the 56579 
things that 
set us apart
our people 
mitie group plc
annual report and accounts 2010
mitie group plc
8 monarch court 
the brooms 
emersons green 
bristol bs16 7fh
t 01 1 7 970 8800 
f 01 1 7 302 67 43 
e groupmitiecouk
the co2e emissions arising from the paper manufacture 
and printing of this report have been calculated by  
carbon ready ltd at 634g prepared in accordance  
with pas 2050 methodology 
printed on cocoon offset which is produced from 100 
recovered waste both the paper mill and printer involved 
in the production support the growth of responsible forest 
management and are both accredited to iso14001 
which specifies a process for continuous environmental 
improvement and both are fsc certified this report is 
printed using vegetable oil based inks 
 
 
 
 
if you have finished reading the report and no longer  
wish to retain it please pass it on to other interested  
readers or dispose of it in your recycled paper waste  
thank you 
design and production 
radley yeldar  wwwrycom
print 
mitie document solutions
mitie group plc  annual report and accounts 2010
a big thank you to the 94 mitie 
people who appear in this report 
and to the other 56485 who  
made this another great year  
for the group
you make us who we are welcome to mitie 
a sustainable company…
overview
financial record 02
mitie at a glance 04
chairman’s statement 06
business review
chief executive’s strategy review 08
marketplace overview 14
operating review 16
new contract summary 24
corporate responsibility 27
financial review 30
key performance indicators 34
factors that could affect our business 36
governance
directors’ report 38
board of directors 39
directors’ report corporate governance statement 40
directors’ report statement of directors’ responsibilities 50
remuneration report 51
audited information 57
accounts
independent auditors’ report to the members of mitie group plc 60
consolidated income statement 61
consolidated statement of comprehensive income 62
consolidated balance sheet 63
consolidated statement of changes in equity 65
consolidated statement of cash flows 66
notes to the consolidated financial statements 68
independent auditors’ report to the members of mitie 97
company balance sheet 98
notes to the company financial statements 99
shareholder information ibc
fresh thinking
clear strategy
sound business
well managed
strong financials
shareholder information
dividend reinvestment plan drip
mitie has set up a dividend reinvestment 
plan drip to enable you to build your 
shareholding by using your cash 
dividends under a standing election  
to buy additional shares in mitie if you 
would like to receive further information 
including details of how to apply please 
call capita registrars on 020 8639 3402  
or contact them by sending an email to  
sharescapitaregistrarscom
mitie online share portal
mitie has launched a shareholder portal 
where shareholders can register and can
–  access information on shareholdings 
and movements
– update address details
–  view dividend payments received  
and register bank mandate instructions
– sell mitie shares
–  complete an online proxy voting form 
and
–  register for ecommunications allowing 
mitie to notify shareholders by email  
that certain documents are available  
to view on its website this will further 
reduce mitie’s carbon footprint as well  
as reduce costs
if you wish to register please sign up at 
wwwmitiesharescom
corporate website
this report can be downloaded in pdf 
format from the mitie website which also 
contains additional general information 
about mitie please visit wwwmitiecom
results
201 1 interim management statement 14 july 2010
201 1 halfyearly results 22 november 2010
dividends
2010 halfyearly dividend 37p paid 4 february 2010
2010 final dividend 41p proposed
2010 final ex dividend date 23 june 2010
2010 final dividend record date 25 june 2010
2010 final dividend last date for receipt
revocation of drip mandate 12 july 2010
2010 final dividend payment date 13 august 2010
annual general meeting
2010 annual general meeting 14 july 2010 230pm
company details
mitie group plc  
8 monarch court  
the brooms  
emerson green  
bristol bs16 7fh 
telephone 01 1 7 970 8800  
fax 01 17 302 6743  
email groupmitiecom  
website wwwmitiecom
registered number sc 19230
registrars
capita registrars  
northern house  
woodsome park  
fenay bridge  
huddersfield hd8 06a
telephone 0871 664 0300  
website wwwmitiesharescom
calls cost 10p a minute plus network extras lines are open 830am–530pm mon–fri
view this report online 
wwwmitiecominvestors
keep track of our  
news and thinking
wwwfacebookcomgroupphpgid30377596133
wwwtwittercommitiegroupplc
wwwyoutubecomusermitiegroupplc 01
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
08
38
60
people 
with passion
hard as it is to link passion with 
outsourcing this is what makes  
mitie different 
we love working with our clients –  
solving problems and helping them 
run their businesses better
we thrive on fresh thinking…  
finding new ways of doing things…  
always looking to do things better… 
in fact we’ve made that the theme  
of this report 02
mitie group plc   
annual report  
and accounts 2010
people… 
who deliver 
results
financial record 03
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
08
38
60
 £ 1  5 b n
order book
£64bn 2009 £49bn
24pp
multiservice and fm as  of revenue
57 2009 33
 155
operating profit before other items
£930m 2009 £805m
 130
revenue
£17201m 2009 £15219m
75
201011 budgeted revenue secured
2009 74 
1 30
dividend per share
7 8p 2009 69p
other items are noncash or nonrecurring acquisition related items 04
mitie group plc   
annual report  
and accounts 2010
people… 
who get  
things done
we specialise in outsourcing  
and we like to think we are  
the best 
we work in close partnership  
with each client to provide 
everything from strategic 
consultancy to service delivery 
in simple terms 
we think  
we manage and  
we deliver on their behalf
mitie at a glance 05
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
08
38
60
strategic outsourcing
facilities management
integrated facilities management and a range  
of services including document management  
front of house catering cleaning maintenance 
landscaping pest control security waste and  
environmental management
brings together the capabilities of all four divisions working  
with clients to develop and implement their business strategies
property management
social housing maintenance and refurbishment framework 
and partnering agreements project management  
roofing repairs and redecoration interior fitout plumbing  
and heating and fire protection
t echnical facilities management
facilities management led by technology  
engineering maintenance carbon reduction  
energy and lighting efficiency 
asset management
design installation management and maintenance  
of technical assets meeting the demands of the  
lowcarbon economy energy design generation and 
certification mechanical and electrical infrastructure  
data and life systems
our divisions
our strategic proposition
read how we did last year 
1626
rationalise 
internal supply chain
external supply chain
operating structures
specifications
costs
 
to create efficiency
optimise 
energy efficiency
management structure
technology platform
management information
asset investment 
 
to generate opportunity
maximise 
property strategy
space planning
return on investment
partnerships jvs
 
for sustainable futures 06
mitie group plc   
annual report  
and accounts 2010
another excellent 
performance
we are delighted to report that mitie  
has made excellent progress in the past 
financial year we have significantly 
enhanced our capabilities through 
selective investments in our energy  
and fm business propositions as well as 
through strategic acquisitions we have 
delivered double digit growth in revenue 
underlying earnings and dividends in the 
year revenue increased by 130 to 
£17201m and underlying operating profit 
before other items noncash or non
recurring acquisition related items by 
155 to £930m while cash conversion 
remained extremely strong at 952  
this is an excellent performance against  
a backdrop of challenging economic 
conditions and is a testament to the 
passion and hard work of the mitie team 
strategy
our strategy is to deliver stakeholder value 
through a focus on sustainable profitable 
growth we are delivering against that 
strategy and have ambitious plans for the 
future mitie has proven capabilities as a 
strategic outsourcing company that adds 
value to its clients today’s low carbon 
economy means that our clients are 
looking for something different they want 
to deal with a business that can create 
an innovative outsourcing solution as 
well as providing integrated facilities 
management and specialist services 
this market trend is creating significant 
opportunities to grow our market share 
particularly in technical facilities and 
energy management the execution of our 
strategy is enabled by the development of 
our talented and innovative people our 
technology and infrastructure platform 
and through our continued investment in 
our ability to manage contracts that are 
increasingly large and complex
during the year we have made two  
key strategic acquisitions which have 
broadened our capabilities and 
significantly strengthened our client 
proposition in august 2009  we acquired 
dalkia fm for a total consideration 
including costs of £1 19 5m this acquisition 
complemented our existing engineering 
maintenance capabilities and specifically 
enhanced our carbon energy 
management and energy efficient 
lighting credentials we have integrated 
the business with our engineering 
maintenance business and the enlarged 
business is now operating successfully as 
mitie technical facilities management  
in november 2009  we acquired 
environmental property services limited 
eps ltd for maximum total consideration 
of £409m including costs eps ltd was 
integrated with our social housing business 
within our property management division 
and significantly enhances our capability 
in the social housing market particularly in 
the south east of england the dalkia fm 
and eps ltd acquisitions have been 
successfully integrated have delivered 
earnings in line with our expectations and 
we are confident they will make a significant 
contribution to mitie’s future growth
results
the year saw revenues grow by 130  
to £17201m 2009 £15219m with a 
particularly good performance in our 
facilities management fm division  
we also saw a significant contribution to 
revenue of £1901m from the acquisitions 
made during the year 
operating profit before other items 
increased by 155 to £930m 2009 
£805m reflecting an enhanced margin 
of 54 2009 53 profit before tax and 
other items increased by 1 7 0 to £917m 
2009 £784m earnings per share before 
other items grew by 134 to 19 5p per 
share 2009 17 2p per share 
chairman’s statement
revenue 
£m
130
130
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
dividend per share 
p
1 4072
9356
12288
15219
17201
basic earnings per share 
before other items 
p
134
2006
2007
2008
2009
2010
149
99
128
1 72
195
155
2006
2007
2008
2009
2010
operating proﬁt 
before other items 
£m
722
483
622
805
930
50
2006
2007
2008
2009
2010
proﬁt before tax  
£m
679
505
566
759
797
60
43
51
69
78
12
2006
2007
2008
2009
2010
basic earnings per share 
p
143
98
11 9
167
169
 other items are noncash or non recurring acquisition 
related items 07
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
08
38
60
the business remains very cash generative 
and has reported a cash inflow from 
operations of £984m 2009 £944m for  
the year representing excellent cash 
conversion of 952 2009 97 5 the 
balance sheet is extremely strong with net 
debt at the year end at 084x ebitda at 
£866m 2009 net cash £109m after using 
debt funding of £1 161m for acquisitions 
committed bank facilities of £2300m 
remain in place to january 2012 which 
leaves the group well positioned to  
take advantage of further acquisition 
opportunities as they arise 
our order book is strong it grew by 306 
during the year and now stands at a 
record £64bn 2009 £49bn our sales 
pipeline is also at record levels and our 
contracted revenue for the year ending 
31 march 201 1 stands at 75 of budgeted 
revenue 2009 7 4 
dividend
mitie continues to generate attractive 
dividends and dividend growth for its 
shareholders the board is recommending 
an increased final dividend of 41p per 
ordinary share providing a total dividend 
per share for the year of 7 8p a 130 
increase on 2009 in line with our dividend 
policy to maintain dividends in line with 
underlying earnings per share growth at a 
cover ratio of 25 times adjusted earnings 
subject to shareholder approval at the 
annual general meeting the dividend will 
be paid on 13 august 2010 to shareholders 
on the register at 25 june 2010
board
we were pleased to welcome two new 
nonexecutive directors to the board 
during the year terry morgan cbe  
joined the board on 1 july 2009 and  
has been appointed chairman of the 
remuneration committee and larry hirst 
cbe joined on 1 february 2010 both have 
considerable commercial experience  
of large complex organisations larry’s 
career with ibm has spanned 32 years 
where he held the role of chief executive 
uk  ireland and is currently a chairman 
of ibm emea terry is the chairman of and 
has had extensive experience working  
for crossrail we look forward to the 
contributions they will make to the 
development of mitie in the future 
ishbel macpherson stepped down as a 
nonexecutive director on 30 september 
2009 having served for four years on our 
board we wish ishbel well for the future
people
mitie is one of the uk’s largest private 
sector employers during the year the 
number of people employed by mitie rose 
by 5093 to 56579  we would like to thank 
all of our people for their exceptional 
efforts and support and to welcome all 
those who have joined mitie during the 
year in particular we would like to extend 
a warm welcome to all those joining the 
group from both dalkia fm and eps ltd 
the board realises that results as good  
as these are only produced by talented 
people dedicated to achieving the same 
strategic goals 
our future progress will be heavily 
influenced by our ability to maintain the 
motivation and drive of all mitie people 
we will be reinforcing mitie’s ethos of 
recognising and rewarding exceptional 
team performance nurturing talent and 
providing opportunities for our people to 
succeed in their careers
outlook
mitie is in a very strong position we have 
seen a stepchange in our capabilities 
driven by selective investment in 
technology in our energy and fm 
propositions as well as through strategic 
acquisitions furthermore our developing 
international strategy will enable us to 
extend our reach and exploit growth 
opportunities both in the uk and overseas
our prospects for growth are very strong 
and we will benefit from the full year  
effect of both the dalkia fm and eps ltd 
acquisitions in this year’s results along with 
the related synergies 
demand for innovation and efficiencies  
in both the public and private sectors  
will provide great opportunities for mitie  
we maintain a position of financial 
strength a robust balance sheet and 
capacity for further organic and 
acquisitive growth we are positive about 
mitie’s future and of continuing to deliver 
sustainable profitable growth
roger matthews  
chairman 08
mitie group plc   
annual report  
and accounts 2010
overview
mitie is in an exciting position we are 
a business with tremendous capability 
that is able to provide clients with the 
widest range of solutions to help them 
meet their strategic business and 
property challenges clients want us to 
do more more strategic engagement 
broader geographic coverage capital 
investment integrated service delivery 
and leading management information 
systems clients want partners that they 
trust and can rely on as their businesses 
adapt to the changing economic 
climate in both good times and bad
mitie is now a high volume transactional 
outsourcing business we have the 
capability and technical infrastructure  
to manage the transfer of thousands  
of people in very short timescales  
we manage clients’ compliance  
risk employment and legislative  
requirements while delivering innovative 
solutions efficiently
we have ambitious plans as our clients 
grow and diversify so will we we have 
a robust and challenging growth plan 
that recognises the importance of our 
expanding markets and opportunities 
and supports the development of our 
business overseas
this will not however be at the cost of 
what has made mitie such a success  
we are passionate about keeping the 
spirit of innovation and empowerment 
that has made mitie flexible enough to 
provide exactly what our clients need  
we want our people to identify new 
markets and to be ready to develop 
them we know that our future success 
depends on our ability to recruit and 
retain good people so we will always 
have incentive schemes that promote 
and reward excellent performance
above all we will always put our clients 
first having clients who really value what 
we do and who want to develop long
term relationships does not happen by 
chance spending time with clients 
listening to their issues and helping them 
to construct solutions is what we do best 
focusing  
on strategic 
priorities
chief executive’s strategy review 09
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
our strategy
our strategy has seven elements all of 
which contribute to delivering stakeholder 
value through a focus on sustainable 
profitable growth 
we provide value for all of our 
stakeholders clients employees 
shareholders the communities in which 
we operate and other organisations we 
deal with growth provides benefits for  
our stakeholders and our commitment  
is to growth in profits that is sustainable  
by sustainable we mean that we grow 
profits every year and that we do it the 
right way we care about our impacts on 
the environment and on society we are  
a responsible business because we 
believe that is the right way to be all of 
these strategic elements influence the 
way we do things from our corporate 
responsibility cr plans to performance 
management for our people we 
measure ourselves on our contribution  
to the following seven areas of strategic 
focus which are covered in further detail 
throughout this report
 
our market opportunity
market conditions are attractive for mitie 
as our ability to deliver cost and carbon 
reductions for our clients comes to the 
fore current economic conditions have 
provided further impetus for change in  
the industry as clients see the tangible 
benefits that outsourcing delivers in the 
form of lower costs more innovation and 
improved value for money as the market 
has evolved we have successfully 
positioned the group as a partner of 
choice for our clients having continued  
to secure and retain large contracts 
throughout the year our ongoing 
investment in people systems and 
technical capabilities gives us confidence 
that we can drive economies of scale  
for our business and that of our clients 
going forward
we offer a number of differentiated 
capabilities to our clients which will help 
them to introduce further efficiencies 
throughout their organisations we have 
built the capability to manage any size 
portfolio of buildings or assets and have 
the ability to deliver this across multiple 
regions we offer a tried and tested 
capability to manage large scale 
transactional activity for our clients  
which drives efficiency in their back office 
structures particularly in the areas of 
supply chain employment and payroll 
management energy and carbon 
efficiency is becoming an integral part  
of all our contracts and is increasingly 
embedded in everything we do 
technology also has an important part to 
play and the investments we are making 
now will ensure that we offer the most 
efficient service in the marketplace  
now and in the future 
in the private sector we have seen high 
levels of activity across our client base as 
they respond to the efficiency challenges 
faced by every organisation this has 
resulted in an increasing level of private 
sector tender activity for all services and 
we see this trend continuing as businesses 
seek to consolidate acquired operations 
or enhance efficiency in existing 
structures the public sector faces the 
prospect of considerable pressure  
on expenditure in the coming years  
we believe that this will create significant 
opportunities for the outsourcing market 
as contracts will tend to become larger 
and broader in scope 
1
7
6
5 4
3
2
1 clients
deliver value to our clients by providing 
worldclass service
2  people
recruit motivate and retain the  
best talent in the industry
3  risk
take a longterm view to protect  
our business and manage risk
4  responsibility
act responsibly and build a  
reputation that enhances our  
brand to all stakeholders
5  integration
leverage our strong position to  
secure more integrated and larger  
scale contracts
6  profitability
focus on growing a profitable  
business maintaining margins
7  acquisitions
support our growth with selective 
acquisitions
seven  
strategic 
elements
view our strategic progress  
through our group kpis 
34–35 10
mitie group plc  
annual report  
and accounts 2010
acquisitions are a key part of our strategy and they support  
our longterm growth plans our two significant acquisitions  
in 2009 are now integrated into the group 
mitie’s acquisition strategy seeks to enhance shareholder value 
by introducing new and scalable capabilities that build long
term revenues maintain margin levels and fit with the mitie 
brand a number of key factors drive our acquisition framework 
including sector priorities business differentiators capability 
gaps and market and brand stretch 
the acquisition of dalkia fm introduced the carboncare 
concept and brand to mitie we have subsequently  
launched mitie carboncare across our group and it now  
forms a core part of our important and growing carbon 
management programme
1
7
6
5 4
3
2
our strategy
acquisitions
chief executive’s strategy review
the satisfaction of our clients is central to our strategy of 
delivering sustainable profitable growth we have invested time 
this year improving our understanding of our clients needs in 
order to reinforce our client strategy 
our clients see consolidation as the way forward and are 
looking to outsource more aggressively as they seek to cut costs 
and enhance carbon efficiency they want to be clear about 
what the benefits are and how they can be realised that’s why 
we are introducing new technology that reduces costs for us 
and our clients and allows us to provide a smoother delivery  
of integrated services we are helping our clients either by 
consolidating their supplier bases within specific service lines  
or by bundling services together or a combination of the two 
our clients tell us that sustainability and carbon targets are 
increasingly important issues we have responded by launching 
carboncare which will see energy management become a 
part of every service we offer
£42m
our strategic approach to outsourcing has allowed us to 
save our client £42m over five years by integrating their 
cleaning services with just one supplier across their entire 
uk portfolio we are harmonising work process across 
their business with one supplier and one specification 
delivering one look and feel to the whole estate
allison emerson head of account for lloyds banking 
group and dave wilkins project manager
1
7
6
5 4
3
2
our strategy
clients 01
38
60
accounts governance business review overview
11
mitie group plc  
annual report  
and accounts 2010
–15
we successfully reduced north somerset’s schools’ 
energy spend by over 15 carboncare offers a full 
range of integrated services that help organisations 
manage down their energy use and carbon footprint 
our expertise ranges from measuring carbon 
exposure developing comprehensive energy 
strategies eliminating waste identifying effective 
clean energy alternatives to challenges with a more 
human dimension like encouraging behavioural 
change in the workforce
mike sewell marketing director  
technical facilities management 
we anticipate higher levels of tender 
activity to result in the medium term  
whilst this may not have any material 
effect on our anticipated performance 
during the current year we believe that  
in subsequent years we will benefit from 
the efficiency agenda that is expected  
to impact central and local government
investment in our capability
acquisitions
in 2009 we utilised our strong financial 
position to make two strategically 
important acquisitions dalkia fm and eps 
ltd which are trading well the acquisition 
of dalkia fm was made in august 2009 
and we are particularly pleased with the 
progress made by our teams in creating a 
fully integrated technical fm business that 
complements the capabilities and skills of 
our traditional soft fm services business 
acquisitions will continue to feature as part 
of our growth strategy but our approach 
will always be to acquire businesses that 
have strong management teams with 
similar cultural values to ours we want  
to acquire businesses for fair prices that 
complement our existing capabilities and 
enhance what we are able to offer our 
clients particularly in terms of property 
and estate management environmental 
and carbon consultancy we will properly 
integrate each acquisition so that clients 
will be able to receive seamless support 
from mitie as we develop
operational development
the operations of mitie have been 
realigned as a result of the acquisitions  
of dalkia fm and eps ltd so that with  
effect from 1 april 2010 we are structured 
into four divisions these are facilities 
management technical facilities 
management property management 
and asset management 
we have moved some of the elements  
of the asset management business to 
other divisions to reflect market changes 
and client preferences
the technical facilities management 
business is a stand alone division providing 
a range of services for clients that have  
a preference for facilities management 
with an energy and technical emphasis 
our engineering contracting operations 
have moved from asset management  
to property management allowing the 
residual asset management division to 
focus on providing energy performance 
services infrastructure and asset 
investment solutions to clients that are 
looking to optimise performance in a 
rapidly evolving energy environment 12
mitie group plc   
annual report  
and accounts 2010
people
as our business is dependent upon having 
motivated quality people we have a 
talent management programme in place 
to ensure that we have the right people 
with the skills our clients value mifuture  
is the programme that formalises our 
approach to talent management and 
ranges from work experience and an 
innovative graduate programme  
to talent mapping for our top managers 
and bespoke coaching programmes  
for senior management
increasingly our clients are asking us to 
have the capability to support them 
across all of the countries in which they 
operate mitie is able to respond to this 
demand and has expanded its 
management team to enhance its 
international expertise through the 
targeted recruitment of key people and 
the development of its international supply 
chain as the scale and complexity of our 
clients’ needs increase both in the uk and 
abroad we have also selected a team of 
people who will be dedicated to large
scale integrated contracts and this 
specialised group will be at the forefront of 
mitie’s strategic outsourcing opportunities 
we are committed to fostering and 
developing a culture of employee 
involvement in the business through 
communication with employees  
we embrace new technologies  
and see real value in social networking 
recognising the influence it has on our 
people and industry as it becomes an 
increasingly important part of our lives  
we are at the forefront of social 
networking and encourage all our 
employees and stakeholders to expand 
their networks in new and innovative ways 
twitter facebook youtube rss minet 
and sms are all utilised as part of our 
employee communications the group 
also communicates with employees 
through the use of mailings and updates 
employeefocused initiatives business
specific intranet sites and broadcasts  
of financial presentations 
the importance of recognising and 
rewarding our people cannot be 
underestimated we have further 
expanded our mitie stars programme to 
reward exceptional performance by our 
people and in 2008 introduced mitie’s  
got talent as a groupwide talent contest 
to encourage employee engagement 
and recognition in november 2009 we 
launched mitierewards which is our  
brand new employee benefit rewards 
scheme available to all employees
the group’s culture of employee equity 
involvement is a significant driver in the 
group’s growth performance and assists 
in attracting and retaining our employees 
we continue to operate the mitie long 
term incentive plan to incentivise and 
reward senior employees of mitie the 
executive share option scheme for 
certain other employees below board 
level and the savings related share 
option scheme which is open to all 
eligible employees of the group 
technology
our technology infrastructure provides  
us with the platform to support our  
clients our contracts and our business 
clients increasingly want real time 
information on the performance of  
their assets and estates that is available 
online and accessible 24 hours a day  
this capability will be increasingly 
important as we develop our business  
in the uk and overseas
over the last three years we have 
invested in our systems to ensure that they 
are robust and can support us as we grow 
our investment has been focused on 
back office support through the rollout  
of a new finance and human resources 
administration system and on operational 
systems we have developed a client 
facing management information suite 
that has the capacity to provide 
comprehensive asset performance  
data to our clients and our teams to 
enable the most efficient fm solution  
to be tailored to their needs we see  
these developments as critical to mitie 
and create differentiation of our service 
offering within the marketplace 
chief executive’s strategy review
1
7
6
5 4
3
2
our strategy
people
419
mitie prides itself on developing new talent and this  
is demonstrated through our practice of employing 
and providing vocational training for apprentices  
we are one of the largest employers of apprentices in 
the uk currently employing 419 trade apprentices 
across our business and many more in shortterm 
service apprenticeships 
four of mitie’s prizewinning apprentices  
callum wilson edwin mensah rachel green  
thomas mizuro  13
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
looking forward 
we are very positive about mitie’s future 
prospects and remain committed  
to our strategy of delivering sustainable 
profitable growth further market 
consolidation and the continued drive for 
efficiency change and enhanced service 
levels will drive the growth of the business 
this will be reinforced by the ongoing shift 
to integrated contracts with greater 
complexities and which are increasingly 
energy focused
we are continuing to invest in our business 
principally in the areas of sales geographic 
expansion talent management and 
technology we have created a step 
change in our capabilities this year as a 
result of the investments we have already 
made leaving us in a strong position to 
deliver substantial growth 
we have excellent visibility of future 
revenues a growing longterm order  
book and an unprecedented level of  
bid opportunities we have experienced  
an extremely positive start to the new 
financial year with new contract awards 
which demonstrate our ability to provide 
complex integrated services utilising 
mitie’s extensive capabilities we are at  
an exciting stage in the evolution of our 
business and we look forward to a year  
of opportunity and strong growth
ruby mcgregorsmith  
chief executive
outsourcing is a peoplebased business and we are  
acutely aware of how critical our people are to our business 
recruiting and retaining the right people is also one of our 
biggest challenges as mitie has shifted from single service 
delivery to a solutionsdriven approach we have made 
significant investments in attracting training and retaining  
the right people our apprentice and graduate programme  
are also important elements of our talent management
looking forward we remain focused on talent identification 
movement and succession planning as we challenge and 
motivate our management teams to keep pace with the 
business’ increasing commercial complexity 14
mitie group plc   
annual report  
and accounts 2010
marketplace overview
serving a broad 
range of clients  
and markets
private sector
55 £09bn 
contribution to 
group and value
sector market 
size pa
mitie 
share
finance and professional £5bn 46
manufacturing £5bn 21
technology and communications £4bn 35
retail £5bn 28
property management £6bn 30
utilities £8bn 08
transport and logistics £ 11 bn 09
construction £9bn 05
leisure £6bn 04
the drive to reduce costs and a focus on 
sustainability are the two principal areas 
of focus for all our clients at present 
organisations are seeking to drive down 
their costs through integrated services 
supplier rationalisation retendering and 
innovation in addition consolidation 
drives the market to consider the structure 
of its cost base and bring new and 
extended outsourcing opportunities
the ability to deliver integrated services 
our unrivalled coverage across the uk and 
our technology platform are increasingly 
becoming key differentiators for our 
private sector clients some of our clients 
are also seeking alternative approaches 
to outsourcing by taking a ‘whole life’ view 
and linking the initial capital expenditure 
to the lifetime operating expenditure of 
their contracts 
there is still considerable impetus for 
change in the private sector as clients look 
to increase efficiency in both cost and 
carbon the financial and professional 
services sector was one of the first to react 
to economic conditions and has been at 
the forefront of a number of large scale 
contracts that have increased 
geographical coverage or increased  
the range of services and sometimes  
both this trend continues with a number 
of current large scale opportunities
other sectors are also changing 
procurement models and we have  
seen considerable tender activity in  
retail transport and utilities we have 
benefited from these changes and are 
seeing particularly high levels of private 
sector tenders
public sector
45 £08bn 
contribution to 
group and value
sector market size pa mitie share
government £7bn 40
social housing £10bn 24
education £13bn 14
healthcare £ 11 bn 11
we expect opportunities in the public 
sector to expand as government seeks to 
reduce expenditure and improve service 
levels and sustainability the reduction of 
the fiscal deficit in the uk will be a priority 
for the government in the coming years 
and mitie is wellpositioned to support  
this agenda consequently we continue 
to focus on and invest in our client 
proposition in this important market
in simple terms increasing levels of 
outsourcing have the ability to reduce 
costs and increase innovation delivering 
more for less it is likely that outsourcing will 
be used to create new services models 
and to improve the efficiency of public 
sector services shared services models 
could be developed to reduce the costs 
of management and administration  
of government with support services 
benefiting from a private sector approach 
that has consistently demonstrated 
improvements to productivity over the 
longterm within government 
we expect partnerships between the 
public and private sector to be important 
in the transformation of the government 
estate and they will support the 
achievement of sustainable operation  
of government estate soge targets  
the carbon reduction commitment 
crc energy efficiency scheme will  
also affect many public sector offices  
the crc which came into force in april 
2010 is a huge part of the government’s 
pledge to reduce greenhouse gas 
emissions by at least 80 from 1990 levels 
by 2050 the scheme will see organisations 
with total halfhourly metered electricity 
consumption greater than 6000 mega 
watt hours a year equivalent to 
approximately £460000 electricity spend 
forced to buy allowances for each tonne 
of carbon dioxide co2 they emit and  
be placed in a league table according  
to their energy performance 
these anticipated changes present  
a significant opportunity for mitie and  
we are continuing to invest in our sales 
proposition in the public sector we are 
recruiting and training sector specialists  
to help with bids and manage contracts 
tailored to the needs of each of the 
sectors we focus on and extending our 
reach into the public sector our ability to 
create innovative fitforpurpose solutions 
that satisfy the government’s green 
objectives and need for cost reduction 
positions us particularly well in this space
  based on proforma numbers in respect of the 
acquisitions during the year
14
mitie group plc  
annual report  
and accounts 2010 15
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
 
the market continues to demonstrate an appetite for 
integration either through the amalgamation of a number  
of service lines through one contract or through horizontal 
integration across a service line to create economies of scale 
the outsourcing model is changing towards larger integrated 
contracts and mitie is moving with the market integrated 
contracts now account for over 57 of our total contracts and 
we are seeing integration across services and also within services 
as clients seek to simplify their procurement strategies and 
reduce costs our integrated contracts operate with one team 
focused on the clients’ needs our technology platform and 
management processes all support seamless service delivery 
and reporting
7  1
mitie designed and installed the mechanical and 
electrical systems in the newly renovated national 
audit office building in addition to our contract  
to maintain the me systems in the years to come  
we also commenced onsite operations of the 
integrated facilities management in november 2009  
as well as delivering seven essential services we have 
introduced a number of measures which support 
them on their path to achieving government 
sustainability targets
mel williams contract manager and manjit parmar 
contract facilities manager
1
7
6
5 4
3
2
our strategy
integration
international markets
there has recently been increased 
demand from our uk private sector  
clients for mitie to expand its uk delivery 
capability to other regions european 
procurement teams are now taking the 
lead for cross border procurement activity 
and we expect an international mix  
going forward we have developed an 
international strategy with a number of  
our key clients and have invested in a 
senior management team with extensive 
overseas experience they will be working 
closely with our partners in service 
management international smi to 
develop opportunities for mitie smi is a 
specialist provider of international facilities 
service solutions delivering onsite to  
blue chip multinationals worldwide
research puts the value of the emea 
europe middle east and africa 
integrated services market at about 
£30bn and growing rapidly clients are 
looking for a different type of response 
that provides compliance as an 
integrated part of a solution comprising 
management skills a technology  
platform that allows visibility of expense  
at all locations and for the organisation  
as a whole and solid competence in  
service delivery
the key considerations are geography 
competencies management capabilities 
and the ability to operate locally client 
procurement drivers in this area are less 
about the individual services and more 
about reducing the cost base increasing 
efficiency and finding greater agility in  
a framework of risk management and 
corporate compliance
15
mitie group plc  
annual report  
and accounts 2010
overview business review governance accounts
01
38
60 16
mitie group plc   
annual report  
and accounts 2010
facilities 
management
operating review
alan  
streamlining and 
boosting productivity 
for a business in the 
process of transition 
 
