REPORT 2003 4
Chief Executive’s Review Our progress this year 
is a tribute to our dedicated workforce.
The goal that I set last year was for 
MITIE to become the first choice provider
of Support and Building Services to the
owners and occupiers of industrial,
commercial and government buildings.
I believe that we are making good
progress towards this. 
Market Opportunities
The markets in which we operate continue 
to change as our customers seek new methods 
of procurement. As a Group, we will continue 
to review our strategy regularly to ensure that 
the solutions we offer meet the needs of existing
and potential clients. We currently see three 
areas of opportunity which we are ideally 
placed to serve:
1. Single Service: Specialist single service
companies have been the basis for MITIE’s
ongoing success. However, our share of the
total potential market is still below 2% –
leaving considerable opportunity for
expansion. Our aim is for each of our single
service companies to capture 5% of their
respective market and where appropriate,
to start new companies to help achieve this.
2. Bundled Services: Many of our major clients
such as Dell Computer Corporation and MCI are
approaching us to see if we can provide more
than one service. Rolls-Royce is a good example.
They have demonstrated their confidence in
MITIE by awarding us a comprehensive
contract across a number of our services and
this is a trend that I see continuing.
In these cases, MITIE selects the best individual
or team to run the contract. The customer is
able to retain an active role in the management
of their facility whilst benefiting from a
combination of specialist operating companies
providing a bundled service under a single
point of contact.
3. Facilities Management: Many customers want
to focus completely on their core activity. In
this case, MITIE Managed Services can 
look after the customer’s complete property
portfolio from estate management to the
management and provision of a multi-activity
and services contract. 
IAN R STEWART CHIEF EXECUTIVE
“Rolls-Royce have demonstrated their confidence
in MITIE by awarding us a comprehensive
contract across a number of our services.” 5 MITIE GROUP PLC ANNUAL REPORT 2003
Revenue visibility
We have continued to see an improvement 
in the visibility of our future earnings. This 
is an encouraging trend and one that I expect 
to continue. The percentage of budgeted revenue
secured for 2004 is 64% at 31 March 2003,
compared to 61% last year. The percentage of
budgeted revenue secured for 2005 is 33% at
31 March 2003, compared to 32% last year.
Margins
It is a tribute to our management that they have
been able to produce consistently high margins in
such a competitive environment. By listening to
our customers and delivering our services in the
most cost-effective way, we are confident that we
can maintain this trend. 
During the first half of this year the margin in
our Support Services Division was affected by
one-off bid costs relating to our involvement in
two large government/PFI contracts, but I am
pleased to report that margins in the second half
of the year reflect an improved performance.
With greater exposure to economic fluctuations,
margins within the Building Services Division
have been under pressure. Our decision to close
the marine portion of MITIE Lindsay Ltd and
MITIE HydroCat Ltd businesses – because of their
high capital requirements and extreme
vulnerability to changes in market conditions –
also impacted on performance in this Division.
We have withdrawn completely from the marine
market and incorporated the industrial painting
capability within our existing Property Services
companies. 
PFI (Private Finance Initiative)
We said in our Interim Report that we have
decided not to be involved in PFI projects as 
an equity investor. This remains our policy.
Any reference, therefore, to PFI projects is purely 
as a facility manager or service provider.
Cash
The planned reduction in our exposure to 
the capital-intensive parts of our business resulted
in the receipt of £11.4 million and at the end of
this financial year, we had a positive cash balance
of £55.0 million. We expect that we will continue
to be cash generative.
We recognise that cash ultimately belongs to the
Shareholders and that it is my responsibility to
ensure that they receive the maximum long term
return on our assets. The appointment of Colin
Hale as Strategic Development Director last year
was as a result of our stated intention to look at
small strategic acquisitions that can accelerate our
development in some key areas. The recent
acquisitions of Trident Safeguards Ltd and Eagle
Pest Control Services UK Ltd show a strong
cultural fit with MITIE and will have an impact
on our long term development. Trident
Safeguards Ltd adds considerably to our Security
discipline in the South East of England. Eagle Pest
Control Services UK Ltd will allow us to self-deliver
a service that our customers frequently request.
We will continue to review the efficiency of our
balance sheet and will manage our assets with the
best interests of our Shareholders in mind.
PERCENTAGE OF REVENUE SECURED
at 31 March 2003
2004 64 36
33 67 2005
at 31 March 2002
2003 61 39
32 68 2004
ENGINEERING SERVICES
Through creating a controlled
ambient environment we bring
buildings to life in a way that
enables our customers to fulfil
their own objectives. Clients for
our design and installation,
refurbishment and new-build
projects range from national
companies to individual
schools. MITIE Engineering
Services comprises thirteen
regional contracting companies
and six specialist companies.
 Secured
 Unsecured 6 MITIE GROUP PLC ANNUAL REPORT 2003
Chief Executive’s Review
GENERATION
We provide innovative, 
safe and cost-effective
access equipment and 
non-mechanical builders
plant for hire and sale
through a national network 
of branches. Our systems –
many of them designed 
in-house – are designed to
ensure increased productivity
and site safety.
Chief Executive’s Review of Building
Services operations
This has been an encouraging year for
Engineering Services. There are positive
trends in the regional markets and niche sectors
despite the downturn in activity in the South
East. We have expanded through the start-ups
of MITIE Environmental Ltd, MITIE Technology 
Ltd, MITIE Engineering Projects Ltd and the
acquisition of Scotgate Engineering Services Ltd.
Public sector opportunities including hospitals,
universities and other education facilities
provided various interesting contracts. We have
increased the number of longer term framework
contracts and we retain a number of notable
private sector clients as well as productive
partnerships, such as with Land Securities
Trillium Ltd. 
The progress made by our niche trading
companies in securing sizeable projects for
national retailers such as ASDA, Woolworths,
Boots and Marks & Spencer has been based on
gaining a firm understanding of their culture 
and objectives and we will continue to apply 
this principle across all of our businesses. 
MITIE Scientific Projects Ltd has secured 
new contracts as well as preferred contractor
status and ongoing projects with major 
customers including Johnson & Johnson 
and GlaxoSmithKline.
Property Services exceeded internal targets for
the year and contributed good forward visibility
of earnings with a number of best value and 
five year partnering initiatives and a significant
proportion of repeat business including our
contract with Birmingham City Council. We have
expanded our capability in the interiors and
refurbishment market with the establishment of
MITIE Interiors Ltd. Contracts were secured with
British Telecom for Scotland, the North East of
England, London and the Home Counties. 
As part of our constant drive to improve margins
and increase quality, we have recruited a
procurement specialist to focus on the reduction
of our cost base. Corporate responsibility
underpins the discipline and we have committed
serious financial resource towards the training
and development of our people with particular
emphasis on Health & Safety.
The initiative of MITIE Property Services
(Southern) Ltd in teaming up with a school in
Portsmouth to form the MITIE Construction Skills
Centre has proved so successful that we are
rolling the scheme out in other areas. Each
initiative will create opportunities for children 
to gain hands-on experience in the various 
trades associated with our work. 
Following last year’s restructuring, Access has
achieved an increase in turnover of 40%. The
company has developed some significant
partnerships and continues to bring innovative
safety products successfully to market. Branches
which focus on light access equipment continue
to show good growth and we will strengthen our
position further with the opening of a branch in
Northampton in Autumn 2003. Portsmouth School
“MITIE helped us provide a new focus 
for generations to come.”
PROPERTY SERVICES
MITIE delivers a planned and
integrated value solution 
to maintenance, working in
partnership with property
owners and occupiers. Core
activities include building
refurbishment, commercial
and industrial painting,
interiors, roofing, flooring, 
fire protection and planned
maintenance. We employ a
wide range of qualified and
highly skilled tradespeople.
Chief Executive’s Review of Support
Services operations
Our Support Services Division has had an excellent
year. The companies in the Division are working
well together and there has been an increase in
the number of contracts where MITIE companies
are providing bundled services – a trend which will
provide a strong foundation for future growth.
The Cleaning discipline continues to make
progress, retaining contracts which were 
re-tendered during the year and winning major
public and private sector contracts. These include
Tesco, Avon & Somerset Constabulary,
Worcestershire County Council, Terry’s Chocolate
Factory and BNFL at Sellafield. Cleaning also
received a Premises & Facilities Management
Health & Safety Award in partnership with 
BNFL Oldbury. 
Catering Services had a year of consolidation.
The prospects for the year to come are good
following contract wins including The Society of
Motor Manufacturers & Traders in London and
the Construction Industry Training Board HQ in
Norfolk. An internal operating brand,
“ingredients”, was launched and is being rolled
out throughout our premium catering contracts. 
MITIE Landscape (Southern) Ltd commenced
trading in July 2002 and has already secured
contracts including Shell International Residential
Estate, MCI and Novartis. This is our first
company in grounds maintenance and we 
intend to develop national coverage with
additional start-up companies.
Our Security business has continued to grow
nationally. It has been successful in a number 
of joint ventures with MITIE Managed Services
including Clariant UK. It has also won contracts
for Coca-Cola Ltd and Maryhill Shopping Centre
in Glasgow.  ENGINEERING MAINTENANCE
A 24 hours a day, 365 days 
a year operation offering
planned and reactive
maintenance for mechanical
and electrical building
services. All services are
delivered by directly employed
MITIE staff with an emphasis 
on pro-active management,
engineering excellence,
quality and safety.
Managed Services has expanded rapidly over
the last year with two major five year contract
wins for the Home Office, covering some 540
buildings across the North and South West. With
complete UK coverage following the start of
MITIE Managed Services (South West & Wales)
Ltd in January 2003, we are in a strong position
to bid for some larger scale national contracts.
Managed Services has secured further facilities
management contracts as service provider on PFI
schools projects and additional private sector
clients including IMS Healthcare.
Business Services continued its rapid growth
and now serves seven of the world’s top 20 law
firms including Linklaters and Clifford Chance.
New contracts were secured in the banking sector
and our work for Barclays Capital, Merrill Lynch
and other large financial institutions expanded 
in scope.
Engineering Maintenance has had a very
successful year. Our national coverage has
increased with the establishment of MITIE
Engineering Maintenance (Caledonia) Ltd and
MITIE Engineering Maintenance (North) Ltd. 
We have also merged the two South West
businesses to reduce overheads and improve
efficiency. Engineering Maintenance has taken
the lead role in the Rolls-Royce contract which
also includes cleaning, catering, security and
landscaping. There was a bundled services success
with Dell Computers, a new contract with the
Royal Courts of Justice in London, a national
contract with HQ Global and extended business
with RAF Waddington and the Foreign 
& Commonwealth Office.
The Support Services Division is well placed to
produce further growth as it benefits from an
increase in the tendency towards bundled services
and the increasingly sophisticated technical and
commercial demands of our customers. 9 MITIE GROUP PLC ANNUAL REPORT 2003
Chief Executive’s Review
CLEANING
This MITIE discipline offers 
a comprehensive range of
integrated support services
including specialist and
general cleaning, catering,
security, pest control and
landscaping. Customers
range from High Street 
banks to schools and 
major industrial and
manufacturing plants.
MANAGED SERVICES
Our facilities and property
infrastructure management
service is geared towards
enabling finance, property
and facility directors to focus
on their own core business.
Bespoke service packages 
are developed for each 
client by mixing in-house
components with our own
services to deliver cost
certainty, and total flexibility. 
MITIE - 
Management Incentive 
Through Investment Equity
Health, Safety and the Environment
Individual Managing Directors within the Group
recognise and accept responsibility for Health,
Safety and the Environment. They are supported
by 26 advisors who make up the department
from whom the Health, Safety and Environment
Committee is formed. This committee is chaired
by the Head of Health & Safety who reports
directly to me. I continue to drive improvements
to the way in which we manage safety and
the environment.
Quality
It is only by remaining 100% committed to
quality in all its aspects that we will help our
customers to meet their objectives and build on
our own competitiveness. The Chairman’s
Quality Award this year is based on financial
leadership, the first criteria of the Business
Excellence Model as promoted by the British
Quality Foundation. Final assessments will be
made in July 2003 with awards presented to
regional winners at the Annual General Meeting
in September 2003. The overall winners will
receive a prize of MITIE Group shares. Next year,
we will take customer service and results as our
topic, followed in successive years by the
remaining three criteria.
Conclusion
MITIE has continued to make progress in a
challenging year. This is a tribute to our dedicated
workforce who are our main asset and the envy
of our competition. I would like to take this
opportunity of expressing my sincere thanks for
their hard work and loyalty. I look forward to
another successful year in 2003-2004.
Ian R Stewart
Chief Executive 10 MITIE GROUP PLC ANNUAL REPORT 2003
Corporate Social Responsibility At MITIE 
we recognise that our Company does not
operate in isolation. 
We are committed to proactively managing
issues related to health, safety and the
environmental impact of our business
activities. We constantly challenge
ourselves to improve our performance in
these areas. The Chief Executive retains
responsibility for these areas at Board 
level and continually drives forward
improvements throughout the Group.
People
MITIE provides equal opportunities and is
committed to the principle of equality regardless of
race, creed, colour, nationality, sex or disability. We
apply employment policies that are fair, equitable
and consistent with the skills and abilities of our
employees and the needs of the business.
The Board of Directors has identified a number of
policy areas that are essential to the future success
of the Company. These include, among others,
the recruitment and selection of employees,
communications, consultation and participation
and equal opportunity. We also recognise that for
these policies to be successfully implemented,
operated and developed, there should be an
awareness and acceptance of them at every level
of the organisation. 
We do not condone any discriminatory act 
or attitude in the conduct of our business with
the public or our employees.
