mitie group plc 
annual report and accounts 2012
the strategic outsourcing 
and energy services company
25 years…
never stop looking forward to mark the 25th year of mitie we asked 
photographer ed robinson to document 
how far we’ve come and what we stand 
for today through a series of 25 images… 
you can keep up to date with all things 
mitie during our milestone year by following 
us across our social media channels
facebookcommitiepeople 
twittercommitiegroupplc 
youtubecomusermitiegroupplc
25mitie
over the last 25 years 
our entrepreneurial spirit 
and passionate people 
have been a constant 
force driving us forward
we’ve certainly adapted 
and changed over the 
years and will continue 
to do so for years to come
keeping instep with 
what our customers need 
and delivering beyond 
their expectations is what 
makes us special…
it’s what makes us mitie mitie group plc  
annual report and accounts 2012
1
overview business review governance accounts
introduction
overview
mitie at a glance 4
chairman’s statement 6
business review
chief executive’s strategy overview 8
key performance indicators 16
other ﬁnancial targets 19
new contract summary 25
marketplace overview 28
operating review 30
sustainability overview 39
financial review 42
factors that could affect our business 46
governance
directors’ report board of directors 48
directors’ report corporate  
governance statement 49
directors’ report statement  
of directors’ responsibilities 63
directors’ remuneration report 64
accounts
independent auditor’s report  
to the members of mitie group plc 7 4
consolidated income statement 75
consolidated statement  
of comprehensive income 76
consolidated balance sheet 77
consolidated statement  
of changes in equity 79
consolidated statement of cash ﬂows 80
notes to the consolidated  
ﬁnancial statements 82
independent auditor’s report  
to the members of mitie group plc 121
company balance sheet 122
notes to the company  
ﬁnancial statements 123
shareholder information ibc
20
this year…
directors’ report 
the directors present the annual report and accounts for the year ended 31 march 2012 references to ‘mitie’  the ‘group’  
the ‘company’  ‘we’  or ‘our’ are to mitie group plc or to mitie group plc and its subsidiary companies where appropriate the directors’ 
report that 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 that report are subject to the limitations and restrictions provided by such law 
legal disclaimer 
the annual report and accounts contains forwardlooking statements such statements do not relate strictly to historical facts and can 
be identiﬁed by the use of words such as ‘anticipate’  ‘expect’  ‘intend’  ‘will’  ‘project’  ‘plan’  and ‘believe’ and other words of similar 
meaning in connection with any discussion of future events these statements are made by the directors of mitie in good faith based on 
the information available to them as at the date of approval of the annual report and accounts for the year ended 31 march 2012 and 
will not be updated during the year these statements by their nature involve risk and uncertainty because they relate to and depend 
upon events that may or may not occur in the future actual events may differ materially from those expressed or implied in this document 
and accordingly all such statements should be treated with caution nothing in this document should be construed as a proﬁt forecast 
more on our 
work with essex 
county council
22
more on 
our work 
with diageo
36
more on our 
work with nmk mitie group plc  
annual report and accounts 2012
2
mitie entrepreneurs
we have never lost sight of 
our entrepreneurial culture
at mitie entrepreneurialism has always been at the heart 
of our organisation mitie stands for management incentive 
through investment equity since we started 25 years ago 
we’ve been partnering with entrepreneurs to grow businesses and 
we’re as passionate about this today as we were when we started  mitie group plc  
annual report and accounts 2012
3
overview business review governance accounts
the ‘mitie model’ is for entrepreneurial 
management teams who have an idea 
for growing a business as a part of mitie 
it’s structured so that the management 
team takes an equity stake of up to 49 
in a business which they grow over a 
ﬁve to ten year period and is eventually 
acquired by mitie in full
mitie has supported over 100 startup 
businesses to grow using the mitie 
model with a 95 success rate it has 
shaped our entrepreneurial culture 
supported our excellent track record 
of growth and provided the basis 
for hundreds of people to develop 
successful careers in outsourcing
in 201 1 we launched a £10m fund to 
encourage more entrepreneurs to join 
us we have spent nearly half of that 
fund and have plans to launch another 
one soon we’re looking to start 
businesses that expand the range of 
services we offer to our existing clients 
or that will lead us into new markets 
our range of services is incredibly broad 
and we’re open to all ideas that ﬁt with 
mitie’s strategy and have the potential 
to attract a growing client base
we are always looking to enter rapidly 
growing markets that have huge 
potential for outsourcers to provide 
new and innovative solutions 
client services
debra and david started 
mitie’s client services business 
ﬁve years ago they now 
create exceptional memorable 
experiences at their clients’ sites 
across the uk
mitie millions event
in may six entrepreneurs  
pitched for their share of our 
£10m entrepreneurial fund
wwwmitiecomentrepreneurs
care and custody
after working in the justice 
sector for many years colin 
paul and alex started mitie’s 
care and custody business 
three years ago the business 
supports a core part of mitie’s 
justice strategy 
100
mitie has supported over 100 startup businesses
95
the mitie model has a 95 success rate
£10m
entrepreneurial fund launched in 201 1
event
reneurs 
hare of our 
urial fund
entrepreneurs mitie group plc  
annual report and accounts 2012
4
our business
shaping our business 
to meet the needs of 
our customers…
more detail in our operating review 
30—31
we specialise in  
strategic outsourcing and energy services  
bringing together the expertise and capabilities of  
mitie to help our clients achieve their organisations’ goals  
and make their property portfolios more efﬁcient 
we operate through our four divisions…
…where there is a growing shift in focus towards 
energy services 
which currently contribute around  
34 of group revenue
facilities  
management 
£9373m
technical  
facilities 
management 
£4728m
property 
management 
£5243m
asset 
management 
£681m
revenue revenue
revenue revenue
single specialist services or bundles of services
security cleaning catering document management and reprographics
reception and front of house waste management environmental services
landscaping pest control disabled access consulting and auditing
integrated facilities management and a range of technical and energy services
energy management mechanical and electrical engineering maintenance
national mobile services specialist technical services carboncare energy services
lighting design projects and maintenance building management systems and controls
development of effi  cient technologies to create secure
and sustainable energy infrastructure
energy centre development lowcarbon data centre development 
renewable energy generation energy services company management
community infrastructure energy performance contracting
a full suite of project management and property services
property maintenance building refurbishment interior ﬁ tout insurance claims validation and repairs
rooﬁ ng plumbing and heating mechanical and electrical engineering plastering and drylining
painting and repairs fire protection residential and new house ﬁ tout
373m £4728
operty
agement
243m
asse
manage
£681
evenue revenu mitie group plc  
annual report and accounts 2012
5
overview business review governance accounts
…underpinned by a model 
designed to generate 
value through efﬁciency
in simple terms what we do is to 
ﬁnd out what our clients want and use 
our people and technology to help them 
get it as efﬁciently as possible 
whether that is lower occupancy costs 
energy performance improvements or 
international outsourcing solutions
driven by market expertise
all of our markets have a unique set of requirements and these 
requirements are continually changing as clients respond to 
what is going on around them our teams make it their job 
to know what is happening and make sure that the advice 
and services we provide are the best they can be
client strategy
we listen to our clients to  
ﬁnd out what is really important  
to their organisations and  
help them achieve it
technology
we integrate analyse and  
then act upon our own and  
our clients’ data to make sure  
we provide the best service  
at the appropriate time  
for the right cost
organising people
our core skill is efficiently  
managing and motivating a large  
and diverse skilled workforce
more detail in our marketplace overview 
28—29 mitie group plc  
annual report and accounts 2012
6
chairman’s statement
overview
our strategy to focus on organic growth 
and develop our integrated facilities 
and energy management capabilities 
is progressing exceptionally well 
this is a reﬂection of the signiﬁcant and 
continuous investments we have made 
in key sectors over the last few years 
during the year we saw the award of 
a number of transformational contracts 
which have enhanced our business 
our energy capability is now a core 
part of our client proposition and we 
are the second largest energy services 
company in the uk 
this has resulted in strong organic 
revenue and operating proﬁt growth 
during the year more importantly 
we are well placed to deliver further 
organic growth in these key areas 
going forward as is evident in both our 
record order book and large pipeline 
of sales opportunities 
we have also made a number of 
niche acquisitions which will help us 
to enter new and specialist markets 
utilyx provides a specialist energy 
and carbon consultancy and direct 
enquiries is the uk’s leading access 
and disability consultancy true to 
our entrepreneurial roots we continue 
to use the original mitie model to 
start and grow innovative businesses 
and it remains a key differentiator for 
the group 
these developments leave us in a 
strong position as we enter the new 
ﬁnancial year
a transformational year… 
and strong organic growth
this has been a transformational 25th year for mitie 
with excellent progress on all of our key strategic objectives 
and sectorleading organic growth 
2008 2009 2010 2011 2012
722
805
930
1042
1117
operating proﬁt before
other items £m
72
2008 2009 2010 2011 2012
14072
15219
17201
18914
20025
revenue
£m
59
2008 2009 2010 2011 2012
679
759
797
868
945
proﬁt before tax 
£m
89 mitie group plc  
annual report and accounts 2012
7
overview business review governance accounts
results
during the year revenues grew by 
59 to £20025m 201 1  £18914m 
operating proﬁt before other items 
increased by 7 2 to £1 1 17m 201 1  
£1042m excluding the pension credit 
of £41m reﬂecting a margin of 56 
201 1  55 proﬁt before tax increased 
by 89 to £945m 201 1  £868m 
basic earnings per share increased by 
102 to 205p 201 1  186p and earnings 
per share before other items remained 
ﬂat at 226p 201 1  226p 
we have retained our strong focus 
on cash reporting cash inﬂows from 
operations of £1 102m 201 1  £1025m 
for the year which represents 
excellent conversion of ebitda to cash 
of 837 201 1  867 the balance 
sheet remains extremely robust with 
net debt at the year end at 081x 
ebitda at £1069m 201 1  £7 65m
we have committed bank facilities 
of £250m until september 2015 along 
with £1002m equivalent of us private 
placement debt both of these facilities 
leave us in a strong position to take 
advantage of valuecreating 
acquisition opportunities as they arise 
we have seen strong growth in our 
order book which increased by 26 
during the year and now stands at 
a record £86bn 201 1  £68bn 
our sales pipeline currently stands 
at £1 12bn 201 1  £1 14bn and 
our forward revenue visibility is 
excellent with contracted revenue 
for the year ending 31 march 2013 
at 83 of budgeted revenue 
prior year 81
dividend
it is now the board’s policy to grow 
the dividend broadly in line with the 
underlying earnings of the group 
the ﬁnal dividend proposed by the 
board has increased by 61 to 52p per 
share 201 1  49p per share this brings 
the full year dividend to 9 6p per share 
201 1  9 0p per share an increase of 
67 the dividend cover is 24 times 
adjusted earnings per share
subject to shareholder approval 
at the annual general meeting the 
dividend will be paid on 7 august 2012 
to shareholders on the register at 
22 june 2012
board and corporate 
governance
corporate governance remains an 
important and committed area of 
focus for the board the priorities in 2012 
were the continued execution of our 
growth strategy the ongoing review 
of performance and risk and the 
composition of the board we also 
focused on the senior talent pipeline 
which will ensure we have the skills 
experience and diversity to deliver our 