78
78 contractors and sub
contractors to one supplier
3200
1 ezitracker that drives pay 
and invoicing allowing us 
to seamlessly mobilise 
3200 staff members
£35m
£35m investment in 
machinery that saves time 
and reduces accidents
2650
2650 stores with separate 
management channels 
simplified to one national 
helpdesk
12
12 types of liquid chemicals 
per store to just one liquid  
and one concentrated 
powder saving storage 
transport and mitigating 
their carbon footprint
£5m
£5m per annum –  
savings coop can  
reinvest in its business
mitie had a longterm partnership  
with somerfield prior to securing  
the contract to provide cleaning  
for the enlarged portfolio of all the 
cooperative group stores after they 
acquired somerfield mitie bid for  
six different regional tenders and  
was awarded the contract for the  
entire national estate on the back of  
our ability to streamline management  
and productivity which translated  
into significant savings for the  
cooperative group 
the facilities management division 
delivers facilities consultancy 
management and integrated service 
delivery to our clients it has expertise  
and service delivery capability in the 
areas of business services catering  
client services facilities services  
pfi services security cleaning and 
environmental services pest control 
waste management and landscaping 
as customers continue to look for cost 
savings from their property portfolios  
mitie is well placed to lead and meet  
the different and changing needs of the 
facilities management market economic 
pressures are encouraging customers  
to expand the traditional portfolio of 
outsourced facilities services in order  
to find further cost savings from areas  
that may not have been previously 
considered customers are now looking to 
all their assets to create value within their 
organisations and mitie has been able to 
assist customers by combining our flexible 
and broad range of expertise in asset 
energy and property management 
alongside our fm capabilities 
mitie is uniquely placed to successfully 
deliver very large scale national  
contracts within the fm industry  
mitie has a presence on virtually every 
high street in britain providing services  
for supermarkets banks and other  
retail chains across the uk 
throughout this financial year mitie has operated in three divisions facilities 
property and asset management with effect from 1 april 2010 we are operating as 
four divisions the commentary and financial data below reflects the performance 
in the organisational structures that applied during the period to 31 march 2010  
the comparatives and proforma analysis for the segmental financial performance 
for both structures are shown in note 3 to the consolidated financial statements
read about our new contract wins 
24–26
1
7
6
5 4
3
2
our strategy 
clients 
people 
risk 
responsibility 
integration
revenue 
facilities management
55
2009
2010 8246
7818
operating proﬁt 
before other items
facilities management
70
2009
2010 505
472
operating proﬁt margin
facilities management
01pp
2009
2010 61
60
 other items are analysed in note 4 17
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
our experience and national delivery 
capability will allow us to capitalise on  
this position and increase our market share 
as smaller regional contracts continue to 
be combined to help clients maximise 
their savings
with green issues being higher on the  
fm agenda than ever carboncare 
mitie’s marketleading energy offering  
has already helped to secure new work 
across the division and we expect it to  
be an important differentiator in mitie’s 
service offering going forward
during the year facilities management 
has continued to focus on increasing the 
integration across the division in the way 
we bid and operate our contracts 
additional work secured during the year 
has come from existing customers that 
want to contract out larger packages of 
work to gain the economies of scale 
involved in rationalising their supply chains 
this has come in the form of expanding 
regional contracts into larger national 
ones as well as customers adding extra 
services onto multiservice contracts or 
transitioning to a full fm service in an effort 
to realise the maximum amount of cost 
savings with a retention rate for rebid 
contracts in the year at 87 we are 
demonstrating that the investment that 
we have made in customer relationship 
management and in our larger integrated 
multiservice and fm contract capabilities 
particularly during the last 18 months  
is paying off 
alan usher account manager for the cooperative group 18
mitie group plc   
annual report  
and accounts 2010
property 
management
property management has expanded its 
capabilities to offer an integrated property 
management service clients are 
increasingly looking for a broader range 
of services that include mechanical and 
electrical energy and more general 
facilities management services in addition 
to the traditional services such as 
maintenance refurbishment painting 
roofing interior fitout fire protection and 
plumbing and heating
the social housing market is developing 
rapidly and we have made a strategic 
shift in the way we operate clients want 
to form longterm relationships with 
partners who work collaboratively to 
provide estate management planned 
and responsive maintenance capital 
projects environmental improvements 
and help to address fuel poverty
operating review
read about our new contract wins 
24–26
revenue 
property management
–10
2009
2010 2950
2979
operating proﬁt 
before other items
property management
128
2009
2010 202
1 79
operating proﬁt margin
property management
 other items are analysed in note 4
08pp
2009
2010 68
60 19
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
mitie is now ranked seventh in the uk 
social housing market it operates as an 
integrated national business with the 
capability to support our clients property 
strategies collect property information 
and perform stock condition surveys  
as well as manage projects and 
maintenance contracts across the uk  
the acquisition of eps ltd has added 
considerable expertise especially in the 
south east of england one of the major 
attractions of eps ltd was its ifs housing 
management software that we are 
adopting and upgrading as the standard 
across the social housing business 
this will allow us to manage all the data 
related to our social housing activities and 
is accessible to clients via a web portal so 
they can see real time reporting and 
process information 
ifs technology also supports planning and 
scheduling budgets cost reports tenant 
liaison environmental impacts and 
satisfaction levels we are well placed to 
expand our market share in this market
the specialist businesses have had  
a mixed year the businesses that 
predominantly work in the repair and 
maintenance market painting and 
roofing have made good progress the 
more cyclical businesses such as interior fit
out fire protection and plumbing have 
suffered from the general downturn in 
construction activity across the uk 
although there are some signs that activity 
levels in those markets are increasing
from 1 april 2010 the engineering 
contracting businesses have become 
part of the property management division 
this move enhances the capabilities of  
the division in terms of mechanical and 
electrical services contracting which is 
increasingly becoming part of the capital 
works frameworks and fitout projects  
that we are involved with the results of 
that business are reported within asset 
management for the year ended 31 
march 2010 the impact of the transfer in 
financial terms from 1 april 2010 is shown  
in note 3 to the accounts
paul  
improving homes  
local communities 
and businesses 
 
system thinking delivering on the crawley borough 
council contract
an innovative repairs service that is designed to fix 
problems permanently on the first repair at the 
customer’s convenience
emphasis on thinking about how and why work is delivered
mitie has a proven trackrecord in systems thinking and 
reducing costs increasing performance and increasing 
client satisfaction with this innovative delivery model
mitie won a contract with crawley 
borough council to deliver reactive 
maintenance and void refurbishments to 
half of their 8 153 housing stock this ten
year contract starts in april 2010 with an 
estimated value of £3m per annum from 
april 2012 the contract will be extended 
to cover planned and cyclical works 
adding a further £84m per annum for 
the remaining term mitie will help 
improve homes in the area as well as 
supporting local people and businesses 
from providing job and training 
opportunities to supporting community 
events and initiatives we’ll be an active 
member of the local community
paul castle maintenance technician
1
7
6
5 4
3
2
our strategy 
clients 
people 
risk 
responsibility 20
mitie group plc   
annual report  
and accounts 2010
the asset management division provides 
the integration management and 
maintenance of technical assets to  
meet the challenges of the lowcarbon 
economy including energy design 
generation and certification infrastructure 
projects building services and mechanical 
and electrical engineering following its 
acquisition in august 2009 we integrated 
dalkia fm with our engineering 
maintenance business to form technical 
facilities management there is a 
separate operational review of technical 
facilities management in this section
asset management operates across  
a broad span of public and private  
sector markets our business this year  
has been driven increasingly by new 
economic and technology initiatives that 
are enabling our customers to optimise 
their performance in a rapidly evolving 
energy landscape
asset 
management
operating review
read about our new contract wins 
2426
wastetoenergy  
turning a liability into an asset
the traditional method of waste 
management is becoming increasingly 
detrimental to the environment and 
businesses alike in fact it is one of the most 
expensive problems any organisation has 
to deal with the good news is that smart 
engineering and new technologies can 
turn waste streams into valuable revenue 
streams as valuable as oil or gas when  
it comes to generating energy while 
alleviating pressure on our natural 
resources and environment mitie has 
considerable expertise in these wasteto
energy technologies we are for example 
investigating the potential use of thermal 
technology at an aquaculture centre 
using organic waste to generate heat 
which is then converted to refrigeration 
we are also looking at the conversion  
of medical waste to produce heat for  
a leading london hospital in addition  
to conventional thermal wastetoenergy 
systems there are some very promising 
new technologies on the horizon
revenue 
asset management
358
2009
2010 6005
4422
operating proﬁt 
before other items
asset management
448
2009
2010 223
154
operating proﬁt margin
asset management
 other items are analysed in note 4
02pp
2009
2010 37
35 21
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
steve  
contributing to 
creative problem 
solving and systems 
integration 
 
13
power usage effectiveness 
of 13 against an average 
of 25 and maximum 
efficiency of 10 
32 
forecast 32 co2 
reduction in comparison  
to conventional systems
35000m
2
35000 m
2
 commercial 
office building 
 
772
data centre infrastructure 
efficiency of 77 2 
representing a  
significant performance 
improvement over  
the original system
mitie has developed a creative solution 
to computer room cooling for eland 
house in westminster which redirects 
waste heat from the servers to the 
domestic hot water system we already 
held the fm contract for the department 
for communities and local government 
that occupies the building and were 
commissioned to design construct  
and maintain their energy system as 
well our solution integrates several 
technologies to create maximum 
efficiency cooling units using chilled 
water from an air source heat recovery 
system provide conditioned air to the 
cold aisle face of each data cabinet 
and heat rejection from the cabinets  
is coupled to the kitchen calorifiers to 
provide hot water
steve hogan engineer
1
7
6
5 4
3
2
our strategy 
clients 
risk 
responsibility 
integration 22
mitie group plc   
annual report  
and accounts 2010
operating review
ken and paul  
enabling buildings 
and their tenants  
to minimise their 
environmental impact
 