MITIE is an Investor in People organisation and
aims to maximise the potential of all our
employees. We recruit, train and retain quality
people by adopting best practice in every phase 
of the employment life cycle. Current training
programmes in place across the Group range from
craft apprenticeships to the MBA Programme.
Many of our managers are currently training
for one of the four levels of management
qualifications available within the Company.
Human Resources Managers are employed in 
each individual MITIE discipline to assist the
continuous development of recruitment, training
and retention of quality people.
Health & Safety 
MITIE strives at all times to achieve 
a dynamic and positive safety culture. Over 
the past year we have clearly defined safety
management responsibilities at all levels of the
organisation and instituted new procedures for
managing work related stress and other
occupational risks. 
A series of workshops have been held for the
subsidiary company directors. All subsidiary
company directors have attended the IOSH 
Safety for Senior Executives’ Course. However, 
the principal focus for health and safety training
remains with our workforce and some of the
training that has taken place is shown in the
chart above.
This year we are setting clear improvement 
targets focused on our principal areas of health
and safety risk. By the end of 2003, we anticipate
that five out of our six operational areas will
come under the externally accredited safety
management system OHSAS 18001. As part of
this process, twelve of the Group’s safety advisers
have already undertaken formal accredited
training in accident investigation and evaluation.
Our aim is to build on our capabilities to enable
us to protect all of our employees, customers and
the public.
“We constantly challenge ourselves to improve
our performance in the areas of health, safety
and environmental impact.”
Building Services 921
308 Support Services
IOSH MANAGING SAFELY OR CITB/HVCA EQUIVALENT
Building Services 156
49 Support Services
IOSH WORKING SAFELY OR CITB/HVCA EQUIVALENT
IOSH TRAINING 2003
employees
employees
employees
employees 11 MITIE GROUP PLC ANNUAL REPORT 2003
Environment
MITIE recognises the potential consequences 
if we do not operate in an environmentally
responsible way. Our companies operate in
accordance with our environmental policy 
and more than 60% of our activities 
are already accredited to the ISO 14001
environmental management standard.
We encourage the highest level of awareness and
understanding of environmental issues and work
closely with our clients when selecting methods
of working and use of building materials,
chemicals and the like.
We maintain a policy of “minimum waste” 
which is essential to the efficient running of our
operations. We promote this policy internally 
and encourage employees to avoid unnecessary 
or extravagant use of services, time, energy,
materials and machinery. The Company seeks 
to promote conservation and the use of natural
resources to minimise environmental pollution.
The Company undertakes to act wherever
necessary to meet the standards of current
environmental legislation and continues to
review its policies, programmes and services
towards this end. All waste generated is 
properly disposed of in accordance with current
legislation. Our waste management service has
achieved considerable success in reducing clients’
waste, resulting in major financial savings for the
clients and a reduction in waste going to landfill.
Sustainable development lies at the core of
MITIE’s operations, delivering significant business
benefits whilst protecting resources and
improving the quality of life for both current 
and future generations. This view is backed 
by our commitment to include the principles 
of sustainability into business strategies and
processes at a high level and incorporating it 
into our culture.
In the last year, we have initiated a more 
stringent process of collecting data relating to the
environmental impacts of our use of energy, fuel,
paper and water and our generation of waste. The
data has enabled us to set clear progress targets in
all of these areas. 
Community
Providing opportunities for the people living 
in the communities in which we work is one 
of our main employment objectives. During the
course of this year, we formed a partnership with
St Luke’s School in Portsmouth where we have
worked with the school to improve their training
facilities. Our craftsmen and managers are
teaching their skills to the pupils and we have
started a programme of employing the pupils as
MITIE apprentices at the end of the course. We
intend to roll this programme out to other areas
of the country.
Our major nominated charity this year has 
been Leonard Cheshire. The association with
Leonard Cheshire has given our employees a
greater understanding of disability issues. Our
employees are also actively working with several
local charities. 12 MITIE GROUP PLC ANNUAL REPORT 2003
Group Finance Director’s Review Turnover
increased by 13.9% on continuing operations
and 9% on total turnover. Profit on ordinary
activities before tax, goodwill amortisation and
impairment increased by 10%. 
Highlights
• Profit on ordinary activities before tax, goodwill amortisation and impairment 
up to £34.1 million (10% growth)
• Profit on ordinary activities before tax up to £31.8 million (5% growth)
• Net funds of £58.8 million
• EPS (before goodwill amortisation and impairment) of 7.3p (8% growth)
• EPS of 6.5p
RUBY McGREGOR-SMITH GROUP FINANCE DIRECTOR
Turnover
Total turnover increased by 9% to £565.8 million.
Turnover from continuing operations increased
by 13.9% to £562.3 million.
Profit on Ordinary Activities before Tax,
Goodwill Amortisation and Impairment
Profit on ordinary activities before tax and
goodwill was £34.1 million, an increase of 10%.
In addition to the sale of our Access contracting
companies, we are closing our MITIE HydroCat
Ltd business and the marine portion of our MITIE
Lindsay Ltd business after losses in the year,
before tax, of £2.2 million.
Goodwill
Following a review of the carrying value of the
investment in the Lindsay business, an
impairment of £1.1 million has been included in
the goodwill charge for the year. This impairment
related to the acquisition made in 1999 and
consequently there was no cash impact this year.
The increase in the overall charge to £2.3 
million also reflects goodwill amortisation on 
the acquisition of the minority shares in the
businesses that earned out during the year.
Acquisitions
During the year the Group has acquired the
following:
• The minority interests of MITIE Managed
Services (North and Scotland) Ltd (formerly
known as MITIE Managed Services Ltd) on
14 May 2002 for a total consideration of
£13.4 million consisting of cash of
£0.9 million and 8,870,000 shares.
• The minority interests of MITIE Deeds Ltd on
13 December 2002 for a total consideration
of £1.2 million consisting of cash of £0.06
million and 1,456,000 shares.
• The entire share capital of Scotgate
Engineering Services Ltd on 19 December 2002
for a total consideration of £2.9 million.
Subsequent to the year end, MITIE has acquired
Trident Safeguards Ltd. The consideration
comprises an initial cash payment of £8.2 million
on completion with additional consideration
according to future profitability payable in cash
and bank guaranteed loan notes. The additional
consideration is split as follows:
• £1 million payable on or around the first
anniversary of the acquisition if an agreed
profit threshold for the year ended 31 March
2004 is met;
• £2 million payable at any time between 2006
and 2010 if a second agreed profit threshold
is met; and
• if this second profit threshold is exceeded
then an additional amount will become
payable, with the total consideration capped
at £20 million.
In addition, MITIE has acquired Eagle Pest
Control Services UK Ltd. The consideration
comprises an initial cash payment of £2.8 million
with additional consideration based on future
profitability, also payable in cash as follows:
• £1.2 million payable at any time between
2008 and 2013 if an agreed profit threshold
is met; and
• if this profit threshold is exceeded then an
additional amount will become payable, with
the total consideration for Eagle capped
at £6 million. 13 MITIE GROUP PLC ANNUAL REPORT 2003
Disposals
On 11 June 2002, the Access contracting
companies were sold for a cash consideration 
of £4.9 million. With this, the settlement of other
inter-company balances by the Purchaser and 
the Purchaser assuming responsibility for bank
indebtedness, MITIE’s cash position increased 
by £11.4 million.
Taxation
The tax charge for the year was £10.2 million, a
rise of 13% on last year’s charge of £9 million.
The increase in the effective tax rate to 32%
(2002: 29.7%) is largely as a result of the increase
in goodwill amortisation which is not allowable
for tax purposes.
Interest
Interest for the year increased to £1.5 million
(2002: £0.4 million).
Earnings Per Share
Earnings per share before goodwill amortisation
and impairment grew by 8% from 6.8p in 2002
to 7.3p this year (see Note 7 for reconciliation
to basic earnings per share).
The increase in goodwill amortisation and
impairment have impacted on post goodwill
earnings per share growth, which is unchanged
at 6.5p (2002: 6.5p).
Net Funds
Net funds increased during the year from £24.3
million to £58.8 million. Included within this
movement is an inflow from the sale of the
Access contracting companies of £11.4 million.
Pensions
The Group operates two defined benefit pension
schemes and a defined contribution scheme for
its employees as described in Note 26. The total
pension charge for the year was £3.3 million
(2002: £3.0 million) with the benefit schemes
accounting for £3.2 million of this (2002: 
£2.7 million).
The Group continues to apply SSAP 24 in
accounting for retirement benefits. The
introduction of the accounting standard FRS 17
Retirement Benefits has been delayed by the
Accounting Standards Board until 2005. The
Group has continued to apply the transitional
rules and disclosures (Note 26). At 31 March 2003,
the actuaries estimate that there was a net deficit
of £7.8 million in relation to the defined
benefit schemes.
The defined benefit schemes have an MFR
(Minimum Funding Requirement) cover of 115%.
In order to maintain funding ratios, the Board
agreed in March 2002 to an increase in
contribution rates for employees to 7.5% (2002:
5%) and Company contributions to 10% (2002:
9%). It is believed that this action, together with
improving financial conditions, will reduce the
possibility of any future shortfalls. 14 MITIE GROUP PLC ANNUAL REPORT 2003
Group Finance Director’s Review
Treasury Policies
Treasury management: Group Treasury has
responsibility for managing and reducing
financial risk and ensuring sufficient liquidity is
available to meet foreseeable needs. It operates
within policies and procedures approved by the
Board which have not changed during the year.
Borrowings are arranged centrally by Group
Treasury and made available to operating
subsidiaries on commercial terms. The Board’s
ongoing policy is to finance the Group through
retained earnings and borrowings, placing and
investing surplus cash with major banks and
financial institutions. 
Interest rate risk: The Group’s exposure to interest
rate fluctuations is currently limited to the
performance due to our net funds position. 
A portfolio of AAA rated funds, money market
deposits and corporate deposit accounts are used
to maximise returns from funds while minimising
overall exposure to any one financial institution. 
The maturity profile of banking facilities is
regularly reviewed and well in advance of their
expiry, the facilities are extended and replaced.
Further details on financial assets and liabilities
are given in Note 15 to the Accounts.
Accounting Developments 
Last year saw a significant impact on the
Accounts following the introduction of FRS 17
Retirement Benefits, FRS 18 Accounting Policies,
and FRS 19 Deferred Taxation. The impact of
these standards was included in the Accounts
for the year ended 31 March 2002. 
This year has seen a continuation in our prudent
approach to all accounting standards. UITF
Abstract 34 Pre-Contract costs was issued in May
2002 for accounting periods ending on or after 
22 June 2002. This abstract requires all bid costs
to be expensed up to the point where we can be
‘virtually certain’ of the award of a contract. 
After this point costs may be capitalised and
recognised over the life of the contract. This
treatment is consistent with the way we have
always accounted for bid costs.
Ruby McGregor-Smith
Group Finance Director MITIE GROUP PLC ANNUAL REPORT 2003 15
DAVID M TELLING  ‡ 
EXECUTIVE CHAIRMAN 
Aged 64, formed the first MITIE Group Company in 1987.
He is also Chairman of Empresaria Group plc and Tribal
Group plc.
SIR JOHN JENNINGS CBE, FRSE  *†‡ 
NON-EXECUTIVE DEPUTY CHAIRMAN AND CHAIRMAN 
OF THE NOMINATION COMMITTEE 
Aged 66, he became a Director in 1998 and is a member of
the International Advisory Boards of the Bechtel and Toyota
Corporations.  He was previously Chairman of the Shell
Transport and Trading Company plc.
IAN R STEWART 
CHIEF EXECUTIVE
Aged 61, he was appointed to the Board in January 1990
and became Chief Executive in August 2001.
COLIN S ACHESON 
DIRECTOR RESPONSIBLE FOR ENGINEERING SERVICES
Aged 52, he joined the Group in December 1989 and
was appointed to the Board in August 2001. He is also
a Director of The Platform Company (Holdings) Ltd.
N ROGER GOODMAN 
DIRECTOR RESPONSIBLE FOR CLEANING SERVICES
Aged 56, he joined the Group in June 1993 and was
appointed to the Board in August 2001.
COLIN S HALE 
DIRECTOR RESPONSIBLE FOR MANAGED SERVICES AND 
FOR GROUP STRATEGIC DEVELOPMENT
Aged 46, he joined the Group in April 1998 and was
appointed to the Board in August 2001.
RUBY McGREGOR-SMITH ACA 
GROUP FINANCE DIRECTOR
Aged 40, she joined the Group and was appointed to 
the Board on 2 December 2002.  She was previously at
Babcock International Group plc and Serco Group plc.
BILL ROBSON 
DIRECTOR RESPONSIBLE FOR PROPERTY SERVICES
Aged 52, he joined the Group in January 1992 and was
appointed to the Board in August 2001.
MANISH J CHANDE  *†‡ 
NON-EXECUTIVE DIRECTOR
Aged 47, he was appointed to the Board on 12 July 2002.
Chief Executive of Mountgrange Capital plc. He is also
Chairman of National Car Parks Ltd and a Director
of Property Fund Management Plc.  He was previously
Chief Executive of Land Securities Trillium Ltd and
a board member of Land Securities plc.
DONALD C MACPHERSON  *† 
SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR AND
CHAIRMAN OF THE REMUNERATION COMMITTEE
Aged 71, he became a Director in 1992.  He is also
a member of the International Advisory Board
of Southern Pacific Petroleum, a Director
of Homestyle plc and of International Bioscience
Management Ltd.
CULLUM McALPINE 
NON-EXECUTIVE DIRECTOR
Aged 56, he was appointed to the Board on 1 April 2003.
A Director of Sir Robert McAlpine Ltd and Chairman of
Renewable Energy Systems Ltd.