ambitious plans this strong culture of 
governance is explained further in our 
corporate governance statement 
ian stewart retired as a nonexecutive 
director and deputy chairman 
on 21 may 2012 in 1987  ian cofounded 
mitie with david telling throughout 
those 25 years ian has been instrumental 
in building and growing the business 
that mitie is today we thank him for 
his invaluable contribution to the board 
and the company and wish him well 
for the future
people
we would like to extend a huge thank 
you to all of our people and welcome 
those who joined us during the year 
we are one of the uk’s largest private 
sector employers with 63569 people 
and remain focused on providing 
opportunities for all of our people 
to succeed in their careers
outlook
mitie is very well positioned to 
capitalise on the momentum in 
growth we have seen over the past 
year there are exciting opportunities 
in our markets as organisations 
look for greater operating and 
energy efficiencies we have strong 
relationships with our diverse high
quality client base in both the public 
and private sectors and we are 
committed to continually providing 
them with better quality services 
innovation and efficiencies 
our focus remains on achieving 
organic growth in our primary 
market of the uk supplemented 
by selective acquisitions and the 
development of our integrated 
business model overseas we will 
continue to invest in our people 
technology and new markets all of 
which differentiate us as a business 
financially robust we have a 
clear strategy for the development 
of our business supported by a record 
order book and buoyant sales pipeline 
we are conﬁdent that we will continue 
to build on what is an exceptional 
track record
roger matthews 
chairman
2008 2009 2010 2011 2012
143
167
169
186
205
basic earnings per share 
p
102
2008 2009 2010 2011 2012
149
172
195
226
226
basic earnings per share 
before other items p
00
2008 2009 2010 2011 2012
60
69
78
90
96
dividend per share 
p
67
 excludes non recurring pension credit of £41m in 201 1 mitie group plc  
annual report and accounts 2012
8
1987
mitie is formed 
by david telling 
and ian stewart
1988
mitie group plc is 
listed on the london 
stock exchange
1989
1995
mitie develops the 
cleaning engineering 
and property 
services businesses 
into national 
companies through 
mitie model startups
1996
2000
mitie established 
facilities 
management 
maintenance  
security and 
document 
management 
businesses
2001
ian stewart 
is appointed 
chief executive 
catering 
landscaping 
and pfi businesses 
established
2003
acquisitions 
in cleaning 
security and pest 
control mitie model 
businesses
looking to 
the future
the last 25 years have been quite a journey one that’s seen mitie 
grow from a startup to an established company with a leading market 
position and over 63000 employees
ruby mcgregorsmith looks back on the factors that have driven mitie 
to continued success – and ahead to the opportunities of the future
chief executive’s strategy overview mitie group plc  
annual report and accounts 2012
9
governance accounts business review overview
2005
2006
acquisition of three 
further security 
companies 
including the largest 
acquisition to that 
date of initial security 
creating nationwide 
security coverage
2007
ruby mcgregorsmith 
is appointed 
chief executive 
surpass £1bn annual 
revenues for the 
ﬁrst time
2009
acquired dalkia fm – 
a ukwide technical 
facilities management 
business and 
subsequently 
launched 
carboncare
2010
the award of our 
ﬁrst paneuropean 
integrated fm 
contract with rolls
royce operating 
across the uk and in 
six european countries
2011
awarded a series 
of transformational 
contracts with a 
total value between 
£07bn and £13bn 
launched a £10m 
entrepreneurial fund 
ruby mcgregorsmith 
named business leader 
of the year at the 
orange uk national 
business awards
2012
the award of our 
largest ever contract 
with lloyds banking 
group 
market capitalisation  
reaches £1bn and 
revenues surpass £2bn
ruby mcgregorsmith 
honoured with 
a cbe for services 
to business and 
diversity in business
1bn
2bn mitie group plc  
annual report and accounts 2012
10
chief executive’s strategy overview
what drives mitie’s success 
year after year
i don’t think of mitie as 25 years old but 
as a young dynamic company we are 
still keen on breaking barriers pushing 
against ‘no can do’ attitudes and are 
as enthused and energised as ever by 
the opportunities around us we are 
driven by the same thing now as we 
were at the very beginning – a passion 
for the innovative thinking that can help 
clients to get where they want to be 
quickly and costefficiently 
by taking on those services which are 
not core to our clients’ operations 
we improve standards and save them 
money giving our clients more choices 
over how to spend their budgets 
getting the speciﬁcation and agreed 
service levels absolutely right are the 
keys to a successful contract our skill 
base lies in mobilising teams and 
transferring people from the client’s 
organisation to ours no matter how 
large or small the contract we also 
deliver what we say we’ll deliver 
precisely when we say we’ll deliver it 
to some extent we can do this by 
drawing on experience and know
how developed over the last quarter
century however our success is also 
down to continually investing in 
innovative it solutions that transform 
the notion of customer service
whether we are delivering integrated 
facilities management or any of our 
specialist single services clients 
appreciate what we do and come 
back for more – which is why we’ve 
grown every year since 1987  
price
value
outsourcing 
market evolution
each of our clients is at a 
different stage of this journey 
above they all have different 
needs which are changing 
at their own individual pace – 
it’s our job to meet those needs 
as and when they change
1980
inhouse
1990
single service
security
me
catering
cleaning
maintenance
pest control
2015
strategic outsourcing
buildings management 
and services
bpo
technology
data management
asset investment
energycarbon
2010
integrated fm
integrated delivery
management information systems
property management
overseas
addon specialist services
consultancy
supply chain
project management
2000
bundled services
broader cost savings
single point contact
standardised provision
best practice
17201
2002
1000
1500
2000
2500
3000
3500
2003 2004 2005 2006 2007 2008 2009 2010 201 1 2012
mitie group plc               ftse 100               ftse 250
£pftse rebased to mitie from 010402 ten year share price performance against the ftse 100 and ftse 250
april 2002 – april 2012 mitie group plc  
annual report and accounts 2012
11
governance accounts business review overview
are your markets changing 
and if so how
our markets are changing at the fastest 
rate we have seen in over two decades
as the graphic on the previous page 
illustrates there has been a general 
shift in outsourcing from the time in 
the 1980s when most services were 
carried out by inhouse teams to the 
early years of this century which saw 
a rise in bundled services integrated 
facilities management fm and 
strategic outsourcing 
what is new is the pace of change 
our clients’ business models are 
changing and they are changing fast 
clients have always wanted more for 
less but now they want a lot more for a 
lot less driven by pressures to transform 
their infrastructure reduce their energy 
consumption and save money at the 
same time many clients do not want 
to be concerned with delivering 
services beyond their core businesses 
so this is creating increased 
opportunities for us particularly with 
large organisations equally many of 
our clients still rely on us for our specialist 
single services and we remain 
focused on helping all our clients 
whatever their needs
the new contract summary on page 25 
shows how these opportunities have 
translated into contracts during the 
year a number of which are particularly 
signiﬁcant in terms of the scope and 
scale of services they offer 
in april this year we signed a £775m 
ﬁve year contract to deliver integrated 
facilities and energy management for 
lloyds banking group lbg the lbg 
estate encompasses over 3000 
buildings and as part of the contract 
we will welcome an extra 3000 people 
to the mitie team our relationship with 
lbg began as a single service cleaning 
contract in 1987 when we ﬁrst started 
so this is a ﬁne example of how a good 
working relationship can blossom into a 
great and much more extensive one
in addition the year saw a successful 
rebid with the cumbrian collaboration 
with the new expanded contract to 
provide integrated fm and energy 
services valued at over £200m over 
ﬁve years our new contract with 
diageo is another example of how 
a single service contract can grow into 
an expanded deal that could be worth 
over four times the original amount 
in the public sector we were proud 
to secure some similarly signiﬁcant 
contracts in the last 12 months 
in january we entered into a new 
partnership agreement with the prison 
service to bid for the management 
of nine prisons it’s an agreement that 
signals a new approach to competition 
for the prison service and will harness 
the expertise and experience of both 
organisations to compete for and 
manage 15year prison contracts 
during the year we were appointed 
to the ministry of justice’s moj total 
facilities management framework 
and subsequently awarded two major 
contracts for her majesty’s courts and 
tribunal service in the south of england 
and for brixton and isis prisons 
the total value will be £200m£455m 
over ﬁve to seven years furthermore 
we formed a ten year partnership 
with essex county council to service 
over 350 sites with a total value of up 
to £100m 
in energy services which provides some 
34 of our revenues among several 
other important projects we were 
appointed to deliver a landmark £35m 
energy centre in scotland more than 
1200 homes in fife will receive all their 
heat and hot water from a new energy 
centre powered by mitie enterprise 
and 38000 tonnes of waste wood
following our appointment to the nhs 
carbon and energy fund which will 
enable nhs trusts to upgrade their 
energy infrastructure and save energy 
we have been appointed preferred 
bidder to develop a new energy 
centre at addenbrooke’s hospital in 
cambridge the innovative centre 
will save £46m in annual energy costs 
which is equivalent to hiring 21 7 extra 
nurses each year it will also save almost 
30000 tonnes of co2 each year and 
help the cambridge nhs trust to surpass 
their sustainability targets
however this doesn’t mean we are 
focused only on new or large clients 
every contract is important to us 
none more so than repeat business 
from existing clients we value our 
smaller clients enormously many 
of whom are at an early stage in 
the journey towards largescale 
outsourcing – and we are the perfect 
partners to help them take the next 
steps in line with their chosen strategies
ann
sellaﬁeld 
38
diageo 
22
ministry of justice 
34
essex county council 
20
find out more about some of our developing customer relationships
evolving markets and 
client relationships
we have continued to build on 
the excellent client relationships 
we have in our key markets 
during the year mitie group plc  
annual report and accounts 2012
12
chief executive’s strategy overview
 
does this mean you’re 
changing strategy
although the size of contracts have 
changed the fundamentals of our 
strategy remain the same – to provide 
value for all our stakeholders through a 
focus on sustainable proﬁtable growth 
as the graphic explains we continue 
to focus on clients people risk 
responsibility new markets operational 
excellence and acquisitions
however it’s fair to say that as 
markets and opportunities evolve we 
will ﬁnetune the strategy to meet new 
challenges as they arise energy services 
will be a strong focus for us in the years 
ahead and international opportunities 
will also continue to be central to our 
plans we go wherever our clients need 
us to go and in more and more 
instances they are asking us to provide 
the same high quality services overseas 
that they already access in the uk
in terms of acquisitions we purchased 
two companies during the year 
utilyx the leading energy and 
carbon specialists and direct enquiries 
the uk’s leading access and disability 
consultants both acquisitions bring 
great expertise into mitie and we 
were delighted to welcome all the 
people into mitie
how can a company as large as 
mitie still be entrepreneurial
mitie stands for management incentive 
through investment equity and the spirit 
of entrepreneurialism has always been 
at the heart of our organisation 
of course that’s a lot easier for a 
company with a few dozen employees 
than it is for one the size we are today 
but we’re still as passionate about 
entrepreneurialism as we were on day 
one over the years we’ve supported 
over 100 startup businesses to grow 
using the mitie model which helps 
talented management teams turn 
ideas into reality startups keep you 
young fresh and innovative and the 
teams have huge amounts of energy 
it’s structured so that the management 