savings 
10
10 targeted energy 
reduction on a £11m 
energy bill
9
nineyear contract with 
yearonyear energy 
reductions guaranteed
£110000 
£1 10000 saving delivered 
in year one
£145000 
£145000 saving delivered 
in year two
sustainability 
100
100 green renewable 
electricity procured for  
the buildings
simplification 
4 
four bills a year for the 
client which cover all  
their me services  
energy expenses and  
a contingency fund
security
preagreed limit on 
tenants’ energy bill  
to ensure they receive  
no surprises
mitie technical facilities management 
works with nb real estate which is the 
property manager for the cooperative 
insurance society cis portfolio  
this consists of £25bn of property  
assets and incorporates 18 commercial 
buildings spanning almost a million 
square feet mitie delivers technical 
facilities management and energy 
services for a number of the buildings in 
their portfolio using a dynamic shared
savings carboncare business model 
everyone involved in running the 
buildings including the tenants have a 
stake in reducing energy consumption 
and carbon emissions and can benefit 
from the energy cost savings generated
1
7
6
5 4
3
2
our strategy 
clients 
people 
risk 
responsibility 
integration 23
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
technical facilities management
technical facilities management focuses 
on facilities management that is led by 
technology engineering and energy 
requirements it comprises the integrated 
operations of our engineering 
maintenance business and dalkia fm
the division was formed following the 
acquisition in august 2009 of dalkia fm 
services in the uk by combining it with 
existing mitie capabilities and mitie  
now has the largest technical facilities 
management team in the uk this was 
part of the asset management division 
until 31 march 2010 from which point  
it has traded separately as a new 
operating division of mitie this places 
mitie in a leading position in the fm and 
engineering maintenance markets in  
the uk it also elevates our competitive 
advantage in providing mitie with a 
critical mass for a wide range of energy 
services including the provision of crc 
energy efficiency scheme management 
solutions as well as a further platform to 
crosssell mitie services 
a specialist integration team worked 
alongside our newly appointed 
management team from august 2009   
a detailed plan set out the objectives of 
establishing clear management control 
providing clarity to clients and our people 
and defining the work streams necessary 
for effective integration financial 
management communication and 
rebranding once established the 
integration was reviewed weekly to ensure 
milestones were met and that priority  
was given to communication and the 
redefinition of the enlarged business 
we now have a unified operating 
structure and a single brand in the uk 
marketplace moving forward in 2010  
we will continue to develop the business 
 in areas including effective talent 
mapping enhanced contract 
management single quality assurance 
procedures taking the best from previous 
systems together with a class leading 
approach to the delivery of mobile 
services and energy data management 
our new tfm business is extremely  
well placed to meet the challenges 
facing our clients in the management  
of their technical assets and in their 
response to increased regulations  
around carbon emissions in a capital 
constrained environment
ken levecque site engineer and  
paul carr operations manager 24
mitie group plc   
annual report  
and accounts 2010
our recent 
contract awards
new contract summary
private sector
finance and professional services
client contract timeframe value division
santander
integrated facilities management for the uk head office portfolio of 33 buildings in 
england scotland and northern ireland
3 years £90m total fm
mechanical and electrical services
3 years £48m pa am
lloyds bg
mitie is the sole provider of cleaning services across the entire property portfolio 
cleaning the entire estate including 3100 bank branches and major offices across the 
uk this contract will help lloyds to harmonise work and deliver one consistent look and 
feel across their entire estate mitie is delivering significant savings to lloyds over five years
5 years nd fm
global credit card provider
landscaping and cleaning for ten sites across london and brighton
2 years £2m total fm
large uk financial institution
mechanical and electrical contract for the maintenance of critical buildings in the 
south east and north of england
3 yrs  2 yr
extension
£1 7m pa am
friends provident
fm contract for their entire property portfolio and includes guaranteed energy savings
7 years £25m pa am
european investment bank
extensive modifications to the infrastructure of a fully operational building occupied by 
a large european investment bank
nd £5m total pm
investment management 
business
fit out of two floors covering 13000 square feet works included meeting rooms general 
office space reception area and staff breakout facilities
17 weeks £23m total pm
retail sector
client contract timeframe value division
the cooperative group
renewed our existing cleaning contract with the cooperative group and extended 
it into a major national contract where we will service all cooperative group and 
somerfield stores growing from 600 stores and head office cleaning to more than  
2600 stores around the uk and the entire group’s estate
3 years £63m total fm
british retail grocery chain
added to our work with the cleaning of five extra distribution centres and expanded 
to a national contract to clean stores increasing the portfolio from 176 to 320 stores 
nationally
23 years £168m 
total
fm
work on an energy savings project which includes an efficient lighting refit of selected 
stores across the property portfolio
nd £13m total am
marks  spencer
retained and expanded our security work to provide specialist retail security officers 
and event security to stores and offices in the south and east of the uk
3 years £29m total fm
leading department store
two mechanical and electrical contracts
3 years £4m pa am
major pharmaceutical retailer
facilities management with a broad range of services across the property portfolio
5 years £5m pa am
clarks
retail portfolio contract as well as the total facilities management contract including 
services to the head office and distribution centre
3 years £13m total am
primark
completed our 60th store development with primark at bristol broadmead this 
refurbishment of an iconic 1950s building has subsequently won the oracle retail  
week store design of the year award
nd nd am
metrocentre
refurbishing a 20000 square metre roof at the metrocentre
6 months £18m total pm
transport and logistics sector
client contract timeframe value division
virgin trains
a range of cleaning services for 17 stations and offices nationwide along with window 
and deep cleaning across the entire virgin trains rail network
2 years £27m total fm
eurotunnel
freight scanning and chocking services
3 years £12m total fm
global freight business
portfolio of fm services to the client’s estate including cleaning and securing depots  
in several regions
2 years £48m total fm
first great western
cleaning of trains and 156 stations across the uk
3 years £126m total fm
transport services company
retained our depot security work on the london underground as a subcontractor 
providing specialist track trained security staff to operate over the entire track and 
corporate office portfolio of the london underground
2 years £9m total fm 25
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
technology and communications sector
client contract timeframe value division
pharmaceutical company
waste management and recycling nationally for this major organisation
3 years £18m total fm
leading independent  
clearing house
fitting out two floors of their offices
3 months £3m total pm
cable  wireless
refurbishment of their glasgow offices
1 year £ 14m total pm
large telecommunications 
company
designed supplied installed and will maintain a new computer room cooling system 
incorporating 800 advanced energyefficient fans the fans run at lower temperatures 
than the previous system saving electricity and reducing the cooling load on the 
refrigerant system mitie is funding the £19m capital cost which will be repaid by the client 
as a unitary charge over the contract term with guaranteed cost and carbon savings
18 months £19m total am
eon
working to help tackle fuel poverty and meet local authority carbon targets –  
mitie has designed and installed ground source heating as a key renewable 
technology for a housing estate in gloucestershire
nd nd am
ethos energy
signed a letter of intent to design build and operate a wastetoenergy plant 
using advanced thermal treatment att based on the proven ethos pyrolysis and 
gasification technology
nd nd am
property sector
client contract timeframe value division
land securities
soft services facilities management for the prestigious new building one new change 
in london
3 years £6m total fm
support services sector
client contract timeframe value division
capita
total facilities management contract to manage the entire supply chain for capita’s 
national property portfolio as well as provide integrated services and strategic expertise 
across the contract
6 years £140m total
 estimated
fm
vertex
the ingredients food service team will work alongside our security engineering and 
clenaning specialists at multiple sites across the uk
3 years £35m total fm
leisure sector
client contract timeframe value division
thomas cook
multisite catering contract which expands on our cleaning provision at their 
manchester site the contract will see our ingredients food service team providing 
staff restaurants cafes delis and hospitality across the uk including sites in peterborough 
preston and falkirk
3 years £39m total fm
utilities sector
client contract timeframe value division
water and waste water  
services company
retained a contract for mechanical and electrical services
nd £26m pa am
severn trent water
provide fm services across its 20 sites 
5 years £30m total fm
public sector
education sector
client contract timeframe value division
university of the arts in london
multiservice fm contract to provide cleaning security and maintenance services
3 years £7 5m total fm
cambridgeshire  
county council
made preferred bidder for fm services as part of the equitix consortium  
on the bsf scheme
25 years £30m total fm
london borough of newham
facilities management provider for the bsf scheme
25 years £25m total fm
derbyshire county council
facilities management provider for the bsf scheme and design build operation and 
maintenance of smallscale wind farms to generate renewable electricity and offset 
grid electricity
25 years £525m 
total
fm
loughborough university
sportpark
mechanical and plumbing installation on a £12m newbuild project utilising renewable 
energy by means of ground source heating sportpark at loughborough university 
is the new home for the national governing bodies of many sports and the scheme 
comprises four buildings with three buildings of three four and five storeys linked through 
glazed circulation spaces
1 year £ 18m total pm
suffolk county council
redecoration and repair works to schools in the county
4 years £1m pa pm
penwith college cornwall
installed a northwind 100 wind turbine the first use of this model in england
nd nd am 26
mitie group plc   
annual report  
and accounts 2010
public sector continued
social housing sector
client contract timeframe value division
plymouth community homes
major improvement works to over 14000 homes in plymouth as one of four suppliers 
to refurbish kitchens and bathrooms as part of a framework agreement which could 
mean up to 120 jobs and 12 apprenticeships in the city
5 years £165m 
total
pm
crawley borough council
reactive maintenance and void refurbishments to half of the 8153 housing stock  
after year two the contract will be extended to cover planned and cyclical works
10 years £3m pa  
further 
£84m pa 
from year 2
pm
enfield homes
planned maintenance works to homes in the area including kitchen and bathroom 
upgrades replacement of electrical and heating systems as well as door and window 
replacements
1 year £3m total pm
sanctuary housing association
awarded a position on the framework for all price bands and sanctuary regions to 
refurbish kitchens and bathrooms and perform other work
4 years nd pm
city of edinburgh council
replacement of kitchens and bathrooms including electrical water heating and 
rewiring all to scottish housing quality standards a tenants choice redecoration 
package is included in the contract
4 years nd pm
home group
redecoration and repair works
1 year £ 12m total pm
central and local government sector
client contract timeframe value division
greater london authority
involved in an array of energy savings projects and currently bidding for further work 
within phase 2 and 3 frameworks
nd £24m total am
department of communities 
 local government
designed and installed an innovative cooling system at eland house for the computer 
room that redirects waste heat from the servers to the domestic hot water system
nd nd am
british nuclear fuels at 
sellafield ltd
added a cleaning contract to our existing integrated facilities management contract 
at the sellafield site
2 years £36m
additional
fm
national audit office
full range of facilities management services for the newly refurbished 21150m
2
 building 
in central london mitie also designed and installed all of the mechanical and electrical 
systems and will maintain them over the life of the contract
5 years £65m total fm
refurbishment of offices
10 months £ 16m total am
atomic weapons agency plc
two separate contracts to provide security as well as cleaning and environmental 
services to awe’s sites in berkshire
3 years £10m total fm
healthcare sector
client contract timeframe value division
bangor hospital
project for new electrical infrastructure works as part of the design for life framework
nd £8m total am
royal free hampstead 
nhs trust
extension to the original contract to use surplus heat from the energy centre to 1700 
social housing units in the borough of camden mitie will design build and operate this 
district heating network
nd nd am
transport and logistics sector
client contract timeframe value division
transport for london
12month extension to our fm contract for hard and soft services
1 year £7 4m total fm
retained our bus stop cleaning and maintenance contract with tfl london buses
3 years £9 2m total fm
nd  not disclosed
new contract summary 27
mitie group plc   
annual report  
and accounts 2010
business review
01
38
60
corporate responsibility
responsible 
practice across 
everything  
we do
mitie is committed to embedding responsible business practice 
into everyday operations policies procedures and practices and 
providing opportunities for people to develop their full potential
this year we have refined the links between our corporate  
and cr strategies by introducing new smart objectives that  
fully align the five pillars of our cr strategy to our corporate 
strategy these objectives appear as kpis in our cr strategy 
matrix and in our dedicated cr report which has further detail 
on all our cr related activities a new expanded online account 
of our cr activities and strategy matrix will be available at  
wwwmitiecomcr
100
the 100 organic fertiliser we make from our  
waste at london’s iconic brewery is recirculated  
to the farmers in our supply chain this is just one of  
the many sustainable practices we’ve introduced…  
100 of the disposable products we use each year  
are biodegradable we’ve also reduced energy 
consumption in the kitchens by half and lowered  
our carbon footprint by sourcing locally and cutting 
transport times
erling rugsten executive chef 
1
7
6
5 4
3
2
our strategy
responsibility
our unwavering commitment to cr and 
the successes we have achieved serve to 
strengthen our reputation as a responsible 
and ethical business we utilise our cr 
capabilities to enhance our working 
relationships with our clients and suppliers 
as well as supporting communities and 
third sector partners demonstrating to our 
stakeholders that we have a responsible 
and sustainable business model
mitie relies on the knowledge and skills  
of its people to deliver its unique range  
of services providing appropriate training 
and development to support our people 
is vital to delivering the quality of service 
demanded by our clients mitie is one of 
the largest employers of trade apprentices 
in the uk currently employing 419 across 
our business we spent over £44m on 
training this year with over 40000 training 
delegate days and we retained 92  
of management
mitie adopts the highest ethical standards 
and understands its responsibilities to all of 
our stakeholders including our employees 
clients suppliers subcontractors investors 
competitors and the general public 
overview business review governance accounts
01
38
60
27
mitie group plc  
annual report  
and accounts 2010 28
mitie group plc   
annual report  
and accounts 2010
corporate responsibility
our key business principles are published 
in our policies which are available at 
wwwmitiecomcrpolicies
our impact on the environment is given 
careful consideration across every aspect 
of the business the last 12 months has 
seen the carbon reduction commitment 
crc energy efficiency scheme  
further elevate the issue of energy 
management onto the boardroom 
agenda and encouraged businesses  
to reconsider their energy consumption 
and identify areas to implement carbon 
management strategies 
mitie is providing strategic carbon 
management to a broad spectrum  
of clients with advisory and practical 
support on the interpretation of legislation 
including the crc and the delivery of 
energy reduction measures we have 
continued our involvement in landfill 
avoidance programmes with the 
development and delivery of a range  
of recycling and best practice solutions 
including waste to energy programmes  
to facilities across the uk 
since 2006 mitie has proactively 
publicised its environmental kpis 
addressing the five key impacts of 
electricity gas and water consumption 
transport emissions and waste creation 
over the coming 12 months mitie’s focus 
on environmental sustainability will adopt 
the carboncare philosophy engaging  
in improved practices and strategies for 
data capture monitoring and analysis 
allowing us to implement environmental 
management strategies for all of our  
office facilities and prioritise appropriate 
buildings for attention this year our 
normalised co2 emissions per employee 
and emissions per pound of revenue have 
decreased by one percent and nine 
percent respectively
health and safety has always been a 
priority for mitie and we strive to improve 
our performance every year we use 
management systems and controls to 
support our occupational health and 
safety ohs targets providing 
comprehensive training across all levels  
of the organisation and implementing an 
improvement process to control key risks 
our health and safety performance  
has improved this year to a rate of three 
and a half reportable accidents per one 
thousand employees
mitie makes a significant contribution to  
a variety of communities across the uk 
this contribution is demonstrated by 
numerous initiatives including volunteering 
inkind donations probono support and 
sponsorships our charity policy directs our 
main fundraising support to six regional 
charities although we also provide support 
for various other charities that are of 
particular interest to our people we 
contributed over £400000 to communities 
across the uk during this financial year
we have maintained and expanded  
our seven construction skills centres at 
schools across the uk designed to provide 
craft skills and vocational education to 
approximately 500 students aged 14–19 
years and further enhanced our multi
award winning real apprentice scheme 
with a joint programme in partnership  
with jobcentre plus and london employer 
accord in 2009 entitled ‘raising the game 
on disability’  this programme has been 
designed to provide training and 
employment opportunities specifically to 
unemployed people with physical mental 
or learning issues 
in 2009 mitie also improved its position on 
the business in the community bitc cr 
index from 815 to 887 maintaining its 
position in the silver category and was 
awarded a new big tick in the skills in the 
workplace category of their national 
awards for excellence 2010 and in 2010 
suzanne baxter group finance director 
was awarded the icaew inspiring 
confidence in business award by the  
fd’s excellence awards supported by  
the cbi the award recognises an fd who  
has made an outstanding contribution to  
their business through linking sustainability 
activities to organisational performance 
and placing sustainability at the centre  
of strategy development
cr is fundamental to mitie as a business 
and is a key part of our corporate strategy 
this table shows how we link the seven 
elements of our corporate strategy 
namely clients people risk responsibility 
integration profitability and acquisitions  
to the five corporate responsibility pillars of 
people service and delivery environment 
health  safety and community
key performance indicators
  unit  2010  2009 difference
total revenue £m 1720 1522 1 3
average number of employees number 53631 50054 7
total co2 emissions tonnes 36463 34696 5
normalised co2 emissions per employee tonnes 068 069 –1
normalised co2 emissions per £m revenue  tonnes 21 23 –9
total water consumption m
3
 18948 17 843 6
normalised water consumption  
per employee m
3
 035 036 –3
total waste tonnes 1 1 68 933 25
total waste per employee kg 22 1 9 16
total waste recycled tonnes 595 4 11 45
percentage of recycled total waste  51 44 16
percentage of recycled waste  
principal buildings  72 44 64
this year our emissions have been calculated using the defra sept 2009 v2 conversion factors to green house gases  
in accordance with defra guidelines our 200809 emissions have been recalculated for ease of comparison
28
mitie group plc  
annual report  
and accounts 2010
corporate responsibility report 2010 
for more information about the great things we do look  
at our cr report or visit the website wwwmitiecomcr
wwwmitiecomcr 29
mitie group plc   
annual report  
and accounts 2010
business review
01
38
60
overview business review governance accounts
01
38
60
29
mitie group plc  
annual report  
and accounts 2010
environmental audits  
of mitie’s construction  
skills centres
sustainability inputs  
for real apprentice 
programme
people service  
delivery
environment health  safety community
business strategy
two real apprentice 
employability 
programmes with  
12 clients offering  
30 placements
record split of gender  
and ethnicity through  
erp system
10 diversity awareness 
training courses
pledge for  
100 apprenticeships  
530 nvqs and 120 skills  
for life qualifications by 
july 2010
risk assessments  
ppe and equipment  
to mitie employees  
for volunteering 
programmes
four cr awareness 
seminars and  
five inductions
four joint mitie and  
client employee 
volunteering events
increase financial 
potential through client 
participation in four mitie 
volunteering projects
run cr reviews of 
prospective acquisition 
businesses during due 
diligence process
engage with  
top 50 clients
mitie’s culture values  
and cr credentials are 
communicated via  
talent management 
programme inductions 
and cr seminars
undertake 20 cr audit 
reviews of suppliers
climate change event  
for client participation
mitie family fun day with 
un international year  
of biodiversity
integration across mitie  
for client cr initiatives
cr kpis to enhance  
social responsibility 
profitability and reduce 
environmental impact
verify cr during  
100 day integration
cr inductions within three 
months of acquisition
demonstrate mitie 
capability for delivering 
environmental 
improvements
two opportunities for 
clients to improve their 
knowledge of mitie’s 
environmental capability
four environmental 
training courses
three environment related 
volunteer projects
impact data monitoring 
system during 2010
quarterly mi impacts 
reviews across mitie’s 
administrative offices
15 office energy and  
80 recycling rate by 2013
10 fleet fuel reduction  
by 2013
10 telematic tracker 
systems in fleet and 
reduce average co2 
vehicle emissions from 
147gkm currently
sustainability guidance  
for employees
new interactive methods 
via mitie intranet
develop and expand 
carboncare 
treehugger
tm
 and  
other mitie initiatives
acquired businesses  
adopt mitie’s sustainability 
commitments
environmental  
legislation analysis  
in due diligence
share best practice  
with five clients that  
have significant 
operational risks
hs competency 
framework  
throughout mitie
implement division  
specific requirements  
of mitie qhse strategy
four client based health 
awareness days
integrated hs plan  
for each multiservice  
fm contract
develop best practice  
for top three significant 
operational risks
full hs due  
diligence process
three fm skills centres  
at client schools
three top 50 client 
community projects
six world of work events  
in schools
employee  
volunteering policy
precautions to  
mitigate risks with 
community projects  
eg real apprentice  
skills centres etc
four employee  
volunteer  
projects
two real apprentice 
programmes in 
conjunction with  
12 clients
engage acquired 
businesses in mitie  
skills centres
1 clients
– satisfy clients
–  contribute to business 
needs
–  offer value for money
–  maintain quality 
relationships
–  support energy and waste 
reduction to reduce costs
2 people
–  training  support for 
career development  
 and maximum potential
–  develop and reward to 
improve retention and 
motivation
–  reinforce mitie’s culture 
and values
3 risk
–  strategic
–  operational
–  financial
–  compliance
–  understand risks and 
impacts
–  manage mitigate or 
eliminate risks
4 responsibility
–  maintain good hs 
performance
–  supporting communities
–  manage and reduce 
environmental impacts
–  train develop and reward 
our people
–  contribute to mitie’s 
success
5 integration
–  integration for improved 
efficiency and seamless 
service with common 
systems and processes
6 profitability
–  continuous profitable 
growth with improved 
social and environmental 
impacts
7 acquisitions
–  selective value  
enhancing acquisitions
–  acquire quality and 
complementary businesses
cr objectives 30
mitie group plc   
annual report  
and accounts 2010
financial review 
a 22year track 
record of growth
mitie has delivered another set of 
excellent results building on our 22year 
track record of success we have retained 
our focus on sustainable profitable 
growth and a prioritisation of sound cash 
management and have seen strong 
performance from our business despite 
challenging economic conditions 
we have made selective investments 
particularly in the areas of technology 
our energy and fm propositions and 
in acquisitions that have enabled us to 
make a step change in mitie’s capabilities 
during the year we enter the new year 
in a robust financial position with low 
gearing a strong balance sheet and 
enhanced capacity for future growth
from 1 april 2010 the structure of the 
group was changed and from that 
date we have operated through four 
principal trading divisions this change has 
principally been driven by the acquisition 
of dalkia fm and its integration into the 
group the impact of this change on 
the segmental analysis of our business 
going forward is set out in note 3 to the 
accounts the analysis provided below 
reflects the disclosures in our consolidated 
statutory accounts and provides details 
on the performance of the group in the 
structure applicable during the year 
ended 31 march 2010 
key performance indicators kpis
mitie uses a set of clear financial and 
nonfinancial kpis to measure and 
communicate critical aspects of the 
group’s performance these kpis are 
aligned with the group’s strategic 
objective of achieving sustainable 
profitable growth and our financial kpis 
are specifically focused on the level and 
quality of our earnings and cash flows 
the control of capital expenditure and 
the sustainability of dividends the group 
has performed strongly against these 
measures again this year and has now 
demonstrated a fiveyear track record  
of strength in each of these measures  31
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
we continue to review the relevance of 
our kpis to our developing business model 
and will be refining our cash conversion 
target going forward to 80 of earnings 
before interest tax depreciation and 
amortisation ebitda to reflect the 
working capital investment that we 
expect to be required to support the 
planned growth in new and larger scale 
fm style contracts within our operational 
portfolio this trend which is positive from 
a strategic perspective will require the 
support of increased working capital in 
some instances but will not affect the 
underlying strength of cash flows in our 
existing contract portfolio we remain 
committed to the prioritisation of strong 
cash management within our group
sustainable profitable growth
revenue for the year ended 31 march 
2010 increased by 130 to £17201m 
reflecting organic growth of 05 and 
a contribution of £1901m from the two 
acquisitions made by the group during 
the year 
the group maintained its track record of 
positive revenue growth despite the back 
drop of challenging economic conditions 
we experienced organic revenue growth 
of 55 in our facilities management 
business to £8246m 2009 £7818m 
where market demands for change  
and efficiency brought opportunity to  
the group in property management 
revenues reduced by 10 to £2950m 
2009 £297 9m reflecting an 1 11 
reduction in the underlying revenues  
of the business driven by challenging 
conditions in certain construction related 
markets such as interior fitout offset by  
a positive contribution to revenue from  
the eps ltd acquisition made in  
november 2009 of £301m finally in our 
asset management division revenues 
grew by 358 to £6005m 2009 £4422m  
this division was formed on 1 april 2009 
and comprised our traditional 
engineering services and engineering 
maintenance businesses 
mitie has a strong focus on revenue earnings and cash  
which has enabled our 22year track record of continuous 
profitable growth 
in these markets with changing risk profiles it is important to 
achieve revenue growth and it is crucial to maintain profit 
margins and be paid on a timely basis for the work we have 
performed we have achieved an average ebitda cash 
conversion of 966 over the past 20 years
1
7
6
5 4
3
2
our strategy
profitability
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
180
160
140
120
100
80
60
40
20
100
90
80
70
60
50
40
30
20
10
cash 
conversion 
target 90
cash conversion and ebitda history
cash conversion  ebitda £m
james clarke head of group finance 32
mitie group plc   
annual report  
and accounts 2010
financial review 
the performance of this business was 
greatly enhanced by the acquisition of 
dalkia fm in august 2009  which added 
£1600m to revenue and by the strong 
results of our traditional engineering 
maintenance business where organic 
growth of 152 increased revenues to 
£1848m 2009 £1604m and offset the 
impact of challenging markets within  
our engineering services business  
where revenues fell by 9 3 to £2557m 
2009 £2818m 
our order book continued to grow and 
now stands as £64bn 2009 £49bn 
reflecting organic growth of £09bn  
whilst our acquisitions added £06bn
we have seen a significant improvement 
in the level of our underlying operating 
profit during the year operating profit 
before other items increased by 155 to 
£930m 2009 £805m and our underlying 
operating profit ebita margin was 
enhanced to 54 2009 53 in the year 
operating profit before other items before 
the impact of acquisitions grew by 53 
to £848m outstripping the rate of growth 
in revenue the contribution to operating 
profit before other items from acquisitions 
was £82m 
we have seen strong margin performance 
in our facilities management business 
where operating profit before other 
items grew by 7 0 to £505m 2009 
£47 2m and operating profit margins 
improved to 61 2009 60 in property 
management operating profit before 
other items increased by 128 to £202m 
2009 £1 7 9m this was achieved through 
an increase in underlying profits to £186m 
2009 £1 7 9m driven by improvements 
in margins before acquisitions to 7 0 
2009 60 and a contribution of 
£16m from the acquisition of eps ltd 
integration costs incurred in respect of 
the eps ltd acquisition were £16m in 
asset management operating profit 
before other items grew by 448 to 
£223m 2009 £154m the growth in 
profitability of this division was driven by 
the acquisition of dalkia fm which made 
a contribution of £66m to operating 
profit before other items and by strong 
growth in the underlying revenues and an 
enhancement in operating profit margins 
to 48 2009 44 in our traditional 
engineering maintenance business  
this improvement offsets a decline of 
19 0 in the profitability of our engineering 
services business to £68m 2009 £84m 
integration costs incurred in respect of 
acquisitions were £66m and related to 
restructuring activities management 
structure changes rebranding and 
technology changes integration costs 
and other acquisition related costs such 
as the amortisation of intangibles of £53m 
2009 £19m which grew in the year in 
respect of newly identified intangible 
assets on the dalkia fm and eps ltd 
acquisitions are classified as other items 
within the consolidated income statement 
of the group after the impact of other 
items operating profit for the year was 
£811m 2009 £786m 
net finance costs for the year were £14m 
2009 £27m reflecting an improvement 
in the year despite an increase in the 
group’s average level of net debt  
this improvement was attributable to  
the reduction in libor the group has 
funded its debt at a level of 40 basis  
points over libor during the year 
the tax charge for the year was 
£222m 2009 £215m representing an 
improvement in our effective rate of tax  
on profit of 27 8 2009 283
these results generated a profit after tax 
for the year of £57 5m 2009 £544m  
an increase of 57 on the prior year 
cash flow funding and liquidity
the underlying cash performance of the 
group remains strong and in line with our 
stated kpi which targets the conversion of 
earnings before interest tax depreciation 
and amortisation ebitda to cash at a 
rate of 90 on a rolling 12month basis 
our cash conversion performance for 
the year ended 31 march 2010 was 952 
2009 97 5 
cash conversion measures the success 
of the group in converting its operating 
profit to cash during the year and is an 
effective measure in demonstrating the 
quality of the group’s earnings and the 
effectiveness of its cash management 
function mitie has consistently delivered 
cash conversion in excess of 90 over the 
last five years 
as the group continues to expand its 
exposure to large scale fm contracts 
that require the funding of operational 
costs generally wages in advance of 
payment from clients we are expecting 
to increase our investment in working 
capital to support the introduction of 
new larger scale fm contracts into mitie 
this change in the contract portfolio 
of our group is expected to create a 
reduction in the group’s cash conversion 
and we are therefore rebasing our cash 
conversion kpi to an 80 target this in no 
way reflects a worsening in the underlying 
cash flows relating to our existing portfolio 
of contracts but simply reflects the need 
to invest in working capital to support 
our strategic growth targets in this area 
we will continue to prioritise the cash 
performance of the group and to focus 
on maximising cash conversion within  
our business
net debt has increased to £866m  
2009 net cash £109m largely due to the 
impact of the two acquisitions mentioned 
above dalkia fm was funded through 
a combination of £77 7m of debt and 
£418m of equity raised through a placing 
of 19 million new ordinary shares eps ltd 
was funded entirely with £362m of debt 
the group’s committed banking facility 
of £2300m remains unchanged and in 
place until january 2012
delivering stakeholder value
our track record of delivering stakeholder 
value through earnings and dividend 
growth continued during the year basic 
eps before other items our measure of 
underlying eps increased by 134 to 
19 5p per share 2009 1 7 2p per share 
while basic eps was 169p per share 2009 
167p per share an increase of 12 this 
latter measure showed low growth due 
to the impact of in year integration costs 
that are nonrecurring and the mid year 
increase in the number of shares in issue 
following the share placing in august 2009  33
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
we have a dividend policy that ensures 
our dividend tracks the underlying 
growth in our earnings per share and is 
not distorted by noncash accounting 
adjustments or by nonrecurring 
acquisition related costs such as 
amortisation or integration costs the final 
dividend proposed by the board of 41p 
per share 2009 36p per share represents 
an increase of 139 which brings the full 
year dividend to 7 8p per share 2009 
69p per share an increase of 130 this 
continues to reflect a cover of 25 times on 
an adjusted earnings per share measure 
in line with our dividend policy
pensions
our financial strength remains unaffected 
by any significant deficit in our main 
pension scheme and this maintains  
our position of strength in the market  
the net position of all the pension  
schemes included on the group’s 
balance sheet is a deficit of £105m  
2009 £04m this included a deficit of 
£68m on the principal group scheme 
2009 surplus £30m 
the group also contributes to a number 
of defined contribution pension schemes 
as well as making contributions to its 
customers’ defined benefit pension 
schemes under admitted body local 
government status as well as to other 
arrangements in respect of certain 
employees who have transferred to  
the group under tupe the group’s 
defined benefit pension obligations in 
respect of schemes in which the group  
is committed to funding amounted to 
£37m 2009 £34m
acquisitions
in accordance with our strategic plan 
we have made two key acquisitions 
during the year which have significantly 
enhanced our capabilities in the areas 
of technical facilities management and 
social housing 
on 12 august 2009 we acquired the entire 
issued share capital of dalkia energy and 
technical services limited and parkersell 
limited together dalkia technical facilities 
management dalkia fm from dalkia 
plc for total consideration of £1 19 5m 
including directly attributable costs of 
£33m the transaction was originally 
structured to include a potential £100m 
of deferred contingent consideration 
however this is not payable from the date 
of ownership dalkia fm has contributed 
revenue of £1600m and operating profit 
before other items of £66m which is in 
line with our acquisition business case 
integration costs of £50m have been 
incurred in the year ended 31 march 2010 
a further £20m of integration costs will be 
incurred in the year ending 31 march 201 1 
while synergies of £60m are expected to 
be realised in that year mitie recognised 
intangible assets of £29 9m goodwill of 
£723m and other net assets of £1 7 3m in 
relation to the acquisition the charge in 
respect of the amortisation of intangible 
assets was £26m for the period ended 
31 march 2010 
on 20 november 2009 we acquired 
the entire issued share capital of 
environmental property services ltd eps 
ltd from uberior holdings ltd the eps 
senior management team and alchemy 
partners for a maximum consideration 
of £409m including costs with an initial 
consideration of £350m on a cash free 
basis from the date of ownership eps 
ltd has contributed revenue of £301m 
and operating profit before other items of 
£16m which is in line with our acquisition 
business case integration costs of £16m 
have been incurred in the year ended  
31 march 2010 mitie recognised 
intangible assets of £133m £37m net 
liabilities and goodwill of £313m in relation 
to the acquisition 
further details of these acquisitions can  
be found within note 29 to the accounts
our entrepreneurial  
investment model 
we remain committed to our 
entrepreneurial investment model which 
has significantly enhanced the growth 
of the group in the past we have made 
an investment in a new start up which 
has given an equity opportunity to a 
new senior management team within 
the care and justice marketplace and 
complements the existing expertise and 
contracts within our security business
as announced in august 2009  we 
purchased certain minority shareholdings 
of six mitie subsidiary companies under 
their respective articles of association 
and shareholder agreements the 
total consideration for all six purchases 
amounted to £212m being satisfied as 
to £11m in cash and as to the remaining 
£201m by the issue of 85 million new 
ordinary shares of 25p each in mitie 
valued at 237 75p per share being the 
closing market price per mitie share on  
24 july 2009  
mitie also issued new ordinary shares 
in respect of deferred consideration in 
respect of share purchase agreements 
signed in 2008 the total consideration 
in respect of the deferred consideration 
amounted to £13m being satisfied by the 
issue of 05 million new ordinary shares  
of 25p each in mitie valued at 237 75p 
per share being the closing market price  
per mitie share on 24 july 2009 
suzanne baxter  
group finance director 34
mitie group plc   
annual report  
and accounts 2010
key performance indicators
contract types split within mitie group operating profit margin 
before other items
capital expenditure as a  
of revenue
retention of existing contracts 
within facilities management 
description
in order to achieve sustainable profitable growth  
we monitor the percentage of existing contracts 
retained in our facilities management division on  
a rolling 12month basis
target
achieve contract retention rates in excess of 90
comment
our contract retention rate in our facilities 
management division stands at 87 
description
as a substantial portion of our revenue was historically 
generated through single service contracts one of  
our opportunities for growth is through expanding  
our relationships with existing clients by providing other 
services we have seen a trend in the markets towards 
multiservice and fm contracts over the past few years 
and we are well positioned to meet the demands of  
this trend due to our broad range of services
we measure the percentage of revenue that is 
generated by these types of contracts in order to 
measure how well we are performing in this arena  
57 of revenues are now attributable to multiservice 
and fm contracts
description
our operating profit margin before other items 
provides us with a good indicator of the profitability of 
our business where we have material nonrecurring 
charges such as integration costs we exclude these 
from our measure
target range
maintain operating profit margins between 50  
and 60 per annum
comment
we have improved our margin by 01 to 54
  other items are noncash or non recurring acquisition 
related items
description
our strength lies in the management of people and  
in the provision of suitable assets to support their work 
but our business is not capital intensive we continue  
to monitor and control capital expenditure and target 
growth and acquisitions in areas that do not require 
substantial capital expenditure
target range
maintain below 20 of revenue
comment
our kpi has increased to 15 but is well below the  
20 target level
£
£ £
1
7
6
5 4
3
2
1
7
6
5 4
3
2
1
7
6
5 4
3
2
our strategy
integration
our strategy
profitability
our strategy
clients
£
2006
2007
2008
2009
2010
860
840
850
880
870
2006
2007
2008
2009
2010
51
51
51
53
54
2006
2007
2008
2009
2010
14
12
18
11
15
75
50
25
2007
single service
multiservice  fm
2008 2009 2010
consistent  
performance 
on all fronts
£
£
nonfinancial kpi
financial kpi 35
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
management retention  reportable accidents 
per 1000 employees
carbon dioxide emissions
conversion of ebitda to cash dividend growth
description
mitie is a people business and we pride ourselves in 
creating and nurturing outstanding management 
monitoring how successful we are in retaining our 
people is an important measure for us
target
enhance focus on the development and retention of 
management to maintain a retention rate of over 90
comment
our management retention rates are 92 for the year
description
reportable accidents are defined as fatalities major 
injuries and injuries resulting in absence from work of 
over three days our people are our greatest asset 
providing them with a safe environment in which to  
work is of paramount importance to us so we use a  
kpi for reportable accidents to assess our performance
objective
retain focus on reducing the risk of accidents in 
our business
comment
our focus on health and safety has enabled  
us to reduce reportable accidents to 35 per  
1000 employees
description
we are conscious of the impact of our operations on 
the environment our co2 emissions are calculated 
using defra conversion factors following a review of 
our fuel and utilities usage the rate of co2 emissions 
per mitie employee is calculated using the average 
number of people employed during the year  
this year our emissions have been calculated using  
the defra sept 2009 v2 conversion factors to green 
house gases in accordance with defra guidelines  
our prior year emissions have been recalculated for 
ease of comparison
objective
understand and minimise the environmental impact  
of our operations
comment
our normalised co2 emissions 068 tonnes equivalent 
per employee are marginally lower than the prior year 
description
the efficiency with which we manage the generation  
of cash is an important indicator for our business  
mitie is built on a sound understanding of the 
importance of cash and working capital management 
and that ethos remains critical to our business  
the conversion of the group’s earnings before interest 
tax depreciation and amortisation ebitda to cash  
is one of the significant cashflow indicators for mitie
target range
over 900 of group ebitda converted to cash
comment
we have achieved our target this year with 952  
of group ebitda being converted to cash
the kpi for 20101 1 will be 80 to reflect the changing 
mix in mitie’s business
description
it is important that we continue to target a dividend 
policy that provides an appropriate return to 
shareholders with a dividend which grows in line with 
the underlying earnings of the group dividend cover is 
calculated by reference to our underlying cashbased 
earnings which we measure using our basic eps before 
other items eps before other items is 19 5p 2009 17 2p 
giving rise to underlying growth of 134
target range
at least in line with underlying earnings growth at a 
cover rate of 25x times adjusted earnings
comment
our dividend growth for the year is 130 providing 
cover of 25x times adjusted earnings
this year we have invested £1557m in the completion  
of two third party acquisitions dalkia fm and eps  
and £212m in minority interest acquisitions in six 
companies under the mitie model our strong  
cash flows committed banking facilities and strong  
balance sheet have ensured that these investments 
can be made against a backdrop of limited gearing 
with ebitda total debt at 31 march 2010 at 084 and 
interest cover of 57 9 for the year
£
1
7
6
5 4
3
2
1
7
6
5 4
3
2
1
7
6
5 4
3
2
1
7
6
5 4
3
2
our strategy
people
our strategy
risk
our strategy
responsibility
our strategy
acquisitions
£
£
£
£
2006
2007
2008
2009
2010
920
not measured
914
930
920
2006
2007
2008
2009
2010
40
61
51
39
35
2006
2007
2008
2009
2010
903
950
1144
975
952
2006
2007
2008
2009
2010
069
not measured
070
069
068
2006
2007
2008
2009
2010
176
265
186
150
130 36
mitie group plc   
annual report  
and accounts 2010
factors that could affect our business
mitie’s risk is classified into four areas strategic operational 
financial and compliance the assessment of risk is part of our 
culture and every business segment has a comprehensive risk 
register that feeds through to the group risk register which is 
reviewed by our board 
we give careful consideration to all the risks in our business and 
how we can best mitigate those risks but we are also focused on 
the key risks and correspondingly opportunities that help meet 
our business objectives opposite is a summary of the risks that 
we currently see as critical to our business on page 45 of the 
directors’ and governance report there is more detail of our risk 
identification and management processes
1
7
6
5 4
3
2
our strategy
risk
the assessment 
of risk is part  
of our culture
mitie provides a wide range of hard and soft 
services on the nuclear waste management and 
decommissioning site operated by sellafield ltd  
the sellafield contractors safety award is awarded 
each year and mitie won the top award for 
demonstrating exceptional management of its  
health and safety performance onsite over a  
12month period after it scored the highest in an  
audit evaluating total compliance areas of innovation 
and outstanding performance the inspection looks 
at other issues including leadership competence 
environmental awareness employee involvement 
and development as well as safety health and 
welfare conditions the award recognises mitie’s 
consistent standards which are best practice in  
health and safety risk management  37
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
38
60
strategic risks
category examples of risk mitigation
business development
adaptability of bid teams to market changes pricing of 
tenders agreement of contractual terms and conditions 
changes to scale and scope of contract works 
relationship management programmes in place with 
clients and key targets investment in and a regular review 
of bid pipeline tender and contractual review process 
with clearly defined approval process
competitive positioning
investment in new technologies attraction and retention  
of talented people bid strategy client retention 
maintenance of competitive funding structure
focus on innovation business case for investment in  
new technologies ongoing recruitment of new talent 
strong relationships with equity and debt funders 
attractive reward and retention models for key teams
acquisitions
strategic and cultural fit risk assessment due diligence 
synergies integration issues pension liabilities increased 
gearing management
experienced due diligence team deferred 
consideration post acquisition reviews clear strategy
trading overseas
knowledge of local regulations and practices  
exchange rate risk management control over  
operations people management
building overseas knowledge through existing work in 
some overseas jurisdictions involvement of external 
specialists management of foreign currency exposure
financial risks
category examples of risk mitigation
market conditions  economic climate
client credit risk changing customer requirements  
price competition change in government  
policyspending 
limits in place to manage exposure to individual 
customers and subcontractors groupwide credit 
exposure consolidation tool credit insurance 
ongoing dialogue with financial community  
change control procedures
counterparties
availability and cost of funding covenants credit risk of 
insurers and funding providers defined benefit pension 
schemes client and supply chain exposure
£230m facility spread across four banks and ongoing 
relationships with funders £40m overdraft facility in 
place daily review of bank balances and quarterly 
review of covenants controls over acceptance of 
counterparty risk audit of key counterparties
operational risks
category examples of risk mitigation
itsystems
availability and confidentiality of systems and data 
payment of employees provision of technology based 
management information solutions to clients
investment in innovation malicious software 
protection multiple network routes to data  
centres support on all systems experienced inhouse 
it resources 
finance system
systems implementation and development programmes 
processing of high volume transactions payment of 
employees and suppliers
project team governance and rollout plan in  
place for new developments involvement of  
key business stakeholders inhouse resources 
maintaining business as usual environment  
it steering committee comprising senior executives 
and relevant professionals
people
attraction and retention of talented people staff mix 
management training legislative compliance 
competitive remuneration employee reward 
system management and personal development 
plans apprenticeship programmes and mitie talent 
programmes governance and audit structures to 
ensure legislative compliance
subcontractors and suppliers
performance of subcontractors and suppliers  
affecting client relationships counterparty risk including 
health and safety and insurance over reliance on key 
service providers
vetting and induction procedures document 
monitoring performance monitoring divisional tcs 
in place insurance
trade disruption
access to premises payment of employees  
nationwide event legislation contractual obligations 
industrial relations
flexible workforce and network access  
business continuity plans
health safety and environment
working at height working with electricity gas or 
asbestos driving fire and water management  
slips and trips
ongoing training for all staff supported by 96 qhse 
professionals provision of appropriate equipment and 
ppe specific procedures in place for high risk areas 
internal and external audits
compliance risks
category examples of risk mitigation
insurance and material litigation
insurance covenants visibility of claims  
increasing operational scale
group and divisional management systems  
annual review of insurance cover all incidents 
reported within 48 hours risk reduction programmes 
run in conjunction with insurers
regulatory 
jurisdictional legislature and changes to it  
industry licensing capital market regulations  
banking covenant compliance 
departmental responsibility for relevant regulatory 
requirements expert external advisors compliance 
systems in place ongoing training and guidance 
conformance monitoring 38
mitie group plc   
annual report  
and accounts 2010
directors’ report
introduction
the directors submit their report together with the audited consolidated financial statements of the mitie group of companies 
the group for the year ended 31 march 2010 the directors’ report includes the business review the corporate governance 
statement the remuneration report the directors’ responsibility statement all other parts of this annual report and accounts and 
those documents that are referred to within this report and are available at www mitiecominvestorscorporategovernance
principal activities
mitie group plc is the holding company of the group the principal activity of the company is to provide management services to 
the group the group’s activities are focused on the provision of strategic outsourcing and asset management services in support 
of the buildings facilities and infrastructure of its clients further details of the subsidiary undertakings of the company principally 
affecting the profits or net assets of the group in the reporting period are listed in note 35 to the financial statements 
business review
the company is required to set out a fair review of the business of the group during the reporting period including an analysis of 
the position of the group at the end of the reporting period and the principal risks and uncertainties facing the group details of 
this review are contained in this directors’ and governance report and the following sections of this annual report and accounts 
the chairman’s statement on page 6 to 7  –
the chief executive’s strategy review on pages 8 to 13  –
the marketplace overview on pages 14 to 15 –
the operating review on pages 16 to 23  –
the section dealing with corporate responsibility on pages 27 to 29 –
the financial review on pages 30 to 33 –
the company’s key performance indicators on pages 34 and 35 and  –
factors that could affect our business on pages 36 and 37  –
basis of report
this report together with the other parts of this annual report and accounts and other documents incorporated by reference has 
been prepared and is published in accordance with and in reliance upon applicable english company law and the liabilities of 
the directors in relation to this report are subject to the limitations provided by such law 39
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
board of directors
roger matthews
nonexecutive chairman
chairman of the nomination committee 
member of the remuneration committee
roger was appointed as a nonexecutive director of mitie 
group plc in december 2006 and was later appointed as 
nonexecutive chairman in july 2008 roger previously held the 
roles of group finance director of j sainsbury plc and group 
managing director and group finance director of compass 
group plc roger is nonexecutive chairman of lsl property 
services plc and a nonexecutive director of zetar plc
ian stewart
nonexecutive deputy chairman 
ian was appointed as chief executive of mitie group plc in 2001 
and was appointed as nonexecutive deputy chairman on 
30 march 2007  ian was a founding member of mitie he is a 
nonexecutive director of generation uk limited suppliers of 
scaffolding access and safety systems
ruby mcgregorsmith
chief executive
ruby was appointed as group finance director of mitie group 
plc in december 2002 later appointed as chief operating 
officer in september 2005 and subsequently as chief executive 
in march 2007  prior to joining mitie ruby held a range of senior 
roles within the support services sector primarily at serco group 
plc in addition she is a nonexecutive director of michael page 
international plc and chair of race for opportunity a part of 
the business in the community bitc organisation with a focus 
on diversity in the workplace
suzanne baxter
group finance director
suzanne was appointed as group finance director of mitie 
group plc in april 2006 suzanne is a chartered accountant 
prior to joining mitie she specialised in mergers and acquisitions 
related transaction support and also held a number of 
commercial and operational roles with serco group plc 
suzanne holds a seat on the opportunity now advisory board  
a part of the bitc organisation with a focus on gender diversity  
in the workplace and is also a member of the finance and risk 
committee of bitc
roger goodman
group corporate development director
roger joined mitie group plc in 1993 and was appointed as  
an executive director in august 2001 roger is a nonexecutive 
director of the business services association and asset skills 
council which advocates the growth of the support services 
industry profile and the development of skills in the sector  
in addition he is chairman of networkers international plc
bill robson
director responsible for property management
bill joined mitie group plc in january 1992 following the 
acquisition of trident maintenance services limited and was 
appointed as an executive director in august 2001
david jenkins 
senior nonexecutive director
chairman of the audit committee 
member of the nomination and remuneration committees
david was appointed as a nonexecutive director in march 
2006 david was previously a senior partner with deloitte llp in 
london having spent over 20 years in assurance and advisory 
services david is chairman of development securities plc  
and a nonexecutive director of renewable energy systems 
holdings limited he is a governor of downe house school
graeme potts
nonexecutive director
member of the remuneration committee
graeme was appointed as a nonexecutive director in july 
2006 graeme previously held appointments with inchcape plc 
rac motoring services and reg vardy plc he is a non
executive director of ben the motor  allied trades benevolent 
fund and is nonexecutive chairman of bikers legal defence 
limited graeme is managing director of eden gm limited  
a motor retail group
terry morgan cbe
nonexecutive director
chairman of the remuneration committee 
member of the audit and nomination committees
terry was appointed as a nonexecutive director in july 2009 
he is chairman of the remuneration committee and is a 
member of the audit and nomination committees he is 
currently chairman of crossrail and holds positions at altar 
innovations ltd m j gleeson group plc and invest in thames 
gateway london limited terry was previously chief executive 
of tube lines limited and has also held appointments with 
bae systems rover group plc and lucas girling limited 
larry hirst cbe 
nonexecutive director
member of the audit committee
larry joined mitie as a nonexecutive director 1 february 
2010 he is currently chairman of ibm europe middle east 
and africa and has held a number of senior positions during 
his career with ibm over the past 32 years he was previously 
general manager ibm northern region and chief executive 
ibm uk  ireland larry is also nonexecutive chairman of uk 
trade and industry technology board chairman of eskills 
sector skills council a commissioner of the uk commission 
for employment and skills and a uk business ambassador  40
mitie group plc   
annual report  
and accounts 2010
directors’ report corporate governance statement
compliance with the code
the board recognises that the manner in which the group is governed is critical to the longterm success of the business and is 
committed to the principles of corporate governance for which the board is accountable to shareholders as detailed in the 
combined code on corporate governance 2008 the code this report together with the directors’ remuneration report 
provides details of key aspects of mitie’s corporate governance environment and explains the manner in which the board has 
applied the principles and provisions of good governance as set out in section 1 of the code
throughout the reporting period significant consideration has been given to the balance of the board and its committees and the 
board is conscious of any noncompliance with the code as at the date of this report the membership and composition of mitie’s 
board and its committees is such that it meets substantially the requirements of the code with the only exception being that the 
board composition reflects a ratio of 45 of independent directors to nonindependent directors compared to a 1  1 requirement 
under the code the board is satisfied with the balance and composition of the board following its extensive review during the year 
the board confirms that the group has complied with the provisions set out in section 1 of the code throughout the year other than 
as noted above with the exception that
the board did not consist of at least an equal number of independent nonexecutive and executive directors code a3  –
between 1 april 2009 and 1 july 2009 and between 30 september 2009 and 1 february 2010 further details relating to this non
compliance are provided below
the audit committee did not consist of at least three independent nonexecutive directors code c31  between 1 april 2009  –
and 1 july 2009 and between 30 september 2009 and 1 february 2010 further details relating to this noncompliance are 
provided on page 42
the nomination committee did not consist of a majority of independent nonexecutive directors code a41  for the reporting  –
period further details relating to this noncompliance are provided at on page 41 
board structure and operations
board membership
the membership of the board as at 31 march 2010 and biographical details of the directors including details of committee 
chairmanships and other positions held are given on page 39  during the year two nonexecutive directors were appointed 
terry morgan cbe and larry hirst cbe and one retired from the board ishbel macpherson terry morgan succeeded ishbel as 
chairman of the remuneration committee and also became a member of the nomination committee and both terry and 
larry became members of the audit committee these board changes occurred in accordance with the board’s preexisting 
orderly succession planning details of those directors seeking reappointment at the 2010 agm are provided in the notice of agm 
which is also available at www mitiecominvestors 
board operations
matters that are exclusively dealt with by the board include setting group objectives and strategies approving business plans and 
budgets and monitoring performance against these approving material tenders acquisitions disposals and business startups 
including any material transactions outside of the normal course of business approving the group’s halfyearly and annual report 
and accounts appointing and removing the chairman directors and company secretary and monitoring the group’s corporate 
governance arrangements approvals are managed in accordance with the group’s delegated authorities and matters are also 
set out in a schedule of matters reserved for the board which are available at www mitiecominvestorscorporategovernance
board responsibility
there is a clear division between the roles of chairman and chief executive as formally set out in the terms of reference for each of 
these roles these terms of reference have been reviewed as part of the review of the job specification of the chairman the 
chairman is responsible for the effective running of the board this includes ensuring that the nonexecutive directors contribute 
effectively and that the board is aware of the views of major shareholders he is also responsible for ensuring that the board 
addresses major challenges faced by mitie and for the effective performance of the board and its committees the chairman is 
available to consult with shareholders throughout the year and will be available at the agm the chief executive is responsible for 
all aspects of the operation and management of the group and its business within the authorities delegated by the board
the executive directors are collectively responsible for proposing strategy and for making and implementing operational decisions 
nonexecutive directors are responsible for exercising their independent skill and judgement and contributing to the formulation of 
strategy policy and decision making the terms of appointment of the nonexecutive directors’ and the executive directors’ 
service contracts are available for inspection at mitie’s registered office the head office and at the agm the senior independent 
nonexecutive director is available to shareholders should they have concerns which have not been resolved through the normal 
channels of chairman chief executive or group finance director or for which such contact is inappropriate in the circumstances 41
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
board balance and independence
during the year nonexecutive director independence was considered by the board the board determined that all non
executive directors as at 31 march 2010 with the exception of the deputy chairman ian stewart were independent in mind and 
judgement and free from any material relationship that could interfere with their ability to discharge their duties effectively specific 
consideration was given to david jenkins’ prior role with deloitte llp mitie’s external auditors the board determined that david is 
independent given that he had not been involved in the provision of services to mitie and the passage of time since his departure 
from deloitte llp in may 2004
as part of the ongoing review of board performance the nomination committee and the board specifically reviewed the roles of 
chairman and senior independent nonexecutive director and the composition and chairmanship of each of its committees the 
board and the nomination committee recognised that partly as a result of the changes in board composition there was an 
imbalance in the number of nonindependent directors and independent nonexecutive directors the nomination committee 
reviewed the skills knowledge and experience required to fill this additional position and provided a detailed specification to the 
external search consultancy engaged to conduct the search process this detailed search process was concluded on 1 february 
2010 when the board was pleased to announce the appointment of larry hirst as an independent nonexecutive director the 
board was broadly satisfied that its composition was appropriate having regard in particular to the integrity skills knowledge and 
experience of its directors and the size and nature of the business and having regard to its desire that the board does not become 
too large and unwieldy the board as at 31 march was comprised of four independent nonexecutive directors a nonexecutive 
director deemed nonindependent as a result of his prior role as ceo of the group the nonexecutive chairman and four 
executive directors this will not result in absolute compliance with provision a32 of the combined code and whilst the board 
remains broadly satisfied with the composition and balance however the board continues to be mindful of the need to maintain a 
balanced board and continues to keep the matter under careful review 
board committees
the board has four formally constituted committees the audit committee the executive committee the nomination committee 
and the remuneration committee for which the duties and responsibilities are set out in the terms of reference available at 
wwwmitiecominvestorscorporategovernance further details in relation to the composition role and functioning of each 
committee are set out below in addition the group operates an executive board it is not a formally constituted committee of the 
board operating solely under the delegated powers of the chief executive but is charged with supporting the chief executive in 
the operational management of the group 
executive committee 
the executive committee members are ruby mcgregorsmith suzanne baxter roger goodman and bill robson it functions 
primarily as an approval and signing committee and meets on an ad hoc basis as and when required with powers specifically 
delegated to it by the board and formally six times per annum with the more widely constituted executive board
nomination committee
as at 1 7 may 2010 the members of the committee are roger matthews committee chairman david jenkins and terry morgan 
ruby mcgregorsmith has stepped down from the committee but continues to attend meetings at the invitation of the chairman 
during the reporting period the committee met the provisions of the code if the chairman is not included and deemed 
nonindependent 
during the year two meetings of the committee took place a key function of the committee is to evaluate the balance and 
composition of the board and ensure that new directors bring the requisite skills knowledge and experience required for the role 
being considered during the year the committee oversaw the board succession planning as well as the recruitment of new 
directors appointments recommended to the board by the committee are done in accordance with the committee’s 
appointment and recruitment process 
remuneration committee
as at 1 7 may 2010 the members of the committee are terry morgan committee member and chairman from 10 july 2009 
david jenkins roger matthews and graeme potts during the year the remuneration committee’s members were ishbel 
macpherson prior to her retirement on 30 september 2009 david jenkins graeme potts and terry morgan all of whom are 
independent nonexecutive directors roger matthews who was independent prior to his appointment as chairman is no longer 
deemed independent under the code the committee held eight meetings throughout the reporting period comprises 
independent nonexecutive directors and meets the requirements of the code
the key duty of the remuneration committee is to make recommendations to the board on the individual remuneration packages 
of executive directors as a part of this process the committee oversaw the administration of the group ltip  esos and sa ye 
schemes as further detailed in the remuneration report and the benchmarking and review of executive director remuneration 
during the year the committee has been advised by the external remuneration consultant kepler associates in relation to 
executive director remuneration through formal benchmarking with market and industry comparators kepler associates do not 
have any connection with the group other than their formal appointment as advisers by the remuneration committee the board 
is responsible for reviewing and setting the remuneration of the nonexecutive directors the executive directors are not involved in 
discussions concerning their own remuneration further details on executive nonexecutive director remuneration and the 
company’s share schemes are given in the remuneration report 42
mitie group plc   
annual report  
and accounts 2010
the audit committee
role of the committee
the audit committee is generally responsible for
monitoring and reviewing the integrity of the group’s financial statements and for any formal announcements relating to the  –
group’s financial performance and for reviewing any significant financial reporting judgements therein
monitoring and reviewing the independence and objectivity of the group’s external auditors the objectivity and effectiveness of  –
the audit process and the effectiveness and implementation of the group policy on the provision of nonaudit services the 
nonaudit services policy 
monitoring and reviewing the integrity and effectiveness of the group’s internal financial controls environment internal audit  –
function and business risk management structures and
making recommendations to the board on shareholder resolutions for the appointment of and remuneration for external auditors  –
the terms of reference of the committee are available at wwwmitiecominvestorscorporategovernance and include the 
requirements of rule 7 21 of the disclosure and transparency rules dtr and the code that the company has a formally 
constituted audit committee comprised of independent nonexecutive directors the chairman of the committee will be 
available at the agm to answer any questions about the work of the committee
committee composition
the committee consists entirely of independent nonexecutive directors and is currently chaired by david jenkins during the year 
the audit committee comprised david jenkins terry morgan with effect from his appointment on 1 july 2009 and larry hirst with 
effect from his appointment on 1 february 2010 and ishbel macpherson who ceased to be a member of the committee upon her 
retirement from the board on 30 september 2009  
all members of the committee are considered as being appropriately experienced to fulfil their duties whilst david jenkins 
continues to be deemed by the board as at the date of this report to have significant recent and relevant financial experience 
through his qualifications and held appointments 
the committee ordinarily consists of at least three members and requires two members to be present to be quorate due to the 
board changes throughout the year the committee comprised only two members between 31 march 2009 and 1 july 2009 and 
30 september 2009 and 1 february 2010 but with effect from 1 february 2010 the committee’s composition meets the requirements 
of the code 
meetings of the committee
during the year the audit committee held three meetings see summary below the audit committee invited the external 
auditors chairman chief executive group finance director and head of business risk to attend relevant parts of the meetings 
of the committee the matters under consideration at these meetings included
generally monitoring the group’s financial reporting process and the statutory audit of the annual and consolidated group  –
accounts
the halfyearly financial report and annual report and accounts –
critical accounting policies and judgements –
the review of the external auditors’ audit plan nature and scope of work and overall summary of key issues and judgements –
the reappointment of the external auditors –
the approval of fees for the external auditors –
the effectiveness of the external auditors including the appropriateness and skills of the audit team –
compliance with the nonaudit services policy by the external auditors and maintenance of auditor independence –
the approval of the group risk assurance framework and the internal audit plan for the year ending 31 march 2010 –
the review of key internal audit reports and findings and –
generally monitoring the effectiveness of the internal control audit and risk management systems and functions –
the committee also met separately with the external auditors and the head of business risk without the presence of the executive 
directors
internal audit function
the remit of the audit committee also includes monitoring the internal audit function and the arrangements by which employees 
may raise concerns regarding any matters of financial reporting or other perceived improprieties across the group the group’s 
internal audit function reports directly to the group counsel and the chairman of the audit committee the committee continues 
to review the size of the internal audit function to ensure that it maintains a strong recognition of the increasing size and complexity 
of the group and the increasing emphasis placed upon remediation rectification and reaudit of issues identified through the 
internal audit programme during the year ‘whistleblowing’ activity has been communicated to the committee along with the 
directors’ report corporate governance statement 43
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
results of investigations carried out these investigations have not identified any risks that result in a material unmitigated exposure to 
the group
external auditors
prior to 1994 mitie was audited by bdo binder hamlyn who merged their practice with touche ross  co since 1994 mitie group 
plc has been audited by the firm now known as deloitte llp previously touche ross  co deloitte  touche and deloitte  
touche llp each year the audit committee reviews auditor performance in respect of audit services auditrelated services and 
nonaudit services the audit committee is committed to ensuring the independence and objectivity of the external auditors and 
confirms that the requirements of the nonaudit services policy have been met throughout the year when considering the 
appointment of the external auditor there are no contractual obligations that restrict the audit committee’s capacity to 
recommend a particular firm for appointment the committee has determined that providing the work of the external auditors 
remains entirely satisfactory formal consideration of a tender process will take place at the audit committee’s discretion the lead 
audit engagement partner is rotated every five years with the next rotation due in respect of the year ending 31 march 2014
the audit committee has approved a nonaudit services policy that ensures that the audit committee has visibility over the levels 
of nonaudit work performed by the auditors and requires the consent of the chairman of the audit committee for any nonaudit 
spend with the auditors that on an annual basis cumulatively exceeds 50 of the annual audit fee andor where any item 
regardless of amount is considered significant the audit committee is satisfied that this policy provides sufficient control over  
the levels of nonaudit spend with the auditors whilst providing sufficient flexibility for the group finance director to approve 
expenditure on advice below those levels this policy generally restricts the external auditors from performing work which will result 
in them auditing their own work making management decisions for the group creating a conflict of interest finding themselves in 
the role of advocate for mitie or creating any potential threat to their independence additionally the external auditors will only be 
considered for the provision of nonaudit services if they are best suited to perform the work in question deloitte llp also maintains 
its own internal controls designed to safeguard its independence a summary of the fees paid to the external auditors is given in 
note 5 to the financial statements
board meetings
directors are supplied with an agenda and supporting papers for all board meetings on a timely basis this ensures that each 
director is appropriately briefed and able to discharge their duties properly papers submitted regularly for the board’s review 
include reports on health and safety current trading and performance corporate development activities and matters relating 
to corporate governance the board will also receive from time to time detailed presentations from nonboard members on 
operational matters the board its committees and its directors have access to the advice and services of the company secretary 
and where appropriate external independent legal advice funded by mitie in addition to scheduled board and committee 
meetings during the year the chairman met the nonexecutive directors on several occasions without the executive directors 
being present
all directors are expected where possible to attend all board meetings and the agm during the year ended 31 march 2010 there 
were six scheduled board meetings additional unscheduled board meetings were held to deal with the review and approval of 
acquisitions and issues relating to shares and other administrative matters dedicated budget review meetings have also been 
held directors’ attendance at scheduled board and committee meetings audit remuneration and nomination of which they 
are members is shown in the following table
director board audit remuneration nomination 
number of meetings held in year 6 3 8 2
r j matthews 6 – 7 2
i r stewart 6 – – – 
r mcgregorsmith 6 – – 2 
s c baxter 6 – – – 
n r goodman 6 – – – 
w robson 6 – – – 
d s jenkins 6 3 8 2 
i j s macpherson
1
3 1 4 – 
g j potts 6 – 8 – 
t k morgan cbe
2
4 2 4 –
l hirst cbe
3
1 1 – – 
1 ishbel macpherson retired from the board 30 september 2009
2 terry morgan was appointed 1 july 2009
3 larry hirst was appointed 1 february 2010 44
mitie group plc   
annual report  
and accounts 2010
director appointment induction and training
directors are appointed and may be removed in accordance with the articles of association of the company and the provisions 
of the companies acts all directors are subject to reelection at intervals of no more than three years in accordance with the 
articles of association and the code the board has a general policy that all new directors are subject to election by the 
shareholders at the first agm after their appointment that each new director receives a tailored induction suitable to their role  
and that all new directors receive a tailored information pack which includes a copy of mitie’s memorandum and articles of 
association latest annual report and accounts committee terms of reference and copies of recent board minutes and 
supporting papers the notice of agm contains details of those directors who are retiring by rotation and are proposed for 
reelection as part of the formal board evaluation the board has considered the performance of each director seeking 
reelection and is satisfied that they continue to be effective and demonstrate clear commitment to their role
board performance 
the board is committed to effective and rigorous review of its performance and that of the committees and individual directors 
and accordingly a formal evaluation of the performance and effectiveness of the board its committees and of each director is 
performed annually director performance evaluation for the current year has been carried out using a combination of formal 
appraisal questionnaires completed by all board members and through informal meetings and discussions the results of these 
reviews are reported to the board and used to improve the board’s performance results of the prior year appraisal process 
identified an overall level of satisfaction with the performance of the board and that of its committees and directors 
notwithstanding this several further improvements in board operation have been implemented during the reporting year 
including the restructuring of reporting format and content the greater use of board briefings by senior management or executive 
board members and have continued to rotate meetings around various group operational locations
directors’ interests and rights
details of the beneficial and nonbeneficial interests including share options of each director and connected persons in the 
ordinary share capital of the company are provided in the remuneration report none of the executive or nonexecutive 
directors has a service contract with a notice period greater than 12 months all directors have access to management and the 
operating businesses of mitie at their request and have secure remote access to board and other relevant papers held on a 
dedicated online facility
directors’ indemnities
the company maintains directors’ and officers’ liability insurance providing appropriate cover for any legal action brought against 
its directors andor officers the memorandum and articles of association of the company extend the protection provided to 
directors in respect of any litigation against directors relating to their position as a director of the company and specifically provide 
that the company may indemnify directors against any liability incurred in connection with any negligence default breach of 
duty or breach of trust in relation to the company and that the company may fund defence costs individual directors would still 
be liable to pay damages awarded to the company in any action against them by the company and to repay their defence 
costs to the extent funded by the company if their defence was unsuccessful 
director conflicts
the board has a formal policy on the declaration and management of director conflicts in accordance with the articles of 
association of the company any potential situation or transactional conflict must be reported as soon as possible to the chairman 
the chief executive and the company secretary where a potential conflict is authorised under the statutory powers and powers 
granted under the articles of association to the board such conflict is kept under ongoing review
external appointments and commitments
executive directors are permitted to accept appointments outside the group provided permission is sought from the chairman 
and the chief executive and that the additional appointments do not interfere with the directors’ ability to discharge their duties 
effectively the commitments outside the group of the executive directors are detailed in the remuneration report on page 54 
executive directors are entitled to retain any fees earned from these external appointments
directors’ report corporate governance statement 45
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
statement on internal controls
introduction
the board recognises that it is responsible for the group’s system of internal control and for reviewing its effectiveness this system is 
designed to support the group’s pursuit of achieving its objectives and strategies and also the identification and management of 
risks that may impact upon mitie and upon the environment in which the group operates the system of internal control is designed 
to manage rather than eliminate the risk of failing to achieve these objectives and strategies and it will only provide reasonable 
and not absolute assurance against material misstatement and loss
internal control framework
the board and senior management are responsible for maintaining and developing a culture of integrity competence fairness 
and responsibility throughout the group essential to this is the recruitment and retention of highlyskilled individuals who promote 
the highest standards of integrity competence governance and ethical behaviour group policies and procedures support the 
business by providing an operational internal control framework for the group each division and operating business to work within 
this framework is designed to balance the need for groupwide consistency and control with the autonomy that local 
management require to develop and manage each operating business successfully in order to delegate responsibilities clearly 
and effectively to the group’s operating businesses and to ensure compliance with the matters reserved for the board a formal 
delegated authorities matrix is issued to all operating subsidiaries that includes both financial and nonfinancial authorities and 
matters relating to strategy contract approval recruitment capital expenditure banking transactions and specific group policies 
each operating subsidiary is headed by a managing or regional director who has authority to manage their business within this 
framework of delegated authorities and group policies and procedures outlined above to support the business further the group 
has a team of specialist resources with individuals responsible for specific functions including legal health and safety it insurance 
human resources tax pensions purchasing finance and business risk regular dialogue between these functions and the 
operating businesses provides additional support and forms a key part of the system of internal control
monitoring the system of internal control
the board is responsible for monitoring the group’s system of internal control and for reviewing its effectiveness monitoring is carried 
out throughout the year via the receipt and review of various reports presentations and discussions with management as set out 
above specifically the audit committee supports the board by monitoring and guiding the activities of the internal audit function 
including approving the internal audit programme reviewing regular internal audit reports from the business risk function and  
via meetings with the head of business risk the internal audit programme is designed to provide a level of assurance over key  
risks as identified in the group risk register and is developed by the head of business risk who reports to the general counsel  
and independently to the audit committee the audit committee also receives regular reports from the external auditors who 
contribute a further independent perspective on certain aspects of the internal financial control systems arising from their work 
as necessary the audit committee will have dialogue with the executive directors on their control responsibilities and in particular 
those relating to specific matters reported by internal or external audit
risk management
the board confirms that there is a continuing process for identifying evaluating and managing significant risks faced by the group 
the board also confirms that this process has been in place throughout the year under review and up to the date of approval of 
the annual report and accounts and that this process is monitored by the board in accordance with the revised guidance on 
internal control issued by the financial reporting council the process for identifying evaluating and managing risks requires the 
group and its principal businesses to consider strategic operational financial and compliance risks and the effectiveness of the 
mitigating controls based on a pre and postcontrols risk evaluation the principal risks identified from this process are recorded on 
risk registers which are maintained by the group’s business risk function this register is reviewed periodically at least twice per year 
by the board the risk register forms the basis of the internal audit programme for each year with risk areas reviewed on an annual 
to triennial basis dependent upon materiality and inherent risk assessment
reviewing the effectiveness of the system of internal control
in line with turnbull guidance the board performs a formal annual assessment of the operation and effectiveness of the system  
of internal control and updates this assessment prior to the signing of the annual report and accounts the board also holds 
discussions with senior management and reviews the results of a formal internal controls review and system effectiveness 
confirmation from each operating subsidiary the head of business risk attends each audit committee meeting to provide regular 
updates on the effectiveness of the group’s internal controls the board confirms that management has taken steps during the year 
to improve further the system of internal control embed effective controls further into the operations of the group and to address 
improvements as they come to management’s attention these steps are monitored at executive level to ensure they are 
implemented appropriately and that ultimately they are effective 46
mitie group plc   
annual report  
and accounts 2010
consolidated accounts preparation and financial reporting
the consolidated accounts of the group are prepared by the group finance function that is responsible for the review and 
compilation of reports and financial results from each of the operating divisions and subsidiaries within the group in accordance 
with the group internal control and reporting procedures each operating division support their report and results submission with a 
statement of compliance with the group’s principal internal controls which is subject to review and sample audit by the internal 
audit function in addition the representations made by the board in support of the consolidated financial statements including 
those in relation to the operating divisions are supported by detailed papers and cascaded reporting requirements throughout the 
group all of which are reviewed by internal audit and presented to the audit committee and the board for final approval 
internal control systems information and communication
the group maintains a number of systems and processes that report relevant information to group executive management and 
the board as necessary this includes financial and nonfinancial information regarding business performance compliance with 
policy and procedure relevant regulations and business critical matters at an operational level each division and business holds 
regular executive board meetings to maintain and develop relationships between separate divisions and to address specific 
matters regional meetings are also held and are attended by regional representatives of each division senior group 
management also regularly attend these meetings
going concern
the directors acknowledge the financial reporting council guidance on going concern issued in october 2009  the group’s 
business activities together with factors likely to affect its future development performance and position are set out in the business 
review as referred to on page 38 the financial position of the group its cash flows liquidity position and borrowing facilities are 
described in the financial review on pages 30 to 33 in addition note 24 to the consolidated financial statements includes the 
group’s objectives policies and processes for managing its capital its financial risk management objectives details of its financial 
instruments and hedging activities and its exposure to credit risk and liquidity risk
the group’s forecasts and projections taking account of reasonably possible changes in trading performance show that the 
group should be able to operate within the level of its current committed banking facility of £2300m which expires in january 2012 
the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for  
the foreseeable future thus they continue to adopt the going concern basis of accounting in preparing the annual report  
and accounts 
auditors
disclosure of information to the auditors
each of the directors in office as of the date of approval of this annual report and accounts confirms that
so far as heshe is aware there is no relevant audit information being information required by the auditors in the preparation of  –
their report of which the company’s auditors are unaware and
heshe has each taken all the steps that heshe ought to have taken as a director to make himselfherself aware of any relevant  –
audit information and to establish that the company’s auditors are aware of such information
this confirmation is given and should be interpreted in accordance with section 418 of the companies act 2006
reappointment of auditors
deloitte llp have expressed their willingness to continue in office as auditors and the resolution to reappoint them will be proposed 
at the forthcoming agm
statement on internal controls 47
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
financial results and dividends
the profit before taxation for the financial year is £79 7m 2009 £759m the directors have declaredrecommended dividends 
as follows
paid on 4 february 2010 an interim dividend of 37p per ordinary share £131m –
recommended a final dividend of 41p per ordinary share £145m  –
total ordinary dividend of 7 8p per share 2009 69p £27 6m –
the final dividend subject to shareholder approval at the agm will be paid on 13 august 2010 to ordinary shareholders on the 
register on 25 june 2010 the company operates a dividend reinvestment plan drip further details on the operation of the drip 
can be obtained from the company registrar
capital structure and powers of shareholders
details of changes to the company’s share capital are given in note 28 to the financial statements the company has a single 
class of shares – 25p ordinary shares – with no right to any fixed income and with each share carrying the right to one vote at 
general meetings of the company under the company’s articles of association holders of ordinary shares are entitled to 
participate in any dividends pro rata to their holding the board may propose and pay interim dividends and recommend a final 
dividend for approval by the shareholders at the agm a final dividend may be declared by the shareholders in a general meeting 
by ordinary resolution but such dividend cannot exceed the amount recommended by the board 
certain shares that are issued as consideration upon acquisition by the company of the shares of minority shareholders in mitie 
model companies have restrictions placed upon them that both prevent the transfer of such shares andor attach specific claw
back provisions for periods of up to two years following allotment otherwise there are no specific restrictions on the size of any 
shareholding or on the transfer of shares which are both governed by the provisions of the articles of association of the company 
available at www mitiecominvestorscorporategovernance and prevailing legislation the directors are not aware of  
any agreements between company shareholders that may result in restrictions on the transfer of securities or on voting rights  
no person has any special rights of control over the company’s share capital details of employee share schemes are set out  
below and in note 32 to the accounts 
the 2009 agm authorised
the directors to allot under s80 companies act 1985 up to 122805320 shares representing 38 of the issued share capital as at  –
the date of the notice of agm – during the reporting period the directors utilised this authority and the preceding authority to 
allot 30153652 shares
the disapplication under sections 9495 companies act 1985 of preemption rights over allotted shares up to a total of  –
16150903 shares representing 5 of the issued share capital as at the date of the notice of agm and
the company to make market purchases of its own shares up to a total of 32301805 shares representing 10 of the issued share  –
capital as at 31 march 2009
further details of these authorisations are available in the notes to the 2009 notice of agm available at www mitiecominvestors 
shareholders are referred to the 2010 notice of agm which accompanies this report andor is available at www mitiecom
investors which contains similar such provisions these provisions have been updated to take account of the implementation of the 
relevant sections of the companies act 2006 which came into effect on 1 october 2009  
in august 2009  the company announced the acquisition of the entire issued share capital of dalkia technical facilities 
management which was part funded through the placement of 19 million 25p ordinary shares in the company which constitutes 
less than 10 of mitie’s current issued share capital the proceeds of the placing were used to partly refinance the debt drawn 
down to satisfy the transaction consideration 
during the year to 31 march 2010 there have been no purchases by the company of mitie shares the exact amount and timing  
of future purchases will be determined by the company and will be dependent on market conditions and other factors it is the 
company’s present intention to cancel any shares it buys back rather than hold them in treasury but this policy will be reviewed  
on a casebycase basis further details on the proposed renewal of powers for share buyback and the allotment of shares in the 
company are provided in the notice of agm
under the terms of certain shareholder agreements relating to mitie model companies and the articles of association of those 
companies certain minority shareholders in such companies may provide an option for the purchase by the company of their 
minority shares the mechanism for calculating the price to be paid in respect of such transfer is transparent on an armslength 
basis and in accordance with the pricing structure generally applicable for other transfers under the mitie model details of these 
structures are generally available to the extent incorporated into the articles of association for individual mitie model companies 
from companies house at wwwcompanieshousegovuk 
there are a number of other agreements with provisions that take effect alter or terminate upon a change of control of the 
company such as bank facility agreements property lease arrangements and employee share plans none of these are 
considered to be significant in terms of their likely impact on the business or the group as a whole the directors are not aware of 
any agreements between the company and its directors or employees that provide for compensation for loss of office or 
employment that occurs solely because of a takeover bid
directors’ report other information 48
mitie group plc   
annual report  
and accounts 2010
with regards to the appointment and replacement of directors the company is governed by its articles of association the code 
the companies acts and related legislation the articles may be amended by special resolution of the shareholders the powers of 
the directors are described in the matters reserved to the board available at www mitiecominvestorscorporategovernance 
and as set out above
substantial interests in share capital
as at 1 7 may 2010 the company has been notified of the following significant holdings of voting rights in its shares under the 
disclosure and transparency rules 
 