DAVID C ORD  *†‡ 
NON-EXECUTIVE DIRECTOR AND CHAIRMAN 
OF THE AUDIT COMMITTEE
Aged 54, he was appointed to the Board on 30 October
2002.  He is also Managing Director of The Bristol Port
Company.
* Member of the Remuneration Committee
† Member of the Audit Committee
‡ Member of the Nomination Committee
Board of Directors MITIE GROUP PLC ANNUAL REPORT 2003 16
The Directors submit their Report together with the audited financial statements for the year ended 31 March 2003.
Principal Activity
The Group’s principal activity is the provision of services to building owners and occupiers.  The principal activity of the Company is to
provide management services to the Group.
Results and Dividends
The Group profit on ordinary activities before tax amounted to £31.8 million (2002: £30.4 million) which, after tax and minority interest,
gives profits attributable to Shareholders of £19.5 million (2002: £18.6 million). The Directors recommend a final dividend of 1.1p per share
which, together with the interim dividend of 0.8p per share paid on 31 March 2003, results in a total dividend of 1.9p (2002: 1.6p) per share.
If approved, the final dividend will be paid on 30 September 2003 to those Shareholders registered on 5 September 2003.  The retained profit
for the year is £13.7 million (2002: £14 million).
The review of the year’s operations and future developments are contained in the Chairman’s Statement and the Chief Executive’s and Group
Finance Director’s Reviews.
Tangible Fixed Assets
Changes in tangible fixed assets during the year are given in Note 9 to the Accounts.
Donations
Charitable contributions made during the year amounted to £13,930 (2002: £10,469). As a matter of policy, no political contributions were
made during the year (2002: £Nil).
Share Capital
Details of changes in the share capital during the year and the number of Ordinary Shares in issue at the year end are given in Note 17 to
the Accounts.
Details of substantial shareholdings in the Company are given in Note 27.
Directors
Details of the Board of Directors are given on page 15.
Manish J Chande and David C Ord were appointed Non-Executive Directors on 12 July 2002 and 30 October 2002 respectively. 
Ruby McGregor-Smith was appointed Group Finance Director on 2 December 2002.  Paul A Kilduff resigned as a Director on 8 November 2002
and Nigel F Swiffen retired as a Non-Executive Director on 29 January 2003.  Cullum McAlpine was appointed a Non-Executive Director on
1 April 2003.
David M Telling, Sir John Jennings and Colin S Acheson retire by rotation and being eligible, offer themselves for re-appointment at the
Annual General Meeting.  David C Ord, Ruby McGregor-Smith and Cullum McAlpine, all having been appointed since the last Annual General
Meeting, will retire and offer themselves for re-election. 
Details of the Directors’ interests in the share capital of the Company are shown in the Remuneration Report.
Going Concern
The Directors have formed a judgement that there is a reasonable expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future.  For this reason, the Directors continue to adopt the going concern basis in preparing
the Accounts.
Payment of Creditors
The Group’s policy is to comply with the terms of payment agreed with suppliers. Where terms are not negotiated, the Group endeavours to
adhere with the suppliers’ standard terms.  At 31 March 2003, the Company had 42 days’ purchases outstanding (2002: 32 days).
Directors’ Report
as at 31 March 2003 MITIE GROUP PLC ANNUAL REPORT 2003 17
Directors’ Report
as at 31 March 2003
Employee Involvement
The Group offers equal opportunities to all applicants for employment whatever their sex, race or religion. Disabled persons are considered
for employment, training, career development and promotion on the basis of their aptitudes and abilities in common with all employees,
providing the disability does not make the particular employment impractical, or the employee is unable to conform to the stringent
regulations which apply to the operations of the trading companies.
The Directors acknowledge the importance of good communications and employee relationships. In each trading company, there is a direct
relationship between the Managing Director and individual employees of the company.  In these conditions, complex consultative procedures
are seldom required to ensure that there is an understanding of the purpose of the business and the commercial realities of success.
The Directors believe that employees should be encouraged to become Shareholders. The Savings Related Share Option Schemes, established in
1991 and 2001, currently have a total of 1,741 contributing employees.   
Auditors
Deloitte & Touche have expressed their willingness to continue in office as Auditors and a Resolution to re-appoint them will be proposed at
the Annual General Meeting.
Deloitte & Touche have informed the Directors that they are intending to transfer their business to a limited liability partnership, incorporated
under the Limited Liability Partnerships Act 2000, to be known as Deloitte & Touche LLP. It is the current intention of the Directors to use the
Company’s statutory power to give consent to the appointment of Deloitte & Touche being treated as extending to Deloitte & Touche LLP at
the appropriate time. 
Company Status
The Company was not a close company within the terms of the Income and Corporation Taxes Act 1988 during the year and there has been
no change to this status since 31 March 2003.
Annual General Meeting
The Annual General Meeting will be held at 12 noon on Thursday, 18 September 2003 at The Stable Block, Barley Wood, Wrington, Bristol. 
The Resolutions to be proposed at the Annual General Meeting are contained in the Notice of Meeting.
Resolution 11 renews the Directors’ authority to allot new Ordinary Shares, not exceeding 5% of the issued share capital, for cash without first
being required to offer them to existing Shareholders in the proportion of their holdings. Resolution 12 renews the Company’s authority to
purchase its own shares. The Directors would only exercise this authority if satisfied that to do so would result in an increase in the Group’s
earnings per share and would be in the interests of Shareholders generally. The Directors do not have any immediate intention of exercising
such authority.
Statement of Directors’ Responsibilities
United Kingdom Company Law requires the Directors to prepare financial statements which give a true and fair view of the state of affairs of
the Company and the Group as at the end of the financial year and of the profit or loss of the Group for that period. In preparing those
financial statements the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent; and
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the 
financial statements. 
The Directors have responsibility for ensuring that the Company keeps accounting records which disclose with reasonable accuracy the
financial position of the Company and which enable them to ensure that the financial statements comply with the Companies Act 1985.
The Directors also have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and 
to prevent and detect fraud and other irregularities.
This Report was approved by the Board of Directors on 4 July 2003 and signed on its behalf.
Corina K Ross
Company Secretary MITIE GROUP PLC ANNUAL REPORT 2003 18
This Report has been prepared in accordance with the Directors’ Remuneration Report Regulations 2002 which introduced new statutory
requirements for the disclosure of directors’ remuneration in respect of periods ending on or after 31 December 2002. The Report also meets
the relevant requirements of the Listing Rules of the Financial Services Authority and describes how the Board has applied the Principles of
Good Governance relating to directors’ remuneration. As required by the Regulations, a Resolution to approve the Report will be proposed at
the Annual General Meeting of the Company at which the financial statements will be approved.
The Regulations require the Auditors to report to the Company’s members on the “auditable part” of the Directors’ Remuneration Report and
to state whether in their opinion that part of the Report has been properly prepared in accordance with the Companies Act 1985 (as amended
by the Regulations). The Report has therefore been divided into separate sections for audited and unaudited information.
Information Not Subject to Audit
Remuneration Committee
The Committee consists of four of the Company’s Non-Executive Directors, Donald C Macpherson (Chairman), Sir John Jennings,
Manish J Chande and David C Ord. Nigel F Swiffen was a member of the Committee until shortly prior to his retirement on 29 January 2003.
The Committee consults the Chairman and Chief Executive about its proposals and has access to professional advice from outside the
Company. During the year, the Committee did not receive any material assistance from any external professional advisers.  
Remuneration Policy
The basic salaries and other benefits of the Executive Directors are determined by the Committee in the light of the need to attract, retain and
motivate Directors of the calibre needed and to reward them for enhancing value to Shareholders. The Committee has regard to executive
remuneration packages of similar jobs in comparative groups of companies. There are no current plans to change this package for future years.
Executive Directors are entitled to accept appointments outside the Company providing permission is sought from the Chairman or
Chief Executive.
Components of Remuneration
Components of remuneration are:
• Basic salary determined by the Committee and reviewed annually on 1 April.
• Performance related bonus based on improvements in profits before taxation and/or earnings per share. Ruby McGregor-Smith’s bonus was
guaranteed until 1 April 2003 when her terms became consistent with the other Executive Directors.
• Pension contributions through membership of the Company’s pension scheme. Basic salary alone is pensionable.
Contracts of Service
All Executive Directors have contracts with an indefinite term providing for a maximum of one year’s notice. There are no provisions for
compensation payable upon early termination in the Directors’ contracts.
Non-Executive Directors’ Remuneration
The remuneration of Non-Executive Directors is determined by the Board and reflects the knowledge and experience which they bring to the
Group. They do not participate in the Company’s bonus or share schemes. They are appointed under fixed term agreements, and, are not
members of the Company pension scheme nor do they receive taxable benefits in kind. Sir John Jennings’, Donald C Macpherson’s,
Manish J Chande’s and David C Ord’s remuneration comprises shares in MITIE Group PLC at the market value on the issue date.
Performance Graph – MITIE’s TSR vs FTSE Mid 250 index
The following graph shows the Company’s performance, measured by total shareholder return (“TSR”), compared with the performance of the
FTSE Mid 250 index over the past five years. The Committee believes that this comparison provides a clear picture of how well the Company
has performed relative to a range of companies of a comparable size.
TSR is defined as the return Shareholders would receive if they held a notional number of shares and received dividends on those shares over a
period of time. It measures the percentage growth in the Company’s share price together with the value of any dividends paid, assuming that
the dividends are re-invested into the Company’s shares.
Source: Datastream
Remuneration Report 
300
Apr 
98
Oct 
98
Date
Apr 
99
Oct
99
Apr 
00
Oct
00
Apr 
01
Oct
01
Apr 
02
Oct
02
Mar
03
250
200
150
100
50
0
MITIE GROUP 
FTSE MID 250 
Index MITIE GROUP PLC ANNUAL REPORT 2003 19
Executive Directors
D M Telling (Chairman)
I R Stewart
C S Acheson
N R Goodman
C S Hale
R McGregor-Smith
W Robson
Former Executive Directors
J J Clifford
P A Kilduff
Non-Executive Directors
Sir John Jennings
D C Macpherson
M J Chande 
(i)
D C Ord 
(i)
Former Non-Executive
Director
N F Swiffen
Total
Total
533
518
80
125
172
–
127
203
252
48
24
–
–
15
2,097
324
493
175
255
246
85
263
–
329
35
18
11
13
15
2,262
50
50
10
10
10
–
10
–
25
–
–
–
–
–
165
24
27
15
17
16
5
20
–
14
–
–
–
–
–
138
–
166
–
78
70
25
83
–
–
–
–
–
–
–
422
–
–
–
–
–
–
–
–
200
–
–
–
–
–
200
250
250
150
150
150
55
150
–
90
35
18
11
13
15
1,337
1 April 2003
1 April 2003
1 April 2003
1 April 2003
1 April 2003
1 April 2003
1 April 2003
2002
Total
£’000
2003
Total
£’000
Pensions
£’000
Benefits
£’000
Performance
related
bonuses
£’000
Compensation
for loss of
office
£’000
Date of
latest
contract
Base
salary/fees
£’000
Information Subject to Audit
Remuneration
The table below provides details of Directors’ remuneration paid to or receivable by each person who served as a Director at any time during
the year.
(i) Fees to third parties comprise amounts paid or payable to Mountgrange Ltd of £11,112 and David Ord Ltd of £12,522 under agreements to
provide the Group with the services of M J Chande and D C Ord respectively. These agreements require the Directors to attend all meetings as
notified by the Group; to serve on the Audit, Nomination and Remuneration Committees as the Group may request, and, to carry out such
functions as the Group may require.
Remuneration Report 
Pensions
D M Telling is a member of a money purchase scheme and the Company’s contributions to this scheme were £50,000 (2002: £50,000).
The pension benefit of Directors who are members of the MITIE Group PLC defined benefit scheme is set out below:
I R Stewart
C S Acheson
N R Goodman
C S Hale
W Robson
74
28
14
8
18
12
2
2
2
2
13
2
1
2
2
61
26
13
6
16
Accrued pension
31 March 2003
£’000
Real increase in
accrued pension
£’000
Increase in
accrued pension
during the year
£’000
Accrued pension
31 March 2002
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 20
Directors’ Interests
The beneficial interests of the Directors who were in office on 31 March 2003 in the share capital of the Company are as shown below:
The transfer values disclosed above do not represent a sum paid or payable to the individual Director. Instead they represent a potential
liability of the pension scheme.
Remuneration Report continued
Pensions continued
The following table sets out the transfer value of the Directors’ accrued benefits under the defined benefit scheme calculated in a manner
consistent with “Retirement Benefit Schemes – Transfer Values (GN11)” published by the Institute of Actuaries and the Faculty of Actuaries.
I R Stewart
C S Acheson
N R Goodman
C S Hale
W Robson
864
155
109
33
100
138
10
12
7
10
130
(50)
(18)
(10)
(31)
19
7
7
7
7
715
198
120
36
124
Executive Directors
D M Telling
I R Stewart
C S Acheson
N R Goodman
C S Hale
R McGregor-Smith
W Robson
10,585,000
4,720,000
1,423,100
1,745,100
355,000
–
2,004,040
8,352,730
4,992,872
1,423,100
1,949,213
2,396,134
9,353
2,314,713
Non-Executive Directors
Sir John Jennings
D C Macpherson
M J Chande
D C Ord
170,000
148,000
–
20,000
1,230,567
168,000
27,508
67,669
Transfer value
31 March 2003
£’000
1 April 2002
or later date of
appointment
Ordinary Shares
of 2
1
/2p
31 March 2003
Ordinary Shares
of 2
1
/2p
Real increase in
accrued pension
£’000
Increase in
accrued pension
over the year (net
of contributions)
£’000
Contributions
made by the
Director
£’000
Transfer value
31 March 2002
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 21
Remuneration Report
– 3,500
MITIE Business Services Ltd
R McGregor-Smith
On 16 August 2002, the issued share capital of the company was increased by the creation of new A and B 1p Ordinary shares, a bonus issue
of 1p Ordinary shares was made and the existing Ordinary shares were converted into deferred shares of £1 each.