team takes an equity stake of up to 49 
in a business which they grow over a ﬁve 
to ten year period before being 
acquired by mitie in full 
in 201 1 we launched a £10m fund 
to encourage more entrepreneurs 
to startup businesses and during 
201 1 we invested nearly half of that 
money in order to encourage another 
group of entrepreneurs to come to us 
with ideas in may 2012 we hosted a 
‘dragons’ den’ style event where 
entrepreneurs pitched their ideas to a 
panel of expert judges the entrepreneur 
with the best pitch on the day secured 
an investment to start a business 
as always we look to start businesses 
that expand the range of services we 
offer to our clients or that will lead us 
into new markets our entrepreneurial 
model is one of the best ways to do this 
as well as being core to our culture
clients
provide worldclass 
services to attract new 
clients and retain and 
expand contracts with 
existing clients
1
people
recruit motivate 
retain train and develop 
the best talent in 
the industry
2
’ h
risk
take a longterm view 
to protect our business 
and manage risk
3 responsibility
act responsibly and 
build a reputation that 
enhances our brand to 
all stakeholders
4
new markets 
expand our capabilities in 
complementary markets 
and different countries 
and increase the 
proportion of our energy 
services revenues
5
operational 
excellence 
improve the operational 
efficiency of everything 
we do
6
acquisitions
support our growth with 
selective acquisitions
7
our strategy
a strategy to deliver stakeholder 
value through a focus on 
sustainable proﬁtable growth 
lies at the heart of our business 
the strategy has worked well and 
is largely unchanged although 
each year the areas of focus 
can change 
case studies of our acquisitions 
18 mitie group plc  
annual report and accounts 2012
13
governance accounts business review overview
how do you motivate over 
63000 people
as we grow as a business we are 
dedicated to creating an environment 
in which each and every individual 
can ﬂourish – recognising and rewarding 
performance nurturing talent and 
providing career opportunities 
we understand what makes people 
tick and we know how important it is 
that they feel valued equity participation 
has always been at the heart of our 
business and is in place to varying 
degrees across the organisation – 
share schemes certainly promote 
loyalty because they align people 
with the objectives of the business 
during the year we launched a new 
voluntary allemployee share plan 
which will run alongside the existing 
save as you earn scheme we currently 
offer this gives everyone another 
chance to invest in our company and 
save for their future we also continue 
to grow and enhance mitie rewards 
a fantastic beneﬁts scheme for all our 
people that is a gateway to making 
savings and gaining discounts at over 
2500 retailers
we know what capabilities we need 
to grow our business and are very 
focused on spotting and developing 
the potential talent we have within our 
organisation we have a very clear view 
of our talent pipeline for key roles across 
the business and have put processes in 
place to ensure our key talent is in the 
right place at the right time
we’ve always prided ourselves on 
being different and one step ahead 
in the way we communicate with our 
people social media frightens some 
organisations but we embrace it 
wholeheartedly – facebook and 
twitter are how our people choose to 
communicate so it makes absolute 
sense for us to communicate with them 
via these channels the use of social 
media is just one of the things that strike 
people when they join mitie especially 
if they’ve transferred in from another 
organisation it is also one of the many 
reasons we are an employer of choice 
for generation y if you tweet please 
join in at 25mitie
this year we have continued to grow 
our use of social media to strengthen 
our brand and connect with customers 
our people and other stakeholders 
we have introduced a new facebook 
page aimed at our people and have 
seen our followers triple on twitter 
along with our you tube channel which 
has featured our mitie’s got talent and 
stars competitions along with a range 
of corporate videos our social media 
channels have helped us to break 
down communication barriers allowing 
us to communicate engage and build 
relationships with people across the 
industries we work in and we can only 
see them becoming more and more 
important we are also using an 
enterprise social network which is 
allowing our sales teams to work smarter 
and collaborate across the country 
on the subject of people one of the 
most important things for any business 
to succeed is to have inspirational 
leaders for people to develop and 
succeed in their careers they need 
mentors who will support and believe 
in them ian stewart has stepped 
down from the board after 25 years 
of dedicated service to mitie for me 
personally the support encouragement 
and advice i have had from ian 
throughout my time at mitie has been 
invaluable i would like to thank him for 
being an inspiration and mentor to me 
and so many others his is a shining 
example of leadership 
ian stewart retirement
ian cofounded mitie 
with david telling in 1987  
throughout those 25 years 
ian has been instrumental 
in building and growing the 
business that mitie is today
g 
an environment where 
hard work is rewarded
‘mitie rewards’ is open to all 
our people and is one of the 
many ways they are rewarded 
it’s a gateway to making 
savings and gaining discounts 
at over 2500 retailers across 
the uk from chain stores and 
niche retailers to everyday 
expenses like mobile phone 
and utility bills the savings 
potential is endless mitie group plc  
annual report and accounts 2012
14
chief executive’s strategy overview
how do technology and 
innovation play a part at mitie
technology and innovation are real 
points of difference for us we have 
made signiﬁcant investments in 
innovative it solutions that transform 
the notion of customer service and 
are fundamental to our ability to 
deliver the most efficient services 
in particular miworld our web based 
management information platform 
gives clients ‘live’ visibility over exactly 
what we’re doing for them when and 
how well miworld presents an overview 
of the client’s portfolio in one centralised 
location whether that’s a pc laptop or 
tablet it helps them identify asset and 
facility performance issues which can be 
acted upon to improve efficiencies and 
reduce costs miworld helps to support 
our clients’ strategies by combining 
the fm service costs with their property 
related expenditure such as utility 
expenditure and leases and presenting 
the total costs of occupancy across their 
entire portfolios which can be used 
to benchmark performance
our use of pdas personal digital 
assistants across the majority of our 
contracts has enabled us to introduce 
vastly different working practices 
pdas help us to schedule our mobile 
workforce much more efficiently 
making sure our people are always 
focusing on doing what they do best – 
delivering great service 
to date we’ve invested signiﬁcantly 
in miworld pdas and other service 
enhancing technologies during 2012 
that will increase further and there is 
a lot more to come in future years too 
we have also recently launched 
operation exodus which aims to re
engineer all of our processes to 
make them electronic over the next 
two years delivering an efficient and 
cost effective operation to our clients 
is a top priority  using the beneﬁts 
of technology  we want to make all of 
our processes simpler and more efficient 
for our people our customers and our 
supply chain 
working more collaboratively with our 
suppliers is also really important when 
it comes to innovation in many cases 
we work in close consultation with our 
suppliers involving them in our process 
to create tailored solutions for our clients 
our suppliers are also using us to test 
new and pioneering products that they 
are bringing to the market for example 
through our supplier innovation days 
in partnership with our supply chain 
we can offer our clients even more 
forwardthinking solutions
in what direction do you 
see outsourcing going – 
and how is mitie placed 
to meet the challenge
in a business climate like we have 
today it’s not easy to predict market 
trends but one thing is crystal clear – 
we’re going to see a lot more about 
‘intelligent’ outsourcing of course 
service delivery remains an absolute 
essential and selfdelivery across a 
broad platform creates advantages 
in terms of integration and added 
value not only in price but also 
in service quality but we see the 
future lying in assembling data and 
understanding how the separate 
strands of corporate real estate 
functions interact 
until now this is an area that has not 
been exploited – but there are new 
‘linkages’ emerging on many levels 
between fm costs and energy 
provision for example as well as 
between projects and fm energy 
and projects agile working regimes 
and property costs such as leases 
rates and valuations and between 
all these elements of real estate cost 
and the increasing economic and 
legislative demands 
how can we exploit this situation for our 
clients by developing new models for 
outsourcing that are based on synergies 
between cost centres and a new deep 
understanding of the effect that each 
one has on all the others this approach 
will be built on the intelligent 
aggregation of data and real 
knowledge of total operating costs 
and will be driven by new technologies
we’re well placed to assist clients 
with such an exciting development 
we already have extensive service 
delivery capability – and we’re investing 
in skills and technology to expand this 
even further as always the thing that 
will set us apart is our ability to create 
opportunity for our clients in different 
and often groundbreaking ways
and what about the next 
few years
the world is a very different place 
today compared to how it was in 1987  
our markets and clients are evolving 
at an unprecedented speed and this 
is changing both the nature and the 
scale of the opportunities we face
the last 12 months have seen the 
award of a number of contracts 
that are transforming our business 
this success is an endorsement of 
our strategy to invest in our integrated 
facilities and energy management 
capabilities which will underpin the 
continued growth of our business
our sales pipeline is strong and our 
order book stands at record levels 
we are optimistic about the 
opportunities for growth but recognise 
the wider uncertainties in the global 
economy and in some of our more 
cyclical markets as governments 
and businesses seek cost and energy 
efficiencies our track record for service 
delivery innovation and efficiency 
will continue to differentiate us
times change but quality endures 
looking ahead i am conﬁdent 
that the track record of sustainable 
proﬁtable growth that we have 
maintained for 25 years will continue 
we are more passionate and excited 
about the future than we have 
ever been
ruby mcgregorsmith cbe
chief executive
 
rubyms
the role of technology
technology is a real point of 
difference for us for example 
miworld gives clients real time 
control over exactly what 
we’re doing for them when 
and how well mitie group plc  
annual report and accounts 2012
15
governance accounts business review overview
mitec
our approach to total security management is 
driven by technology risk resilience and future
proofed solutions we designed and built mitec 
our industry leading technology centre to offer 
a highly secure communications hub it is the 
central point of our technology operations 
linking our security personnel with electronic 
security and response services
01
 25
02
 25
03
 25 mitie group plc  
annual report and accounts 2012
16
nonﬁnancial key performance indicators
monitoring  
and managing 
performance
we look at a range of indicators 
to assess our performance 
against our stated strategy 
these include kpis that are 
aligned to each of the elements 
of our strategy as well as the 
ﬁnancial indicators that we as 
a business are focused on 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 a record 940
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
comment
59 of revenues are now attributable to multiservice 
and integrated fm contracts
1 2 3 4 5 6 7
our strategy
risk
1 2 3 4 5 6 7
our strategy
responsibility
1 2 3 4 5 6 7
our strategy
new markets
1 2 3 4 5 6 7
our strategy
clients
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
reportable accidents were 34 per 1000 employees 
during the year
description
emissions are calculated using the defra guidance on 
how to measure and report ghg emissions and apply 
the 2010 guidelines for company reporting last year’s 
total co2 emissions have been recalculated using 
co2e for scope 1 direct emissions gas and transport 
and scope 2 indirect energy purchased electricity 
but excludes landlord managed energy and 
expensed business fuel part of scope 3 we have 
also restated the 2010 data to allow for changes to the 
property portfolio and acquisitions the rate of co2e 