number of 
ordinary shares 
of 25p each 
percentage 
 of share  
capital 
majedie asset management limited 16327 802 505
invesco limited 16 1 35005 499
mirabaud investment management limited 1567351 7 495
legal  general group plc 12666918 392
fidelity international limited 1 0065 11 8 322
shareholder communications
the board is committed to an ongoing dialogue with institutional and private investors the principal method of communication 
between the board and shareholders remains news announcements the interim management statements the halfyearly 
financial report the annual report and accounts the corporate responsibility report and mitie’s website wwwmitiecom  
a full programme of formal and informal events institutional investor meetings and presentations are also held following the 
halfyearly financial report and preliminary results announcements which are led by the chief executive and group finance 
director the chairman and senior independent nonexecutive director are available for additional meetings with shareholders 
upon request the company believes that such meetings should be at the instigation of shareholders and should not be at the 
active solicitation of the company during the reporting period no such requests were received by the company although all the 
nonexecutive directors were present at the 2009 agm and made themselves available for direct discussions with shareholders 
latest group information financial reports corporate governance and cr matters halfyearly financial report and preliminary 
results presentations major shareholder information and all announcements are made available to shareholders via the mitie 
website wwwmitiecom which has a specific area dedicated to investor relations 
significant importance is attached to investor feedback on the group’s performance and as such the executive board receives 
an investor relations report at each meeting detailing corporate news share price activity investor relations activity and major 
shareholder movements the board is updated by the executive directors on these matters and receives detailed analyst  
and investor feedback following the halfyearly financial report and preliminary results presentations the agm also allows 
shareholders to address and discuss any issues surrounding the group directly with the executive and nonexecutive directors
electronic communications
the directors remain committed to improving and extending the methods in which the company communicates with its 
shareholders and wish to move towards an increase in electronic communication at the 2007 agm shareholders approved 
certain amendments which aligned the company’s articles of association with the new provisions of the companies act 2006 in 
relation to electronic shareholder communications the board has been disappointed with the level of uptake by shareholders to 
date and would wish to encourage all shareholders to register to receive communications from the company electronically – thus 
realising the environmental and cost benefits of reduced printing and carriage of hard copy reports and other communications 
details on how to register are provided on the inside back cover of this report
agm
the 2010 agm will be held at the offices of mitie group plc ground floor east cottons centre cottons lane 47 49 tooley street 
london se1 2qg at 230pm on 14 july 2010 the notice of agm will be available at www mitiecominvestors on 1 1 june 2010
employee involvement and employee equitybased incentivisation
the board remains committed to fostering and developing a culture of employee involvement in the business through 
communication with employees and equity involvement whereby employees are enabled to build a stake in the company 
through the company’s various equitybased incentive schemes 
communication with mitie’s employees continues to have a high priority the group communicates with employees through the 
use of groupwide mailings and updates employeefocused initiatives the use of groupwide and businessspecific intranet sites 
and provision of access to broadcasts of periodic financial presentations through the use of their own communication processes 
each of the group’s businesses is encouraged to ensure that employees are kept informed on group and individual business 
developments the group continues to operate its groupwide mitie stars programme to recognise and reward exceptional 
performance by its people and in 2008 launched mitie’s got talent as a groupwide talent contest to encourage employee 
engagement and recognition the group cr report contains further details of these initiatives employees remain actively involved 
in the group’s activities via an employee forum this year the forum held one meeting the board will continue to seek increasing 
involvement and activity of the employee representatives social networking sites are an increasingly important part of 
engagement and communication with employees
directors’ report other information 49
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
the board believes that the group’s culture of employee equity involvement is a significant driver in the group’s growth performance 
and that this assists in attracting and retaining skilled and committed employees during the year the group has continued to 
operate the mitie long term incentive plan to incentivise and reward senior members of the mitie management team the 
executive share option scheme for certain other employees below board level and the savings related share option scheme 
which is open to all eligible employees of the group the board will continue to review and where appropriate recommend 
amendments to equityincentive schemes in order to maximise the effectiveness and incentive value of such schemes
the group has historically grown by giving entrepreneurial managers the opportunity to create wealth by taking the risk of starting 
a new business taking equity stakes at fair value in those new businesses in conjunction with mitie and then dependent on a 
preagreed pricing structure offering to sell that stake to mitie predominantly in exchange for mitie shares at the option of mitie 
this incentivisation scheme typically provides for such managers to elect to offer their stake in their business to mitie between the 
fifth and tenth years from the date of establishment of the business recipients of shares under this incentivisation scheme are 
generally restricted from selling the mitie shares received as consideration for a minimum of two years the board believes that this is 
a unique business model that has driven mitie’s past performance and continues to ensure a close alignment of interest between 
mitie shareholders and the management and employees of the group it is the board’s current intention to continue to utilise  
such structures
employee involvement disability and opportunities
the board remains committed to developing further a culture that encourages the inclusion and diversity of all of the group’s 
employees through respecting and appreciating their differences and to promoting the continuous development of employees 
through skills enhancement and training programmes the group’s employment policies are designed to attract retain train  
and motivate the very best people recognising that this can be achieved only through offering equal opportunities regardless of 
gender race religion age disability sexual orientation or any other aspect of diversity applications from disabled persons are 
always fully considered bearing in mind the aptitudes of the applicant concerned it is the policy of the group that the training 
career development and promotion of disabled persons including those who become disabled whilst employees of the group 
should as far as reasonably possible be identical to that of other employees
financial instruments
the group’s financial instruments comprise bank loans finance leases overdrafts and performance guarantees in addition 
various other financial instruments such as trade creditors and trade debtors arise from its trade the use of interest rate swaps and 
currency derivatives are used to manage interest and currency risk when necessary or material the principal objective of these 
instruments is to raise funds for general corporate purposes and to manage financial risk further details of these instruments are 
given in note 23 to the financial statements
payment of creditors
the group’s policy is to comply with the terms of payment agreed with suppliers preferably on the group’s standard purchasing 
terms as notified to suppliers or otherwise to adhere to the suppliers’ standard terms at 31 march 2010 the group had 31 days’ 
purchases outstanding 2009 34 days
fixed assets
the board does not believe that there is any material difference between the book value and the current open market value of 
the group’s interests in land and buildings
events after the balance sheet date
there have not been any significant events since the balance sheet date
future developments
the operating review sets out the board’s view on likely future developments of the group
research and development
given the nature of the group’s activities it does not carry out any material research and development work
donations
donations to charity and community projects made during the year amounted to £1 10500 2009 £184018 it is the group’s policy 
not to make political donations and during the reporting period no political contributions were made 2009 £nil the total value of 
community investment is disclosed in more detail on pages 27 and 28 and in our cr report 2010 was £392483 2009 £603659 
branch offices
the group operate registered branch offices in the republic of ireland and the isle of man further details of the group’s principal 
subsidiaries are given in note 35 to the financial statements
by order of the board
marieclaire haines  
company secretary
17 may 2010 50
mitie group plc   
annual report  
and accounts 2010
statement of directors’ responsibilities in respect of the accounts
the directors are responsible for preparing the annual report and accounts the directors are required to prepare the financial 
statements for the group in accordance with international financial reporting standards as adopted by the eu ifrs and have 
chosen to prepare company financial statements in accordance with united kingdom generally accepted accounting practice 
uk gaap
in the case of international financial reporting standards ifrs accounts international accounting standard 1 requires that 
financial statements present fairly for each financial year the company’s financial position financial performance and cash flows 
this requires the faithful representation of the effects of transactions other events and conditions in accordance with the definitions 
and recognition criteria for assets liabilities income and expenses set out in the international accounting standards board’s 
‘framework for the preparation and presentation of financial statements’  in virtually all circumstances a fair presentation will be 
achieved by compliance with ifrs where applicable the directors are also required to properly select and apply accounting 
policies present information including accounting policies in a manner that provides relevant reliable comparable and 
understandable information and provide additional disclosures when compliance with the specific ifrs requirements is insufficient 
to enable users to understand the impact of particular transactions other events and conditions on the entity’s financial position 
and financial performance 
in the case of uk gaap accounts the directors are required to prepare financial statements for each financial year which give a 
true and fair view of the state of affairs of the company and of the profit or loss of the company for that period in preparing these 
financial statements the directors are required to select suitable accounting policies and then apply them consistently make 
judgements 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 are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the 
financial position of the company safeguarding the assets taking reasonable steps for the prevention and detection of fraud and 
other irregularities and the preparation of a directors’ report and directors’ remuneration report which comply with the relevant 
requirements of the companies acts listing rules and disclosure and transparency rules dtrs 
the directors are also responsible for the maintenance and integrity of the company website financial statements published by 
the company on this website are prepared in accordance with uk legislation which may differ from legislation in other jurisdictions 
to the best of each director’s knowledge the financial statements prepared in accordance with the applicable set of accounting 
standards and contained within this annual report and accounts give a true and fair view of the assets liabilities financial position 
and profit or loss of the group and the undertakings included in the consolidation taken as a whole and the management report 
which is incorporated into the directors’ report includes a fair review of the development and performance of the business and the 
position of the company and the undertakings included in the consolidation taken as a whole together with the description of the 
principal risks and uncertainties they face 
by order of the board
ruby mcgregorsmith suzanne baxter  
chief executive  group finance director
17 may 2010 17 may 2010
directors’ report statement of directors’ responsibilities 51
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
remuneration report
introduction
this report has been prepared in accordance with s420 of the companies act 2006 and in line with the schedule 8 of the large 
and medium–sized companies and groups accounts and reports regulations 2008 the remuneration committee believes  
in and promotes good governance through the adoption of the combined code compliance with the listing rules and  
due reference to the abi guidelines the aforementioned regulations require certain elements of this report to be audited by  
the company’s auditors and for them to state that the audited information has been duly prepared in accordance with the 
regulations the report therefore has been arranged into two sections section a not subject to audit and section b subject to 
audit the report will be presented for shareholder approval at the forthcoming agm on 14 july 2010
section a the following information is not subject to audit
remuneration committee 
membership
the remuneration committee met eight times in the year and is comprised of solely nonexecutive directors of the company  
the membership of the remuneration committee during the year is shown below
table 1 meeting attendance record
director 
no of meetings 
attended
t k morgan cbe chairman
1
 4
d s jenkins  8
g j potts 8
r j matthews 7
i s j macpherson
2
 4
note
1 terry morgan was appointed as chairman of the remuneration committee on 30 september 2009 and attended all remuneration committee meetings since his appointment
2 ishbel macpherson resigned as a director of the company and chairman of the remuneration committee on 30 september 2009
advisers to the committee
during the year the committee requested the attendance of and sought advice from kepler associates kepler associates provide 
no other services to the company ruby mcgregorsmith chief executive attended remuneration committee meetings by 
invitation only to provide further information to the committee on the company’s performance and the performance and 
remuneration of the executive directors 
terms of reference 
the terms of reference for the committee are available on request from the company secretary thecompanysecretarymitiecom 
and from the company’s website the terms of reference include
shaping and agreeing with the board the framework of policy for the remuneration of executive directors and certain aspects of  –
the remuneration of senior management 
determine the total individual remuneration package of each executive director with due regard to the performance of the  –
individual in line with the agreed remuneration policy
agreeing executive directors’ contractual terms  –
acting on behalf of the board in connection with the establishment and administration of the group’s current andor future share  –
option schemes including the selection of participants the setting of option prices and the setting of performance targets
drafting and approving the directors’ remuneration report and any remuneration related resolutions to be put to the  –
shareholders at the group’s annual general meeting  52
mitie group plc   
annual report  
and accounts 2010
remuneration policies and principles
general remuneration principles
the committee is responsible for formulating remuneration policies and principles that promote the success of the company in 
creating value for shareholders over the longer term through alignment with the corporate objectives and business strategy after 
taking into full account the associated risks the committee understands that it is accountable to shareholders for the decisions 
made on executive remuneration and seeks to maintain open and constructive communication where changes on remuneration 
policy are being proposed
the remuneration policy for the company’s executive directors and other group senior executives is shaped by the requirement to 
align the interests of the senior executive team with those of mitie’s shareholders the policy has particular regard to the company’s 
and the group’s longstanding culture of encouraging equity ownership in order to achieve this alignment 
the committee and the board continue to believe that the principle of equity incentivisation has been a key driving force in the 
past success of the group consequently in order to maintain and further develop mitie’s performance culture the committee 
believes that the remuneration packages of the executive directors should continue to contain significant performancerelated 
equitybased elements
the remuneration committee believes exceptional performance should be matched with appropriate remuneration to retain 
and motivate directors and management while being mindful of the behaviour that such packages create the committee 
ensures that packages are linked to and support the longterm performance of the company 
remuneration policy
the remuneration policy of the company promotes and embeds the company’s remuneration principles the company’s policy is
performance linked company performance determines a significant element of remuneration packages  
only topend performance can achieve the stretching targets that are reflected in the 
performancelinked pay elements of the packages
shareholder aligned the discretionary share schemes are based on eps growth aligning the interests of 
shareholders and the members of the senior executive team bonuses are structured to reward 
the attainment of the strategic target of sustainable profitable growth
comprehensive and simple the overall remuneration policy is comprehensive without becoming overcomplicated  
and encourages executives to concentrate on growth of the group
the remuneration committee believes and is satisfied that the remuneration policy is appropriate and takes account of the 
group’s performance and strategic objectives
the committee plans to continue to use this approach and policy as a framework for the setting of future packages whilst having 
due regard for the remuneration packages offered across the group and the external market
share ownership policy
a shareownership policy for executive directors was introduced in 2007 at the same time as the ltip  under this policy all executive 
directors are required over time to build and maintain a shareholding in the company worth 100 of base salary 150 of salary 
for any executive director who is granted an ltip award of more than 100 of base salary the committee recognises that the 
principal mechanism for building up this holding will be on the exercise of ltip awards and accordingly until such time as the 
shareholding requirement is met executive directors will be expected to retain no fewer than 50 of shares net of taxes that vest 
under the ltip  
table 2 share ownership update
value of target 
holding as at 
1 may 2009
1
 