On 13 December 2002, MITIE Group PLC acquired the remaining minority interest in MITIE Deeds Ltd, including the interests of the Director
shown above, for a total consideration of £1,249,000, of which £56,000 was in the form of cash and the remainder by the issue of 1,456,000
MITIE Group PLC Ordinary Shares of 2
1
/ 2p each.
On 17 May 2002 all loan stock in MITIE Catering Services Ltd was redeemed in exchange for B Ordinary shares at par.
On 19 June 2002, all loan stock in MITIE Security (Southern) Ltd was redeemed in exchange for B Ordinary shares at par.
No other changes in Directors’ interests have taken place since 1 April 2003.
No Director held options at any time during the year and no options have been granted to any Director since 1 April 2003.
Donald C Macpherson
Chairman, Remuneration Committee
2,500 2,500
MITIE Security (Southern) Ltd
N R Goodman
5,000 8,333
MITIE Catering Services Ltd
N R Goodman
17,000 –
MITIE Deeds Ltd
W Robson
B Ordinary shares 
of 1p each
B Ordinary
shares
of 
£1 each
Loan stock 
£
B Ordinary shares 
of 1p each
B Ordinary shares
of 1p each and
deferred shares of 
£1 each
B Ordinary shares 
of 1p each
Loan stock
£
B Ordinary shares 
of £1 each
Directors also had beneficial interests in the capital of subsidiary companies as follows:
D M Telling
Sir John Jennings
I R Stewart
N R Goodman
C S Hale
W Robson
MITIE Managed Services (North and Scotland) Ltd (formerly MITIE Managed Services Ltd)
23,000
100,000
25,000
20,000
200,000
20,000
–
–
–
–
–
–
On 14 May 2002, MITIE Group PLC acquired the remaining minority interest in MITIE Managed Services (North and Scotland) Ltd (formerly
MITIE Managed Services Ltd), including the interests of the Directors shown above, for a total consideration of £13,408,000, of which
£902,000 was in the form of cash and the remainder by the issue of 8,870,000 MITIE Group PLC Ordinary Shares of 2
1
/ 2p each.
Ordinary shares of
1p each and
deferred shares of
£1 each
Ordinary shares of
1p each and
deferred shares of
£1 each
1 April 2002 31 March 2003 MITIE GROUP PLC ANNUAL REPORT 2003 22
Corporate Governance
The Group provides a wide range of support services to its customers and in so doing seeks to enhance shareholder value. An effective system
of Corporate Governance is fundamental to fulfilling the Group’s corporate responsibilities and the achievement of its financial objectives.
The policy of the Board of MITIE is to manage its affairs in accordance with the Principles of Good Governance and the Code Provisions set
out in Section 1 of the Combined Code on Corporate Governance incorporated into the Listing Rules issued by the Financial Services Authority.
Board and Committee Structure
Board of Directors
The Board of MITIE comprised seven Executive and four independent Non-Executive Directors at the end of the year. Since the year-end,
Cullum McAlpine has been appointed a Non-Executive Director. All Non-Executive Directors are considered to be independent of management
and free from any business or other relationships which could materially interfere with the exercise of their independent judgement. 
There is a clear division of responsibility between the Chairman and Chief Executive which ensures a balance of power and authority such
that no one individual has unfettered powers of decision.
The Board meets at least seven times a year and is responsible for overall strategy and performance, acquisitions, capital expenditure and the
safeguard of the assets of the Group. At least a week before each Board meeting, each Director is supplied with an agenda and sufficient
supporting papers that provide the appropriate information required to properly discharge their duties. Included within these papers are
detailed results for each of the Group’s operating Divisions as well as on an overall basis. Other papers include a treasury report detailing the
cash position across the Group and proposals regarding future potential acquisitions, disposals, start-ups or restructuring. The monthly results
and analysis are also circulated in months where no Board meeting is held.
The Board constantly reviews the quality, nature and presentation of information provided and requests changes where they feel such changes
will offer information that is more appropriate. 
All Directors are appointed by the Board as a whole and once formally appointed, each Director submits himself for re-election at least every
three years. None of the Executive Directors have service contracts with notice periods greater than twelve months.
All Directors have access to the advice and services of the Company Secretary, who is responsible for ensuring that Board procedures and
applicable rules and regulations are observed. The Directors are able to seek independent professional advice if necessary at the Group’s expense.
No advice has been sought to date.
Executive Committee
The Executive Committee meets at least five times a year. It is responsible for the day to day management of the business. It is chaired by the
Chief Executive and its other members currently comprise the Chairman, the Group Finance Director, the Managing Directors of the Business
Units, the Head of Corporate Affairs and the Head of Central Services.
Audit Committee
The Audit Committee comprises four Non-Executive Directors. The Committee meets at least twice a year to examine and consider matters
relating to the affairs of the Group. These matters include examination of the Company’s Annual Accounts and review of the internal financial
control procedures in place for controlling the Group’s business, as well as compliance with accounting standards and generally accepted
accounting principles.
In addition, the fees and objectivity of the Group’s Auditors and other external accounting advisers are considered by members of the Committee.
Detailed presentations to the Committee are made, on request, by the Group’s internal risk management function and the Group’s external
Auditors. The presence of the Group Finance Director and other senior executives from the Group may be requested, but the Committee has
access to the Auditors’ advice without the presence of the Executive Directors.
Remuneration Committee
The Remuneration Committee comprises four Non-Executive Directors. The Remuneration Committee makes recommendations to the Board
on the Group’s framework of Executive remuneration and determines on its behalf specific remuneration packages for each of the Executive
Directors. In framing its remuneration policy, the Committee has given full consideration to the provisions of Section 1B of and Schedule A to
the Combined Code.  MITIE GROUP PLC ANNUAL REPORT 2003 23
Nomination Committee  
The Nomination Committee comprises three Non-Executive Directors and the Chairman. It is responsible for monitoring the composition
and balance of the Board and making recommendations to the Board on new Board appointments and succession planning issues.
Terms of reference exist for the Board and its Committees.
Directors’ Remuneration
The Remuneration Report on pages 18 to 21 includes details of the remuneration policy and of the remuneration of the Directors.
Internal Control
The Directors are responsible for the Group’s system of internal financial and operating controls, which are designed to meet the Group’s
particular needs and aim to safeguard Group assets, ensure that proper accounting records are maintained and that the financial information
used within the business and for publication is reliable. Any system of internal control can only provide reasonable, but not absolute,
assurance against material misstatement and loss.
Key features of the system of internal control are as follows:
Group Organisation and Culture
By its statements and actions, the Board emphasises a culture of integrity, competence, fairness and responsibility. The Board focuses mainly 
on strategic issues, senior management and financial performance. The Executive Committee concentrates on the formulation of strategic
proposals to the Board and operational decision making. The individual operating companies’ Managing Directors manage their businesses
with the support of senior management. 
Information Systems
There is a comprehensive system of reporting to the Board, based on an annual budget prepared in line with the business plan, half yearly
forecasts and regular reporting of operating results. Key operational performance indicators are continuously monitored by the Executive
Directors and senior management.
Individual Company Controls
Each operating company regularly reviews its risk profile using a common strategic risk framework. Early warning mechanisms together with
the system for reducing the risks are documented. The operating companies refine each framework in the light of changing aspects of its
business. Furthermore, individual companies complete an annual Statement of Internal Controls. 
Risk Management
The internal risk management function within the Group undertakes a programme to address internal control and risk management processes
with particular reference to the Turnbull Report. Its conclusions are advised to the relevant level of management and the function has a direct
reporting responsibility to the Audit Committee.
The Board confirms that there is a continuing process for identifying, evaluating and managing the risks faced by the Group and that the
process has been in place for the year under review and remains current.
The Audit Committee has reviewed the operation and effectiveness of this framework, which has operated during the period covered by the
Directors’ Report and Accounts and up to and including the date of approval of these Accounts by the Board. This process accords with the
Turnbull guidance.
Compliance with the Combined Code
The Board confirms that throughout the year ended 31 March 2003, the Group has complied with the provisions set out in Section 1 of the
Combined Code on Corporate Governance issued by the UK Listing Authority, with the exception of Code Provision A.3.1, until 12 July 2002,
which requires Non-Executive Directors to comprise not less than one third of the Board. This exception occurred while MITIE continued to
search for Non-Executive Directors with appropriate relevant experience. With the appointment of Manish J Chande, this requirement has
been met.
The Board has commenced a process to consider and take account of the recommendations and guidance contained in the Higgs review of
non-executive directors and in the Smith report on Audit Committees, both published in January 2003.
Corporate Governance  MITIE GROUP PLC ANNUAL REPORT 2003 24
Independent Auditors’ Report
to the members of MITIE Group PLC
We have audited the financial statements of MITIE Group PLC for the year ended 31 March 2003 which comprise the Group Profit and Loss
Account, the Balance Sheets, the Group Cash Flow Statement, the Note of Historical Cost Profits and Losses, and the related notes 1 to 30
together with the Reconciliation of Movements in Shareholders’ Funds and Accounting Policies. These financial statements have been
prepared under the accounting policies set out therein. We have also audited the information in the part of the Directors’ Remuneration
Report that is described as having been audited.
This Report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an Auditors’ Report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit work, for this Report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
As described in the Statement of Directors’ Responsibilities, the Company’s Directors are responsible for the preparation of the financial
statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible for the preparation of the
other information contained in the Annual Report including the Directors’ Remuneration Report. Our responsibility is to audit the financial
statements and the part of the Directors’ Remuneration Report described as having been audited in accordance with relevant United Kingdom
legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and part 
of the Directors’ Remuneration Report described as having been audited have been properly prepared in accordance with the Companies Act
1985. We also report to you if, in our opinion, the Directors’ Remuneration Report is not consistent with the financial statements, if the
Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, 
or if information specified by law regarding Directors’ remuneration and transactions with the Company and other members of the Group 
is not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance with the seven provisions of the Combined Code
specified for our review by the Listing Rules of the Financial Services Authority and we report if it does not. We are not required to consider
whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group’s
corporate governance procedures or its risk and control procedures. 
We read the Directors’ Report and the other information contained in the Annual Report for the above year as described in the contents
section including the unaudited part of the Directors’ Remuneration Report and consider the implications for our Report if we become aware
of any apparent misstatements or material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and that part of the Directors’
remuneration described as having been audited. It also includes an assessment of the significant estimates and judgements made by the
Directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the circumstances of the
Company and the Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ Remuneration Report
described as having been audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our
opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Directors’
Remuneration Report described as having been audited.
Opinion
In our opinion:
• The financial statements give a true and fair view of the state of affairs of the Company and the Group as at 31 March 2003 and of the 
profit of the Group for the year then ended; and
• the financial statements and that part of the Directors’ Remuneration Report described as audited have been properly prepared in 
accordance with the Companies Act 1985.
Deloitte & Touche
Chartered Accountants and Registered Auditors 
Bristol
4 July 2003 MITIE GROUP PLC ANNUAL REPORT 2003 25
Group Profit and Loss Account
for the year ended 31 March 2003
Turnover
Continuing operations
Discontinued operations
Cost of sales
Gross profit
Administrative expenses
- before amortisation and impairment of goodwill
Operating profit before goodwill amortisation and impairment
- amortisation and impairment of goodwill
Operating profit
Continuing operations
Discontinued operations
Interest
Profit on ordinary activities before tax
Tax on profit on ordinary activities
Profit on ordinary activities after tax
Equity minority interest
Profit for the financial year
Dividends - equity
Retained profit for the financial year
Earnings per Ordinary Share - basic
- diluted
- basic before goodwill amortisation and impairment
There are no recognised gains and losses for the current financial year or
preceding financial year other than as stated in the Group Profit and Loss Account.
Profit on ordinary activities before taxation and goodwill amortisation and impairment
493,829
25,023
518,852
(397,954)
120,898
(90,291)
30,607
(640)
29,040
927
29,967
390
30,357
(9,027)
21,330
(2,712)
18,618
(4,623)
13,995
6.5p
6.4p
6.8p
30,997
562,288
3,552
565,840
(439,932)
125,908
(93,260)
32,648
(2,324)
30,046
278
30,324
1,465
31,789
(10,188)
21,601
(2,125)
19,476
(5,736)
13,740
6.5p
6.5p
7.3p
34,113
1
1
1
2
4
5
6
18
7
2002 
£’000
2003 
£’000 Note MITIE GROUP PLC ANNUAL REPORT 2003 26
Reconciliation of Movements in Shareholders’ Funds
for the year ended 31 March 2003
Profit for the financial year
Dividends
Goodwill previously written off included in retained profit for the year
Shares issued
- in respect of subsidiaries acquired
- to QUEST (see Note 18)
less amounts funded within Group
- other
Net addition to Shareholders’ funds
Shareholders’ funds at the beginning of the year
Shareholders’ funds at the end of the year
18,618
(4,623)
13,995
–
9,308
2,153
(1,644)
513
24,325
50,166
74,491
19,476
(5,736)
13,740
321
14,032
910
(553)
1,959
30,409
74,491
104,900
Profit on ordinary activities before tax
Difference between the historical cost depreciation charge on revalued assets and the actual
depreciation charge for the year calculated on the revalued amount
Historical cost profits on ordinary activities before tax
Historical cost profits for the year retained after tax,
minority interests and dividends
30,357
(11)
30,346
13,984
31,789
5
31,794
13,745
Note of Historical Cost Profits and Losses
for the year ended 31 March 2003
2002 
£’000
2003 
£’000
2002 
£’000
2003 
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 27
Group Balance Sheet
as at 31 March 2003
Fixed Assets
Intangible assets
Tangible assets
a
Current Assets
Work in progress and stocks
Debtors
Investments
Cash at bank and in hand
a
Creditors - due within one year
Net Current Assets
Total Assets less Current Liabilities
Creditors - due after one year
Provision for liabilities and charges
Net Assets
Capital and Reserves
Called up share capital
Share premium account
Revaluation reserve
Other reserve
Profit and loss account
Equity Shareholders’ funds
Equity minority interest
a
14,724
45,082
59,806
23,706
87,137
–
25,106
135,949
(110,987)
24,962
84,768
(27)
(1,496)
83,245
7,220
25,483
(503)
–
42,291
74,491
8,754
83,245
24,291
37,277
61,568
25,272
92,316
3,880
54,960
176,428
(122,381)
54,047
115,615
(29)
(3,022)
112,564
7,556
42,048
(508)
994
54,810
104,900
7,664
112,564
8
9
10
11
12
13
14
16
17
18
18
18
18
The financial statements were approved by the Board of Directors on 4 July 2003.