emissions per mitie employee is calculated using the 
average number of people employed during the year 
objective
understand and minimise the environmental impact 
of our operations
comment
emissions per employee are lower than the prior year
description 
sustainability will be an increasingly competitive 
advantage for us going forward as our clients look 
to us to help them improve their performance and 
reduce their costs
target 
energy services related revenue in excess of 30 
each year
comment 
energy services accounted for 34 of revenues 
during the year
2008 2009 2010 2011 2012
not measured
not measured
not measured
34
34
energy services
 of revenue
2008 2009 2010 2011 2012
860
880
870
842
940
retention of existing contracts
within facilities management 
2008 2009 2010 2011 2012
28
33
57
58
59
multiservice and integrated contacts 
 of revenue 
2008 2009 2010 2011 2012
not measured
not measured
087
082
075
carbon dioxide emissions
tonnes per employee
2008 2009 2010 2011 2012
40
39
35
31
34
reportable accidents 
per 1000 employees mitie group plc  
annual report and accounts 2012
17
governance accounts business review overview
1 2 3 4 5 6 7
our strategy
operational efﬁciency
1 2 3 4 5 6 7
our strategy
acquisitions
1 2 3 4 5 6 7
our strategy
people
description
we are focused on longterm recurring revenue 
streams at the start of each ﬁnancial year 
we calculate the percentage of our budgeted 
revenues that are already contracted
comment
at the start of the ﬁnancial year 2013 83 of budgeted 
revenues were secured our highest level ever and a 
reﬂection of the impact of our success in contract bids 
in 2012 
description
our forward order book shows the total value of 
future revenues secured by contractual agreements 
and it is a key part of our focus on building longterm 
recurring revenues
target
we aim to grow our order book at least in line with 
revenue growth 
comment
our order book grew by 26 during the year to a 
record level of £86bn
description
mitie is a people business and we pride ourselves 
in creating and nurturing outstanding managers 
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 80
comment
our management retention rate was 825 for  
the year
all of our divisions are focused on operating more 
efficiently and use many different measures to 
assess performance
from a group perspective the best way to assess 
our productivity is our group operating proﬁt margin 
which is also one of our key ﬁnancial performance 
indicators and found on the following page
this year we invested £166m in the acquisitions of 
utilyx and direct enquiries and £146m in minority 
interest acquisitions in ﬁve companies under the 
mitie model
our strong cash ﬂows committed ﬁnancing facilities 
and strong balance sheet have ensured that these 
investments can be made against a backdrop of 
limited gearing with net debt to ebitda at 31 march 
2012 at 081
description
we see increasing opportunities in international 
markets as our clients look to expand procurement 
and we beneﬁt from diversifying our revenue base
target
increase our proportion of international revenues
comment
our international revenues were 24 of the total 
group revenue
more detail in our divisional review 
20—29
more detail in our divisional review 
20—29
2008 2009 2010 2011 2012
78
74
75
81
83
secured revenue

2008 2009 2010 2011 2012
44
49
64
68
86
order book
£bn
2008 2009 2010 2011 2012
920
930
920
895
825
management retention

2008 2009 2010 2011 2012
na
na
na
13
24
international 
 of revenue mitie group plc  
annual report and accounts 2012
18
nonﬁnancial key performance indicators
utilyx 
utilyx was acquired by mitie in january 2012 
it provides services that manage the business 
impact of energy consumption and rising 
energy costs including strategic planning 
procurement and risk management established 
in 2000 utilyx purchases a signiﬁcant proportion 
of the uk corporate energy market on behalf 
of its clients which come from the industrial 
commercial and public sectors the business 
has a reputation for excellence and innovation 
having introduced products and concepts 
to the market such as ﬂexible risk managed 
electricity purchasing openbook agreements 
and enduser power purchase agreements 
utilyx also provides specialist services to 
generators and developers of renewable 
energy projects 
04
 25
direct enquiries
mitie acquired a majority stake of direct 
enquiries in december 201 1 it is the uk’s leading 
access and disability consultancy company 
and provides a range of services to major 
companies and public sector organisations 
which allow them to minimise their risk and 
maximise the beneﬁts of embracing equality 
it provides audits around access for disabled 
people supported by compliance reviews 
covering ﬁre risk as well as health and safety 
the company also operates free to use online 
directories directenquiriescom inclusivebritain
com and inclusivelondoncom – the mayor of 
london’s official information portal for the 2012 
games and its legacy these sites provide access 
information for people with speciﬁc access 
requirements such as disabled and older 
people and parents with children 
05
 25 mitie group plc  
annual report and accounts 2012
19
governance accounts business review overview
financial key performance indicators
delivering sustained  
proﬁt growth
our ﬁnancial kpis are focused on the quality of our earnings and 
cash ﬂows the control of capital expenditure and the sustainability 
of dividends we have performed strongly against these measures 
again this year
0000
0000 0000
0000
0000 0000
0000 0000
0000 0000
0000 0000
0000 0000
description
our operating proﬁt margin before other items 
provides us with a good indicator of the proﬁtability 
of our business where we have material restructuring 
and acquisition related items such as nonrecurring 
integration costs we exclude these from our measure
target range
maintain operating proﬁt margins between 50 
and 60 per annum
comment
we have maintained our margin within the target 
range at 56
 other items are restructuring and acquisition related items

 excludes non recurring pension credit of £41m in 201 1
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
capital expenditure was 13 of revenue
description
it is now the board’s policy to grow the dividend 
broadly in line with the underlying earnings of the 
group the ﬁnal dividend proposed by the board has 
increased by 61 to 52p per share 201 1 49p per 
share this brings the full year dividend to 9 6p per 
share 201 1 9 0p per share an increase of 67 
the dividend cover is 24 times adjusted earnings 
per share
target range
broadly in line with underlying earnings growth
comment
our dividend growth for the year was 67 broadly 
in line with underlying earnings growth
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 earnings before interest tax 
depreciation and amortisation ebitda to cash is 
one of the signiﬁcant cash ﬂow indicators for mitie
target range
over 800 of ebitda converted to cash
comment
we have achieved our target this year with 837 
of ebitda being converted to cash
2008 2009 2010 2011 2012
14
11
15
14
13
capital expenditure  
as a  of revenue
2008 2009 2010 2011 2012
51
53
54
55

56
operating proﬁt margin
before other items  
2008 2009 2010 2011 2012
903
975
952
867
837
conversion of ebitda 
to cash  
2008 2009 2010 2011 2012
60
69
78
90
96
dividend per share
p mitie group plc  
annual report and accounts 2012
20
revolutionising 
local authority 
outsourcing
overview of services provided
under the new contract mitie will 
employ more than 500 people 
to service over 350 sites including 
essex county hall offices libraries 
community centres and depots across 
145000 square metres mitie’s 
integrated delivery model will provide 
a wide range of services across the 
council’s portfolio including 
maintenance cleaning security 
catering waste management 
and mail and distribution services 
a partnership model
essex county council awarded mitie 
the contract because of its strategic 
efficient and sustainable service 
model that will deliver signiﬁcant 
savings compared to its historic cost 
of service delivery mitie’s technology 
platform miworld will provide the 
council with a business intelligence 
solution that integrates their 
management information across the 
estate mitie’s sustainable solution also 
includes guaranteed reductions in 
energy consumption within three years 
mitie is fully committed to investing in 
the development of essex by employing 
apprentices and ensuring at least 25 
of subcontracted work is placed with 
local smes
essex county council
in december mitie signed a ten year 
contract with essex county council to deliver 
transformational outsourcing services which 
include facilities property and energy 
management mitie will be working in 
partnership with lambert smith hampton to 
provide estate management services to the 
council including strategic asset management 
and new ways of working that deliver 
sustainable improvements for essex
06
 25
£80100m
total contract value
10
year partnership mitie group plc  
annual report and accounts 2012
21
governance accounts business review overview
08
 25
07
 25 mitie group plc  
annual report and accounts 2012
22
a tailored mix 
of specialist 
services that  
is just the tonic 
for diageo
overview of services provided
mitie’s integrated facilities management 
services will be delivered at over 
70 sites across the uk and ireland 
including all diageo’s manufacturing 
packaging and distillery sites and its 
global headquarters in london the fm 
services include cleaning catering 
security front of house reception 
porterage and mechanical and 
electrical engineering maintenance
a shift in strategy
mitie has been providing integrated 
fm to diageo’s irish operations since 
it acquired dalkia fm in ireland in 
june 2010 diageo recently conducted 
a strategic review and decided to 
move to a fully integrated selfdelivered 
outsourcing model across the uk 
and ireland following this review 
diageo awarded mitie this 
transformational contract because 
of mitie’s international coverage 
technology platform and energy 
services capabilities all of which have 
been tailored to ﬁt diageo’s unique 
requirements
we will continue to work closely 
with diageo to explore the potential 
opportunities in europe in addition 
to these two important territories
diageo
in september we were awarded a contract 
with the world’s leading premium drinks 
business diageo mitie will work with diageo 
to provide integrated facilities management 
and hospitality services throughout its entire 
uk and irish property portfolio 
09
 25
£100120m
total contract value
5
year partnership mitie group plc  
annual report and accounts 2012
23
governance accounts business review overview
10
 25
11
 25 mitie group plc  
annual report and accounts 2012
24
royal opera house
mitie delivers integrated facilities management 
for the royal opera house bringing together 
all of our service capabilities at the world 
famous covent garden venue home to the 
royal opera and the royal ballet over 100 
mitie staff members operate around the clock 
to deliver services which include engineering 
maintenance cleaning security telephony 
mail and reprographics 
12
 25
13
 25
14
 25 mitie group plc  
annual report and accounts 2012
25
governance accounts business review overview
new contract summary
some more of our  
recent successes
we have continued to build on the excellent client relationships 
we have in our key markets this summary shows a selection of 
contracts that we have retained expanded and been awarded 
during the year
private sector
finance and professional services
client contract timeframe total value
lloyds banking group
awarded a transformational contract to deliver integrated facilities and energy 
management providing services across the bank’s entire uk branch and office estate 
services to be delivered include catering reception reprographics engineering 
maintenance cleaning security minor capital reactive works office space management 
and a range of other services
5 years   
1 year
£775m  
£930m
friends life
total facilities management including all hard and soft fm services as well as energy 
management all supported by an innovative technology platform
5 years £28m
lv
manage and deliver building repair services as part of a dualsupplier solution for the uk’s 
largest friendly society and provider of insurance services include plastering decorating 
and replacing damaged kitchens and bathrooms
4 years £20m
allianz insurance
secured a contract to provide building repair services to allianz insurance customers 
nationwide managing and delivering domestic and commercial property insurance claims
3 years nd
technology and communications
client contract timeframe total value
bt group
security services contract including keyholding and response work
3 years £9m
channel 4
expanded our contract and now provide integrated facilities management 
with services including reception reprographics cleaning waste landscaping 
security and engineering maintenance
3 years £8m
worldpay
integrated facilities management contract to run across worldpay’s four uk sites including 