number of 
ordinary shares 
owned as at  
31 march 2010
value of  
holding as at 
31 march 2010
2
percentage of 
target holding 
achieved as at  
1 may 2010
r mcgregorsmith £691000 39937 6
3
£91 3373 132
s c baxter £454500 11 220 1
3
£256603 56
n r goodman £288000 99376 1 £2272731 789
w robson £288000 1595053 £3647 886 1266
note
1 on the 1 may each year the committee reviews the expected target holding for the executive directors calculated as a percentage of salary
2 calculated at a share price of 2287p being the closing market price on 31 march 2010
3 of which a proportion will be sold to settle tax liabilities arising from the accelerated vesting of the 2007 ltip award
remuneration report 53
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
key elements of executive director remuneration
the overall package for executive directors consists of a fixed element salary and certain benefits and a variable element 
annual performancerelated bonus and longterm equity based incentives and has been structured in order to align the 
executive directors’ packages with the interests of shareholders the committee tests the remuneration structure regularly to ensure 
that it remains aligned with business needs and is appropriately positioned relative to the market the balance between the fixed 
and variable elements of the executive directors’ packages is set out below
base salary
benchmarking is conducted by external remuneration consultants against sector and size comparators in respect of base salary 
total cash ie salary plus bonus and total remuneration the committee also takes account of a range of other factors when 
determining appropriate salary levels including market conditions and the responsibilities and skills of the individual directors  
as detailed within this report the executive directors received salary increases during the year the committee felt the increases 
were appropriate given the continued growth and performance of the group with due consideration of the outcomes of the 
benchmarking exercise 
annual bonus
variable remuneration is designed to drive mitie’s performance and be aligned to the group strategic objective of achieving 
sustainable profitable growth the annual bonus rewards shortterm company performance 
shareholders were consulted during 2009 and approved an amendment to the bonus arrangements for the executive directors 
previously the bonus was earned in full for achieving a single specific performance target this was replaced with a twostage 
bonus scheme 100 of base salary continues to be earned for the achievement of group budgeted financial performance but 
executive directors have the opportunity to earn up to 125 of salary for a ‘stretched’ level of performance in light of the increase 
in maximum bonus opportunity any bonus earned above 100 of salary is deferred into mitie group plc ordinary shares for two 
years and is forfeited should the director leave the business during this period 
during the year under review mitie delivered the required stretch target the executive directors were therefore each awarded 
performance related bonuses amounting to 125 of base salary 100 of base salary was paid in cash and 25 of base salary 
deferred into mitie group plc shares 
sharebased incentives
the remuneration package reinforces longterm decision making and sustainable growth through the use of sharebased 
incentives for executive directors and certain senior group executives the principal methodologies and schemes designed to 
support this ethos are the company’s ltip as described on page 55 and the share ownership policy as described on page 52 
vesting of share awards under the ltip are based on performance measured over three years this period is considered 
appropriate to align rewards to executive directors with the strategic objectives of the company certain executive directors still 
retain options granted under the esos details of the holdings are set out in table 4 of section b below it is the intention of the 
committee not to issue further esos options to executive directors although esos continues to be used to reward and incentivise 
certain other members of the senior group executive and management teams
other standard benefits
the other benefits awarded to the executive directors consist of contributions to a pension scheme private healthcare and the 
provision of a car allowance 54
mitie group plc   
annual report  
and accounts 2010
remuneration report
executive directors’ service contracts
all directors are appointed for an indeterminate period of office but are subject to reelection at the annual general meeting 
every three years in accordance with the combined code
the executive directors’ service contracts are available for inspection at mitie’s registered office the head office and at the agm 
all the executive directors have rolling service contracts which provide for a maximum of 12 months’ notice from either party there 
are no provisions for compensation on termination of employment set out within the contracts of the executive directors the dates 
of the service contracts of the executive directors are set out below
table 3 executive director’s service contracts
contract  
term
date of 
agreement notice period
r mcgregorsmith rolling contract 01apr03 12 months
s c baxter rolling contract 10apr06 12 months
n r goodman rolling contract 01apr03 12 months
w robson rolling contract 01apr03 12 months
policy on external appointments
the board recognises that the appointment of executive directors to nonexecutive positions at other companies can be 
beneficial both for the individual director and the group through the broadening of their experience and knowledge roger 
goodman receives fees of £40000 per annum in respect of his role as chairman of networkers international plc ruby mcgregor
smith receives fees of £45000 per annum in respect of her role as a nonexecutive director of michael page international plc  
as set out in the directors’ and governance report executive directors are entitled to retain any fees earned from external 
appointments 
nonexecutive directors
nonexecutive directors’ fees
the fees for the nonexecutive directors are set by the chairman and the executive directors and they are reviewed annually the 
fee level is designed both to recognise the contribution and responsibilities of the role and to attract individuals with the experience 
and skills required to contribute to the future development of the board and the group the nonexecutive directors are paid a 
basic fee with an additional fee for chairing a committee together with expenses incurred in carrying out their duties on behalf of 
the company nonexecutive directors are not eligible to participate in any of the company’s share schemes or the annual bonus 
scheme nor do they receive pension or ancillary benefits fee levels for the reporting year were maintained at levels paid in the 
prior year further details of fees paid to nonexecutive directors are provided in table 1 of section b below
nonexecutive directors’ engagement terms
the terms of appointment of the nonexecutive directors are available for inspection at mitie’s registered office the head office 
and at the agm the nonexecutive directors are engaged for a term of three years which is terminable on either three or six 
months’ notice during the year the company changed its policy in respect of notice periods offered to nonexecutive directors 
from six months to three months
table 4 nonexecutive directors’ engagement terms
additional duties
date of 
engagement 
terms
contract  
term
notice  
period
date of  
leaving
r j matthews appointed chairman on 31 july 2008  
chairman of nomination committee
04dec06 3 years 6 months –
i r stewart deputy chairman 30mar07 3 years 6 months –
d s jenkins senior independent nonexecutive director  
chairman of audit committee
31jan06 3 years 6 months –
g j potts 01aug06 3 years 6 months –
t k morgan cbe chairman of remuneration committee 01jul09 3 years 3 months –
l hirst cbe 01feb10 3 years 3 months –
i j s macpherson chairman of remuneration committee 27jul05 3 years 6 months 30sep09 55
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
employee share schemes
equitybased incentive schemes
the committee regularly reviews the company’s sharebased incentive schemes to ensure their continued effectiveness  
the group operates three equitybased incentive schemes as set out below the interests of the executive directors in each  
of these schemes is set out in tables 4 and 5 of section b below 
saye scheme ‘saye’
the sa ye scheme is the company’s nondiscretionary option scheme open to all eligible employees and is approved for hmrc 
purposes salary deductions are made and savings are used to purchase the options at the end of the threeyear period  
no options have been issued to any directors under the sa ye scheme an award may not be granted under the sa ye scheme 
after september 201 1 when the current scheme expires
executive share option scheme ‘esos’
the esos is a discretionary scheme and therefore not open to all employees of the group the award of options under the esos is 
generally focused towards employees who are below main board level and who do not participate in the ltip  currently esos is 
used to reward and motivate employees with continuous service of six months who are part of the leadership team of the group 
includes senior managers managers and team leaders the scheme has been approved by hmrc and options over shares to an 
individual limit of £30000 can be awarded in the approved element of the scheme above £30000 options are awarded under 
the unapproved for hmrc purposes section of the scheme overall awards are limited to 100 of an individual’s base salary 
following changes to the scheme approved by shareholders at the 2007 agm the esos has a single performance threshold for 
vesting of the options – average growth in earnings per share over the threeyear vesting period must exceed inflation measured 
as rpi plus 4 per annum the scheme permits the grant of share appreciation rights and the settlement of outstanding 
unapproved options with share appreciation rights no price is payable upon award in respect of esos 
the share options detailed in table 4 of section b were granted to executive directors prior to 2007 under the esos and the 
performance conditions that applied at the date of grant required a percentage growth in the company’s earnings per share 
equal to or in excess of 10 per annum compound over the period from the date of grant of the option to the date on which the 
option first became exercisable the performance conditions relating to the awards to directors detailed below are the same as for 
any other member of the schemes who received awards at the same time since the grant to ruby mcgregorsmith and suzanne 
baxter detailed in table 4 of section b there have been no grants to directors under the esos both under the unapproved part 
and the hmrcapproved part and it is the committee’s current policy that equitybased incentives for directors will be based 
solely upon ltip awards 
longterm incentive plan ‘ltip’
the ltip is a discretionary scheme and therefore not open to all employees of the group the ltip is focused on incentivising 
executive directors and senior management awards under the ltip may be made either through a jointownership structure or 
through direct grants in the form of nilcost options conditional shares or forfeitable shares the committee may also decide to 
grant cashbased awards of an equivalent value to sharebased awards or to satisfy sharebased awards in cash although it does 
not currently intend to do so an award may not be granted under the current ltip after 26 july 201 7  when the current scheme 
expires no payment other than in respect of any individual recipient electing to pay income tax and national insurance where 
appropriate is required for the grant of an award 
awards are not transferable except on death and are not pensionable the scheme rules in line with standard industry practice 
contain provision for prorata vesting in the event of retirement redundancy disability andor death in the event of a change of 
control of the group awards will be prorated both for time and performance subject to the discretion of the committee
the upper limit on the market value as at grant of awards that an individual executive director may receive in any financial year is 
200 of annual base salary the committee intends to use this upper limit only in respect of awards to ruby mcgregorsmith the 
chief executive and suzanne baxter the group finance director and a limit of 100 of annual base salary will be applied to the 
other executive directors in exceptional circumstances such as recruitment the rules currently allow for awards of up to 250 of 
any employee’s annual base salary 
the committee continues to believe that eps is the most appropriate longterm performance measure for mitie as it is aligned with 
the group’s strategy and kpis this performance criterion has the advantages of simplicity and transparency which the committee 
believes enhance the ltip’s effectiveness as an incentive awards will normally vest after three years provided that certain 
performance criteria have been met all awards are subject to performance conditions that require adjusted eps less inflation 
measured by the retail prices index – rpi to exceed certain performance thresholds over a threeyear period where eps growth  
is less than a ‘lower performance threshold’ no awards will vest awards vest in full when eps growth is equal to or more than an 
‘upper performance threshold’ vesting is on a straightline basis for performance between these levels 
for ltip awards granted in 2007 and 2008 the lower and upper performance thresholds were rpi  5 per annum and rpi  14 
per annum respectively following consultation with major shareholders during the year the upper performance threshold was 
revised to rpi  10 per annum first effective for ltip awards granted in 2009 ie no changes have been made to the performance 
criteria of ltip awards granted in earlier years the lower performance threshold remains at rpi  5 per annum the committee 
believes the revision to the upper performance threshold is necessary to i ensure the ltip remains motivational in light of the 
current uncertainty in the general economy ii ensure our policy to deliver upper quartile pay for upper quartile performance  
is achieved and iii be more competitive with comparators’ longterm incentive performance scales 56
mitie group plc   
annual report  
and accounts 2010
remuneration report
as announced on 30 march 2010 the committee approved the accelerated vesting of ltip awards granted in 2007  in line with the 
plan rules this decision was taken by the committee after thorough and considered reflection and will not result in any additional 
costs to the company the upper performance threshold applicable to the 2007 ltip award was assessed to have been achieved 
and consequently the awards granted in 2007 vested in full the committee will assess the extent to which the performance 
conditions applicable to the award have been satisfied on the normal vesting date of 26 july 2010 and any award that would not 
have vested on the normal vesting date will be clawed back 
ltip awards granted to and exercised by the executive directors are set out in table 5 of section b below
share dilution
the company manages dilution rates within the abi guidelines of 10 of issued ordinary share capital in respect of allemployee 
schemes and discretionary schemes the ltip  esos and sa ye and 5 in respect of discretionary schemes the ltip and esos in 
calculating compliance with these guidelines the company allocates available ‘headroom’ on a tenyear flatline basis making 
adjustments for projected lapse rates and projected increases in issued share capital 
ltip awards are satisfied through the market purchase of shares held by the mitie group plc employee benefit trust 2007 and the 
mitie group plc employee benefit trust 2008 the potential dilution of the company’s issued share capital is set out below in respect 
of all outstanding awards granted under the company’s equitybased incentive schemes which are to be satisfied through the 
allotment of new shares
table 5 share dilution at 31 march 2010
current total 
dilution
all share plan maximum 10 73
discretionary share plans maximum 5 38
total shareholder return
the graph below shows the total shareholder return performance of mitie shares compared with the ftse 250 and ftse 350 support 
services indices over a fiveyear period to 31 march 2010 the committee is of the opinion that these comparators provide a clear 
picture of the performance of mitie relative to a range of companies of comparable size as well as a specific group of companies 
within the same sector total shareholder return is calculated according to the large and mediumsized companies and groups 
accounts and reports regulations 2008 and assumes that all dividends are reinvested
the market price of the company’s shares as at 31 march 2010 was 2287p the highest and lowest prices during the year were 
277 8p and 1855p respectively
200
175
150
125
100
75
50
apr 2005 apr 2006 apr 2007 apr 2008 apr 2009 apr 2010
tsr rebased to 100
mitie
ftse 250
ftse 350 57
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
audited information
section b information subject to audit
directors’ remuneration 
table 1 provides details of directors’ remuneration paid to or receivable by each person who served as a director during the year
table 1 directors’ remuneration 
base salaryfees 
£’000
performance 
related bonus 
earned  
in year  
£’000
performance 
related bonus 
deferred  
in shares  
£’000
 1
salary 
supplement  
in lieu of  
pension 
contributions  
£’000
contributions  
to pensions 
schemes  
£’000
benefits  
£’000
2010  
total  
£’000
2009  
total  
£’000
executive directors
r mcgregorsmith 461 461 11 5 92 1 2 16 1 157 898
s c baxter 303 303 76 60 42 16 800 636
n r goodman 288 288 72 – 1 2 16 676 578
w robson 288 288 72 – 1 2 16 676 578
nonexecutive directors
r matthews 140 – – – – – 140 107
i r stewart 40 – – – – – 40 41
d s jenkins 45 – – – – – 45 45
g potts 40 – – – – – 40 40
t k morgan cbe 2
34 – – – – – 34 – 
l hirst cbe 3
7 – – – – – 7 – 
i j s macpherson
4
23 – – – – – 23 45
total 1669 1340 335 152 78 64 3638 2968
note 
1 25 of bonus to be deferred into mitie group plc 25p shares
2 terry morgan cbe was appointed as a non executive director on 1 july 2009 the fees in consideration for the services of terry morgan cbe were paid to tkm management 
services limited
3 larry hirst cbe was appointed as a non executive director on 1 february 2010
4 ishbel macpherson resigned as a non executive director on 30 september 2009
pension
the pension benefits of directors who are members of the mitie group plc defined benefit pension scheme are set out in table 2 
below the transfer values of the directors’ accrued benefits under the defined benefit pension scheme calculated in a manner 
consistent with retirement benefit schemes which do not represent a sum paid or payable to the individual director are set out in 
table 3
table 2 defined benefit pension scheme benefits 
accrued 
pension  
31 march 2009 
£’000
increase in 
accrued 
pension during 
the year  
£’000
real increase  
in accrued 
pension
 £’000
accrued 
pension  
31 march 2010  
 £’000 
r mcgregorsmith 11 2 2 13
n r goodman 27 3 3 30
w robson 31 3 4 34
table 3 defined benefit pension scheme transfer values 
transfer values 
31 march 2009  
£’000
contributions 
made by  
the director  
£’000
increase  
in accrued 
pension over  
the year  
£’000
transfer value  
of pension 
increase after 
inflation net of 
contributions  
£’000
transfer value  
31 march 2010  
£’000
r mcgregorsmith 56 9 2 6 103
n r goodman 41 3 9 3 44 549
w robson 367 9 3 37 522 58
mitie group plc   
annual report  
and accounts 2010
audited information
the benefits of the executive directors who are members of the mitie group plc defined benefit pension scheme are based on a 
pensionable salary capped at £123600 the company made contributions to the group’s defined benefit scheme on behalf of 
the three directors who are members of the scheme at a rate of 10 2009 10 of the value of the benefit cap of £123600 
following consultation with major shareholders in 2009  the committee approved a revision to the chief executive’s pension  
benefit to bring its value into line with market practice and with effect from 1 april 2009  ruby mcgregorsmith received a salary 
supplement of 20 of salary
suzanne baxter is not a member of the mitie group plc defined benefit pension scheme as the scheme was closed to new 
entrants in 2005 before she joined the group it has always been the intention of the remuneration committee that the value of 
the pension benefits provided to suzanne baxter should mirror the value of the pension benefits provided to the other executive 
directors under the capped defined benefit arrangements albeit that her benefits are provided through a separate defined 
contribution arrangement due to the differences in the nature of the group’s defined benefit scheme and the defined 
contribution scheme established for suzanne baxter the cost to the company of providing mirrored benefits for suzanne baxter is 
greater than the cost of providing the same value of benefits to the other executive directors under defined benefit arrangements 
the contributions made by the company into suzanne baxter’s defined contribution scheme and the value of accrued benefits 
under the scheme have been reviewed during the year by the remuneration committee to ensure that the value of the benefits 
provided under that scheme mirror as far as possible the capped benefits of the defined benefit pension arrangements provided 
to the other executive directors pension contributions for suzanne baxter were 135 of base salary for the year ended 31 march 
2010 2009 135 of base salary and were paid into a separate defined contribution pension scheme with effect from 1 april 2009  
suzanne baxter received a salary supplement of 20 of base salary following approval of the remuneration committee  
see table 1  in order to bring the value of her overall pension benefit into line with market practice
share ownership
in accordance with the register of directors’ interests the rights of the directors to subscribe for and their holdings of shares in mitie 
group plc are as set out in tables 4 5 and 6
table 4 directors’ interests in options granted under the mitie group plc 2001 executive share option scheme 
esos options 
outstanding at  
1 april 2009
granted  
during  
the year
lapsed  
during  
the year
exercised  
during  
the year
esos options 
outstanding at 
31 march 2010
exercise  
price  
p
exercisable  
between
r mcgregorsmith
unapproved scheme 100000 – – – 100000 162 0608 0615
unapproved scheme 100000 – – – 100000 19 1 0609 06 16
s c baxter 
unapproved scheme 35000 – – – 35000 19 1 0609 06 16
approved scheme 15000 – – – 15000 19 1 0609 06 16
table 5 directors’ interests in nilcost options granted under the mitie group plc 2007 long term incentive plan 
ltip options 
outstanding at 
1 april 2009
1
granted during 
the year at 
21425pshare
2
lapsed  
during  
the year
exercised  
during  
the year
ltip options 
outstanding at 
31 march 2010
exercise  
price  
p
exercisable  
between
r mcgregorsmith 145440 
409 894 
–
430338 – 
– 
– 
145440 – 
409894
430338
nilcost
nilcost
nilcost
0310
08 11
0612
03 11
0812
0613
s c baxter 102201
273262
–
282847 – 
– 
–
102201 – 
273262
282847
nilcost
nilcost
nilcost
0310
08 11
0612
03 11
0812
0613
n r goodman 94340
1 29564
–
134422 – 
– 
–
94340 – 
129564
134422
nilcost
nilcost
nilcost
0310
08 11
0612
03 11
0812
0613
w robson 94340
1 29564
–
134422 – 
– 
–
94340 – 
129564
134422
nilcost
nilcost
nilcost
0310
08 11
0612
03 11
0812
0613
note
1 the performance criteria applicable to the 2007  2008 awards are lower and upper performance thresholds of rpi5 pa and rpi14 pa respectively
2 the directors acquired a conditional joint beneficial interest with the mitie employee benefit trust 2008 in the shares awarded under the ltip in 2008 and 2009 the full beneficial 
interest will transfer to the director only if the performance criteria applicable to the award are met the performance criteria applicable to the 2009 award are lower and 
upper performance thresholds of rpi5 pa and rpi10 pa respectively
3 the options granted in 2007 were approved to vest and were exercised on 30 march 2010 the market price on exercise was 2239p 59
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
01
06
14
60
table 6 director share ownership 
number of ordinary  
mitie shares  
beneficially owned 
as at 31 march 2010
1
number of ordinary mitie shares 
beneficially owned  
as at 1 april 2009 or date of 
appointment if later
executive directors
r mcgregorsmith 39937 6 183799
s c baxter 11 2201 10000
n r goodman 993761 899 421
w robson 1595053 150071 3
nonexecutive directors 
r matthews 100000 60000
i r stewart 2020000 2020000
d s jenkins 50000 50000
g potts 15000 15000
t k morgan cbe nil –
l hirst cbe nil –
note
1 includes shares exercised under the 2007 ltip on 30 march 2010
table 7 directors’ interests in mitie subsidiary companies under the mitie model audited information
number of 
shares 
31 march 2010
number of 
shares
1 april 2009
r mcgregorsmith
mitie engineering services edinburgh ltd b ordinary shares of £1 each 2000 2000
mitie services retail ltd b ordinary shares of £1 each 4000 4000
mitie transport services ltd c ordinary shares of £1 each 900 4500
table 7 above details the beneficial interests of the directors who were in office on 31 march 2010 in the share capital of certain  
of the company’s subsidiary companies the interests of directors in these subsidiary companies were acquired under the mitie 
model further details of which are given in the directors’ report on page 49  no such interests have been acquired by directors 
since 2004 and it is the company’s policy that directors will not be entitled to participate in any mitie model investments in  
the future
at the general meeting on 28 september 2009  shareholders approved a substantial property transaction under which the 
company acquired 3600 shares in mitie transport services limited from ruby mcgregorsmith for a total consideration of £166752 
which was satisfied by the issue of 70137 mitie group plc shares and £128 in cash
this report was approved by the board and has been signed on its behalf by
terry morgan cbe  
chairman remuneration committee mitie group plc  
annual report 
and accounts 2010
60 
independent auditors’ report to the members of mitie group plc 
for the year ended 31 march 2010 
we have audited the group financial statements of mitie 
group plc for the year ended 31 march 2010 which 
comprise the consolidated income statement the 
consolidated statement of comprehensive income the 
consolidated balance sheet the consolidated statement 
of changes in equity the consolidated statement of cash 
flows and the related notes 1 to 35 the financial reporting 
framework that has been applied in their preparation is 
applicable law and international financial reporting 
standards ifrss as adopted by the european union 
this report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 of the 
companies act 2006 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 explained more fully in the directors’ responsibilities 
statement the directors are responsible for the preparation 
of the group financial statements and for being satisfied 
that they give a true and fair view our responsibility is to 
audit the group financial statements in accordance with 
applicable law and international standards on auditing 
uk and ireland those standards require us to comply 
with the auditing practices board’s apb’s ethical 
standards for auditors 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are 
free from material misstatement whether caused by 
fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the group’s 
circumstances and have been consistently applied and 
adequately disclosed the reasonableness of significant 
accounting estimates made by the directors and the 
overall presentation of the financial statements 
opinion on financial statements 
in our opinion the group financial statements 
− give a true and fair view of the state of the group’s 
affairs as at 31 march 2010 and of its profit for the year 
then ended 
− have been properly prepared in accordance with ifrss 
as adopted by the european union  
− and have been prepared in accordance with the 
requirements of the companies act 2006 and article 4 
of the ias regulation 
opinion on other matters prescribed by the companies act 2006 
in our opinion 
− the information given in the directors’ report for the 
financial year for which the financial statements are 
prepared is consistent with the group financial 
statements and 
− the part of the directors’ remuneration report to be 
audited has been properly prepared in accordance 
with the companies act 2006 
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
under the companies act 2006 we are required to report 
to you if in our opinion 
− the part of the directors’ remuneration report to be 
audited is not in agreement with the accounting records 
and returns or 
− certain disclosures of directors’ remuneration specified 
by law are not made or 
− we have not received all the information and 
explanations we require for our audit 
under the listing rules we are required to review 
− the directors’ statement contained within the directors’ 
report corporate governance statement in relation to 
going concern and 
− the part of the corporate governance statement relating 
to the company’s compliance with the nine provisions of 
the june 2008 combined code specified for our review 
other matters 
we have reported separately on the parent company 
financial statements of mitie group plc for the year ended 
31 march 2010  
 
ian krieger senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditors  
bristol united kingdom 
17 may 2010 
 