Signed on behalf of the Board of Directors
David M Telling
Chairman
Ruby McGregor-Smith
Group Finance Director
2002 
£’000
2003 
£’000 Note MITIE GROUP PLC ANNUAL REPORT 2003 28
Company Balance Sheet
as at 31 March 2003
Fixed Assets
Tangible assets
Investments in subsidiary undertakings
a
Current Assets
Debtors
Cash at bank and in hand
a
Creditors - due within one year
Net Current Assets
Net Assets
Capital and Reserves
Called up share capital
Share premium account
Profit and loss account
872
53,930
54,802
19,333
11,548
30,881
(16,569)
14,312
69,114
7,220
25,483
36,411
69,114
708
66,087
66,795
29,804
16,734
46,538
(17,645)
28,893
95,688
7,556
42,048
46,084
95,688
9
25
11
13
17
18
18
The financial statements were approved by the Board of Directors on 4 July 2003.
Signed on behalf of the Board of Directors
David M Telling
Chairman
Ruby McGregor-Smith
Group Finance Director
2002 
£’000
2003 
£’000 Note MITIE GROUP PLC ANNUAL REPORT 2003 29
Group Cash Flow Statement
for the year ended 31 March 2003
Net cash flow from operating activities
Returns on investments and servicing of finance
Interest received
Interest paid
Interest element of finance lease rentals
a
Tax
UK corporation tax paid
ACT recovered
a
Capital expenditure
Payments to acquire tangible fixed assets
Receipts from sales of tangible fixed assets
a
Acquisitions and disposals
Payments to acquire subsidiary undertakings
Net cash acquired with subsidiary undertakings
Sale of subsidiary undertakings
Net cash disposed with subsidiary undertakings
a
Equity dividends paid
Cash inflow before management of liquid resources and financing
Management of liquid resources
Net increase in investments
Financing
Issue of Ordinary Share capital
Net unsecured loans received
Net capital element of finance lease rental payments
Debt due within one year: Repayment of unsecured loans
a
Increase in cash in the year 
37,295
502
(33)
(6)
463
(9,264)
481
(8,783)
(15,015)
3,364
(11,651)
(1,457)
–
2,367
–
910
(2,090)
16,144
–
2,838
35
(29)
(17)
2,827
18,971
48,474
1,537
(41)
(1)
1,495
(10,669)
14
(10,655)
(16,016)
8,009
(8,007)
(4,977)
211
4,984
6,396
6,614
(7,035)
30,886
(3,880)
2,862
–
(14)
–
2,848
29,854
19
20
22
2002 
£’000
2003 
£’000 Note MITIE GROUP PLC ANNUAL REPORT 2003 30
Accounting Convention 
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain freehold and long
leasehold properties. The financial statements have been prepared in accordance with applicable United Kingdom accounting standards.    
Basis of Consolidation
The consolidated Profit and Loss Account and Balance Sheet include the financial statements of MITIE Group PLC and all its subsidiary
undertakings. The results of the subsidiary undertakings acquired or sold are included from or up to the effective date of acquisition or sale.    
Goodwill and Intangible Fixed Assets
Goodwill is calculated as the surplus of fair value of purchase consideration over fair value attributed to the net assets of subsidiary
undertakings acquired. Following the introduction of FRS 10, goodwill in respect of acquisitions made after the financial year ended 31 March
1998 has been capitalised and amortised over its estimated useful economic life of up to 20 years. For acquisitions made before 1 April 1998,
goodwill was written off directly to reserves as a matter of accounting policy.
In the event of a disposal of the businesses concerned, this goodwill will be included in determining the gain or loss on disposal in the Profit 
and Loss Account.
Tangible Fixed Assets 
Tangible fixed assets are stated at cost or valuation, less depreciation and any provision for impairment. Depreciation is provided on tangible
fixed assets on a straight line basis over the expected useful lives. No depreciation is provided on land. 
Freehold and long leasehold buildings 50 years
Plant 3-14 years
Vehicles 4 years
Financial Instruments
The Group uses financial instruments to hedge its exposure to foreign currency risk. To the extent that such instruments are matched against
an underlying asset or liability, they are accounted for using hedge accounting. Gains or losses and premiums or discounts are matched to the
underlying transactions being hedged. 
Investments
Shares in Group companies are stated at cost less provision for impairment in value. Current asset investments are stated at the lower of cost
and net realisable value.
Leased Assets
Assets acquired under finance leases are included in tangible fixed assets and depreciated in accordance with the above policy. Outstanding
future lease obligations are shown in creditors. The finance element of the rental payments is charged to the Profit and Loss Account over the
period of the lease. Operating lease rentals are charged to the Profit and Loss Account in equal instalments over the lease term.
Accounting Policies
31 March 2003 MITIE GROUP PLC ANNUAL REPORT 2003 31
Accounting Policies 
31 March 2003
Work in Progress and Stocks
Work in progress and stocks are valued at the lower of cost, including appropriate overheads, and net realisable value. Provision is made for
foreseeable losses.
Costs represent materials, direct labour and overheads. Net realisable value is based upon estimated selling price, less further costs expected 
to be incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate. 
Long term contracts are dealt with in accordance with SSAP 9 (revised). A prudent level of profit is taken based on estimated percentage
completion if the final outcome can be reliably assessed.
All bid costs are expensed as incurred until the stage is reached where it is virtually certain that the contract has been awarded.
Deferred Tax
Deferred tax is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay
less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the
inclusion of items of income and expenditure in tax computations in periods different from those in which they are included in financial
statements. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to
sell the asset, or on unremitted earnings of subsidiaries and associates where there is no commitment to remit these earnings. Deferred tax
assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are
not discounted.
Turnover
Turnover represents the total amount, excluding sales taxes, receivable in respect of goods and services supplied and contract work completed
in the year. Intra Group transactions are excluded. All turnover arose within the United Kingdom.
Pensions
The Group operates two defined benefit pension schemes. The amounts charged to operating profit are the current service costs and gains and
losses on settlements and curtailments.
The Group also operates a fully insured defined contribution pension scheme, the assets of which are held in independently administered
funds. In respect of this scheme, the pension cost charge represents contributions payable by the Group in the year.
The Group has continued to account for pensions in accordance with SSAP 24 as illustrated above. In November 2000, the Accounting
Standards Board (ASB) issued FRS 17 Retirement Benefits, replacing SSAP 24 Accounting for Pension Costs. In November 2002, an amendment
to FRS 17 was published which allowed an extension to the transitional arrangements of FRS 17. The probability of implementation is
uncertain and partly dependent upon proposals from the International Accounting Standards Board (IASB). The Group will take advice to
ensure that it continues to adopt the best practice in respect of accounting for retirement benefits. The Group is in the second year of the
transitional arrangements under FRS 17.
Provisions
Provision is made for outstanding insurance claims incurred at the balance sheet date. MITIE GROUP PLC ANNUAL REPORT 2003 32
Notes to the Accounts 
for the year ended 31 March 2003
Activity
Turnover
Operating profit
2003
Support Services
Building Services
Net funds
Total
2002
Support Services
Building Services
Net funds
Total
1 Segmental analysis
24,912
28,853
53,765
58,799
112,564
23,762
35,183
58,945
24,300
83,245
Support Services
Cleaning
Catering and Landscaping
Security
Managed Services
Engineering Maintenance
Total
Building Services
Engineering
Property Services
Access
Total
145,264
4,648
7,139
52,294
50,539
259,884
164,454
110,034
27,916
302,404
–
–
–
–
–
–
–
–
3,552
3,552
–
–
–
–
–
–
–
–
25,023
25,023
145,264
4,648
7,139
52,294
50,539
259,884
164,454
110,034
31,468
305,956
135,458
4,032
3,528
49,517
35,337
227,872
138,202
107,844
19,911
265,957
135,458
4,032
3,528
49,517
35,337
227,872
138,202
107,844
44,934
290,980
18,988
15,125
34,113
16,345
14,652
30,997
18,760
13,029
31,789
16,316
14,041
30,357
259,884
305,956
565,840
227,872
290,980
518,852
Included within the Building Services segment above are amounts that relate to discontinued activities. These include turnover of £3,552,000
(2002: £25,023,000) and pre-tax profit of £202,000 (2002: £481,000).
Discontinued operations relate to the companies sold during the year as described in Note 20b.
Turnover 
£’000
Pre-tax profit 
£’000
Profit before tax
and goodwill 
£’000
7.2
4.3
5.6
7.2
4.8
5.9
Pre-tax
profit margin
%
Net assets 
£’000
Total
£’000
2002
Discontinued
operations
£’000
2002
Continuing
activities
£’000
2003
Discontinued
operations
£’000
2003
Continuing
activities
£’000
Total
£’000
Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
518,852
(397,954)
120,898
(90,931)
29,967
25,023
(16,981)
8,042
(7,115)
927
493,829
(380,973)
112,856
(83,816)
29,040
565,840
(439,932)
125,908
(95,584)
30,324
3,552
(2,369)
1,183
(905)
278
562,288
(437,563)
124,725
(94,679)
30,046
Total
£’000
2002
Discontinued
operations
£’000
2002
Continuing
activities
£’000
2003
Discontinued
operations
£’000
2003
Continuing
activities
£’000
Total
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 33
Notes to the Accounts
for the year ended 31 March 2003
61
–
39
–
100
157
–
101
–
258
170
–
133
22
325
52
–
41
7
100
Auditors’ fees
- services as Auditors
- further assurance services
- tax advisory services
- other non-audit services
A more detailed analysis of amounts paid to the Auditors is provided below:
203,866
14,695
3,034
221,595
222,199
17,842
3,251
243,292
(i) Employment costs
Wages and salaries
Social security costs
Other pension costs
a
22,303
1,964
24,267
21,158
1,927
23,085
(ii)     The average number of persons employed
during the financial year was:
Site
Administration
a
(iii) Details of Directors’ remuneration and interests are provided on pages 18 to 21 and should be 
regarded as an integral part of this Note.
3 Directors and employees
(5)
(41)
436
390
(4)
(50)
1,519
1,465
(i) Interest payable and similar charges
Finance leases
Other
(ii)     Interest receivable and similar income
Bank Interest 
a
4 Interest
2002
%
2003
% £’000
2002
£’000
2003
£’000
2002
No.
2003
No.
2002
£’000
2003
£’000
£’000
11,784
25
640
–
134
23
1,022
2,512
(678)
10,499
346
1,219
1,105
145
25
983
2,075
(525)
This is stated after charging/(crediting):
Depreciation and other amounts written off tangible fixed assets:
- owned assets
- leased assets
Goodwill amortisation
Goodwill impairment
Auditors’ remuneration - Group
- Company
Operating lease rentals - plant and vehicles
- other
Profit on disposal of fixed assets
2 Operating profit
2002
£’000
2003
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 34
Notes to the Accounts continued
for the year ended 31 March 2003
9,526
(75)
9,451
11
(435)
9,027
10,459
22
10,481
(240)
(53)
10,188
UK corporation tax at 30% (2002: 30%)
Adjustment in respect of prior years
Total current tax (Note 5b)
Deferred taxation:
Timing differences - origination and reversal
Adjustments in respect of prior years - deferred tax
Tax on profit on ordinary activities
a)  Analysis of charge in the year
b)  Factors affecting tax charge in the year
The tax assessed for the year is greater (2002: greater) than that resulting from applying the standard rate 
of corporation tax in the UK of 30% (2002: 30%). The differences are set out below.
c)  Factors affecting future tax charges
The Group is not aware of any factors that may materially affect the future tax charge.
5 Tax on profit on ordinary activities
30,357
9,107
291
140
–
(210)
192
(75)
6
9,451
31,789
9,537
303
383
14
(158)
697
22
(317)
10,481
Profit on ordinary activities before tax
Tax at 30% thereon
Expenses not deductible for tax purposes
Capital allowances in excess of depreciation
Movement in short term timing differences
Profit on disposal of tangible fixed assets
Goodwill
Prior periods
Other
Current tax charge for the year (Note 5a)
2,021
2,602
4,623
1.6p
2,417
3,319
5,736
1.9p
Interim dividend 0.8p per 2
1
/ 2p share
(2002: 0.7p per 2
1
/ 2p share)
Proposed final dividend 1.1p per 2
1
/ 2p share
(2002: 0.9p per 2
1
/ 2p share)
a
Total dividend per 2
1
/ 2p share for the year
Subject to approval at the Annual General Meeting, the final dividend will be paid on 30 September 2003
to members on the Register on 5 September 2003.