its headquarters in london including maintenance and engineering fabric maintenance 
security helpdesk catering cleaning pest control waste management reception and 
post room
3 years £6m
retail
client contract timeframe total value
diageo
expanded our technical fm contract to provide integrated facilities management 
and hospitality services across diageo’s uk and irish property portfolio
5 years £100m  
£1 20m
primark
awarded a variety of engineering services retail ﬁtout projects for stores across the uk
nd £6m
transport
client contract timeframe total value
airline operators committee 
at heathrow airport
hold baggage screening services at terminals 1 2 3 and 4
3 years £1 7m
birmingham airport
awarded a contract to provide soft facilities management services including airport cleaning 
pest control waste management and window cleaning
3 years £6m
nd  not disclosed mitie group plc  
annual report and accounts 2012
26
new contract summary
private sector continued
utilities
client contract timeframe total value
cumbrian collaboration 
retained and signiﬁcantly expanded an integrated fm and energy services contract with 
the cumbrian collaboration includes sellaﬁeld limited the nuclear decommissioning 
authority direct rail services low level waste repository limited and international 
nuclear services
57 years £200m  
£280m
leisure
client contract timeframe total value
odeon
awarded a contract to provide cleaning and environmental services for odeon’s chain of 
over 100 cinemas nationally
3 years £14m
property management
client contract timeframe total value
derwent london
a design and build project to provide high quality office space with a complete refurbishment 
including new reception and entrance facing clerkenwell green
8 months £1 1m
manufacturing
client contract timeframe total value
flowserve
awarded a property services contract to deliver a range of rooﬁng services and carry out an 
internal refurbishment of the flowserve offices and canteen
1 year £3m
public sector
central government 
client contract timeframe total value
ministry of justice
awarded total facilities management contracts for her majesty’s courts and tribunal service 
hmcts in the south of england and two prisons at brixton and isis
57 years £200m  
£455m
local government 
client contract timeframe total value
west midlands construction 
framework
minor works and maintenance contract for all nonhousing capital expenditure and 
maintenance primarily within the birmingham city council south area this contract is 
also available to 13 other local authorities within the region 
48 years £160m  
£350m
essex county council
transformational outsourcing contract which includes facilities and property management 
as well as energy services working in partnership with lambert smith hampton to provide 
estate management services
10 years £80m  
£100m
city of london
awarded a contract providing cleaning and environmental services at the offices of 
city of london
3 years £4m
education
client contract timeframe total value
cambridge university
awarded a contract to provide mechanical electrical public health and specialist 
services for a new 10000m
2
 building for the department of materials science and metallurgy 
in cambridge
18 months £1 1m
coventry university enterprises
awarded a contract to provide total security management
3 years £5m
university of greenwich and 
the greenwich foundation
selected to provide security services at the university and foundation’s various campuses 
and heritage attractions
3 years nd
nd  not disclosed  mitie group plc  
annual report and accounts 2012
27
governance accounts business review overview
public sector continued
health
client contract timeframe total value
st george’s healthcare  
nhs trust
awarded a technical facilities management contract to provide specialist maintenance 
services across the hospital including me fabric maintenance and projects services to 
the 20 buildings in the trust’s estate this adds to our existing portfolio of services which 
includes cleaning catering and helpdesk activities bringing total annual revenues to 
approximately £15m
5 years £10m
birmingham primary  
care trust and birmingham 
community healthcare  
nhs trust
retained a contract to provide cleaning and environmental services for both trusts
3 years £8m
midland heart
awarded a contract to provide security response services across its midlands property portfolio 
offering an out of hours mobile caretaker service to residents in over 32000 properties
3 years nd
social housing
client contract timeframe total value
lewisham homes
a contract to deliver home improvement works to over 13000 social housing tenants as part of 
a major works programme including kitchen and bathroom improvements boiler and system 
replacements and upgrades for disabled access
5 years £40m
milton keynes council
retained a contract to provide responsive repairs and voids
5 years nd
barnet homes
awarded a contract to provide gas services boiler installations and maintenance of 
commercial heating systems on 8800 properties
10 years £26m
energy services
private and public sector contracts
client contract timeframe total value
nhs carbon and  
energy fund
accepted as a partner in the £200m capital fund which enables nhs trusts to upgrade their 
energy infrastructure to save energy carbon and money
nd £200m 
framework
cambridge university hospitals 
nhs foundation trust
appointed preferred bidder to develop a major new innovation centre to power the world 
famous cambridge biomedical campus addenbrooke’s hospital
nd nd
ore valley  
housing association
appointed to deliver an energy centre in cardenden fife which will create scotland’s 
largest energy selfsufficient community where more than 1200 homes will receive all their 
heat and hot water from an energy centre powered by 38000 tonnes of waste wood
nd £35m
ogen plymtrek
energy services company formed by mitie ogen uk and the una group to develop an 
energy centre in plymouth which will convert waste wood into renewable heat and power
10 years nd
camden council
innovative energy scheme to provide surplus heat from a hospital energy plant to 1500 council 
tenants in camden council
15 years nd
royal marsden hospital
awarded a contract to design install and operate a new energy centre which will almost 
halve annual carbon emissions
nd nd
waitrose
contracts to develop and operate biomass energy centres at the east cowes and 
bracknell stores
nd nd
south west water
selected to install 30 photovoltaic systems on clean and waste water treatment plants
3 months £3m
nd  not disclosed mitie group plc  
annual report and accounts 2012
28
marketplace overview
private sector
as companies continue to seek cost 
reductions in order to compete in tough 
market conditions they are focusing 
on the further outsourcing of noncore 
services increased demand is 
being driven by integrated facilities 
management fm and energy services
our organic growth is based on excellent 
client relationships we have worked 
alongside many of our clients for a number 
of years building trust and mutual respect 
that has translated into increased 
business there are many opportunities 
for us to repeat the growth achieved 
with existing clients such as rollsroyce 
v odafone and diageo while also exploring 
the potential of new relationships
we see signiﬁcant integrated fm 
opportunities in the ﬁnancial services 
and retail sectors and were pleased 
to see potential become reality with 
our appointment to service a £775m 
transformational contract for lloyds 
banking group 
the majority of ﬁnancial and retail 
sector clients operate with singleservice 
contracts and we anticipate that the 
next phase of outsourcing is likely to see 
a shift towards integrated property and 
energy management 
public sector
the public sector remains under 
pressure with central government and 
local authorities in the uk streamlining 
their cost bases in a trend that is 
likely to continue for the foreseeable 
future – and this is creating signiﬁcant 
opportunities for outsourcing the uk 
government’s 201 1 parliamentary 
white paper on open public services 
made clear that there remains a strong 
political will to introduce greater 
competition and reform into more 
areas of public services 
we remain predominantly focused 
on the justice social housing education 
and health sectors
the home office and ministry of justice 
moj have a ﬁve year strategic plan 
which runs from 2010 to 201 5 as part of 
this they have savings targets of 25 over 
four years and have initiated a number 
of programmes to meet that goal 
our own moj pipeline stands at some 
£1bn with many key contracts due to 
be decided during 2012 against a 
backdrop of full prisons and the rising 
costs of the justice process there are 
speciﬁc and extensive outsourcing 
opportunities in areas such as fm 
prisons management electronic 
monitoring community payback and 
probation trusts home office market 
opportunities include police services 
and immigration removal centres
in the health sector we are seeing 
a range of opportunities including 
a growing portfolio of energy services 
work to upgrade ageing infrastructure 
increasingly there is also a strong 
community element to these projects 
for example for camden council 
we developed an innovative energy 
scheme to supply up to 1500 council 
tenants with surplus heat from 
our energy plant at the royal free 
hospital in hampstead
to date we have seen limited 
momentum within local authorities 
to combine more services and 
rationalise their estates 
however the pipeline of outsourcing 
opportunities for the delivery of local 
public services remains strong across 
the uk 
exciting opportunities 
in changing markets
we work closely with clients in both the private and 
public sectors primarily in the uk but increasingly in other 
european countries too the trend towards integrated services 
is a longterm one and has been clearly identiﬁed in previous 
annual reports what is different now is the speed of change 
and the scale of contracts – more clients are asking more 
and more of us
in addition to helping them improve efﬁciency while reducing 
costs by outsourcing noncore services to us we also enable 
clients to reduce the amount of energy they use as well as the 
price they pay for it
£86bn
the current value of our secured order book
34
current revenue we generate from energy services 
£450bn
uk’s total energy efficiency spend by 2025 mitie group plc  
annual report and accounts 2012
29
governance accounts business review overview
in january 2012 the city of edinburgh 
council recommended mitie as the 
preferred bidder for its integrated facilities 
management contract a proposed 
seven year partnership which would 
have generated signiﬁcant beneﬁts 
to edinburgh creating 200 new jobs 
50 apprenticeships and with guaranteed 
savings of between £51m and £1 14m 
members of the city of edinburgh 
council subsequently voted not to 
approve the proposed contract 
whilst a disappointing outcome our 
proposal offered a model of the future of 
outsourcing and we will continue to invest 
in this area to support its future growth
energy services
our energy services business already 
accounts for 34 of our revenue and 
may rise even further as demand grows 
in both the public and private sectors 
for energy and carbon strategies driven 
by macroeconomic environmental 
and legislative factors
reduced consumption and diversiﬁed 
energy supply are major objectives for 
all clients the uk alone must spend 
£450bn on energy efficiency measures 
and supply infrastructure by 2025 
across the eu there are an estimated 
7001040 active energy service contracts 
with a market value of €67bn to €85bn 
this is expected to grow to around 
€25bn by 2020 energy management is 
now accepted as central to an effective 
fm service – in fact our energy services 
capability is part of every contract we 
operate and is absolutely fundamental 
to our larger bids 
already the second largest energy 
services company in the uk we are well
positioned for rapid growth our strengths 
are based around six core capabilities 
decentralised energy renewable 
energy energy consumption reduction 
carbon compliance data management 
and the introduction of innovative ideas 
and initiatives that raise awareness
international and new markets
we go where our clients need us 
to go and as they increasingly take  
a paneuropean approach to 
procurement we have expanded 
our services beyond the uk 
our work with rollsroyce now spans 
the continent and demonstrates our 
ability to provide integrated fm and 
energy services across borders
the opportunity is clear 43 of our top 
100 clients have international operations – 
and we are positioned to help them 
access the same efficiencies they enjoy 
in the uk
our european capability was initially 
provided via a partnership with service 
management international smi during 
201 1 we acquired the remaining 50 of 
smi’s equity capital the smi platform  
selfdelivers and supplychain manages 
fm portfolio services to multinational 
bluechip clients across 23 countries 
smi’s established supply chain of affiliates 
have an annual collective turnover of 
us85bn and employ 280000 people 