 
 
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
61 
consolidated income statement 
for the year ended 31 march 2010 
 
 2010  2009
 
 
 
notes 
before  
other  
items 
£m  
other 
 items 
£m  
total 
£m
before   
other   
items 
£m  
 
other  
 items  
£m   
total 
£m
continuing operations    
revenue 3 17201 –  17201 15219  –  15219
cost of sales  14440 –  14440 12616  –  12616
gross profit  2761 –  2761 2603  –  2603
    
administrative expenses  1831 119 1950 1798   19  1817
operating profit  3 5 930 119 811 805  19  786
    
investment revenue 7 18 –  18 08  –   08
finance costs 8 31 01 32 29  06  35
net finance costs  13 01 14 21  06  27
    
profit before tax  917 120 797 784  25  759
tax 9 253 31 222 222  07  215
profit for the year   664 89 575 562  18  544
    
attributable to    
equity holders of the parent  660 89 571 549  18  531
minority interests  04 –  04 13  –  13
  664 89 575 562  18  544
earnings per share eps     
– basic 11 195p 26p 169p 172p  05p  167p
– diluted 11 192p 26p 166p 170p  05p  165p
    
 other items are noncash or nonrecurring acquisition related items as analysed in note 4 
  mitie group plc  
annual report 
and accounts 2010
62 
consolidated statement of comprehensive income 
for the year ended 31 march 2010 
 
 
notes 
2010 
£m 
2009
£m
profit for the year  575 544
other comprehensive incomeexpense   
actuarial losses on defined benefit pension schemes 33 131 120
tax credit on items taken directly to equity  42 25
other comprehensive expense for the year net of tax  89 95
   
total comprehensive income for the financial year  486 449
   
attributable to   
equity holders of the parent  482 436
minority interests  04 13
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
63 
consolidated balance sheet 
as of 31 march 2010 
 
notes 
2010 
£m 
2009
£m
noncurrent assets   
goodwill  12 3240 2012
other intangible assets 13 674 244
property plant and equipment 14 545 441
deferred tax assets 20 141 73
retirement benefit surplus 33 – 30
total noncurrent assets  4600 2800
   
current assets   
inventories 15 39 25
trade and other receivables 17 4056 2858
cash and cash equivalents 19 237 285
total current assets  4332 3168
   
total assets  8932 5968
   
current liabilities   
trade and other payables 22 3593 2602
current tax liabilities  150 135
financing liabilities 23 46 137
provisions 27 99 32
total current liabilities  3888 2906
   
net current assets  444 262
   
noncurrent liabilities   
financing liabilities 23 1062 45
provisions 27 112 172
retirement benefit obligation 33 105 34
deferred tax liabilities 20 131 45
total noncurrent liabilities  1410 296
  
total liabilities  5298 3202
   
net assets  3634 2766
  mitie group plc  
annual report 
and accounts 2010
64 
consolidated balance sheet 
as of 31 march 2010 
 
notes 
2010  
£m 
2009
 £m
equity   
share capital 28 88 81
share premium account  767 244
merger reserve  803 672
sharebased payments reserve  54 44
own shares reserve  81 52
other reserves  02 02
retained earnings  1923 1674
equity attributable to equity holders of the parent  3556 2665
   
minority interests  78 101
total equity  3634 2766
the financial statements were approved by the board of directors and authorised for issue on 17 may 2010 they were 
signed on its behalf by 
 
ruby mcgregorsmith  suzanne baxter 
chief executive  group finance director  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
65 
consolidated statement of changes in equity 
for the year ended 31 march 2010 
 
 
share 
capital  
£m 
 
share 
premium 
account 
£m 
merger 
reserve 
£m
share
based 
payments 
reserve 
£m
own 
shares 
reserve 
£m
other 
reserves 
£m
 
 
retained 
earnings 
£m 
attributable 
to equity 
holders of 
the parent 
£m 
minority 
interests 
£m
total  
£m
at 1 april 2008 79 190 604 29 20 02 1437 2321 129 2450
total comprehensive income – – – – – – 436 436 13 449
shares issued  02 54 68 – – – – 124 – 124
dividends paid – – – – – – 208 208 02 210
purchase of own shares  – – – – 32 – – 32 – 32
sharebased payments – – – 15 – – 09 24 – 24
acquisitions and other 
movements in minority interests 
– – ––– –– – 39 39
at 31 march 2009 81 244 672 44 52 02 1674 2665 101 2766
total comprehensive income – – – – – – 482 482 04 486
shares issued  07 523 131 – – – – 661 – 661
dividends paid – – – – – – 247 247 02 249
purchase of own shares  – – – – 45 – – 45 – 45
sharebased payments – – – 10 16 – 14 40 – 40
acquisitions and other 
movements in minority interests 
– – ––– –– – 25 25
balance at 31 march 2010 88 767 803 54 81 02 1923 3556 78 3634
   mitie group plc  
annual report 
and accounts 2010
66 
consolidated statement of cash flows 
for the year ended 31 march 2010 
 
2010 
 £m 
2009 
£m
operating profit   811 786
adjustments for   
sharebased payment expense  40 24
pension charge  38 15
pension contributions  63 55
depreciation of property plant and equipment  164 162
amortisation of intangible assets  59 20
gain on disposal of property plant and equipment  04 08
operating cash flows before movements in working capital   1045 944
decreaseincrease in inventories  02 01
increasedecrease in receivables  414 286
increasedecrease in payables  363 296
decreaseincrease in provisions  12 11
cash generated by operations   984 944
income taxes paid  222 186
interest paid  34 22
additional pension contribution  05 –
net cash from operating activities   723 736
investing activities   
interest received  19 08
purchase of property plant and equipment  217 150
purchase of subsidiary undertakings  1579 22
purchase of other intangible assets  58 90
disposals of property plant and equipment  31 28
net cash outflow from investing activities  1804 226
financing activities   
repayments of obligations under finance leases  22 16
proceeds on issue of share capital  31 19
proceeds from share placing  418  –
repayments of loan notes on purchase of subsidiary undertakings  – 12
bank loans raisedrepaid  900 400
purchase of own shares  45 32
equity dividends paid  247 208
minority dividends paid  02 02
net cash inflowoutflow from financing  1033 651
  
net decrease in cash and cash equivalents  48 141
net cash and cash equivalents at beginning of the year  285 426
net cash and cash equivalents at end of the year  237 285
net cash and cash equivalents comprise   
cash at bank  237 285
  237 285 mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
67 
consolidated statement of cash flows 
for the year ended 31 march 2010 
 
reconciliation of net cash flow to movements in net debtfunds 
 
notes 
2010  
£m 
2009 
£m
net decrease in cash and cash equivalents  48 141
bank loans raisedrepaid  900 400
repayments of loan notes on purchase of subsidiary undertakings  – 12
increase in finance leases  27 06
increasedecrease in net debt during the year  975 265
   
opening net fundsdebt  109 156
closing net debtfunds 26 866 109
  mitie group plc  
annual report 
and accounts 2010
68 
notes to the consolidated financial statements 
for the year ended 31 march 2010 
1 basis of preparation and significant accounting policies 
basis of preparation 
the group’s financial statements for the year ended 31 march 2010 are prepared in accordance with international 
financial reporting standards ifrss adopted for use in the european union and therefore the group financial 
statements comply with article 4 of the eu ias regulation 
as more fully detailed in the directors’ report corporate governance statement the group’s financial statements 
have been prepared on a going concern basis 
the group’s financial statements have been prepared on the historical cost basis except for certain financial 
instruments which are required to be measured at fair value 
the accounting policies adopted in the preparation of the consolidated financial statements are consistent with those 
followed in the preparation of the group’s annual financial statements for the year ended 31 march 2009 except for the 
adoption in the year of 
− ifrs 8 ‘operating segments’ the group determined that the operating segments are the same as those reported 
under the previous standard ias 14 ‘segment reporting’ the group has also early adopted the improvement to 
ifrs 8 issued in april 2009 which clarified that a measure of segment assets should be disclosed only if that amount 
is regularly provided to the chief operating decision maker 
− ias 1 revised ‘presentation of financial statements’ adoption of this standard has resulted in the inclusion of the 
statement of comprehensive income and the consolidated statement of changes in equity as primary statements 
− ifrs 2 ‘sharebased payment – vesting conditions and cancellations’ the standard has been amended to change 
the definition of vesting conditions and to clarify the accounting treatment of cancellations by parties other than the 
entity the adoption of this amendment did not have a material impact on the financial performance or position of 
the group and therefore no restatement was required and 
− ifrs 7 ‘financial instruments disclosures’ the standard has been amended to require additional disclosure of the basis 
of fair value measurements and liquidity risks  
the following amendments and interpretations are also effective for the first time in the current year but have had no 
impact on the results or financial position of the group 
− ifric 13 ‘customer loyalty programmes’ 
− ifric 15 ‘agreements for the construction of real estate’ 
− ifric 16 ‘hedges of a net investment in a foreign operation’ 
− ifric 18 ‘transfers of assets from customers’ 
− ias 27 revised ‘consolidated and separate financial statements’ 
− amendments to ias 32 and ias 1 ‘puttable financial instruments and obligations arising on liquidation’ 
− amendment to ias 39 ‘financial instruments recognition and measurement – amendments for embedded 
derivatives when reclassifying financial instruments’ and 
− amendments resulting from may 2008 annual improvements to ifrss 
the following standards and interpretations have been issued but are not yet effective and in some cases have not yet 
been adopted by the eu 
− amendment to ifric 14 ‘prepayments of a minimum funding requirement’ 
− ifric 17 ‘distributions of noncash assets to owners’ 
− ifric 19 ‘extinguishing financial liabilities with equity instruments’ 
− ifrs 3 revised ‘business combinations’ and consequential amendment to ias 27 ‘consolidated and separate 
financial statements’ ias 28 ‘investments in associates’ and ias 31 ‘interests in joint ventures’ 
− ifrs 9 ‘financial instruments – classification and measurement’ 
− amendments to ifrs 2 ‘group cashsettled sharebased payment transactions’ 
− ias 24 revised ‘related party disclosures’ 
− amendments to ias 32 ‘financial instruments presentation – amendments relating to classification of rights issues’  
− amendments to ias 39 ‘financial instruments recognition and measurement – amendments for eligible hedged 
items’ and 
− amendments resulting from april 2009 annual improvements to ifrss 
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
69 
 
 
1 basis of preparation and significant accounting policies 
the directors do not anticipate that the adoption of these standards and interpretations will have a material financial 
impact on the group’s financial statements in the period of initial application except in respect of the impact on the 
treatment of the acquisition of subsidiaries when ifrs 3 revised 2008 comes into effect for business combinations for 
which the acquisition date is on or after 1 april 2010 
significant accounting policies under ifrs 
the significant accounting policies adopted in the preparation of the group’s ifrs financial information are set 
out below 
basis of consolidation 
the consolidated financial statements comprise the financial statements of mitie group plc and all its subsidiaries 
the financial statements of the parent company and subsidiaries are prepared in accordance with uk generally 
accepted accounting practice with the exception of dalkia fm companies adjustments are made in the 
consolidated accounts to bring into line any dissimilar accounting policies that may exist between uk gaap and ifrs 
all intercompany balances and transactions including unrealised profits arising from intergroup transactions have 
been eliminated in full 
subsidiaries are consolidated from the date on which control is transferred to the group and cease to be consolidated 
from the date on which control is transferred out of the group 
interests of minority shareholders are measured at the minority’s proportion of the net fair value of the assets and 
liabilities recognised 
business combinations 
the acquisition of subsidiaries is accounted for using the purchase method the cost of the acquisition is measured at 
the aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity 
instruments issued by the group in exchange for control of the acquiree plus any costs directly attributable to the 
business combination the acquiree’s identifiable assets liabilities and contingent liabilities that meet the conditions for 
recognition are recognised at their fair value at the acquisition date except for noncurrent assets or disposal groups 
that are classified as held for resale in accordance with ifrs 5 ‘noncurrent assets held for sale and discontinued 
operations’ which are recognised and measured at fair value less costs to sell 
goodwill arising on acquisition is recognised as an asset and initially measured at cost being the excess of the cost of 
the business combination over the group’s interest in the net fair value of the identifiable assets liabilities and contingent 
liabilities recognised if after reassessment the group’s interest in the net fair value of the acquiree’s identifiable assets 
liabilities and contingent liabilities exceeds the cost of the business combination the excess is recognised immediately 
in profit or loss 
goodwill 
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the 
fair value of the identifiable assets and liabilities of a subsidiary associate or jointly controlled entity at the date of 
acquisition cost of acquisition includes all deferred amounts that become payable in the future 
goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment 
losses it is reviewed for impairment at least annually any impairment is recognised immediately in profit or loss and is not 
subsequently reversed 
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units expected to 
benefit from the synergies of the combination cashgenerating units to which goodwill has been allocated are tested 
for impairment annually or more frequently when there is an indication that the unit may be impaired if the 
recoverable amount of the cashgenerating unit is less than the carrying amount of the unit the impairment loss is 
allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the 
unit prorata on the basis of the carrying amount of each asset in the unit an impairment loss recognised for goodwill is 
not reversed in a subsequent period 
on disposal of a subsidiary associate or jointly controlled entity the attributable amount of goodwill is included in the 
determination of the profit or loss on disposal 
goodwill arising on acquisitions before the date of transition to ifrs has been retained at the previous uk gaap amounts 
subject to being tested for impairment at that date goodwill written off to reserves under uk gaap prior to 1998 has not 
been reinstated and is not included in determining any subsequent profit or loss on disposal  mitie group plc  
annual report 
and accounts 2010
70 
notes to the consolidated financial statements 
 
1 basis of preparation and significant accounting policies 
intangible assets 
intangible assets identified in a business acquisition are capitalised at fair value as at the date of acquisition 
software and development expenditure is capitalised as an intangible asset if the asset created can be identified if it is 
probable that the asset created will generate future economic benefits and if the development cost of the asset can 
be measured reliably 
following initial recognition the carrying amount of an intangible asset is its cost less any accumulated amortisation and 
any accumulated impairment losses intangible assets are reviewed for impairment annually or more frequently when 
there is an indication that they may be impaired amortisation expense is charged to administrative expenses in the 
income statement on a straightline basis over its useful life 
revenue 
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the 
revenue can be reliably measured revenue represents income recognised in respect of services provided during 
the period stated net of value added tax and is earned almost exclusively within the united kingdom 
revenue from multiservice contracts consists of various components which operate independently of each other and 
for which reliable fair values can be established each component is accounted for separately as if it were an individual 
contractual arrangement 
revenue from longterm contracts represents the sales value of work done in the year including fees invoiced and 
estimates in respect of amounts to be invoiced after the year end profits are recognised on longterm contracts where 
the final outcome can be assessed with reasonable certainty in calculating this the percentage of completion method 
is used based on the proportion of costs incurred to the total estimated cost cost includes direct staff costs and outlays 
full provision is made for all known or anticipated losses on each contract immediately such losses are forecast 
gross amounts due from customers are stated at the proportion of the anticipated net sales value earned to date less 
amounts billed on account to the extent that fees paid on account exceed the value of work performed they are 
included in creditors as gross amounts due to customers 
variations in contract work and claims are included to the extent that they have been agreed with the customer 
interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate 
applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the 
financial asset to that asset’s net carrying amount 
operating profit 
operating profit is stated before investment revenue and finance costs 
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets 
that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of 
those assets until such time as the assets are substantially ready for their intended use or sale all other borrowing costs 
are recognised in profit or loss in the period in which they are incurred 
leasing 
finance leases which transfer to the group substantially all the risks and benefits incidental to ownership of the leased 
item are capitalised at the inception of the lease at the fair value of the leased item or if lower at the present value 
of the minimum lease payments lease payments are apportioned between the finance charges and reduction of the 
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability finance charges are 
charged directly against income 
capitalised leased assets are depreciated over the shorter of the estimated life of the asset or the lease term 
leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating 
leases operating lease payments are recognised as an expense in the income statement on a straightline basis over 
the lease term any lease incentives are amortised over the lesser of the life of the operating lease or to the first 
opportunity for termination  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
71 
 
 
1 basis of preparation and significant accounting policies 
foreign currency 
transactions in foreign currencies are recorded at the rate of exchange at the date of transaction monetary assets and 
liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing 
at that date 
nonmonetary items carried at fair value that are denominated in foreign currencies are translated at the rates 
prevailing at the date when the fair value was determined nonmonetary items that are measured in terms of 
historical cost in a foreign currency are not retranslated 
exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are 
included in profit or loss for the period exchange differences arising on the retranslation of nonmonetary items carried 
at fair value are included in profit or loss for the period except for differences arising on the retranslation of non
monetary items in respect of which gains and losses are recognised directly in equity for such nonmonetary items 
any exchange component of that gain or loss is also recognised directly in equity 
retirement benefit costs 
the group operates and participates in a number of defined benefit schemes in respect of the schemes in which the 
group participates the group accounts for its legal and constructive obligations over the period of its participation 
which is for a fixed period only 
in addition the group operates a number of defined contribution retirement benefit schemes for all qualifying 
employees 
payments to the defined contribution and stakeholder pension schemes are charged as an expense as they fall due 
for the defined benefit pension schemes the cost of providing benefits is determined using the projected unit 
credit method with actuarial valuations being carried out at each balance sheet date actuarial gains and losses 
are recognised in full in the period in which they occur they are recognised outside profit and loss and presented in 
the statement of comprehensive income 
past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is 
amortised on a straightline basis over the average period until the benefits become vested 
the retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit 
obligation as adjusted for unrecognised past service cost and as reduced by the fair value of scheme assets any asset 
resulting from this calculation is limited to past service cost plus the present value of available refunds and reductions in 
future contributions to the plan  
taxation 
the tax expense represents the sum of the tax currently payable and deferred tax 
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the 
income statement because it excludes items of income or expense that are taxable or deductible in other years and it 
further excludes items that are never taxable or deductible the group’s liability for current tax is calculated using tax 
rates that have been enacted or substantively enacted by the balance sheet date 
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and 
is accounted for using the balance sheet liability method deferred tax liabilities are generally recognised for all taxable 
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be 
available against which deductible temporary differences can be utilised such assets and liabilities are not recognised 
if the temporary difference arises from goodwill or from the initial recognition other than in a business combination of 
other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that 
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered 
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the 
asset is realised deferred tax is charged or credited in the income statement except when it relates to items charged 
or credited directly to equity in which case the deferred tax is also dealt with in equity 
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against 
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends 
to settle its current tax assets and liabilities on a net basis 
   mitie group plc  
annual report 
and accounts 2010
72 
notes to the consolidated financial statements 
 
1 basis of preparation and significant accounting policies 
property plant and equipment 
property plant and equipment is stated at cost less accumulated depreciation and any impairment in value 
depreciation is charged so as to write off the cost less expected residual value of the assets over their estimated useful 
lives and is calculated on a straightline basis as follows 
freehold buildings and long leasehold property – over 50 years 
leasehold improvements    – period of the lease 
plant and vehicles    – 3–10 years 
annually the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any 
indication that those assets have suffered an impairment loss if any such indication exists the recoverable amount of 
the asset is estimated in order to determine the extent of the impairment loss if any where the asset does not generate 
cash flows that are independent from other assets the group estimates the recoverable amount of the cashgenerating 
unit to which the asset belongs  
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated 
future cash flows are discounted to their present value using a pretax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows 
have not been adjusted 
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount 
the carrying amount of the asset cashgenerating unit is reduced to its recoverable amount an impairment loss 
is recognised as an expense immediately 
where an impairment loss subsequently reverses the carrying amount of the asset cashgenerating unit is increased to 
the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying 
amount that would have been determined had no impairment loss been recognised for the asset cashgenerating unit 
in prior years a reversal of an impairment loss is recognised as income immediately 
inventories 
inventories are stated at the lower of cost and net realisable value 
costs represent materials direct labour and overheads incurred in bringing the inventories to their present condition 
and location net realisable value is based on estimated selling price less further costs expected to be incurred to 
completion and estimated selling costs provision is made for obsolete slow moving or defective items where 
appropriate 
financial instruments 
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party 
to the contractual provisions of the instrument the group derecognises financial assets and liabilities only when the 
contractual rights and obligations are discharged or expire 
assets that are assessed not to be individually impaired are subsequently assessed for impairment on a collective basis 
objective evidence of impairment for a portfolio of receivables includes the group’s past experience of collecting 
payments the number of delayed payments in the portfolio past the average credit period as well as observable 
changes in national or local economic conditions that correlate with default on receivables 
the carrying amount of the financial asset is reduced by the impairment loss directly with the exception of trade 
receivables where the carrying amount is reduced through the use of an allowance account when a trade 
receivable is considered uncollectable it is written off against the allowance account subsequent recoveries of 
amounts previously written off are credited against the allowance account changes in the carrying amount of the 
allowance account are recognised in the income statement 
financial assets comprise loans and receivables and are measured at initial recognition at amortised cost 
appropriate allowances for estimated irrecoverable amounts are recognised where there is objective evidence 
that the asset is impaired 
the group uses derivative financial instruments such as interest rate swaps to hedge and manage risks associated with 
interest the group does not currently designate any derivative financial instruments as qualifying for hedge accounting 
such derivative financial instruments are stated at fair value through profit and loss through investment revenue and 
finance costs with fair value determined by reference to market rates  
cash and cash equivalents comprise cash in hand and demand deposits and other shortterm highly liquid investments 
that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value 
interest bearing bank loans and overdrafts are stated at the amount of the net proceeds after deduction of issue costs 
finance charges including premiums payable on settlement or redemption and direct issue costs are accounted for on 
an accruals basis in the income statement and are added to the carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
73 
 
 
1 basis of preparation and significant accounting policies 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs 
all financial liabilities are held at amortised cost with the exception of derivative financial instruments which are classified 
as fair value through profit and loss  
provisions 
provisions are recognised when the group has a present obligation legal or constructive as a result of a past event and 
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a 
reliable estimate can be made of the amount of the obligation where the group expects some or all of a provision to 
be reimbursed for example under an insurance contract the reimbursement is recognised as a separate asset but only 
when the reimbursement is virtually certain the expense relating to any provision is presented in the income statement 
net of any reimbursement if the effect of the time value of money is material provisions are determined by discounting 
the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money 
and where appropriate the risks specific to the liability where discounting is used the increase in the provision due to 
the passage of time is recognised as a borrowing cost 
precontract and mobilisation costs 
all bid costs are expensed through the income statement up to the point where contract award or full recovery of 
costs is virtually certain bid costs incurred after this point are then capitalised within trade and other receivables on the 
contract award these bid costs are amortised through the income statement over the contract period by reference to 
the stage of completion of the contract activity at the balance sheet date 
once a contract has been awarded costs directly related to the mobilisation of that contract are treated as an integral 
part of contract costs and are capitalised where management is satisfied that these costs have been separately 
identified and providing the profitability of the contract can be reasonably forecast these capitalised costs are then 
amortised on a straightline basis over the life of the contract if the contract becomes loss making the costs are written 
off immediately  
sharebased payments 
the group operates a number of executive and employee share option schemes for all grants of share options and 
awards the fair value as at the date of grant is calculated using the blackscholes model and the corresponding 
expense is recognised on a straightline basis over the vesting period based on the group’s estimate of shares that 
will eventually vest 
the group has taken advantage of the transitional provisions of ifrs 2 in respect of equitysettled awards and has 
applied ifrs 2 only to equitysettled awards granted after 7 november 2002 that had not vested before 1 april 2005 
2 critical accounting judgements and key sources of estimation uncertainty 
critical judgements in applying the group’s accounting policies 
in the process of applying the group’s accounting policies which are described in note 1 above management 
has made the following judgements that have the most significant effect on the amounts recognised in the 
financial statements 
revenue recognition 
revenue is recognised for certain project based contracts based on the stage of completion of the contract activity 
this is measured by comparing the proportion of costs incurred against the estimated wholelife contract costs except 
where this would not be representative of the stage of completion 
key sources of estimation uncertainty 
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date 
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the 
next financial year are discussed below 
impairment of goodwill 
determining whether goodwill is impaired requires an estimation of the value in use of the cashgenerating units to 
which goodwill has been allocated the value in use calculation involves an estimation of the future cash flows of  
cashgenerating units and also the selection of appropriate discount rates to use in order to calculate present values 
the carrying value of goodwill is £3240m 2009 £2012m at the balance sheet date see note 12 management do 
not consider that any reasonably foreseeable change in the key assumptions would result in an impairment 
retirement benefit obligations 
the calculation of defined benefit obligations is dependent on material key assumptions including discount rates 
mortality rates future returns on assets and future contribution rates the present value of defined benefit obligations 
at the balance sheet date is £1801m 2009 £1261m see note 33  
 
  mitie group plc  
annual report 
and accounts 2010
74 
notes to the consolidated financial statements 
 
2 critical accounting judgements and key sources of estimation uncertainty 
the sensitivity of defined benefit obligations to changes in principal actuarial assumptions is shown below 
 
 
 
change in 
assumption 
increase
decrease 
in liability 
£m
discount rate 05 179
 –05 186
inflation 05 142
 –05 135
mortality rate 1 year 40
3 business and geographical segments 
business segments 
the group manages its business on a service division basis these divisions are the basis on which the group reports its 
primary segmental information 
on 1 april 2009 we rebranded our three operating divisions to facilities management previously facilities services 
property management previously property services and asset management previously engineering services 
further we elected to enhance our asset management proposition through its combination with our engineering 
maintenance business which had previously been a part of our facilities services business the acquired business of 
dalkia technical facilities management dalkia fm was incorporated into asset management with effect from 
12 august 2009 and environmental property services limited eps ltd was incorporated into property management 
with effect from 20 november 2009 the financial data below reflects the performance of our three divisions in the 
organisational structures that applied during the year 
business segments – structure during the year 
   2010  2009
 
 
 
revenue  
£m  
operating   
profit before  
other items  
£m   
margin 

profit  
before tax 
£m
revenue 
£m 
operating   
profit before  
other items  
£m   
 
 
margin  
 
profit  
before tax 
£m
facilities 
management 
8246 505  61 488 7818 472  60 443
property 
management 
2950 202  68 179 2979 179  60 171
asset 
management 
6005 223  37 130 4422 154  35 145
total 17201 930  54 797 15219 805  53 759
 other items are analysed in note 4 
with effect from 1 april 2010 the acquired dalkia fm business and our engineering maintenance business were 
restructured to bring together our technical facilities management proposition within a new operating division branded 
technical facilities management which generated £3448m of revenue and £155m of operating profit before other 
items in the year ended 31 march 2010 furthermore the engineering contracting offering of our asset management 
business which generated £2012m of revenue and £49m of operating profit before other items in the year ended 
31 march 2010 was combined with our property management business to consolidate its proposition a proforma 
analysis of the financial results of the business for the year ended 31 march 2010 is set out below  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
75 
 
 
3 business and geographical segments 
business segments – structure from 1 april 2010 
   2010
 
 
 
revenue 
£m 
operating  
 profit before  
other items 
 £m   
margin 

profit  
before tax 
£m
facilities 
management 
8246 505  61 488
technical facilities 
management 
3448 155  45 63
property 
management 
4962 251  51 230
asset 
management 
545 19  35 16
total 17201 930  54 797
 other items are analysed in note 4 
the tables below show the movements of revenue and operating profit before other items which reflect the acquisitions 
of dalkia fm and eps ltd the organic growth of the underlying businesses the movement of the engineering 
maintenance business to form technical facilities management and the combination of our engineering 
contracting business with property management to reflect the new structure of the group from 1 april 2010 
revenue  
£m 
 
2009 
engineering 
maintenance acquisitions organic
 
2010 
engineering 
contracting 
2010 – structure 
from 1 april 2010
facilities management 7818 – – 428 8246 – 8246
technical facilities management – 1604 1600 244 3448 – 3448
property management 2979 – 301 330 2950 2012 4962
asset management 4422 1604 – 261 2557 2012 545
total 15219 – 1901 8117201 – 17201
 
operating profit before other items 
£m 
 
2009 
engineering 
maintenance acquisitions organic
 
2010 
engineering 
contracting 
2010 – structure 
from 1 april 2010
facilities management 472 – – 33 505 – 505
technical facilities management – 70 66 19 155 – 155
property management 179 – 16 07 202 49 251
asset management 154 70 – 16 68 49 19
total 805 – 82 43 930 – 930
 other items are analysed in note 4 
the revenue analysis above is net of inter segment sales which are not considered significant 
no single customer accounted for more than 10 of external revenue in 2010 or 2009 
the group has early adopted the improvement to ifrs 8 issued in april 2009 which clarified that a measure of segment 
assets should be disclosed only if that amount is regularly provided to the chief operating decision maker and 
consequently no segment assets are disclosed 
geographical segments 
predominantly all of the group’s operations are located in the united kingdom and the channel islands the group 
considers all operations form part of that single reportable geographical segment  mitie group plc  
annual report 
and accounts 2010
76 
notes to the consolidated financial statements 
 
4 other items 
the group separately identifies and discloses noncash or nonrecurring acquisition related items termed ‘other items’ 
presenting the results excluding other items provides a meaningful analysis of the underlying trading result of the group 
and is consistent with the way that financial performance is reported to the board of directors 
 
2010 
£m 
2009
£m
administrative expenses  
restructuring costs relating to integration of dalkia fm and eps ltd 66 –
amortisation of acquisition related intangibles 53 19
 119 19
finance costs  
unwinding of discount on deferred contingent consideration 01 06
other items 120 25
5 operating profit 
operating profit has been arrived at after chargingcrediting 
 
2010 
£m 
2009
£m
depreciation of property plant and equipment 164 162
amortisation of intangible assets  59 20
gain on disposal of property plant and equipment 04 08
staff costs note 6 8786 7636
a detailed analysis of auditors’ remuneration is provided below 
 
2010 
£’000 
2009
£’000
fees payable to the company’s auditors for the audit of the company’s annual accounts 50 45
fees payable to the company’s auditors and their associates for the audit of the 
company’s subsidiaries 
550 418
total audit fees 600 463
 
tax services 47 61
other services 28 30
nonaudit fees 75 91
  
total 675 554
in addition to the amounts shown above the auditors received fees of £16000 2009 £16000 for the audit of the group 
pension scheme and £97000 2009 £23000 of fees were incurred in relation to acquisitions and have been included in 
acquisition costs including these amounts total nonaudit fees payable to the company’s auditors were £188000 2009 
£130000 representing 31 2009 28 of the year’s total audit fees   mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
77 
 