6 Dividends
2002
£’000
2003
£’000
2002
£’000
2003
£’000
2002
£’000
2003
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 35
Notes to the Accounts
for the year ended 31 March 2003
700
–
(700)
–
116
6
–
(122)
–
–
584
1,380
–
–
1,380
206
69
1,105
–
1,380
–
1,174
15,990
12,469
(700)
27,759
1,266
1,219
1,105
(122)
3,468
24,291
14,724
13,910
12,469
–
26,379
944
1,144
–
–
2,088
24,291
12,966
Cost
At beginning of year
Additions
Disposals
At end of year
Amortisation
At beginning of year
Amortised in year
Impairment charge
Disposals
Net book value
At end of year
At beginning of year
8 Fixed assets - Intangible
1,909
853
(23)
(181)
2,558
1,773
785
234
55
(23)
(53)
213
74,117
15,121
(18,415)
(9,988)
60,835
60,835
–
36,360
10,702
(11,327)
(4,228)
31,507
82,155
16,016
(18,438)
(10,169)
69,564
65,489
4,075
37,073
10,845
(11,350)
(4,281)
32,287
6,129
42
–
–
6,171
2,881
3,290
479
88
–
–
567
Cost or valuation
At beginning of year
Additions at cost
Disposals
Subsidiaries disposed
At end of year
Cost
Valuation 1995
Depreciation
At beginning of year
Charge for year
Disposals
Subsidiaries disposed
End of year
9 Fixed assets - Tangible
Group
Goodwill
£’000
Goodwill
attached to
sale of assets
£’000
Impairment
£’000
Total
£’000
Freehold
properties
£’000
Long leasehold
properties
£’000
Plant
and vehicles
£’000
Total
£’000
The calculation of earnings per 2
1
/ 2p share for 2003 and 2002 is based upon the profit after tax and minority interest.
The weighted average number of shares for this purpose is 297,979,470 (2002: 284,250,155). The diluted earnings per share has been calculated
on the basic earnings and the weighted average number of shares less 211,000 (2002: additional shares 4,813,163) shares representing the fair
value of the weighted average number of shares under option during the year.
Headline earnings per share continues to have widespread acceptance and has been calculated in accordance with the definition in the UK
Society of Investment Professionals statement of investment practice No. 1, “The Definition of Headline Earnings”, as follows:
7 Earnings per ordinary share
6.5p
0.3p
6.8p
6.5p
0.8p
7.3p
Basic earnings per Ordinary Share
Adjustments:
Amortisation and impairment of goodwill
Headline earnings per Ordinary Share
2002 2003 MITIE GROUP PLC ANNUAL REPORT 2003 36
Notes to the Accounts continued
for the year ended 31 March 2003
2,224
358
(437)
2,145
1,352
387
(302)
1,437
708
872
Cost
At beginning of year
Additions
Disposals
At end of year
Depreciation
At beginning of year
Charge for the year
Disposals
At end of year
Net book value
At end of year
At beginning of year
9 Fixed assets - Tangible
Company
–
–
–
–
–
–
–
–
39,939
(17,787)
3,120
25,272
43,346
(21,324)
1,684
23,706
Work in progress
Payments received on account
Goods for resale
10 Work in progress and stocks
Plant and
vehicles
£’000
2002
£’000
Company
2003
£’000
2002
£’000
Group
2003
£’000
2,345
1,675
2,325
1,655
29,328
37,757
29,328
37,757
37,277
45,082
37,785
45,532
5,604
5,650
6,132
6,120
Net book value
At end of year
At beginning of year
Historic cost net book value
2003
2002
9 Fixed Assets - Tangible continued
Group
Freehold
properties
£’000
Long leasehold
properties
£’000
Plant
and vehicles
£’000
Total
£’000
No depreciation was charged against freehold or long leasehold buildings up to 1995. For the year ended 31 March 2003, the Profit and Loss
Account has been charged with £166,000 (2002: £148,000) depreciation.
The historic cost of revalued properties was £5,078,000 (2002: £4,173,000). The net book value of plant and vehicles held under finance leases
included above was £nil (2002: £nil).
Previous valuations were frozen as allowed under the transitional provisions of FRS 15. The carrying value relating to the previous valuation
performed as at 31 March 1995 has been carried forward in this year’s Financial Statements.
86,542
–
2,650
3,124
–
92,316
82,013
–
2,065
3,045
14
87,137
7
28,215
1,173
409
–
29,804
–
17,115
1,677
541
–
19,333
Trade debtors
Owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
ACT recoverable
Included in other debtors is the sum of £ 209,000 (2002: £314,000) falling due after one year.
11 Debtors
2002
£’000
Company
2003
£’000
2002
£’000
Group
2003
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 37
Notes to the Accounts
for the year ended 31 March 2003
– – 29 27 Obligations under finance leases
Finance leases are repayable between one and two years and are secured by related leased assets.
Short term debtors, current asset investments and creditors have been excluded from the analysis.
Cash at bank is held at normal commercial rates.
14 Creditors - due after one year
28
27
55
12
29
41
Maturity of Borrowings
The maturity profile of the Group’s financial liabilities was as follows:
In one year or less, or on demand
In more than one year but not more than two years
Borrowings
At the year end, undrawn committed bank borrowing facilities amounted to £60,000,000 (2002: £35,000,000) which are all renewable
within one year.
Interest rates
At 31 March 2003, the Group had financial liabilities of £41,000 (2002: £55,000). These liabilities are under a fixed rate of interest at normal
commercial rates. Included within liabilities are immaterial amounts in respect of finance leases.
Hedging
The Group’s policy is to use derivative instruments to hedge against exposure to movements in exchange rates. Gains and losses on
instruments used for hedging are not recognised until the exposure that is being hedged is itself recognised.
There are no unrecognised gains or losses at 31 March 2003.
Currency exposure
As at 31 March 2003, the Group had no currency exposure.
Fair Values
The Directors consider that the fair value of financial assets and liabilities is not materially different to their book value.
Further information on financial instruments is given in the Group Finance Director’s Review. 
15 Financial assets and liabilities
2002
£’000
Company
2003
£’000
2002
£’000
2003
£’000
2002
£’000
Group
2003
£’000
2002
£’000
Company
2003
£’000
2002
£’000
Group
2003
£’000
32
–
–
416
7,362
–
335
262
3,539
4,623
16,569
–
–
–
895
9,810
–
479
–
3,137
3,324
17,645
–
12
1,706
78,163
–
5,807
18,188
4,762
10,270
3,473
122,381
–
28
2,876
71,673
–
5,269
16,003
1,309
9,057
4,772
110,987
Bank loans unsecured and overdraft
Obligations under finance leases
Payments received on account
Trade creditors
Owed to subsidiary undertakings
Corporation tax
Other taxes and social security
Other creditors
Accruals and deferred income
Proposed dividends
13 Creditors - due within one year
Included in unlisted investments are deposits totalling £3,880,000 held by the Group’s insurance subsidiary which are not readily available for
the general purposes of the Group.
2002
£’000
Company
2003
£’000
2002
£’000
Group
2003
£’000
– – 3,880 – Unlisted investments
12 Investments MITIE GROUP PLC ANNUAL REPORT 2003 38
Notes to the Accounts continued
for the year ended 31 March 2003
340,000,000
288,783,767
70,808
10,586,208
2,745,831
302,186,614
279,638,628
60,000
6,737,040
2,348,099
288,783,767
8,500
7,220
2
265
69
7,556
6,991
2
168
59
7,220
2002
95,276
917,056
1,250,988
1,334,768
1,153,332
–
4,751,420
2001
2002 
2004
2005
2006
2007
31
1
/2p
37
1
/2p
85p
150p
125p
110p
2003 2 2
Ordinary Shares of 2
1
/2p each Date exercisable Option price
–
10,488
1,038,124
1,049,922
944,244
2,109,354
5,152,132
Authorised
2003
Allotted and fully paid
At beginning of year
Issued as Directors’ remuneration
Issued for acquisitions
Issued under share option schemes
At end of year
2002
Allotted and fully paid
At beginning of year
Issued as Directors’ remuneration
Issued for acquisitions
Issued under share option schemes
At end of year
Options outstanding under the Savings Related Share Option Schemes at 31 March 2003 were as follows:
17 Called up share capital
1,496
(366)
1,892
3,022
–
–
2,194
2,194
At beginning of year
Disposal during the year
Arising during the year
At end of year
16 Provision for liabilities and charges
Deferred tax in respect of the Group’s defined benefit schemes is disclosed in Note 26. The balance relates to the excess of net capital
allowances over depreciation.
The provision for insurance claims represents amounts payable by MITIE Reinsurance Company Ltd in respect of outstanding claims incurred
at the balance sheet dates. This is expected to be utilised over the next year. The subsidiary established during the year is the Group’s self
insurance company.
Total
£’000
Insurance
reserve
£’000
1,496
(366)
(302)
828
Deferred tax
£’000
£’000 No.
Ordinary Shares of 2
1
/2p
50,000
40,000
1,500,000
1,256,400
1,016,000
813,600
892,600
–
–
5,568,600
1998 - 2005
1999 - 2006
2001 - 2008
2001 - 2008
2002 - 2009
2003 - 2010
2004 - 2011
2005 - 2012
2006 - 2013
21p
31
1
/2p
50p
57
3
/4p
95p
173
3
/4p
145p
117p
99p
2003 2002 2 2
Ordinary Shares of 2
1
/2p each Date exercisable Option price
–
–
–
1,036,400
931,000
698,000
809,600
1,121,050
200,000
4,796,050
Options outstanding under the Executive Share Option Schemes at 31 March 2003 were as follows: MITIE GROUP PLC ANNUAL REPORT 2003 39
Notes to the Accounts
for the year ended 31 March 2003
74,491
336
16,012
13,740
–
–
321
–
104,900
69,114
336
16,012
10,226
–
95,688
42,291
–
–
13,740
5
(553)
321
(994)
54,810
36,411
–
–
10,226
(553)
46,084
(503)
–
–
–
(5)
–
–
–
(508)
–
–
–
–
–
–
25,483
–
16,012
–
–
553
–
–
42,048
25,483
–
16,012
–
553
42,048
7,220
336
–
–
–
–
–
–
7,556
7,220
336
–
–
–
7,556
Group
At beginning of year
Shares issued
Net premium arising on shares issued
Retained profit for the financial year
Additional depreciation on revalued assets
Issue of shares in connection with the
exercise of share options
Goodwill transferred to Profit and Loss
Account on disposal of subsidiaries
Transfer to other reserve 
Balance at end of year
Company
At beginning of year
Shares issued
Net premium arising on shares issued
Retained profit for the year
Issue of shares in connection with the
exercise of share options
Balance at end of year
18 Share capital and reserves
29,967
11,809
640
(678)
514
(16,706)
11,749
37,295
30,324
10,845
2,324
(525)
(1,566)
(5,193)
12,265
48,474
Operating profit
Depreciation
Amortisation and impairment of goodwill
Profit on sale of tangible fixed assets
(Increase)/decrease in work in progress and stocks
(Increase) in debtors
Increase in creditors
a
19 Net cash inflow from operating activities
(i) Non-distributable
In accordance with the exemption allowed by Section 230(4) of the Companies Act 1985, the Company has not presented its own Profit 
and Loss Account. The profit attributable to Shareholders in the Accounts of the Company was £15,962,000 (2002: £8,504,000).
Prior to the adoption of FRS 10 on 1 April 1998, goodwill eliminated against reserves amounted to £26,673,000 (2002: £26,994,000).
During the year, 949,831 (2002: 1,576,593) Ordinary Shares of 2
1
/ 2p each were issued to the MITIE Group PLC Qualifying Employee Share
Ownership Trust (QUEST). The difference between the market value and the option price receivable has been eliminated against the Profit and
Loss Account.
Included in both the Company and the Group share premium accounts are amounts relating to premiums arising on shares issued subject to
the provisions of Section 131 of the Companies Act 1985.
2002
£’000
Total
£’000
Profit and
loss account
£’000
Revaluation
reserve
£’000
–
–
–
–
–
–
–
994
994
–
–
–
–
–
–
Other
reserve (i)
£’000
Share premium
account
£’000
Called up
share capital
£’000
2003
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 40
Notes to the Accounts continued
for the year ended 31 March 2003
67
228
1,227
211
(825)
(191)
5,823
6,540
12,469
19,009
(14,032)
4,977
(211)
4,766
(55)
–
–
–
–
–
–
(55)
Fixed assets
Work in progress and stocks
Debtors
Bank and cash
Creditors
Tax
Minority interest
Goodwill
Total purchase consideration
Shares issued - MITIE Group PLC
Cash consideration
Bank and cash acquired
The effect of the acquisitions on the results for the Group for the year are not material and therefore are not shown separately on the
Profit and Loss Account. The businesses’ contributions to Group net operating cash flow, interest paid, tax paid and capital expenditure
were not material. 
The above items relate principally to the acquisition of minority interests in MITIE Managed Services (North and Scotland) Ltd (formerly
known as MITIE Managed Services Ltd), in May 2002 and MITIE Deeds Ltd in December 2002 and were accounted for by the acquisition
method of accounting.
Scotgate Engineering Services Ltd, which was acquired in December 2002, earned a profit after taxation of £58,000 in the six month
period ended 31 March 2003 (year ended 30 September 2002: £366,000), of which a loss of £25,000 arose in the period from 1 October 2002
to 19 December 2002.