worldwide in august smi was appointed 
as a preferred bidder for a contract with 
givaudan to provide integrated fm in 
several european countries 
we currently have direct delivery 
capability in france germany poland 
and norway – and are targeting further 
growth in europe as we see further 
opportunities emerge in this market
in the uk we are constantly looking at 
ways to expand our range of services 
not only by using our entrepreneurial 
model to enter new markets but also 
through valuecreating acquisitions 
where appropriate 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
7  finance  professional services 16
8  retail 10
9  manufacturing  10
10  transport  logistics 7
11  property management 6
12  technology  communications 6
13  utilities 6
14  leisure 3
15  construction 1
major markets
revenues
1  central government 7
2  local government 4
3  other government 1
4  social housing 11
5  health 4
6  education 8
public sector
35  £07bn
private sector
65  £13bn
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
7  finance  professional services 10
8  property management 6
9  transport  logistics 6
10  retail 5
11  manufacturing  4
12  construction 3
13  technology  communications 2
14  utilities 2
15  leisure 2
sales pipeline
£112bn
1  central government 21
2  local government 18
3  other government 1
4  social housing 12
5  health 5
6  education 3
public sector
60  £67bn
private sector
40  £45bn mitie group plc  
annual report and accounts 2012
30
operating review
good opportunities 
in existing markets 
and beyond
as the outsourcing market evolves our business has had to 
remain ﬂexible and grow with the market 
we offer the largest range and broadest coverage of facilities 
and energy management services in the uk those services 
are delivered through our four operating divisions we remain 
focused on being specialists in every service that we provide 
so that our clients receive the highest quality whether it is 
one or 100 things we do for them 
the demand for integrated facilities management is a key driver 
for our business and these contracts bring together specialist 
services from all of our divisions 
divisional performance summary
facilities management 
2012 201 1 growth
revenue £937 3m £8822m 62
operating proﬁt before other items £619m £562m 101
operating proﬁt margin 66 64 02pp
order book £49bn £41bn 195
technical facilities management  
2012 201 1 growth
revenue £4728m £437 1m 82
operating proﬁt before other items £269m £246m 93
operating proﬁt margin 57 56 01pp
order book £21bn £14bn 500
property management 
2012 201 1 growth
revenue £5243m £5097m 29
operating proﬁt before other items £202m £214m 56
operating proﬁt margin 39 42 03pp
order book £14bn £12bn 167
asset management 
2012 201 1 growth
revenue £681m £624m 91
operating proﬁt before other items £27m £20m 350
operating proﬁt margin 40 32 08pp
order book £02bn £01bn 1000
we have continued to win new 
business and have improved our 
client retention rate to a very strong 94 
we have performed particularly well 
in the ﬁnancial services transport 
and retail sectors where we see 
signiﬁcant opportunities 
our investments in customer service 
remain a key differentiator in our 
cleaning and environmental services 
business we have a lean six sigma 
team which is helping to make our 
processes more efficient our total 
security management business has 
added new service lines such as 
employee screening electronic 
locking and unlocking and lone worker 
monitoring and protection having 
successfully positioned the business as 
a riskbased security provider we are 
increasingly working with our clients to 
consult on their enterprise wide security 
risk – incorporating technology remote 
monitoring and manned guarding into  
a holistic solution 
we are differentiated by our ability to  
selfdeliver the majority of fm services 
and always look at adding new services 
to our portfolio and develop our existing 
businesses our size scale high street 
and national presence and broad 
range of services enables us to deliver 
substantial cost savings and sustainable 
innovative solutions to organisations of 
all sizes
facilities management
our fm division is responsible for 
delivering the following specialist 
single services either individually or 
in multiservice bundled contracts
security cleaning catering document 
management and reprographics reception 
and front of house waste management 
environmental services landscaping 
pest control disabled access consulting 
and auditing
clients include mitie group plc  
annual report and accounts 2012
31
governance accounts business review overview
energy reduction is one of the 
key drivers of mitie’s growth 
our carboncare offering forms a 
fundamental part of mitie’s overall 
energy services capabilities and has 
helped successfully establish mitie 
as a leading energy services business 
a signiﬁcant number of carboncare 
services are provided by tfm and this 
has been further strengthened by 
the acquisition of utilyx the ongoing 
demand in this area is driving continued 
strong performance within tfm
the market move towards integrated 
fm is also a major driver for tfm as the 
technical maintenance of critical 
infrastructure for our clients is key to their 
operations consequently our technical 
expertise underpins the overall 
integrated fm offering and the delivery 
of these contracts is undertaken 
predominantly through our tfm division 
we have made further investments in 
our national mobile services offering 
which delivers a fast and responsive 
mobile technical fm service across 
the uk and is developing well we have 
also been working with leading lighting 
manufacturers to create a new service 
model that embraces the initial design 
of led installations led retroﬁt projects 
capability and ongoing support for 
led installations the growth of cloud 
computing and increase in data
intensive sites is also providing signiﬁcant 
opportunities to monitor and maintain 
this plant and equipment
several of the services provided by 
the property management division 
are exposed to highly cyclical markets 
and face ongoing challenges as 
a result of the difficult economic 
environment in the uk 
our built environment business 
provides mechanical and electrical 
engineering contracting services 
along with interior ﬁtout combining 
a consult and build solution that gives 
clients assurance of costs and 
operational certainty 
our social housing business is 
developing well with an integrated 
property maintenance solution which 
provides consistency stability and 
value for money 
the focus for our niche businesses 
and projects will remain on providing 
core trades for both ﬁxedterm and 
oneoff projects as well as working with 
other parts of mitie on multidiscipline 
project work
we are now an established investor in 
and developer of decentralised energy 
assets and strategies in a market which 
still offers signiﬁcant potential for future 
growth our clients are reaping the 
economic social and environmental 
beneﬁts of decentralised energy 
the ability to achieve sustainability 
targets whilst retaining funding for core 
services and without upfront capital 
investment is a compelling argument 
in the current economic climate
we are currently working on major 
decentralised energy projects 
operating an endtoend service 
from the design and development of 
energy assets and strategies through 
to the longer term operation of them 
we continue to see opportunities 
in the data centre market and have 
completed several major data centre 
projects during the year
we are recognised as one of the few 
providers in the uk that has the track 
record scale and expertise to deliver 
substantial decentralised energy 
strategies that will guarantee availability 
over a sustained contract term 
asset management
our am division deploys efficient 
technologies to develop secure 
and sustainable decentralised 
energy infrastructure
energy centre development lowcarbon 
data centre development renewable 
energy generation energy services company 
management community infrastructure 
energy performance contracting
property management
our pm division provides a full 
suite of project management 
and property services
property maintenance building refurbishment 
interior ﬁtout insurance claims validation 
and repairs rooﬁng plumbing and heating 
mechanical and electrical engineering 
contracting plastering and drylining 
painting and repairs fire protection 
residential and new house ﬁtout
technical facilities management
our tfm division focuses on 
delivering integrated facilities 
management and a range of 
technical and energy services
energy management mechanical and 
electrical engineering maintenance 
national mobile services specialist technical 
services carboncare energy services 
lighting design projects and maintenance 
building management systems and controls
clients include clients include clients include mitie group plc  
annual report and accounts 2012
32
125 old broad street
125 old broad street is a 26 ﬂoor tower in the 
heart of the square mile in the city of london 
the team prides itself on its exceptional service 
whilst managing a busy complex delivering 
security personnel access and egress control 
and front of house concierge 
15
 25
16
 25
17
 25 mitie group plc  
annual report and accounts 2012
33
governance accounts business review overview
18
 
25
operations in norway mitie group plc  
annual report and accounts 2012
34
19
 25 mitie group plc  
annual report and accounts 2012
35
governance accounts business review overview
supporting 
the ministry 
of justice across 
its estate
overview of services provided
the contracts are for fully integrated 
facilities management and 
commenced in february they 
encompass security cleaning 
maintenance and project works
a focus on justice
mitie has made signiﬁcant investments 
in the justice sector focusing solely 
on opportunities with the moj the uk 
border agency and the police market 
the contract to provide total facilities 
management for the courts in the south 
of england is mitie’s most strategically 
important with the government and 
is also its largest in the public sector 
we have a long trackrecord of 
supporting the moj and its estate 
and look forward to building on this 
relationship further in the coming years
ministry of justice
mitie was awarded two contracts with the 
ministry of justice moj in october 201 1 
following its appointment to the moj’s total 
facilities management framework in 
september 201 1 the total facilities management 
contracts are for her majesty’s courts and 
tribunal service hmcts in the south of 
england and for two prisons brixton and isis 
this is the most that could have been awarded 
to mitie through this tender process
20
 25
£210m
minimum contracted revenue over ﬁve years
5
year contract with a possible two year extension mitie group plc  
annual report and accounts 2012
36
nmk norway
the nordic maritime competence centre 
nmk in alesund norway is a worldleading 
marine training centre which occupies ﬁve 
ﬂoors over 23000m
2
 and accommodates up 
to 900 people delegates from all over the world 
visit the site every day to attend training courses 
mitie delivers integrated fm at the facility 
as well as a commercial catering solution that 
includes a restaurant coffee bar hospitality 
and event catering 
21
25
22
 25 mitie group plc  
annual report and accounts 2012
37
governance accounts business review overview
23
 25 mitie group plc  
annual report and accounts 2012
38
a growing 
partnership 
in cumbria
overview of services provided
the expanded contract covers over 
500 buildings across a range of sites in 
the uk with major activity in sellaﬁeld 
cumbria and cheshire over 500 
people are employed as part of the 
contract and the services provided will 
include facilities management building 
maintenance security cleaning waste 
management catering and other fm 
and energy services
a long lasting partnership
this award builds on mitie’s 1 1year 
relationship with both sellaﬁeld limited 
and the nda and is a testament to 
the quality of service and strong 
health and safety record that has 
been delivered by the mitie team 
the contract was tendered through 
the government procurement service 
formerly the office of government and 
commerce buying solutions facilities 
management framework agreement 
24
 25
£200
280m
total contract value
5
year partnership with a possible 
two year extension
cumbrian collaboration 
during the year we were successful in retaining 
and expanding a contract to provide integrated 
facilities management and energy services to 
the cumbrian collaboration the cumbrian 
collaboration includes sellaﬁeld limited the 
nuclear decommissioning authority nda 
direct rail services low level waste repository 
limited and international nuclear services mitie group plc  
annual report and accounts 2012
39
governance accounts business review overview
sustainability overview
committed to addressing 
the key issues
everyone expects more of companies now – higher standards of 
business ethics more attention to social issues like fairness in the 
workforce and real evidence of a commitment to tackling climate 