 
6 staff costs 
number of people 2010 2009
the average number of people employed during the financial year was  
facilities management 46239 44394
property management 2770 2716
asset management 4622 2944
total group 53631 50054
 represented in the structure which applied during the year see note 3 
the number of people employed at 31 march was 
total group 56579 51486
 
 
their aggregate remuneration comprised 
2010 
£m 
2009
£m
wages and salaries 7977 6955
social security costs 659 573
other pension costs 110 84
sharebased payments note 32 40 24
 8786 7636
details of directors’ remuneration and interests are provided in the audited section of the directors’ remuneration report 
and should be regarded as an integral part of this note 
7 investment revenue 
 
2010 
£m 
2009
£m
interest on bank deposits 16 07
other interest receivable  01 01
fair value movement on derivative financial instruments 01 –
 
18 08
8 finance costs 
 
2010 
£m 
2009
£m
interest on bank overdrafts and loans 30 25
interest on obligations under finance leases 03 03
fair value movement on derivative financial instruments – 06
unwinding of discount on deferred contingent consideration 01 06
total interest expense 34 40
less amounts included in the cost of qualifying assets 02 05
 32 35
borrowing costs included in the cost of qualifying assets during the year arose on the general borrowing pool and are 
calculated by applying an average capitalisation rate of 09 2009 49 to expenditure on such assets  mitie group plc  
annual report 
and accounts 2010
78 
notes to the consolidated financial statements 
 
9 tax  
 
2010 
£m 
2009
£m
current tax 238 214
deferred tax note 20 16 01
 222 215
corporation tax is calculated at 280 2009 280 of the estimated assessable profit for the year 
the charge for the year can be reconciled to the profit per the consolidated income statement as follows 
 
2010 
£m 
2009
£m
profit before tax 797 759
tax at the uk corporation tax rate of 280 2009 280 223 213
  
expenses not deductible for tax purposes 02 11
tax losses not recognisedpreviously unrecognised 02 05
prior year adjustments 01 04
tax charge for the year 222 215
in addition to the amount charged to the consolidated income statement deferred tax relating to retirement benefit 
costs and sharebased payments amounting to £42m has been credited directly to equity 2009 £25m 
10 dividends 
 
2010 
£m 
2009
£m
amounts recognised as distributions to equity holders in the year  
final dividend for the year ended 31 march 2009 of 36p 2008 32p per share 116 101
interim dividend for the year ended 31 march 2010 of 37p 2009 33p per share 131 107
 247 208
  
proposed final dividend for the year ended 31 march 2010 of 41p 2009 36p per share 145 116
the proposed final dividend is subject to approval by shareholders at the annual general meeting and has not been 
included as a liability in these financial statements  
11 earnings per share 
basic and diluted earnings per share have been calculated in accordance with ias 33 ‘earnings per share’ 
the calculation of the basic and diluted eps is based on the following data 
 
number of shares 
2010 
million 
2009
million
weighted average number of ordinary shares for the purpose of basic eps 3384 3183
effect of dilutive potential ordinary shares share options 60 40
weighted average number of ordinary shares for the purpose of diluted eps 3444 3223
the weighted average number of ordinary shares in issue during the year excludes those accounted for in the own 
shares reserve which were purchased in the market and held by the mitie group plc employee benefit trust to satisfy 
options under the group’s ltip share option scheme during the year 17m shares were purchased at a cost of £45m 
the own shares reserve represents the cost of 33m 2009 22m shares in mitie group plc 
following the acquisition of dalkia fm 190m new ordinary shares of 25p each were placed on 12 august 2009 with 
certain institutional and other qualified investors 90m ordinary shares of 25p were also allotted in august in respect of 
acquiring minority interests see note 29  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
79 
 
 
12 goodwill 
 £m
cost 
at 1 april 2008 2033
change in fair values of subsidiaries acquired in prior years  01
change in deferred contingent consideration for subsidiaries acquired in prior years 117
acquisition of minorities 97
at 1 april 2009 2012
acquisition of subsidiaries 1036
acquisition of minorities 187
change in deferred contingent consideration for subsidiaries acquired in prior years 05
at 31 march 2010 3240
accumulated impairment losses 
at 1 april 2008 –
at 1 april 2009 –
at 31 march 2010 –
carrying amount 
at 31 march 2010 3240
at 31 march 2009 2012
goodwill acquired in a business combination is allocated at acquisition to the cashgenerating units cgus that are 
expected to benefit from that business combination goodwill has been allocated to cgus in the following business 
segments which is how goodwill is monitored by the group internally 
 
cost 
2010 
£m 
2009
£m 
facilities management 1513 1398 
property management 726 410 
asset management 1001 204 
 3240 2012 
 represented in the structure which applied during the year see note 3 
the group tests goodwill at least annually for impairment 
the recoverable amounts of the cgus are determined from value in use calculations the key assumptions for the value 
in use calculations are those regarding the discount rates growth rates and expected changes to selling prices and 
direct costs during the period management estimates discount rates using pretax rates that reflect current market 
assessments of the time value of money and the risks specific to the cgus the growth rates are based on industry 
growth forecasts changes in selling prices and direct costs are based on past practices and expectations of future 
changes in the market 
the group prepares cash flow forecasts derived from the most recent financial budgets approved by the board for 
the next five years and extrapolates cash flows for the following five years based on an estimated growth rate of 2 
2009 2 per annum this rate does not exceed the average longterm growth rate for the relevant markets 
the rates used to discount the forecast cash flows from cgus which are based on the company’s weighted average 
cost of capital are as follows 
 
2010 
 
2009

facilities management 94 106
property management 94 106
asset management 94 106
no reasonably foreseeable change in the key assumptions would result in an impairment  mitie group plc  
annual report 
and accounts 2010
80 
notes to the consolidated financial statements 
 
13 other intangible assets 
acquisition related  
 
customer 
relationships
£m
other
£m
 
software and 
development 
expenditure 
£m 
total
£m
cost   
at 1 april 2008 140 – 66 206
additions – – 95 95
at 1 april 2009 140 – 161 301
additions 34289 58 489
at 31 march 2010 482 89 219 790
   
amortisation   
at 1 april 2008 37 – – 37
charge for the year 19 – 01 20
at 1 april 2009 56 – 01 57
charge for the year 43 10 06 59
at 31 march 2010 99 10 07 116
   
carrying amount   
at 31 march 2010 383 79 212 674
at 31 march 2009 84 – 160 244
customer relationships are amortised over the remaining period of the contract which currently ranges between six 
and eight years other acquisition related intangibles include acquired software and are amortised over their useful lives 
which currently range from three to ten years software and development costs are amortised over their useful life of 
between five and ten years once they have been brought into use  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
81 
 
 
14 property plant and equipment  
 
freehold 
properties
£m
leasehold 
properties 
£m 
plant and 
vehicles 
£m 
total
£m
cost    
at 1 april 2008 48 73 705 826
additions 03 02 166 171
disposals –– 217 217
at 1 april 2009 51 75 654 780
additions – 10 256 266
acquired with subsidiaries – – 29 29
disposals –– 103 103
at 31 march 2010 51 85 836 972
   
accumulated depreciation and impairment   
at 1 april 2008 06 18 350 374
charge for the year 01 10 151 162
disposals –– 197 197
at 1 april 2009 07 28 304 339
charge for the year 01 09 154 164
disposals – – 76 76
at 31 march 2010 08 37 382 427
   
carrying amount   
at 31 march 2010 43 48 454 545
at 31 march 2009 44 47 350 441
the net book value of plant and vehicles held under finance leases included above was £83m 2009 £47m 
additions to fixtures and equipment during the year amounting to £49m 2009 £21m were financed by new 
finance leases 
15 inventories 
 
2010 
£m 
2009
£m
workinprogress 10 13
materials 29 12
 39 25
16 financial assets 
 
2010 
£m 
2009
£m
trade receivables note 17 2303 1595
amounts recoverable on contracts note 18  1105 873
other debtors 170 56
cash and cash equivalents note 19 237 285
 3815 2809
all financial assets are classified as loans and receivables amounts recoverable on contracts include applications for 
payment from customers which have no fixed payment terms until invoiced  mitie group plc  
annual report 
and accounts 2010
82 
notes to the consolidated financial statements 
 
17 trade and other receivables 
 
2010 
£m 
2009
£m
amounts receivable for the sale of services 2410 1660
allowance for doubtful debt 107 65
 2303 1595
  
amounts recoverable on contracts note 18  1105 873
other debtors 170 56
prepayments and accrued income 478 334
 4056 2858
ageing of trade receivables 
 
2010 
£m 
2009
£m
neither impaired nor past due 1658 1117
not impaired and less than three months overdue 579 432
not impaired and more than three months overdue 117 75
impaired receivables 56 36
allowance for doubtful debt 107 65
 2303 1595
movement in the allowance for doubtful debt 
 
2010 
£m 
2009
£m
balance at the beginning of the year 65 46
impairment losses recognised 62 23
amounts written off as uncollectable 06 03
amounts recovered during the year 14 01
 107 65
before accepting new customers the group uses external credit scoring systems to assess the potential customer’s 
credit quality and defines credit limits by customer limits and scoring are updated as appropriate the maximum 
exposure to credit risk in relation to trade receivables at the balance sheet date is the fair value of trade receivables 
in determining the recoverability of a trade receivable the group considers any change in the credit quality of the trade 
receivable from the date credit was initially granted up to the reporting date the concentration of credit risk is limited 
due to the customer base being large and unrelated accordingly the directors believe that there is no further credit 
provision required in excess of the allowance for doubtful debt the average credit period taken on sales of services was 
38 days 2009 33 days 
the directors consider that the carrying amount of trade and other receivables approximates their fair value 
18 amounts recoverable on contracts  
 
 
contracts in progress at the balance sheet date 
2010 
£m 
2009
£m
amounts due from contract customers included in trade and other receivables 1105 873
amounts due to contract customers included in trade and other payables 08 11
 1097 862
  
contract costs incurred plus recognised profits less recognised losses to date 9649 9300
less progress billings 8552 8438
 1097 862
at 31 march 2010 retentions held by customers for contract work amounted to £177m 2009 £185m   mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
83 
 
 
19 cash and cash equivalents 
 
2010 
£m 
2009
£m
cash and cash equivalents 237 285
 237 285
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with an original maturity of 
three months or less the carrying amount of the assets approximates their fair value 
included in cash and cash equivalents are deposits totalling £73m 2009 £73m held by the group’s insurance 
subsidiary which are not readily available for the general purposes of the group 
the credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit
ratings assigned by recognised international creditrating agencies and are managed through regular review 
20 deferred tax  
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during 
the current and prior reporting period 
 
 
accelerated tax 
depreciation 
£m 
retirement 
benefit 
obligations
£m
business 
combinations
£m
sharebased 
payments
£m
 
shortterm timing 
differences 
£m 
 
 
tax losses 
£m 
total
£m
at 1 april 2008 03 28 30 20 37 02 04
creditcharge to income 01 13 05 02 02 10 01
creditcharge to equity – 33 – 08 – – 25
at 1 april 2009 04 08 25 10 35 12 28
chargecredit to income 10 08 15 06 09 04 16
credit to equity – 37 – 01 – – 38
acquisition of subsidiaries  04 – 120 – 44 – 72
at 31 march 2010 02 21 130 17 88 16 10
certain deferred tax assets and liabilities have been offset the following is the analysis of the deferred tax balances 
after offset for financial reporting purposes 
 
2010 
£m 
2009
£m
deferred tax assets 141 73
deferred tax liabilities 131 45
net deferred tax asset 10 28
the group has unutilised income tax losses of £52m 2009 £56m that are available for offset against future profits 
in addition the group has £05m 2009 £05m of capital losses deferred tax assets have not been recognised in respect 
of £nil 2009 £17m of these losses as their recoverability is uncertain 
21 financial liabilities 
 
2010 
£m 
2009
£m
trade creditors note 22 1791 1565
other creditors 155 81
accruals and deferred income 1002 512
financing liabilities note 23 1108 182
 4056 2340
all financial liabilities are held at amortised cost with the exception of derivative financial instruments which are included 
within financing liabilities and are classified as fair value through profit and loss see note 23  mitie group plc  
annual report 
and accounts 2010
84 
notes to the consolidated financial statements 
 
22 trade and other payables 
 
2010 
£m 
2009
£m
payments received on account 41 16
trade creditors 1791 1565
other taxes and social security 604 428
other creditors 155 81
accruals and deferred income 1002 512
 3593 2602
trade creditors and accruals and deferred income principally comprise amounts outstanding for trade purchases and 
ongoing costs the average credit period taken for trade purchases is 31 days 2009 34 days  
the directors consider that the carrying amount of trade and other payables approximates their fair value 
23 financing liabilities 
 
2010 
£m 
2009
£m
bank loans 1000 100
loan notes 35 35
derivative financial instruments 05 06
obligations under finance leases note 25 68 41
 1108 182
  
included in current liabilities 46 137
included in noncurrent liabilities 1062 45
 1108 182
 £19m of loan notes are supported by a bank guarantee 
the banking facilities are unsecured but have financial and nonfinancial covenants and obligations commonly 
associated with these arrangements  
all borrowings are in sterling and are measured at amortised cost the directors estimate that the carrying amount of the 
group’s borrowings approximates their fair value 
included in noncurrent liabilities are £1000m of bank loans 2009 £nil £46m 2009 £29m of obligations under finance 
leases see note 25 and £16m 2009 £16m of loan notes which are repayable up to 2013 
derivative financial instruments are measured at fair value fair value measurements are classified into three levels 
depending on the degree to which the fair value is observable 
level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities 
level 2 fair value measurements are those derived from other observable inputs for the asset or liability and 
level 3 fair value measurements are those derived from valuation techniques using inputs that are not based on 
observable market data  
we consider that the derivative financial instruments fall into level 2  
 
2010 
 
2009

the weighted average interest rates paid during the year on the overdrafts and loans 
outstanding were as follows  
 
overdrafts 20 44
bank loans 09 49
loan notes – 30
at 31 march 2010 the group had available £1212m 2009 £2200m of undrawn committed borrowing facilities in 
respect of which all conditions precedent had been met the facilities have an expiry date of january 2012 the loans 
carry interest rates which are currently determined at 04 over libor details of the group’s contingent liabilities are 
provided in note 30 
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
85 
 
 
24 financial risk management objectives 
the group’s treasury function monitors and manages the financial risks relating to the operations of the group 
these risks include credit risk foreign currency risk liquidity risk and market risk 
credit risk  
the group’s credit risk to all of its banks and financial counterparties is monitored on an ongoing basis and formally 
reported quarterly the value of business placed with financial institutions is reviewed on a daily basis 
the group’s principal financial assets are bank balances and cash and trade and other receivables 
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the balance sheet are 
net of allowances for doubtful receivables an allowance for impairment is made where there is an identified loss event 
which based on previous experience is evidence of a reduction in the recoverability of the cash flows in addition 
where appropriate certain debts are subject to credit insurance 
the group has no significant concentration of credit risk with exposure spread over a large number of counterparties 
and customers 
foreign currency risk 
the group has very limited trading transactions in foreign currency and considers the need to hedge its exposures 
appropriately it does not currently have any significant foreign currency balances or financial instruments 
liquidity risk 
the group monitors its risk to a shortage of funds using a cash flow projection model which considers the maturity of the 
group’s assets and liabilities and the projected cash flows from operations bank facilities which allow for appropriate 
headroom in the group’s daily cash movements are then arranged 
the tables below summarise the maturity profile including both interest and principal cash flows of the group’s 
financial liabilities  
 
 
at 31 march 2010 
within 
one year  
£m 
in the second 
to fifth years 
£m 
total
£m
trade creditors 1791 – 1791
other creditors 155 – 155
accruals and deferred income 1002 – 1002
financing liabilities 70 1083 1153
financial liabilities 3018 1083 4101
 
 
 
at 31 march 2009 
within 
one year  
£m 
in the second 
to fifth years 
£m 
total
£m
trade creditors 1565 – 1565
other creditors 81 – 81
accruals and deferred income 512 – 512
financing liabilities 137 45 182
financial liabilities 2295 45 2340
financial assets at 31 march 2010 and 31 march 2009 have a maturity of less than one year 
market risk  
the group’s activities expose it to the financial risks of interest rates the group’s treasury function reviews its risk 
management strategy on a regular basis and will appropriately enter into derivative financial instruments in order 
to manage interest rate risk group policy is not to trade in financial instruments 
if interest rates had been 05 higherlower and all other variables were held constant the group’s profit after tax for 
the year ended 31 march 2010 and reserves would decreaseincrease by £03m 2009 £01m 
capital risk management  
the group manages its capital to ensure that entities in the group will be able to continue as going concerns while 
maximising the return to stakeholders through the optimisation of debt and equity the capital structure of the group 
consists of net debtfunds per note 26 and equity per the consolidated statement of changes in equity 
the group’s capital structure is reviewed regularly the group is not subject to externally imposed regulatory capital 
requirements with the exception of those applicable to the group’s captive insurance subsidiary  mitie group plc  
annual report 
and accounts 2010
86 
notes to the consolidated financial statements 
 
25 obligations under finance leases 
minimum lease payments 
 
present value of lease payments
2010
£m
2009 
£m 
 
2010 
£m 
2009
£m
amounts payable under finance leases    
within one year 25 15  22 14
in the second to fifth years inclusive 52 33  46 27
 77 48  68 41
less future finance charges 09 07  – –
present value of lease obligations 68 41  68 41
less amount due for settlement within 12 months  22 12  22 12
amount due for settlement after 12 months 46 29  46 29
the average remaining lease term is 35 months 2009 33 months for the year ended 31 march 2010 the average 
effective borrowing rate was 42 2009 58 interest rates are fixed at the contract date all leases are on a fixed 
repayment basis and no arrangements have been entered into for contingent rental payments all lease obligations 
are denominated in sterling 
the fair value of the group’s lease obligations approximates their carrying amount the group’s obligations under 
finance leases are protected by the lessors’ rights over the leased assets 
26 analysis of net debtfunds  
 
2010 
£m 
2009
£m
cash and cash equivalents note 19 237 285
bank loans 1000 100
net debtcash before loan notes and obligations under finance leases 763 185
loan notes note 23 35 35
obligations under finance leases note 25 68 41
net debtfunds 866 109
27 provisions 
 
deferred 
contingent 
consideration 
£m 
 
insurance  
reserve 
£m 
total
£m
at 1 april 2009 110 94 204
unwinding of discount on deferred contingent consideration 01 – 01
utilised during the year 20 30 50
other movements in the year 38 18 56
at 31 march 2010 129 82 211
   
included in current liabilities   99
included in noncurrent liabilities   112
   211
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
87 
 
 
27 provisions 
 
deferred 
contingent 
consideration 
£m 
 
insurance 
 reserve 
£m 
total
£m
at 1 april 2008 209 83 292
unwinding of discount on deferred contingent consideration 06 – 06
utilised during the year 12 33 45
other movements in the year 93 44 49
at 31 march 2009 110 94 204
   
included in current liabilities   32
included in noncurrent liabilities   172
   204
during the year £13m of deferred contingent consideration in respect of the purchase last year of the minority 
shareholdings in mitie interiors limited mitie property services eastern limited and mitie technology  infrastructure 
limited was settled by the issue of new mitie shares £07m of deferred contingent consideration in respect of the 
acquisition in 2007 of robert prettie was settled in cash 
provision is made for deferred contingent consideration which may become payable up to 2013 subject to profit 
targets being attained at the best estimate of the directors a total of £35m was provided in respect of acquisitions 
made during the year note 29 
the provision for insurance claims represents amounts payable by mitie reinsurance company limited in respect of 
outstanding claims incurred at the balance sheet dates these amounts will become payable as each year’s claims 
are settled 
28 share capital 
 
ordinary shares of 25p 
number  
million £m
authorised 
  
at 31 march 2009 and 31 march 2010 5000 125
  
allotted and fully paid 
  
at 1 april 2009 3230 81
issued for placing 190 05
issued for acquisitions 90 02
issued under share option schemes 22 –
at 31 march 2010 3532 88
   
at 1 april 2008 3168 79
issued for acquisitions 48 01
issued under share option schemes 14 01
at 31 march 2009 3230 81
on 12 august 2009 190m new ordinary shares of 25p each were placed with certain institutional and other qualified 
investors by ubs limited and investec bank plc acting as joint bookrunners and joint brokers giving rise to share premium 
of £413m 
during the year 90m 2009 48m ordinary shares of 25p were allotted in respect of acquiring minority interests at a  
midmarket price of 2378p 2009 2188p giving rise to share premium of £80m 2009 £36m and a merger reserve of 
£131m 2009 £68m 
during the year 22m 2009 14m ordinary shares of 25p were allotted in respect of share option schemes at a price 
between 95p and 220p 2009 95p and 220p giving rise to share premium of £30m 2009 £18m  mitie group plc  
annual report 
and accounts 2010
88 
notes to the consolidated financial statements 
 
29 acquisition of subsidiaries 
purchase of dalkia technical facilities management 
on 12 august 2009 mitie acquired 100 of dalkia energy and technical services limited and parkersell limited together 
dalkia technical facilities management dalkia fm for total consideration of up to £1300m the transaction was 
accounted for by the purchase method of accounting as shown below 
 
 
book value 
£m 
fair value 
adjustments 
£m 
fair value
£m
net assets acquired   
intangible assets 12 287 299
deferred tax assetliability 27 64 37
property plant and equipment 48 24 24
inventories 16 04 12
trade and other receivables 638 40 598
trade and other payables 393 28 421
current tax liability 03 – 03
net assets acquired 345 127 472
 
goodwill 723
total consideration 1195
  
satisfied by 
 
cash 1162
deferred contingent consideration –
directly attributable costs 33
total consideration 1195
  
net cash outflow arising on acquisition 
 
cash consideration 1195
net cash outflow 1195
purchase of environmental property services ltd 
on 20 november 2009 mitie acquired 100 of environmental property services limited eps ltd for a maximum 
consideration of up to £409m with an initial consideration of £368m the transaction was accounted for by the 
purchase method of accounting below we provide provisional information on the acquisition 
 
book value 
£m 
fair value 
adjustments 
£m 
fair value
£m
net assets acquired   
intangible assets 58 75 133
deferred tax assetliability 01 36 35
property plant and equipment 18 13 05
inventories 04 – 04
trade and other receivables 192 06 186
cash and cash equivalents 35 – 35
trade and other payables 196 13 209
loans  23 – 23
net assets acquired 89 07 96
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
89 
 
 
29 acquisition of subsidiaries 
 
fair value
£m
goodwill 313
total consideration 409
  
satisfied by 
 
cash 368
deferred contingent consideration 35
directly attributable costs 06
total consideration 409
  
net cash outflow arising on acquisition 
 
cash consideration 374
cash and cash equivalents acquired 35
loan acquired 23
net cash outflow 362
the goodwill arising on the acquisition of dalkia fm and eps ltd is attributable to the underlying profitability of the 
companies expected profitability arising from new business and the anticipated future operating synergies arising from 
assimilation into the group 
provision is made for deferred contingent consideration at the directors’ best estimate of the likely future obligation 
deferred contingent consideration of up to £35m which may become payable in 2010 subject to certain profit targets 
being attained is included above no deferred contingent consideration is payable in respect of the purchase of 
dalkia fm 
dalkia fm contributed £1600m to revenue and £66m to the group’s operating profit before other items for the year 
eps ltd contributed £301m to revenue and £16m to the group’s operating profit before other items for the year if the 
acquisitions had taken place at the start of the year the group’s revenue and operating profit before other items would 
have been approximately £1870m and £100m respectively 
purchase of minority interests 
 
 
mitie cleaning 
services ltd  
£m 
mitie 
engineering 
maintenance 
north ltd
£m
mitie 
engineering 
projects ltd 
£m
mitie 
engineering 
services 
midlands ltd 
£m
 
 
mitie transport 
services ltd  
£m 
 
mitie 
mccartney fire 
protection ltd 
£m 
total
£m
minority interests 05 08 04 02 05 01 25
goodwill 48 46 13 14 65 01 187
total purchase consideration 53 54 17 16 70 02 212
    
shares issued – mitie group plc 47 53 16 15 68 02 201
cash consideration 06 01 01 01 02 – 11
total purchase consideration 53 54 17 16 70 02 212
  mitie group plc  
annual report 
and accounts 2010
90 
notes to the consolidated financial statements 
 
30 contingent liabilities  
the company is party with other group companies to cross guarantees of each other’s bank loans commitments and 
overdrafts of £2700m 2009 £2650m 
the company and various of its subsidiaries are from time to time party to legal proceedings and claims that 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 on the group’s financial position 
deferred contingent consideration relating to acquisitions has been accrued at the directors’ best estimate of the likely 
future obligation of £129m 2009 £110m per note 27 the actual amounts payable may vary up to a maximum of 
£324m 2009 £310m dependent upon the results of the acquired businesses 
in addition the group and its subsidiaries have provided guarantees and indemnities in respect of performance issued 
by financial institutions on its behalf amounting to £234m 2009 £206m in the ordinary course of business these are not 
expected to result in any material financial loss 
31 operating lease arrangements 
the group as lessee 
 
2010 
£m 
2009
£m
minimum lease payments under operating leases recognised in income for the year 96 47
at the balance sheet date the group had total outstanding aggregate commitments for future minimum lease 
payments under noncancellable operating leases which fall due as follows 
 
2010 
£m 
2009
£m
within one year 76 36
in the second to fifth years inclusive 152 82
after five years 40 37
 268 155
32 sharebased payments 
equitysettled share option schemes 
the company has four share option schemes 
the mitie group plc long term incentive plan ltip 
the ltip was introduced in 2007 the awards of shares or rights to acquire shares the awards are offered to a small 
number of key senior management where offered as options the exercise price is nil the vesting period is three years 
if the awards remain unexercised after a period of four years from the date of grant the awards expire the awards may 
be forfeited if the employee leaves the group before the awards can be exercised a performance condition must be 
satisfied the number of awards that vest is determined by a sliding scale above the retail price index per annum 
compound growth in earnings per share over a threeyear period 
the mitie group plc 1991 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day 
period immediately preceding the date of grant the vesting period is three years if the options remain unexercised 
after a period of ten years from the date of grant the options expire options may be forfeited if the employee leaves 
the group no options have been granted under this scheme since august 2001 
the mitie group plc 2001 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day 
period immediately preceding the date of grant the vesting period is three years if the options remain unexercised 
after a period of ten years from the date of grant the options expire options may be forfeited if the employee leaves 
the group before options can be exercised the performance condition that must be satisfied is that the percentage 
growth in earnings per share over a threeyear period must be equal or greater than 100 per annum compound in 
respect of awards prior to july 2007 and 40 above the retail price per annum thereafter  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
91 
 
 
32 sharebased payments 
the mitie group plc 2001 saye scheme 
the saye scheme is open to all employees the exercise price is not less than 800 of the market value of the shares on 
the day preceding the date on which invitations to participate in the scheme are issued for options granted prior to 
september 2008 the vesting period is five years for options granted in september 2008 and thereafter the vesting 
period is three years if the options remain unexercised after a period of six months from the date of vesting the options 
expire options may be forfeited if the employee leaves the group 
details of the share options outstanding during the year are as follows 
2010 
 
 2009
number of
share options
million
weighted 
average 
exercise price 
in p 
 
number of 
share options 
million 
weighted 
average
exercise price
in p
outstanding at beginning of the year  173 162  138 163
granted during the year 54 139  67 155
forfeited during the year 18 172  18 176
exercised during the year 28 108  14 129
outstanding at the end of the year 181 162  173 162
    
exercisable at the end of the year 22 163  22 144
 included within this balance are 03m 2009 06m options that have not been recognised in accordance with the transitional provisions of ifrs 2 as the options were 
 granted on or before 7 november 2002 these options have not been subsequently modified and therefore do not need to be accounted for in accordance with ifrs 2 
the group recognised the following expenses related to sharebased payments 
 
2010 
£m 
2009
£m
long term incentive plan share options 24 11
2001 executive share options 07 06
2001 saye share options 09 07
 40 24
the weighted average share price at the date of exercise for share options exercised during the year was 234p 2009 
201p the options outstanding at 31 march 2010 had exercise prices other than nil in the case of the ltip ranging from 
117p – 254p 2009 95p – 254p and a weighted average remaining contractual life of 46 years 2009 47 years in the 
year ended 31 march 2010 options were granted in june july and august 2009 in respect of the ltip saye and 
executive share option schemes the aggregate of the estimated fair values of the options granted on those dates is 
£47m in the year ended 31 march 2009 options were granted in june july and september 2008 in respect of the ltip 
executive and saye share option schemes the aggregate of the estimated fair values of the options granted on those 
dates is £40m 
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are 
as follows 
 2010 2009
share price p 133–230 133–230
exercise price p 0–254 0–254
expected volatility  27–36 27–30
expected life years 3–6 3–6
riskfree rate  242–525 417–525
expected dividends  143–330 143–315
expected volatility was based upon the historical volatility over the expected life of the schemes the expected life is 
based upon historical data and has been adjusted based on management’s best estimates for the effects of non
transferability exercise restrictions and behavioural considerations 
  mitie group plc  
annual report 
and accounts 2010
92 
notes to the consolidated financial statements 
 
33 retirement benefit schemes  
defined contribution schemes 
the group operates a number of defined contribution retirement benefit schemes for qualifying employees the assets 
of the schemes are held separately from those of the group in funds controlled by the scheme providers the group 
paid employer contributions of £72m 2009 £29m during the year 
defined benefit schemes 
group defined benefit scheme 
the group operates a defined benefit pension scheme called the mitie group plc pension scheme where mitie group 
plc is the principal employer following the merger of the mitie group plc passport pension scheme with the mitie group 
plc pension scheme in may 2008  
the assets of the scheme are held separately from the group contributions to the scheme are charged to the income 
statement so as to spread the cost of pensions over the employees’ working lives with the group  
under the scheme the employees are entitled to retirement benefits varying between 0 and 66  of final salary on 
attainment of a retirement age of 65 no other postretirement benefits are provided the schemes are funded schemes 
the most recent actuarial valuation of the group scheme’s assets and the present value of their defined benefit 
obligations was carried out at 1 april 2008 by mr chris bamford fellow of the institute of actuaries from aon 
consulting limited 
other defined benefit schemes 
grouped together under ‘other schemes’ is one 2009 one scheme in which the group is a participating employer and 
a number of schemes to which the group makes contributions under admitted body status to our customers’ defined 
benefit schemes in respect of certain tupe employees these valuations are updated by the actuaries at each balance 
sheet date the present values of the defined benefit obligations the related current service cost and past service cost 
were measured using the projected unit credit method 
for the admitted body schemes principally the west midlands pension fund which are all part of the local 
government pension scheme the group will only participate for a finite period up to the end of the contracts 
the group is required to pay regular contributions as decided by the relevant scheme actuaries and detailed in the 
schemes’ schedule of contributions in a number of cases contributions payable by the employer are capped and any 
excess recovered from the body that the employees transferred from in addition in certain cases at the end of the 
contract the group will be required to pay any deficit as determined by the scheme actuary that is remaining for its 
notional section of the scheme 
group schemes 
 
other schemes
2010

2009 
 
 
2010 
 
2009

key assumptions used for ias 19 valuation    
discount rate 560 660  560 660
expected return on scheme assets    
 equity instruments 800 800  800 800
 debt instruments 500 500  500 500
 property 750 750  750 750
 other assets 450 350  450 350
expected rate of salary increases 450 400  up to 450 350
inflation 350 300  350 300
future pension increases  350 300  350 300
the overall expected return on assets is calculated as the weighted average of the expected return of each asset class 
the expected return on equities is the sum of dividend growth and capital growth net of investment expenses the return 
on gilts and bonds is the current market yield on longterm bonds the expected return on property has been set equal 
to that expected on equities less a margin the expected return on other assets is the rate earned by the scheme on 
cash and alternate assets 
the sensitivity of defined benefit obligations to changes in principal actuarial assumptions is shown in note 2  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
93 
 