20a Purchase of subsidiary undertakings
Tangible fixed assets
Net working capital
Overdraft
Finance lease
Net assets
Minorities
Related goodwill –  Post FRS 10
–  Pre FRS 10
Profit on disposal
Total consideration
– loan notes
– cash
Overdraft disposed
Total cash effect
The above items relate principally to the disposal of MITIE Access Ltd, MITIE Access (Northern) Ltd, MITIE Access (North East) Ltd,
MITIE Access (Scotland) Ltd and MITIE Access (Southern) Ltd in June 2002 .
The profit after taxation up to the date of disposal of these companies was £140,000 and for the last financial year was £315,000.
The businesses’ contributions to Group net operating cash flow, interest paid, tax paid and capital expenditure were not material.
20b Disposal of subsidiary undertakings
5,888
4,393
(6,396)
(55)
3,830
(202)
578
321
4,527
457
4,984
–
4,984
6,396
11,380
2003
£’000
Fair
value
£’000
Alignment of
accounting policies
£’000
122
228
1,227
211
(825)
(191)
5,823
6,595
Book
value
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 41
Notes to the Accounts
for the year ended 31 March 2003
25,106
25,106
(751)
(55)
(806)
–
24,300
23,240
23,240
–
(41)
(41)
3,880
27,079
(4,766)
(4,766)
–
–
–
–
(4,766)
11,380
11,380
–
55
55
–
11,435
54,960
54,960
–
(41)
(41)
3,880
58,799
Cash at bank and in hand
Net cash
Debt due within one year
Finance leases
Debt financing
Current asset investments
Net funds
21 Analysis of changes in net funds
29,854
765
3,880
34,499
24,300
58,799
18,971
11
–
18,982
5,318
24,300
Increase in cash during year
Cash inflow from movement in debt and lease financing
Cash inflow from movement in liquid resources
Movement in net funds in the year
Net funds at beginning of year
Net funds at end of year
22 Reconciliation of net cash flow to movement in net funds
23 Contingencies
The Company is party with other Group companies to cross guarantees of each other’s bank overdrafts.
The Company and various of its subsidiaries are, from time to time, parties to legal proceedings and claims which are in the ordinary course 
of business. The Directors do not anticipate that the outcome of these proceedings and claims, either individually or in aggregate, will have a
material adverse effect upon the Group’s financial position.
Contingent consideration, to be satisfied in shares, for the acquisition of subsidiary undertakings is dependent upon future profits of those
subsidiaries and at the discretion of MITIE. It is not possible to quantify accurately, in advance, the final amounts which may become payable.
In connection with the sale of The Platform Company (UK) Ltd (formerly MITIE Powered Access Ltd), the Group has guaranteed lease
commitments amounting to £2,723,000. These commitments reduce to £1,049,000 and £nil at the end of the next two years respectively.
Against these guarantees, the Group has received indemnities from the Group’s bankers of £464,000 and from the suppliers of the leased
equipment of £602,000, giving a net contingent liability of £1,656,000.
At 31 March
2003
£’000
At 31 March
2002
£’000
Cashflows
£’000
Acquisitions
£’000
–
–
751
–
751
–
751
Non cashflows
£’000
Disposals
£’000
2003
£’000
2002
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 42
Notes to the Accounts continued
for the year ended 31 March 2003
– 161
Capital commitments as follows:
Contracted for but not provided for in the Accounts
49
802
5
856
313
792
882
1,987
144
251
5
400
345
658
1,179
2,182
Annual commitments under operating leases which expire:
Within one year
In second to fifth years inclusive
Over five years
24 Commitments
53,930
18,602
(2,410)
(4,035)
66,087
(2,766)
–
–
(4,035)
(6,801)
56,696
18,602
(2,410)
–
72,888
At beginning of year
Additions
Disposals
Provisions in the year (net)
At end of year
The principal operating subsidiary undertakings are detailed in Note 30.
25 Investment in subsidiary undertakings
26 Pensions
In November 2000, the Accounting Standards Board (ASB) issued FRS 17 Retirement Benefits, replacing SSAP 24 Accounting for Pension Costs.
In November 2002, an amendment to FRS 17 was published which allowed an extension to the transitional arrangements of FRS 17. The
probability of implementation is uncertain and partly dependent upon proposals from the International Accounting Standards Board (IASB).
The Group will take advice to ensure that it continues to adopt the best practice in respect of accounting for retirement benefits. The Group is
in the second year of the transitional arrangements under FRS 17 and the required disclosures to the extent not given in (a) are set out in (b).
(a) SSAP 24
The Group operates two defined benefit pension schemes called the MITIE Group PLC Pension Scheme and the MITIE Group PLC Passport 
Pension Scheme.
The assets of both Schemes are held separately from the Group, being invested in UK equities and with insurance companies. Contributions 
to the Schemes are charged to the Profit and Loss Account so as to spread the cost of pensions over the employees working lives with the
Group. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit credit method.
The pension charge for the year was £3,251,000 (2002: £3,034,000).
MITIE Group PLC Pension Scheme
The most recent valuation was at 6 April 2002. It was assumed that:
Investment return – pre retirement 7.00%
Investment return – post retirement 5.50%
Salary increases 4.50%
Present and future pension increases 3.00%
The next actuarial valuation is due on 6 April 2005. The 2002 actuarial valuation showed that the market value of the assets was
£24,401,000 and that the actuarial value of those assets represented 87% of the benefits that had accrued to members after allowing for
expected future increases in earnings. The contributions of the Group and employees are 10% (2002: 10%) and 7.5% (2002: 7.5%) of
pensionable earnings respectively. 
2003
£’000
2002
£’000
2003
Other
£’000
2003
Property
£’000
2002
Other
£’000
2002
Property
£’000
Net book
value
£’000
Provision for
impairment
£’000
Shares at
cost
£’000 MITIE GROUP PLC ANNUAL REPORT 2003 43
Notes to the Accounts
for the year ended 31 March 2003
MITIE Group PLC Passport Pension Scheme
The most recent valuation was at 6 April 2002. It was assumed that:
Investment return – pre retirement 7.00%
Investment return – post retirement 5.50%
Salary increases 4.50%
Present and future pension increases 3.00%
The next actuarial valuation is due on 6 April 2005. The 2002 actuarial valuation showed that the market value of the assets was £581,000
and that the actuarial value of those assets represented 67% of the benefits that had accrued to members after allowing for expected future
increases in earnings. The contributions of the Group and employees total 32% (2002: 23.5%) with employees contributing between
1.5% and 6%.
(b) FRS 17 (Retirement Benefits)
As stated above, the Group operates two defined benefit pension schemes. The valuations used for the FRS 17 disclosure have been based on
the most recent actuarial valuations at 6 April 2002, updated to 31 March 2003 by a qualified actuary.
As required by SSAP 24, the figures included in the Accounts in respect of the Group pension schemes are based on actuarial valuations carried
out at 6 April 2002. This does not take into account any impact of the fall in general stock market values since that date. Any such impact will
be reflected in the next SSAP 24 triennial valuation as at 6 April 2005 based upon which subsequent pension costs will be determined until the
adoption of FRS 17. The figures currently used for accounting purposes as regards pension costs are likely to change significantly as and when
FRS 17 is adopted.
The costs of death in service benefit for members of the Schemes are fully insured by the Schemes.
The projected unit valuation method has been used. The major financial assumptions used by the actuary were: 
6.25%
3.50%
3.00%
3.00%
2.75%
2.75%
5.50%
3.50%
3.00%
2.50%
2.50%
2.50%
Discount rate
Rate of increase in salaries
Rate of increase of pensions in payment (pre April 2002)
Rate of increase of pensions in payment (post April 2002)
Rate of increase of deferred pensions
Inflation assumption
The assets of the Schemes and expected rates of return were:
18,947
3,022
2,825
24,794
(25,850)
(1,056)
317
(739)
19,284
3,343
3,316
25,943
(37,051)
(11,108)
3,333
(7,775)
7.25%
5.75%
5.00%
7.25%
5.50%
4.00%
Equities
Bonds
Others
Total market value of assets
Present value of Schemes’ liabilities
Deficit in the Schemes
Related deferred tax asset
Net pension liability
26 Pensions continued
At 31 March
2003
At 31 March
2002
Value at
31 March
2002
£’000
Long-term rate
of return expected
at 31 March
2002
Value at
31 March
2003
£’000
Long-term rate
of return expected
at 31 March
2003 MITIE GROUP PLC ANNUAL REPORT 2003 44
Notes to the Accounts continued
for the year ended 31 March 2003
2,285
–
2,285
Current service cost
Past service cost
Total operating charge
Analysis of amount that would have been charged to operating profit under FRS 17
1,836
(1,723)
113
Expected return on pension Schemes’ assets
Interest cost
Net return
Actual return less expected return on pension Schemes’ assets
Changes in financial assumptions underlying the Schemes’ liabilities
Actuarial loss recognised in the statement of total recognised gains and losses
Analysis of amount that would have been charged to interest under FRS 17
Deficit in Schemes at beginning of year
Movement in year:
Current service cost
Contributions
Past service costs
Other finance income
Actuarial loss
Deficit in the Schemes at the end of the year
Movements in deficit during the year
20%
23%
Net assets excluding pension liability
Net pension liability
Net assets including pension liability
Profit and loss reserve excluding pension liability
Net pension liability
Profit and loss reserve including pension liability
83,245
(739)
82,506
42,291
(739)
41,552
112,564
(7,775)
104,789
54,810
(7,775)
47,035
The amount recognised in the statement of total recognised gains and losses had FRS 17 been operative would
have been as follows:
The impact to the Balance Sheet and Reserves at 31 March 2003 of adopting FRS 17 would be as follows:
26 Pensions continued
(5,061)
(6,035)
(11,096)
(1,056)
(2,285)
3,216
–
113
(11,096)
(11,108)
At 31 March
2003
£’000
At 31 March
2003
£’000
At 31 March
2003
£’000
At 31 March
2003
£’000
At 31 March
2002
£’000
At 31 March
2003
£’000
% of
Scheme
assets MITIE GROUP PLC ANNUAL REPORT 2003 45
Notes to the Accounts 
for the year ended 31 March 2003
During the year, the Group paid £20,000 (2002: £nil), in respect of purchases in the ordinary course of business, to a private company
controlled by D M Telling, Chairman.
During the year D M Telling paid £97,676 (2002: £nil) to the Group and subsidiary undertakings in respect of goods and services provided in
the ordinary course of business.
No material contract or arrangement has been entered into during the year, nor subsisted at the end of the year in which a Director had a
material interest.
The Company has taken advantage of the exemption in FRS 8 not to disclose transactions with companies within the Group.
28 Related party transactions
On 2 July 2003, the Group acquired the entire share capital of Trident Safeguards Ltd (“Trident”). The consideration comprises an initial
amount of £8,200,000 payable in cash on completion with additional consideration according to future profitability payable in cash and loan
notes. The additional consideration is split as follows:
•   £1,000,000 payable on the first anniversary of the acquisition if an agreed profit threshold for the year ended 31 March 2004 is met;
•   £2,000,000 payable at any time between 2006 and 2010 if an agreed profit threshold is met; and
•   if this threshold is exceeded then an additional amount will become payable, with the total consideration for Trident capped at £20,000,000.
In the year to 31 March 2003, Trident’s turnover was £23,400,000, pre-tax profits of £812,000 and the company had net assets of £933,000.
On 3 July 2003, the Group acquired the entire share capital of Eagle Pest Control Services UK Ltd (“Eagle”). The consideration comprises
initial consideration of £2,800,000 payable in cash with additional consideration based on future profitability, also payable in cash.
The additional consideration is split as follows:
•   £1,200,000 payable at any time between 2008 and 2013 if an agreed profit threshold is met; and
•   if this profit threshold is exceeded then an additional amount will become payable, with the total consideration for Eagle capped at £6,000,000.
In the year to 31 March 2003, Eagle’s turnover was £4,139,000, pre-tax profits of £447,000 and the company had net assets of £1,124,000.
29 Subsequent events
24,529,883
12,273,605
8.12
4.06
The Company has been notified of the following interests in 3% or more of the issued share capital
of the Company as at 3 July 2003.
27 Other interests in Shares
Fidelity Corp. and Fidelity International Ltd
Prudential plc
% of
share
capital
Number of
Ordinary Shares
at 2
1
/2p each MITIE GROUP PLC ANNUAL REPORT 2003 46
Notes to the Accounts continued
for the year ended 31 March 2003
100
62
100
100
96
100
61
100
72
51
100
56
100
69
69
70
62
100
100
80
61
100
55
56
60
65
51
100
100
68
100
100
100
64
57
67
63
100
100
100
90
Scotland
North
Midlands
South East
B
B
S
B
B
S
S
B
B
B
S
B
B
B
B
B
B
B
B
S
B
S
B
B
B
B
S
S
S
B
B
B
B
S
B
B
B
B
B
B
S
MITIE Engineering Services (Scotland) Ltd
MITIE Engineering Maintenance (Caledonia) Ltd
MITIE Envirocare Ltd
MITIE HydroCat Ltd
MITIE Lindsay Ltd
MITIE Olscot Ltd
MITIE Security (Scotland) Ltd
MITIE Property Services (Scotland) Ltd
MITIE McCartney Fire Protection Ltd
MITIE Air Conditioning (North) Ltd
MITIE Cleaning (North) Ltd
MITIE Engineering Services (Leeds) Ltd
MITIE Engineering Services (North) Ltd
MITIE Engineering Maintenance (North) Ltd
MITIE Greencote Ltd
MITIE Engineering Services (Liverpool) Ltd
MITIE Engineering Projects Ltd
MITIE Property Services (North East) Ltd
MITIE Property Services (North West) Ltd
MITIE Security (North) Ltd
MITIE Air Conditioning (Midlands) Ltd
MITIE Cleaning (Midlands) Ltd
MITIE Engineering Services (Midlands) Ltd
MITIE Property Services (Midlands) Ltd
MITIE Roofing Services Ltd
MITIE Air Conditioning (London) Ltd
MITIE Business Services Ltd
MITIE Cleaning (South East) Ltd
MITIE Cleaning (Southern) Ltd
MITIE Engineering Maintenance Ltd
MITIE Engineering Services (Eastern) Ltd
MITIE Engineering Services (London) Ltd
MITIE Engineering Services (South East) Ltd
MITIE Landscape (Southern) Ltd
MITIE Flooring (Southern) Ltd
MITIE Interiors Ltd
MITIE Property Services (Eastern) Ltd
MITIE Property Services (London) Ltd*
MITIE Property Services (Southern) Ltd
MITIE Roofing (South East) Ltd
MITIE Security (Southern) Ltd 
30 Principal operating subsidiary and associated companies
The companies set out below are those which were part of the Group at 31 March 2003 and in the opinion of the Directors
significantly affected the Group’s results and net assets during the year.