change this is a challenge there’s no doubt about that but it’s one 
that mitie is more than ready to meet 
fm skills centre
the skills centres provide students with the 
opportunity to combine classbased learning 
with practical work experience whilst working 
towards a vocational qualiﬁcation in facilities 
services at the leeds cooperative academy 
a multiservice mitie support team has been in 
place since september 201 1 to support and 
mentor students to reach their potential and 
enhance their employability
25
 25
sustainability objective
doing more for our  
clients with less  
wherever they are 
 in the world
underpinning our  
group strategic driver 
new markets
sustainability objective
looking after our  
clients properly
underpinning our  
group strategic driver 
clients
sustainability objective
enabling our people  
to work safe  
and go home safe
underpinning our  
group strategic driver 
risk
sustainability objective
operating our  
contracts smarter
underpinning our  
group strategic driver 
operational efﬁciency
sustainability objective
nurturing our  
people’s talents
underpinning our  
group strategic driver 
people
sustainability objective
using fewer  
natural resources
underpinning our  
group strategic driver 
responsibility
our 
integrated 
sustainability 
approach
o o o ou ur r 
i integrated d 
s sustainability y 
approach
we’ve always believed that a 
more sustainable business is a better 
business and we have plenty to 
show for that in terms of what we’ve 
achieved we’ve helped bring about 
big improvements in the sustainability 
standards of our supply chain 
reached some of our environmental 
impact targets one year early 
initiated genuinely valuable and 
multi awardwinning community 
projects and we’ve developed 
the single biggest competitive 
advantage we have – our own  
people – by creating some of the 
best training programmes you’ll ﬁnd 
anywhere in our industry
last year we realigned our 
sustainability strategy behind six 
key areas directly aligned with our 
corporate strategy drivers because 
everything we do to make mitie a 
more successful business should also 
help make it a more sustainable one – 
and vice versa mitie group plc  
annual report and accounts 2012
40
looking after our 
clients properly
make sure we have the right 
processes and systems in place to 
nurture relationships with clients 
and add the most value possible
operating our 
contracts smarter
make sure all our people and as 
many of the suppliers we work with as 
possible understand the commercial 
impact of operating as efficiently as 
possible so that we can maximise 
value for all stakeholders
using fewer 
natural resources
make sure our people understand 
mitie’s environmental impact in 
terms of natural resource use and 
how important the reduction of 
this is – both from our own internal 
perspective and from that of external 
stakeholders as well as the role they 
can play in improving it
what we’ve focused on 
satisfaction surveys 
regular key client surveys to measure our 
performance and our net promoter score 
recording responses into our crm system 
for maximum knowledge sharing
industry trend surveys 
strategic client surveys to monitor key 
industry trends
enriching partnerships 
extend both our own and our clients’ 
community footprints via the real apprentice 
and our fm and construction skills centres
what we achieved 
93
our net promoter score is 9 3 – and 
we’ve updated our crm system with the 
survey results
100
100 of the clients surveyed told us cost 
certainty and service quality were top of 
their agenda
4
we ran four real apprentice programmes 
and opened the cooperative academy 
of leeds fm skills centre
what we’ve noticed 
we’re building longer term relationships 
with most of our clients – by helping them 
extend their reach in the community 
and making sure we listen to them when 
it comes to their priorities 
but our net promoter score shows there’s still 
work to be done 
what we’ve focused on
employee participation 
raise awareness on fuel consumption across 
the organisation to help achieve 10 fuel 
reduction by 2013 increase management 
awareness of and participation in sustainable 
practices via elearning programmes and 
interactive workshops
supply chain management 
audit 40 major suppliers a year requiring 
100 to meet or exceed our sustainability 
audit targets within 12 months
what we achieved 
13
we’ve achieved 13 fuel reduction through 
proactive ﬂeet management and targeted 
communication campaigns which means 
we’ve achieved our 2013 target one year early
8
8 of our employee population has 
participated in courses and elearning 
on sustainability topics
55
we audited 55 suppliers across the group and 
working with trucost analysed 90 of our 
spend to identify hot spots in carbon emissions
what we’ve noticed 
general awareness of our sustainability 
capabilities is relatively high throughout 
the organisation but participation could 
be improved while all our efforts so far have 
produced great results we know that the 
next part will be the toughest and we will 
look to concentrate on changing people’s 
behaviours and mind sets to improve  
longterm performance 
what we’ve focused on
transport optimisation 
reduce average fuel consumption by 10 
by 2013
utility management 
reduce our office energy consumption by 
15 by 2013
waste management 
reach 80 recycling rate across our office 
estate by 2013 
what we achieved 
130g co2km
our average car ﬂeet emission is 130g co2km 
down from 140g co2km
72
we’ve increased our tracking ability to 72 
of our ﬂeet
16
we’ve achieved 16 reduction in office energy 
consumption which means we’ve reached 
our 2013 target one year early
what we’ve noticed 
we’re really proud to have hit two out of 
three targets a full year ahead of our deadline 
but we still need to carry on challenging 
our ways of doing things – especially 
engaging our people to raise awareness 
of how everyone can make a difference
1 2 3
resource units
2010 restated 
baseline 201 1 2012
 change 
against baseline
scope 1 gas and ﬂeet transport fuel tonnes of co2e 42779 44093 43310 12
scope 2 electricity tonnes of co2e38703587 3765 3
scope 1 and 2 intensity tonnes of co2eemployee 087 081 075 14
intensity tonnes£m 27 12 2521 2350 13
scope 3 energy and business car travel tonnes of co2e 13399 12807 12991 3
upstream
water tonnes of co2e99 11 22
created waste tonnes 1436 994 1336 7
intensity kgemployee 27 17 21 22
general waste tonnes 989 606 859 13
recycled waste tonnes 447 388 477 7
 recycled 31 39 36 16
sustainability overview mitie group plc  
annual report and accounts 2012
41
governance accounts business review overview
doing more for our 
clients with less wherever 
they are in the world
make sure all our businesses 
understand our high sustainability 
standards – including the use of 
innovative low carbon technologies – 
so our clients can beneﬁt from them
nurturing our 
people’s talents
make sure we have the right talent 
pipeline to fulﬁl all the business’ 
future needs
you can read more about what we’re 
doing in all of these areas and see our 
latest performance data at
mitiecomsustainability2012
enabling our people 
to work safe and go 
home safe
make sure the wellbeing of our 
people and by extension our clients 
is safeguarded while at work so they 
can all go home safe at the end of 
the day
what we’ve focused on
client awareness 
measure in what percentage of our markets 
around the world we are recognised as 
a ‘green’ brand
employee awareness 
increase employee understanding of the 
group’s sustainability capabilities via internal 
marketing and communications measuring 
extent of comprehension via employee surveys 
to set a baseline for 2012
what we achieved
63
63 of our clients saw us as a ‘green’ brand 
56
56 of our employees have a good 
understanding of mitie’s sustainability strategy
93
we achieved gold status in the bitc cr index 
and scored 93
what we’ve noticed
externally we need to enhance our 
communications around our service 
offering to help clients in their sustainability 
agenda internally we need to encourage 
more participation in sustainable practices 
and clearly communicate what we can 
offer clients
what we’ve focused on
performance management 
setting clear behavioural expectations 
via an updated performance 
management framework
leadership programme 
understand what the vital steps are for 
leadership and management development 
deﬁning what support is required at each level
engagement 
create a yearround people engagement 
plan that will establish a core set of 
measures panmitie against which future 
progress will be tracked
what we achieved
1
one new performance review process – 
designed with one very simple and clear goal 
a great review is all about the discussion
100 achieved
having carried out extensive research to 
ﬁnd out what people at mitie thought of our 
leadership style today and how it could be 
improved we’ve achieved our target when 
it comes to leadership
38
our overall engagement score is 385
what we’ve noticed
this year was about setting baselines and 
putting new processes in place we now need 
to measure progress and extend the reach 
of our leadership programme and succession 
planning to incorporate early career talent 
we will also be acting on the results of our 
engagement survey and reporting on 
improvements regularly throughout the year
what we’ve focused on
performance management 
provide improved management information 
through a new incident management platform 
to enable more effective measurement of a 
better range of health and safetyrelated kpis
leadership  
launch the third phase of our health 
and safety risk management leadership 
programme to embed the correct leadership 
attributes within our management
engagement 
launch the third phase of our work safe 
home safe campaign to deliver improved 
employee engagement
what we achieved
1
one new platform – we now use airsweb to 
report all accidents incidents and near misses 
78
we held eight leadership workshops with 
a total of 78 participants
4
we introduced four new focus areas – 
electrical work working at height driving 
and slips and trips
what we’ve noticed
we’re pretty proud of our health and safety 
culture – over the last year we’ve improved 
incident rates employee awareness and 
engagement as well as health and safety 
leadership but we realise there is no place 
for complacency and so we want to continue 
our year on year improvement going forward 
we’re keen to keep up the good work and 
make our new systems work harder for us
4 5 6
ghg emissions data for 1 april 201 1 to 31 march 2012 in line with 
ﬁnancial accounting period
 2010 data has been restated in line with improved management 
information and to include a full year of extrapolated dalkia fm 
and eps acquisition data to enable year on year comparison
you can read more about what w
doing in all of these areas and see
latest performance data at
mitiecomsustainability201 mitie group plc  
annual report and accounts 2012
42
financial review
strong ﬁnancial 
performance
mitie has delivered another set of excellent ﬁnancial results with 
strong revenue growth a record order book good cash conversion 
and the maintenance of a strong balance sheet we are focused 
on both organic and acquisitive growth but our organic growth 
stands out this year and is sectorleading the award of a number 
of transformational contracts has resulted in a signiﬁcant uplift 
in our order book and a record level of secured revenues for the 
new ﬁnancial year
we enter the new ﬁnancial year in a strong position with low leverage 
a strong balance sheet and longterm committed ﬁnancing facilities 
which will support future growth mitie group plc  
annual report and accounts 2012
43
governance accounts business review overview
financial performance
revenue
revenue for the group increased by 
59 in the year ended 31 march 2012 
to £20025m 201 1  £18914m largely 
driven by strong organic growth of 54 
the increase in revenue during the year 
is attributable to organic growth of 
£1022m the full year impact of the prior 
year acquisition of dalkia fm in ireland 
of £62m and £27m from the inyear 
acquisitions of utilyx holdings limited 
‘utilyx’ and direct enquiries holdings 
limited ‘direct enquiries’
proforma prior year revenue including 
the full year effect of acquisitions made 
in the year ended 31 march 201 1 was 
£1897 6m 
revenue by division 
 
2012 
£m
total  
growth  

organic 
growth  

facilities management 937 3 62 55
technical facilities 
management
4728 82 7 6
property management 5243 29 29
asset management 681 9 1 9 1
total revenue 20025 59 54
operating proﬁt before other items
operating proﬁt before other items 
for the group increased by 7 2 to 
£1 1 17m 201 1  £1042m reﬂecting an 
improvement in the operating proﬁt 
margin to 56 201 1  55 operating 
proﬁt before other items in the prior 
year included nonrecurring income 
of £41m arising from an amendment 
to the past service cost of certain 
deﬁned beneﬁt pension schemes 
following the change from rpi to cpi 
for the valuation of certain pension 
scheme liabilities our operating 
proﬁt and related growth statistics 
exclude the £41m from the prior year 