 
33 retirement benefit schemes 
amounts recognised in administrative expenses in respect of these defined benefit schemes are as follows 
 2010
 
2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
current service cost  29 10 39 22 13 35
interest cost  50 32 82 50 32 82
expected return on scheme assets  51 32 83 63 39 102
 
28 10 38 09 06 15
amounts recognised in the consolidated statement of comprehensive income are as follows 
 2010
 
2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
actual return on scheme assets 196 149 345 149 91 240
expected return on scheme assets  51 32 83 63 39 102
actuarial lossesgains on liabilities 267 126 393 113 109 222
 
122 09 131 99 21 120
the cumulative amount of actuarial loss recognised since 1 april 2004 in the consolidated statement of comprehensive 
income is £236m 2009 £105m 
the amounts included in the balance sheet arising from the group’s obligations in respect of its defined benefit 
retirement benefit schemes are as follows 
 2010 2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
fair value of scheme assets  1014 615 1629 773 458 1231
present value of defined 
benefit obligations  
1082 719 1801 743 518 1261
deficitsurplus in scheme  68 104 172 30 60 30
contract adjustment –67 67 – 26 26
net pension liabilityasset 68 37 105 30 34 04
  mitie group plc  
annual report 
and accounts 2010
94 
notes to the consolidated financial statements 
 
33 retirement benefit schemes 
movements in the present value of defined benefit obligations were as follows 
 2010 2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 743 518 1261 787 507 1294
service cost  29 10 39 22 13 35
interest cost  50 32 82 50 32 82
contributions from scheme members  09 05 14 18 05 23
actuarial gains and losses  267 168 435 113 42 155
benefits paid  16 11 27 21 14 35
contract transfers – 03 03 – 17 17
at 31 march 1082 719 1801 743 518 1261
movements in the fair value of scheme assets were as follows 
 2010 2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 773 458 1231 886 523 1409
expected return on scheme assets  51 32 83 63 39 102
actuarial gains and losses 145 117 262 212 130 342
contributions from the 
sponsoring companies 
52 16 68 39 16 55
contributions from scheme members  09 05 14 18 05 23
benefits paid  16 11 27 21 14 35
contract transfers – 02 02 – 19 19
at 31 march  1014 615 1629 773 458 1231
the analysis of the scheme assets at the balance sheet date was as follows 
 2010 2009
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
equity instruments 567 447 1014 326 298 624
debt instruments 222 102 324 173 85 258
property 114 51 165 128 45 173
other assets 111 15 126 146 30 176
at 31 march  1014 615 1629 773 458 1231
the pension schemes have invested in property occupied by the group with a fair value of £39m 2009 £32m 
generating rental of £03m 2009 £03m at 31 march 2010 the pension schemes held no mitie group plc shares 
2009 17000 the pension schemes have not invested in any other assets used by the group transactions between 
the group and the pension schemes are conducted at arm’s length 
the mortality for the group schemes is based upon up to date tables which project mortality improvements in the future 
for a male aged 650 years the expected life is 874 years 2009 873 years and for a female aged 650 years the 
expected life is 898 years 2009 897 years mortality for the other schemes is that used by the relevant scheme actuary  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
95 
 
 
33 retirement benefit schemes 
the history of experience adjustments is as follows 
  group schemes
 
2010
£m
2009
£m
2008 
£m 
2007 
£m 
2006
£m
fair value of scheme assets 1014 773 886 832 740
present value of defined benefit obligations 1082 743 787 827 722
deficitsurplus in the scheme 68 30 99 05 18
   
experience adjustments on scheme liabilities  01 113 120 32 82
percentage of scheme liabilities  01 153 152 39 114
   
experience adjustments on scheme assets 145 212 41 05 93
percentage of scheme assets 143 274 48 10 126
 
  other schemes
 
2010
£m
2009
£m
2008 
£m 
2007 
£m 
2006
£m
fair value of scheme assets 615 458 523 614 –
present value of defined benefit obligations 652 492 547 614 – 
deficitsurplus in the scheme 37 34 24 – –
   
experience adjustments on scheme liabilities  07 109 52 10 –
percentage of scheme liabilities  10 222 100 16 –
   
experience adjustments on scheme assets 117 130 60 – –
percentage of scheme assets 190 284115 – –
the estimated contributions expected to be paid to the group schemes during the current financial year are £50m 
2009 £50m and to other schemes £16m 2009 £16m 
as at 31 march 2010 contributions of £24m 2009 £14m due in respect of the current reporting period had not been 
paid over to the schemes 
34 related party transactions  
transactions between the company and its subsidiaries which are related parties have been eliminated on 
consolidation and are not disclosed in this note 
the company purchased 3600 c ordinary shares in the capital of mitie transport services limited from ruby mcgregor
smith a director of mitie for a total consideration of £166752 by the allotment of 70137 ordinary shares of mitie this 
was approved for the purposes of section 190 of the companies act 2006 by shareholders at the egm on 28 september 
2009 
no other material contract or arrangement has been entered into during the year nor existed at the end of the year 
in which a director had a material interest no balances were outstanding at the year end 
amounts paid to key management personnel are given in the audited section of the directors’ remuneration report 
mitie’s long term incentive plan ltip was also offered to a small group of key senior management  mitie group plc  
annual report 
and accounts 2010
96 
notes to the consolidated financial statements 
 
35 principal subsidiaries  
the companies set out below are those which were part of the group at 31 march 2010 and in the opinion of the 
directors significantly affected the group’s results and net assets during the year principal subsidiaries are incorporated 
in the united kingdom and are held directly or indirectly by mitie group plc  
 
 
 
division 
 
 
 
activities 
 
 
 
principal subsidiaries 
at 31 march 
2010 
 voting 
rights owned 
at 31 march 
2010 
 ownership 
interest 
at 31 march
2010
  nominal
value owned
facilities  
management 
our facilities management 
division delivers facilities 
consultancy management 
and service delivery to our 
clients within the division 
during the year ended 
31 march 2010 we recognised 
four principal business 
lines which were facilities 
management which comprises 
our managed services business 
services client services and 
pfi businesses cleaning 
and environmental which 
encompasses our cleaning 
landscaping and pest 
control businesses security 
and catering 
mitie facilities services ltd 
 
mitie cleaning  
environmental services ltd 
formerly mitie cleaning  
support services ltd 
 
mitie security holdings ltd 
1000 1000 1000
992 992 992
939 939 999
property  
management 
our property management 
division provides property 
maintenance and project 
management services 
including a complete range 
of repair refurbishment 
redecoration and fitout 
expertise for both the private 
and public sector with a focus 
on social housing 
mitie property services uk 
ltd 
 
robert prettie  co ltd 
 
environmental property 
services ltd 
799 799 799
1000 1000 1000
1000 1000 1000
 
asset  
management 
our asset management 
division provides the 
integration management 
and maintenance of technical 
assets to meet the demands 
of the lowcarbon economy 
including energy design 
generation and certification 
infrastructure projects building 
services and mechanical 
and electrical engineering 
on 1 april 2009 our engineering 
maintenance business 
was combined with asset 
management to further 
enhance our market 
proposition in this area 
mitie asset management 
ltd formerly mitie 
engineering holdings ltd 
 
mitie technical facilities 
management ltd formerly 
dalkia energy  technical 
services ltd 
1000 1000 1000
1000 1000 1000
 
the companies listed above represent the principal subsidiary companies of the group a full list of subsidiary companies 
will be annexed to the next annual return 
  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
97 
independent auditors’ report to the members of mitie 
 
we have audited the parent company financial 
statements of mitie group plc for the year ended 
31 march 2010 which comprise the company balance 
sheet and the related notes 36 to 49 the financial 
reporting framework that has been applied in their 
preparation is applicable law and united kingdom 
accounting standards united kingdom generally 
accepted accounting practice 
this report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 
of the companies act 2006 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 explained more fully in the directors’ responsibilities 
statement the directors are responsible for the preparation 
of the parent company financial statements and 
for being satisfied that they give a true and fair view 
our responsibility is to audit the parent company financial 
statements in accordance with applicable law and 
international standards on auditing uk and ireland 
those standards require us to comply with the auditing 
practices board’s apb’s ethical standards for auditors 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements 
are free from material misstatement whether caused by 
fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the parent 
company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness 
of significant accounting estimates made by the directors 
and the overall presentation of the financial statements 
opinion on financial statements 
in our opinion the parent company financial statements 
− give a true and fair view of the state of the parent 
company’s affairs as at 31 march 2010 
− have been properly prepared in accordance with united 
kingdom generally accepted accounting practice and 
− have been prepared in accordance with the 
requirements of the companies act 2006 
opinion on other matter prescribed by the companies act 2006 
in our opinion the information given in the directors’ report 
for the financial year for which the financial statements 
are prepared is consistent with the parent company 
financial statements 
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
matters where the companies act 2006 requires us to 
report to you if in our opinion 
− adequate accounting records have not been kept by 
the parent company or returns adequate for our audit 
have not been received from branches not visited by 
us or 
− the parent company financial statements are not in 
agreement with the accounting records and returns or 
− certain disclosures of directors’ remuneration specified 
by law are not made or 
− we have not received all the information and 
explanations we require for our audit 
other matters 
we have reported separately on the group financial 
statements of mitie group plc for the year ended 
31 march 2010 and on the information in the directors’ 
remuneration report that is described as having 
been audited  
 
ian krieger senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditors  
bristol united kingdom 
17 may 2010  mitie group plc  
annual report 
and accounts 2010
98 
company balance sheet 
as of 31 march 2010 
 
 
notes 
2010 
£m 
2009
£m
fixed assets   
tangible assets 39 256 171
investments in subsidiary undertakings 40 6275 4714
total fixed assets  6531 4885
 
  
current assets   
debtors 41 577 331
total current assets  577 331
 
  
total assets  7108 5216
 
  
creditors amounts falling due within one year 42 1470 1123
provisions 44 99 24
total current liabilities  1569 1147
 
 
net current liabilities  992 816
 
  
total assets less current liabilities  5539 4069
 
  
creditors amounts falling due after more than one year 43 1016 16
provisions 44 46 86
total liabilities  2631 1249
 
 
net assets  4477 3967
 
  
capital and reserves   
share capital 45 88 81
share premium account 46 767 244
merger reserve 46 803 672
sharebased payments reserve 46 61 44
own shares reserve 46 81 52
other reserves 46 03 03
profit and loss account 46 2836 2975
equity shareholders’ funds   4477 3967
the financial statements of mitie group plc company registration number sc 19230 were approved by the board of 
directors and authorised for issue on 17 may 2010 they were signed on its behalf by 
 
ruby mcgregorsmith   suzanne baxter 
chief executive   group finance director  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
99 
notes to the company financial statements 
for the year ended 31 march 2010 
36 significant accounting policies 
basis of accounting 
the separate financial statements of the company are presented as required by company law they have been 
prepared under the historical cost convention and in accordance with applicable united kingdom accounting 
standards and law  
as more fully detailed in the directors’ report corporate governance statement the company’s financial statements 
have been prepared on a going concern basis 
the principal accounting policies are summarised below they have been applied consistently throughout the year 
and the preceding year 
investments 
fixed asset investments in subsidiaries are shown at cost less any provision for impairment  
tangible fixed assets 
tangible fixed assets are stated at cost less accumulated depreciation and any impairment in value depreciation is 
charged so as to write off the cost of the assets over their estimated useful lives and is calculated on a straightline basis 
as follows 
plant and vehicles  3–10 years 
software and development costs 5–10 years 
the carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances 
indicate the carrying value may not be recoverable if any such indication exists and where the carrying values exceed 
the estimated recoverable amount the assets or cashgenerating units are written down to their recoverable amount 
the recoverable amount of tangible fixed assets is the greater of net selling price and value in use in assessing value 
in use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects 
current market assessments of the time value of money and the risks specific to the asset 
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets 
that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of 
those assets until such time as the assets are substantially ready for their intended use or sale all other borrowing costs 
are recognised in profit or loss in the period in which they are incurred 
provisions 
provisions are recognised when the company has a present obligation as a result of a past event and it is probable that 
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate 
can be made of the amount of the obligation where the company expects some or all of a provision to be reimbursed 
for example under an insurance contract the reimbursement is recognised as a separate asset but only when the 
reimbursement is virtually certain the expense relating to any provision is charged to the profit and loss account net of 
any reimbursement if the effect of the time value of money is material provisions are determined by discounting the 
expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and 
where appropriate the risks specific to the liability where discounting is used the increase in the provision due to the 
passage of time is recognised as a borrowing cost  
taxation 
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been 
enacted or substantively enacted at the balance sheet date 
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 the 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  mitie group plc  
annual report 
and accounts 2010
100 
notes to the company financial statements 
 
36 significant accounting policies 
financial instruments  
trade receivables are measured at initial recognition at fair value appropriate allowances for estimated irrecoverable 
amounts are recognised in the profit and loss account where there is objective evidence that the asset is impaired 
cash and cash equivalents comprise cash in hand and demand deposits and other shortterm highly liquid investments 
that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value 
interest bearing bank loans and overdrafts are recorded at the proceeds received net of direct issue costs finance 
charges including premiums payable on settlement or redemption and direct issue costs are accounted for on an 
accruals basis in the profit and loss account and are added to the carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise  
trade payables are measured at amortised cost 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs 
financial assets and financial liabilities are recognised on the company’s balance sheet when the company becomes 
a party to the contractual provisions of the instrument 
sharebased payments 
the company operates a number of executive and employee share option schemes for all grants of share options 
and awards the fair value as at the date of grant is calculated using the blackscholes model and the corresponding 
expense is recognised on a straightline basis over the vesting period options over the company’s shares awarded 
to employees of the company’s subsidiaries are accounted for as a capital contribution within the carrying value of 
investments in subsidiary undertakings 
pensions  
pension costs represent amounts paid to one of the group’s pension schemes for the purposes of frs 17 ‘retirement 
benefits’ the company has been unable to identify its share of the underlying assets and liabilities of the group defined 
benefit pension scheme on a consistent and reasonable basis therefore the company is accounting for contributions 
to the scheme as if it were a defined contribution scheme note 33 to the consolidated financial statements sets out the 
details of the ias 19 ‘employee benefits’ net pension liability of £105m 2009 £04m  
37 profit for the year 
as permitted by section 408 of the companies act 2006 the company has elected not to present its own profit and 
loss account for the year mitie group plc reported a profit after taxation for the financial year ended 31 march 2010 
of £101m 2009 £531m which includes £47m of nondistributable profits that arose from internal restructuring during 
the year 
the auditors’ remuneration for audit services to the company was £50000 2009 £45000  
detailed disclosures of directors’ remuneration and share options are given in the audited section of the directors’ 
remuneration report contained in the consolidated financial statements 
38 dividends 
 
2010 
£m 
2009
£m
amounts recognised as distributions to equity holders in the year  
final dividend for the year ended 31 march 2009 of 36p 2008 32p per share 116 101
interim dividend for the year ended 31 march 2010 of 37p 2009 33p per share 131 107
 247 208
  
proposed final dividend for the year ended 31 march 2010 of 41p 2009 36p per share 145 116
the proposed final dividend is subject to approval by shareholders at the annual general meeting and has not been 
included as a liability in these financial statements  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
101 
 
 
39 tangible fixed assets 
 
plant and 
vehicles 
£m 
software and 
development 
costs 
£m 
total
£m
cost 
  
at 1 april 2009 31 155 186
additions 47 58 105
disposals 04 – 04
at 31 march 2010 74 213 287
   
accumulated depreciation   
at 1 april 2009 14 01 15
charge for the year 12 06 18
disposals 02 – 02
at 31 march 2010 24 07 31
   
carrying amount   
at 31 march 2010 50 206 256
at 31 march 2009 17 154 171
borrowing costs of £02m 2009 £05m were capitalised during the year as part of software and development costs 
40 investments in subsidiary undertakings 
 
£m
shares at cost 
at 1 april 2009 4830
additions  1599
disposal due to internal restructuring 55
capital contribution re sharebased payments 17
at 31 march 2010 6391
 
provision for impairment 
at 1 april 2009 116
at 31 march 2010 116
 
carrying amount 
at 31 march 2010 6275
at 31 march 2009 4714
details of the acquisitions in the year are provided in note 29 of the consolidated financial statements and a listing 
of principal subsidiaries in note 35 additions to the cost of investments of £1599m include those incurred to obtain 
associated intangible assets in the form of noncompete agreements valued at £41m  mitie group plc  
annual report 
and accounts 2010
102 
notes to the company financial statements 
 
41 debtors 
 
2010 
£m 
2009
£m
amounts owed by subsidiary undertakings 525 269
other debtors 15 06
corporation tax 17 13
prepayments and accrued income 20 43
 577 331
the directors consider that the carrying amount of debtors approximates their fair value 
42 creditors amounts falling due within one year 
 
2010 
£m 
2009
£m
overdraft 1142 716
bank loans – 100
loan notes 19 19
trade creditors 28 38
amounts owed to subsidiary undertakings 186 190
other taxes and social security 34 22
accruals and deferred income 61 27
deferred tax – 11
 1470 1123
the directors consider that the carrying amount of creditors approximates their fair value 
the company’s bank overdrafts are part of the group’s banking arrangements and are offset against credit balances 
within the group the company has adequate liquidity to discharge all current obligations 
43 creditors amounts falling due after more than one year 
 
2010 
£m 
2009
£m
loan notes 16 16
bank loans 1000 –
 1016 16
44 provisions 
deferred 
contingent 
consideration 
£m 
 
 
deferred tax 
£m 
total
£m
at 1 april 2009 110 – 110
utilised during the year 20 – 20
other movements in the year 39 16 55
at 31 march 2010 129 16 145
   
falling due within one year   99
falling due after more than one year   46
   145
details of provisions are provided in note 27 of the consolidated financial statements  mitie group plc  
annual report 
and accounts 2010
business review governance accounts
08
38
overview
01
103 
 
 
45 share capital 
 
ordinary shares of 25p 
number 
million £m
authorised  
  
at 31 march 2009 and 31 march 2010 5000 125
  
allotted and fully paid 
  
at 1 april 2009 3230 81
issued for placing 190 05
issued for acquisitions 90 02
issued under share option schemes 22 –
at 31 march 2010 3532 88
  
at 1 april 2008 3168 79
issued for acquisitions 48 01
issued under share option schemes 14 01
at 31 march 2009 3230 81
details of movements in share capital during the year are provided in note 28 of the consolidated financial statements  
46 reserves 
 
 
calledup 
share capital 
£m 
share
premium 
account
£m
merger
reserve
£m
sharebased 
payments
reserve 
£m
own shares 
reserve
£m
 
other 
reserves  
£m 
profit  
and loss  
account 
£m  
total 
£m
at beginning of year  81 244 672 44 52 03 2975  3967
shares issued 07 523 131 – – – –  661
purchase of own shares  – – – – 45 – –  45
sharebased payments – – – 17 16 – 07  40
profit for the year  – –– ––– 101  101
dividends paid 
to shareholders 
– –– ––– 247 247
balance at 31 march 2010 88 767 803 61 81 03 2836  4477
 £1924m is nondistributable £1877m having arisen from internal restructuring in the year ended 31 march 2008 and £47m in the current year 
47 contingent liabilities  
details of contingent liabilities have been given in note 30 of the consolidated financial statements  mitie group plc  
annual report 
and accounts 2010
104 
notes to the company financial statements 
 
48 sharebased payments 
equitysettled share option schemes 
the company has four share option schemes as described in note 32 of the consolidated financial statements 
the company recognised the following expenses related to sharebased payments 
 
2010 
£m 
2009
£m
long term incentive plan share options 20 11
2001 executive share options 02 01
2001 saye share options 01 00
 23 12
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are as 
described in note 32 of the consolidated financial statements 
49 related parties 
the company makes management charges to all of its subsidiaries whether they are whollyowned or otherwise and 
receives dividends from its subsidiaries according to their ability to remit them other details of related party transactions 
have been given in note 34 of the consolidated financial statements  welcome to mitie 
a sustainable company…
overview
financial record 02
mitie at a glance 04
chairman’s statement 06
business review
chief executive’s strategy review 08
marketplace overview 14
operating review 16
new contract summary 24
corporate responsibility 27
financial review 30
key performance indicators 34
factors that could affect our business 36
governance
directors’ report 38
board of directors 39
directors’ report corporate governance statement 40
directors’ report statement of directors’ responsibilities 50
remuneration report 51
audited information 57
accounts
independent auditors’ report to the members of mitie group plc 60
consolidated income statement 61
consolidated statement of comprehensive income 62
consolidated balance sheet 63
consolidated statement of changes in equity 65
consolidated statement of cash flows 66
notes to the consolidated financial statements 68
independent auditors’ report to the members of mitie 97
company balance sheet 98
notes to the company financial statements 99
shareholder information ibc
fresh thinking
clear strategy
sound business
well managed
strong financials
shareholder information
dividend reinvestment plan drip
mitie has set up a dividend reinvestment 
plan drip to enable you to build your 
shareholding by using your cash 
dividends under a standing election  
to buy additional shares in mitie if you 
would like to receive further information 
including details of how to apply please 
call capita registrars on 020 8639 3402  
or contact them by sending an email to  
sharescapitaregistrarscom
mitie online share portal
mitie has launched a shareholder portal 
where shareholders can register and can
–  access information on shareholdings 
and movements
– update address details
–  view dividend payments received  
and register bank mandate instructions
– sell mitie shares
–  complete an online proxy voting form 
and
–  register for ecommunications allowing 
mitie to notify shareholders by email  
that certain documents are available  
to view on its website this will further 
reduce mitie’s carbon footprint as well  
as reduce costs
if you wish to register please sign up at 
wwwmitiesharescom
corporate website
this report can be downloaded in pdf 
format from the mitie website which also 
contains additional general information 
about mitie please visit wwwmitiecom
results
201 1 interim management statement 14 july 2010
201 1 halfyearly results 22 november 2010
dividends
2010 halfyearly dividend 37p paid 4 february 2010
2010 final dividend 41p proposed
2010 final ex dividend date 23 june 2010
2010 final dividend record date 25 june 2010
2010 final dividend last date for receipt
revocation of drip mandate 12 july 2010
2010 final dividend payment date 13 august 2010
annual general meeting
2010 annual general meeting 14 july 2010 230pm
company details
mitie group plc  
8 monarch court  
the brooms  
emerson green  
bristol bs16 7fh 
telephone 01 1 7 970 8800  
fax 01 17 302 6743  
email groupmitiecom  
website wwwmitiecom
registered number sc 19230
registrars
capita registrars  
northern house  
woodsome park  
fenay bridge  
huddersfield hd8 06a
telephone 0871 664 0300  
website wwwmitiesharescom
calls cost 10p a minute plus network extras lines are open 830am–530pm mon–fri
view this report online 
wwwmitiecominvestors
keep track of our  
news and thinking
wwwfacebookcomgroupphpgid30377596133
wwwtwittercommitiegroupplc
wwwyoutubecomusermitiegroupplc the 56579 
things that 
set us apart
our people 
mitie group plc
annual report and accounts 2010
mitie group plc
8 monarch court 
the brooms 
emersons green 
bristol bs16 7fh
t 01 1 7 970 8800 
f 01 1 7 302 67 43 
e groupmitiecouk
the co2e emissions arising from the paper manufacture 
and printing of this report have been calculated by  
carbon ready ltd at 634g prepared in accordance  
with pas 2050 methodology 
printed on cocoon offset which is produced from 100 
recovered waste both the paper mill and printer involved 
in the production support the growth of responsible forest 
management and are both accredited to iso14001 
which specifies a process for continuous environmental 
improvement and both are fsc certified this report is 
printed using vegetable oil based inks 
 
 
 
 
if you have finished reading the report and no longer  
wish to retain it please pass it on to other interested  
readers or dispose of it in your recycled paper waste  
thank you 
design and production 
radley yeldar  wwwrycom
print 
mitie document solutions
mitie group plc  annual report and accounts 2010
a big thank you to the 94 mitie 
people who appear in this report 
and to the other 56485 who  
made this another great year  
for the group
you make us who we are


Summary:
 06
mitie group plc   
annual report  
and accounts 2010
another excellent 
performance
we are delighted to report that mitie  
has made excellent progress in the past 
financial year we have significantly 
enhanced our capabilities through 
selective investments in our energy  
and fm business propositions as well as 
through strategic acquisitions we have 
delivered double digit growth in revenue 
underlying earnings and dividends in the 
year revenue increased by 130 to 
£17201m and underlying operating profit 
before other items noncash or non
recurring acquisition related items by 
155 to £930m while cash conversion 
remained extremely strong at 952  
this is an excellent performance against  
a backdrop of challenging economic 
conditions and is a testament to the 
passion and hard work of the mitie team 
strategy
our strategy is to deliver stakeholder value 
through a focus on sustainable profitable 
growth we are delivering against that 
strategy and have ambitious plans for the 
future mitie has proven capabilities as a 
strategic outsourcing company that adds 
value to its clients today’s low carbon 
economy means that our clients are 
looking for something different they want 
to deal with a business that can create 
an innovative outsourcing solution as 
well as providing integrated facilities 
management and specialist services 
this market trend is creating significant 
opportunities to grow our market share 
particularly in technical facilities and 
energy management the execution of our 
strategy is enabled by the development of 
our talented and innovative people our 
technology and infrastructure platform 
and through our continued investment in 
our ability to manage contracts that are 
increasingly large and complex
during the year we have made two  
key strategic acquisitions which have 
broadened our capabilities and 
significantly strengthened our client 
proposition in august 2009  we acquired 
dalkia fm for a total consideration 
including costs of £1 19 5m this acquisition 
complemented our existing engineering 
maintenance capabilities and specifically 
enhanced our carbon energy 
management and energy efficient 
lighting credentials we have integrated 
the business with our engineering 
maintenance business and the enlarged 
business is now operating successfully as 
mitie technical facilities management  
in november 2009  we acquired 
environmental property services limited 
eps ltd for maximum total consideration 
of £409m including costs eps ltd was 
integrated with our social housing business 
within our property management division 
and significantly enhances our capability 
in the social housing market particularly in 
the south east of england the dalkia fm 
and eps ltd acquisitions have been 
successfully integrated have delivered 
earnings in line with our expectations and 
we are confident they will make a significant 
contribution to mitie’s future growth
results
the year saw revenues grow by 130  
to £17201m 2009 £15219m with a 
particularly good performance in our 
facilities management fm division  
we also saw a significant contribution to 
revenue of £1901m from the acquisitions 
made during the year 
operating profit before other items 
increased by 155 to £930m 2009 
£805m reflecting an enhanced margin 
of 54 2009 53 profit before tax and 
other items increased by 1 7 0 to £917m 
2009 £784m earnings per share before 
other items grew by 134 to 19 5p per 
share 2009 17 2p per share 
chairman’s statement
revenue 
£m
130
130
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
dividend per share 
p
1 4072
9356
12288
15219
17201
basic earnings per share 
before other items 
p
134
2006
2007
2008
2009
2010
149
99
128
1 72
195
155
2006
2007
2008
2009
2010
operating proﬁt 
before other items 
£m
722
483
622
805
930
50
2006
2007
2008
2009
2010
proﬁt before tax  
£m
679
505
566
759
797
60
43
51
69
78
12
2006
2007
2008
2009
2010
basic earnings per share 
p
143
98
11 9
167
169
 other items are noncash or non recurring acquisition 
related items 07
mitie group plc   
annual report  
and accounts 2010
overview business review governance accounts
08
38
60
the business remains very cash generative 
and has reported a cash inflow from 
operations of £984m 2009 £944m for  
the year representing excellent cash 
conversion of 952 2009 97 5 the 
balance sheet is extremely strong with net 
debt at the year end at 084x ebitda at 
£866m 2009 net cash £109m after using 
debt funding of £1 161m for acquisitions 
committed bank facilities of £2300m 
remain in place to january 2012 which 
leaves the group well positioned to  
take advantage of further acquisition 
opportunities as they arise 
our order book is strong it grew by 306 
during the year and now stands at a 
record £64bn 2009 £49bn our sales 
pipeline is also at record levels and our 
contracted revenue for the year ending 
31 march 201 1 stands at 75 of budgeted 
revenue 2009 7 4 
dividend
mitie continues to generate attractive 
dividends and dividend growth for its 
shareholders the board is recommending 
an increased final dividend of 41p per 
ordinary share providing a total dividend 
per share for the year of 7 8p a 130 
increase on 2009 in line with our dividend 
policy to maintain dividends in line with 
underlying earnings per share growth at a 
cover ratio of 25 times adjusted earnings 
subject to shareholder approval at the 
annual general meeting the dividend will 
be paid on 13 august 2010 to shareholders 
on the register at 25 june 2010
board
we were pleased to welcome two new 
nonexecutive directors to the board 
during the year terry morgan cbe  
joined the board on 1 july 2009 and  
has been appointed chairman of the 
remuneration committee and larry hirst 
cbe joined on 1 february 2010 both have 
considerable commercial experience  
of large complex organisations larry’s 
career with ibm has spanned 32 years 
where he held the role of chief executive 
uk  ireland and is currently a chairman 
of ibm emea terry is the chairman of and 
has had extensive experience working  
for crossrail we look forward to the 
contributions they will make to the 
development of mitie in the future 
ishbel macpherson stepped down as a 
nonexecutive director on 30 september 
2009 having served for four years on our 
board we wish ishbel well for the future
people
mitie is one of the uk’s largest private 
sector employers during the year the 
number of people employed by mitie rose 
by 5093 to 56579  we would like to thank 
all of our people for their exceptional 
efforts and support and to welcome all 
those who have joined mitie during the 
year in particular we would like to extend 
a warm welcome to all those joining the 
group from both dalkia fm and eps ltd 
the board realises that results as good  
as these are only produced by talented 
people dedicated to achieving the same 
strategic goals 
our future progress will be heavily 
influenced by our ability to maintain the 
motivation and drive of all mitie people 
we will be reinforcing mitie’s ethos of 
recognising and rewarding exceptional 
team performance nurturing talent and 
providing opportunities for our people to 
succeed in their careers
outlook
mitie is in a very strong position we have 
seen a stepchange in our capabilities 
driven by selective investment in 
technology in our energy and fm 
propositions as well as through strategic 
acquisitions furthermore our developing 
international strategy will enable us to 
extend our reach and exploit growth 
opportunities both in the uk and overseas
our prospects for growth are very strong 
and we will benefit from the full year  
effect of both the dalkia fm and eps ltd 
acquisitions in this year’s results along with 
the related synergies 
demand for innovation and efficiencies  
in both the public and private sectors  
will provide great opportunities for mitie  
we maintain a position of financial 
strength a robust balance sheet and 
capacity for further organic and 
acquisitive growth we are positive about 
mitie’s future and of continuing to deliver 
sustainable profitable growth
roger matthews  
chairman