At 31 March 2003
% ordinary 
shares owned MITIE GROUP PLC ANNUAL REPORT 2003 47
100
100
54
51
100
100
56
100
100
52
100
56
73
100
100
51
65
54
62
100
100
100
62
51
66
33
100
100
100
100
100
100
100
South West
National
Administration
B
B
B
S
S
S
S
B
B
B
B
B
S
B
B
S
B
B
B
B
S
S
B
B
B
S
B
S
B
B
*
B
S
Cole Motors Ltd
MITIE Air Conditioning (South West) Ltd
MITIE Air Conditioning (Wales) Ltd
MITIE Air Conditioning (West) Ltd
MITIE Cleaning (South Wales) Ltd
MITIE Cleaning (South West) Ltd
MITIE Engineering Maintenance (South West) Ltd
MITIE Engineering Services (Bristol) Ltd
MITIE Engineering Services (Cardiff) Ltd
MITIE Engineering Services (Peninsula) Ltd
MITIE Engineering Services (South West) Ltd
MITIE Engineering Services (Swansea) Ltd
MITIE Managed Services (South West and Wales) Ltd
MITIE Property Services (Western) Ltd
MITIE Roofing (South West) Ltd  
MITIE Catering Services Ltd
MITIE Cleanrooms Ltd
MITIE Engineering Services (Retail) Ltd
MITIE Environmental Ltd
MITIE Generation Ltd*
MITIE Managed Services Ltd
MITIE PFI Ltd
MITIE Scotgate Ltd
MITIE Scientific Projects Ltd
MITIE Technology Ltd
Service Management International Ltd
MITIE Access Systems Ltd
MITIE Cleaning Ltd
MITIE Engineering Services Ltd
MITIE Property Investments Ltd
MITIE Property Services Ltd
MITIE QUEST Trustee Ltd
MITIE Reinsurance Company Ltd
Shareholdings held by intermediate subsidiary undertakings
Building Services
Support Services
All companies were incorporated in and operate within the United Kingdom,
except for MITIE Reinsurance Company Ltd which was registered and operates
in Guernsey.
Certain companies operate on the basis of 13 four weekly periods and have
drawn up their accounts to 5 April 2003. Adjustments have been made on
consolidation to exclude the results of these companies for the period from
31 March 2003 to that date.
The Group has a 33% interest in an associate company, Service Management
International Ltd. As this is not considered material, separate disclosure of its
results, assets or liabilities have not been included in the financial statements.
The companies listed above represent the principal operating subsidiary
companies of the Group. A full list of subsidiary companies will be annexed to
the next annual return.
30 Principal operating subsidiary and associated companies continued
Notes to the Accounts 
for the year ended 31 March 2003
At 31 March 2003
% ordinary 
shares owned MITIE GROUP PLC ANNUAL REPORT 2003 48
Five Year Summary
1999
£’000
264,455
14,542
34
5.5%
14,508
(4,676)
9,832
(1,134)
(2,166)
6,532
2,367
30,672
(4,725)
28,314
22,623
5,691
28,314
3.2p
3.3p
0.8p
346,514
19,758
518
5.7%
19,240
(6,080)
13,160
(2,067)
(2,751)
8,342
4,283
39,090
(1,723)
41,650
32,900
8,750
41,650
4.1p
4.3p
1.0p
518,852
30,997
640
6%
30,357
(9,027)
21,330
(2,712)
(4,623)
13,995
14,724
45,082
23,439
83,245
74,491
8,754
83,245
6.5p
6.8p
1.6p
415,375
25,148
73
6%
25,075
(8,420)
16,655
(2,703)
(3,497)
10,455
8,597
48,123
3,583
60,303
50,166
10,137
60,303
5.0p
5.1p
1.25p
565,840
34,113
2,324
6%
31,789
(10,188)
21,601
(2,125)
(5,736)
13,740
24,291
37,277
50,996
112,564
104,900
7,664
112,564
6.5p
7.3p
1.9p
2000
£’000
2001
£’000
2002
£’000
2003
£’000
Group Profit and Loss Account
Turnover
Profit on ordinary activities before goodwill and tax
Goodwill amortisation and impairment
Net profit margin (before goodwill amortisation
and impairment)
Profit on ordinary activities before tax
Taxation
Profit on ordinary activities after tax
Minority interest
Dividends
Retained profit
Group Balance Sheet
Intangible fixed assets
Tangible fixed assets
Other assets and liabilities
Equity Shareholders' Funds
Minority interests
Earnings per share
Pre-goodwill earnings per share
Dividend per share
Earnings and dividend per share figures have been restated to reflect the subdivision of shares in 2001. MITIE GROUP PLC ANNUAL REPORT 2003 49
Notice of Meeting
Notice is hereby given that the Sixty Seventh Annual General Meeting of MITIE Group PLC will be held at The Stable Block, Barley Wood,
Wrington, Bristol, BS40 5SA on Thursday, 18 September 2003 at 12 noon for the following purposes:
Ordinary business
To consider and, if thought fit, pass the following Resolutions which will be proposed as Ordinary Resolutions:
1. That the Accounts for the year ended 31 March 2003 and the Reports of the Directors and Auditors thereon be received.
2. That the Remuneration Report for the year ended 31 March 2003 contained in the Accounts be approved.
3. That a final dividend for the year ended 31 March 2003 of 1.1p per Ordinary Share of 2
1
/2p each be declared.
4. That David Malcolm Telling be re-elected as a Director.
5. That Sir John Southwood Jennings be re-elected as a Director.
6. That Colin Stewart Acheson be re-elected as a Director.
7. That David Charles Ord be elected as a Director.
8. That Ruby McGregor-Smith be elected as a Director.
9. That Cullum McAlpine be elected as a Director.
10. That Deloitte & Touche LLP be reappointed as Auditors of the Company until the conclusion of the next general meeting before which 
accounts are laid and that their remuneration be fixed by the Directors.
Special business
To consider and if thought fit, pass the following Resolutions which will be proposed as Special Resolutions:
11. That the Directors be generally empowered, pursuant to Section 95 of the Companies Act 1985, to allot equity securities (within the 
meaning of Section 94 of the said Act) for cash as if sub-section (1) of Section 89 of the said Act did not apply to any such allotment, 
provided that this power shall be limited:-
(a) to the allotment of equity securities in connection with a rights issue in favour of the holders of Ordinary Shares of 2
1
/ 2p each where
the equity securities respectively attributable of the interests of all such Shareholders are proportionate (as nearly as may be) to the
respective number of Ordinary Shares held by them but subject to such exclusions or other arrangements as the Directors may deem
necessary or expedient to deal with any legal or practical problems under the laws of any overseas territory or the requirements of 
any regulatory body or any stock exchange in any territory or in relation to fractional entitlements; and 
(b) to the allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities up to an aggregate nominal value of 
£375,000 (approximately 5% of the issued share capital);
and this authority shall expire 15 months after the date of the passing of this Resolution or at the conclusion of the next Annual General
Meeting of the Company, whichever comes first, save that the Company may before such expiry make an offer or agreement which would
or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such offer 
or agreement as if the power conferred hereby had not expired. 50 MITIE GROUP PLC ANNUAL REPORT 2003
Notice of Meeting continued
12. That the Company be generally and unconditionally authorised to make market purchases (within the meaning of Section 163(3) of the 
Companies Act 1985) of Ordinary Shares of 2
1
/ 2p each in the Company, on such terms and in such manner as the Board of Directors of 
the Company may from time to time determine, provided that:
(a) the maximum number of Ordinary Shares which may be purchased is 30,000,000 (approximately 10% of the issued 
share capital);
(b) the minimum price which may be paid for an Ordinary Share is 2
1
/ 2p, exclusive of expenses; and
(c) the maximum price which may be paid for an Ordinary Share is an amount equal to 105% of the average of the middle market 
quotation of an Ordinary Share of the Company as derived from the Daily Official List of the London Stock Exchange on the five 
business days immediately preceding the day on which the Ordinary Share is purchased, exclusive of expenses; 
and this authority shall expire 15 months after the date of the passing of this Resolution or at the conclusion of the next Annual General
Meeting of the Company, whichever comes first, except in relation to purchases of shares the contract for which was concluded 
before the expiry of this authority and which might be executed wholly or partly after such expiry.
By order of the Board Registered Office:
35 Duchess Road
Rutherglen
Glasgow
Corina K Ross G73 1AU
Company Secretary
4 July 2003
Notes:
1. Any member entitled to attend and vote at this meeting may appoint one or more proxies to attend and, on a poll, vote instead of him or her. A proxy need not be a member
of the Company.
2. To be effective, forms of proxy duly completed must be received by the Company’s Registrars, Computershare Investor Services PLC, PO Box 1075, Bristol, BS99 3FA not less than
48 hours before the time appointed for the holding of the meeting or any adjournment thereof. Completion of a form of proxy does not preclude a member from attending the 
meeting and voting in person.
3. The Company, pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those members registered in the Register of Members of the Company  
as at 6.00pm on 16 September 2003 shall be entitled to attend and/or vote at the meeting in respect of the number of shares registered in their name at that time.  Changes to 
entries on the Register of Members after 6.00pm on 16 September 2003 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
4. The following documents will be available for inspection at the Registered Office and Head Office of the Company during normal business hours on any weekday (public holidays 
excepted) from the date of this Notice until the date of the meeting, and at the place of the meeting from 11.30 am until its conclusion:
•  The Register of Directors’ interests in the share capital of the Company kept pursuant to Section 325 of the Companies Act 1985; and
•  Copies of the Directors’ service agreements. 
5. The total number of options to subscribe for Ordinary Shares that were outstanding as at 3 July 2003 was 9,433,450, representing approximately 3.1% of the issued share capital of
the Company. This would represent 3.5% of the issued share capital if the maximum number of Ordinary Shares were purchased under the authority proposed under Resolution 12. 
6. On 1 August 2003, Deloitte & Touche will transfer their business to Deloitte & Touche LLP, a limited liability partnership incorporated under the Limited Liability Partnerships
Act 2000. The Company has given its consent to treating the reappointment of Deloitte & Touche as extending to Deloitte & Touche LLP with effect from 1 August 2003. 
Accordingly, although the Accounts were signed in the name of Deloitte & Touche, a Resolution for the reappointment of Deloitte & Touche LLP will be proposed at the forthcoming 
Annual General Meeting. MITIE GROUP PLC ANNUAL REPORT 2003 51
Corporate Information
Corina K Ross ACIS
35 Duchess Road
Rutherglen
Glasgow G73 1AU
Registered in Scotland No. 19230
The Stable Block
Barley Wood
Wrington
Bristol BS40 5SA
Tel: 01934 862006
Fax: 01934 862239
Email: group@mitie.co.uk
Website: www.mitie.co.uk
Deloitte & Touche
Barclays Bank PLC
Bank of Scotland
Clydesdale Bank PLC
HSBC Bank plc
National Westminster Bank Plc
The Royal Bank of Scotland plc
UBS Investment Bank
2 Finsbury Avenue
London EC2M 2PP
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol BS1 6EG
Computershare Investor Services PLC
PO Box 435 Owen House
8 Bankhead Crossway North
Edinburgh EH11 4BR
Tel: 0870 702 0010
Website: www.computershare.com
Company Secretary
Registered Office
Head Office
Auditors
Bankers
Stockbrokers
Solicitors
Registrars MITIE GROUP PLC ANNUAL REPORT 2003 52
Notes MITIE GROUP PLC
is a unique organisation because 
of its motivational culture of share 
ownership and the range of 
its services.
1 Financial Highlights
2 Chairman’s Statement
4 Chief Executive’s Review
10 Corporate Social Responsibility
12 Group Finance Director’s Review
15 Board of Directors
16 Directors’ Report
18 Remuneration Report
22 Corporate Governance
24 Independent Auditors’ Report
25 Group Profit and Loss Account
26 Reconciliation of Movements in Shareholders’ Funds
26 Note of Historical Cost Profits and Losses
27 Group Balance Sheet
28 Company Balance Sheet
29 Group Cash Flow Statement
30 Accounting Policies
32 Notes to the Accounts
48 Five Year Summary
49 Notice of Meeting
51 Corporate Information
designed by one, print management by am-pm MITIE GROUP PLC
Annual Report 2003
MITIE GROUP PLC  Annual Report 2003
MITIE Group PLC, The Stable Block, Barley Wood, Wrington, Bristol BS40 5SA
T 01934 862006  F 01934 862239
www.mitie.co.uk  E information@mitie.co.uk
MITIE is an equal opportunities employer