result in order to illustrate the operational 
performance of the group
the increase in operating proﬁt before 
other items is attributable to organic 
growth of £7 0m the £04m full year 
impact of the acquisition of dalkia fm in 
ireland and £01m from the acquisition 
of utilyx and direct enquiries during 
the current ﬁnancial year the organic 
growth in operating proﬁt before 
other items was 67 
operating proﬁt before other items 
by division
2012 
£m
margin 

growth  

facilities management 619 66 101
technical facilities 
management
269 57 93
property management 202 39 56
asset management 27 40 350
operating proﬁt before 
other items
111 7 56 7 2
 
other items
other items for the year were £100m 
201 1  £188m and comprised the 
amortisation of acquisition related 
intangible assets of £9 1m 201 1  £89m 
and other acquisition related and 
restructuring items of £09m 201 1  £9 9m 
incurred during the year
after the impact of other items the 
operating proﬁt for the year was 
£1017m 201 1  £854m
2008 2009 2010 2011 2012
722
805
930
1042
1117
operating proﬁt before
other items £m
72
2008 2009 2010 2011 2012
14072
15219
17201
18914
20025
revenue
£m
59
2008 2009 2010 2011 2012
679
759
797
868
945
proﬁt before tax 
£m
89
 operating proﬁt before other items in the year ended 31 march 
201 1 included nonrecurring income of £41m arising from an 
amendment to the past service cost of certain deﬁned beneﬁt 
pension schemes following the change from rpi to cpi for the 
valuation of certain pension scheme liabilities operating proﬁt 
before other items margin and related growth statistics stated 
exclude the £41m from the prior year result in order to reﬂect 
the underlying operational performance of the group mitie group plc  
annual report and accounts 2012
44
financial review
finance costs
net ﬁnance costs for the year were 
£7 2m 201 1  £27m during the year 
mitie completed the negotiation of its 
reﬁnancing activities and secured new 
committed banking facilities of £250m 
which are available for drawdown 
until september 2015 this completed 
an exercise which had seen the 
introduction of £1002m equivalent 
of longer term tenure us private 
placement loan notes into the group’s 
funding structures in december 2010 
the general tightening of credit markets 
compared to the favourable conditions 
which existed when our previous facility 
was negotiated in january 2007  
resulted in a signiﬁcant increase 
in the total ﬁnance costs incurred 
during the year this increase is a result 
of both higher interest rates and 
an increase in the fees payable 
on the arrangement and utilisation 
of the group’s banking facility
proﬁt before tax 
proﬁt before tax for the year was £945m 
201 1  £868m an increase of 89 on 
the prior year 
taxation
the tax charge for the year was £224m 
201 1  £214m an improvement in the 
effective rate of tax to 237 201 1  
247 the improvement in the effective 
tax rate is largely attributable to the 
reduction in mainstream uk corporation 
tax rates 
proﬁt after tax
proﬁt after tax for the year was £721m 
201 1  £654m an increase of 102 on 
the prior year 
earnings per share
basic eps before other items was 
unchanged compared to the prior year 
at 226p per share 201 1  226p per share 
whilst basic eps was 205p per share 
201 1  186p per share an increase 
of 102 this latter measure showed 
higher growth due to the absence 
of material restructuring or acquisition 
related items during the year 
the measures of diluted eps are based 
on a calculation which includes 
unexercised share options the 
substantial increase in mitie’s share 
price during the year has led to a rise in 
the number of share options included 
in this calculation 2012 9 0m shares 
201 1  64m shares this measure of eps is 
sensitive to the number of share options 
included within it and has caused 
a marginal decline in reported eps 
on that basis 
dividend
it is now the board’s policy to grow the 
dividend broadly in line with the 
underlying earnings of the group the 
ﬁnal dividend proposed by the board 
has increased by 61 to 52p per share 
201 1  49p per share this brings the full 
year dividend to 9 6p per share 201 1  
9 0p per share an increase of 67 
the full year dividend reﬂects a cover of 
24 times adjusted earnings per share 
cash ﬂow funding and liquidity
mitie places signiﬁcant emphasis on the 
management of its cash ﬂow and the 
maintenance of strong ﬁnancing 
facilities the gearing of the group has 
remained low and net debt at 31 march 
2012 was £1069m 201 1  £7 65m 
representing a net debt to ebitda ratio 
of 081 201 1  065 mitie has a diverse 
range of secure funding facilities with 
committed banking facilities of £250m 
which are available until september 
2015 and a mix of us private placement 
loan notes the notes have a total value 
of £1002m with £602m us dollar 
denominated notes maturing in 
december 201 7 and £40m sterling 
denominated notes maturing in 
december 2019  the group also has 
further overdraft facilities of £40m 
cash inﬂows from operations increased 
by 7 5 to £1 102m during the year and 
we have delivered strong conversion of 
proﬁt ebitda to cash at a rate of 837 
201 1  867 whilst continuing to invest 
in the organic growth of the group 
cash conversion measures the success 
of the group in converting operating 
proﬁt measured by ebitda to cash and 
underpins the quality of mitie’s earnings 
and reﬂects the effectiveness of our 
cash management activities 
2008 2009 2010 2011 2012
143
167
169
186
205
basic earnings per share 
p
102
2008 2009 2010 2011 2012
149
172
195
226
226
basic earnings per share 
before other items p
00
2008 2009 2010 2011 2012
60
69
78
90
96
dividend per share 
p
67 mitie group plc  
annual report and accounts 2012
45
governance accounts business review overview
key performance indicators kpis
mitie uses a set of ﬁnancial and  
nonﬁnancial kpis to measure and 
communicate critical aspects of our 
performance these kpis are aligned 
with our 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 
we have performed strongly against 
these measures again this year and have 
demonstrated a longterm track record 
of strength in each details of our ﬁnancial 
kpis are set out on page 19 of this report 
pensions
our ﬁnancial strength remains 
unaffected by any signiﬁcant deﬁcit 
in respect of the deﬁned beneﬁt 
pension schemes to which the group 
contributes the net funding position 
of all the deﬁned beneﬁt pension 
arrangements included on the balance 
sheet is a deﬁcit of £1 7 3m 201 1  £30m 
the deﬁcit on the principal group 
deﬁned beneﬁt scheme at 31 march 
2012 was £1 7 2m 201 1  £30m the 
increase in the deﬁcit was principally 
driven by the reduction in the discount 
factor applied in the valuation of 
scheme liabilities this factor which is set 
by reference to prevailing bond market 
rates at the year end moved from 56 
to 49 over the year reﬂecting the 
deterioration of bond rates over the 
year the deﬁcit calculation is 
particularly sensitive to changes in the 
discount factor as illustrated in note 37 
to the accounts during the year the 
group completed the triennial review 
and actuarial valuation as at 31 march 
201 1 of its principal deﬁned beneﬁt 
pension scheme no lump sum 
contributions to the scheme are 
required as the result of this valuation 
exercise further details of this 
valuation can be found in note 37 
to the accounts
mitie contributes to a number of 
deﬁned contribution pension schemes 
the group also makes contributions 
to 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 mitie’s net 
deﬁned beneﬁt pension obligations in 
respect of schemes in which it is 
committed to funding amounted to 
£01m 201 1  £00m
acquisitions
on 10 january 2012 mitie acquired the 
leading energy and carbon specialist 
utilyx utilyx provides a number of 
services relating to its clients’ energy 
demands including strategic planning 
procurement and risk management all 
of which are designed to manage the 
business impact of energy consumption 
and rising energy costs the acquisition 
of utilyx complements and enhances 
mitie’s carboncare energy services 
capabilities utilyx has an annualised 
turnover of £9 6m the total 
consideration for the acquisition will 
be up to £164m initial consideration of 
£152m was paid in cash on completion 
and the balance capped at a 
maximum additional payment of 
£12m will be paid in cash dependent 
on future business performance 
on 6 december 201 1 mitie acquired a 
majority stake in the uk’s leading access 
and disability consultancy company 
direct enquiries
direct enquiries has an annualised 
turnover of £1 4m the initial consideration 
was £02m paid in cash on completion 
with further options to buy the remaining 
equity for cash up to a maximum 
of £83m depending on ﬁnancial 
performance over a ﬁve year period
mitie also increased its stake from 
50 to 100 in service management 
international for £15m smi uses a 
network of fm service providers in 
34 different territories to tender global 
contracts in which mitie delivers the 
uk services further details of these 
acquisitions can be found within 
note 33 to the accounts 
mitie’s entrepreneurial 
investment model 
in august 201 1 mitie purchased certain 
minority shareholdings of ﬁve mitie 
subsidiary companies under their 
respective articles of association 
and shareholder agreements in 
accordance with arrangements 
under our entrepreneurial investment 
programme known as the mitie model 
the total consideration for all ﬁve 
purchases amounted to £146m being 
satisﬁed by £20m in cash and as to the 
remaining £126m by the issue of 53m 
new ordinary shares of 25p each in 
mitie group plc valued at 2387p per 
share being the closing market price 
per share on 27 july 201 1 
suzanne baxter
group finance director mitie group plc  
annual report and accounts 2012
46
factors that could affect our business
a summary of the 
principal risks potentially 
affecting our business
following the establishment of our new enterprise risk function in 
2011 a fundamental review of the way risks are identiﬁed analysed 
and controlled was undertaken during the year as a result of this 
comprehensive review a more streamlined approach to establishing 
our principal risks has been carried out resulting in the number 
of identiﬁed risks moving from 19 in the last annual report to 
12 currently this improvement in our risk management approach 
further enhances our ability to develop and grow our business 
with the assurance that key risks are effectively managed through 
robust and embedded processes with management prioritising 
their resource to address signiﬁcant areas of risk the principal 
risks and uncertainties we face are set out below
strategic risks
category areas of risk mitigation
loss of competitive 
position
utilising new technologies to drive efficiency 
improvements infrastructure to support growth unclear 
or inappropriate marketing strategy insufficient funding
focus on clear strategic priorities business case 
for investment in new infrastructuretechnologies 
recruitment and retention of talented people 
strong relationships with main funders funding 
sources diversiﬁed
inadequate contract 
performance
bidding and winning large scale contracts incorrectly 
priced tenders onerous contract terms and conditions 
services and technologies do not ﬁt the needs of the 
market loss of a material contract
relationship management with key targets focus on 
strategic bids experienced teams who can adapt to 
changing markets use of internal and external legal 
specialists delegated board authorities
inability to support 
development 
in new markets
knowledge and familiarity of local legislature regulations 
and common practices particularly in new territories 
political risk management control over operations
local management assigned to provide local expertise 
delegated board authority for entry into overseas 
markets external specialist advice insurance programme 
in place locally
reputational damage 
caused by employees 
not working to 
company values
inappropriate dealing with stakeholders 
employees clients and supply chain inappropriate 
ﬁnancial dealings anticompetitive behaviour bribery 
and corruption exposure
management systems to prevent fraudeconomic 
crime whistleblowing and conﬁdential reporting system 
technology solutions to review and analyse transactions 
training in developing a responsible culture 
market conditions
economic climate 
negatively impacting 
on performance
customers reduce volumevalue of services 
increased price competition changes in public 
spending inﬂation and interest rate uncertainty 
customers going into administration and bad debts 
customers face difficulty raising funds volatile equity 
and bond market 
spread of client base extensive use of credit exposure 
consolidation tool credit insurance hedging against 
adverse interest rate ﬂuctuations
regulatory risks
category areas of risk mitigation
noncompliance 
with legislation
lack of awareness or action outside of relevant laws 
and regulations and subsequent changes thereto
departmental responsibility for relevant regulatory 
requirements expert external advisors speciﬁc 
compliance systems in place ongoing training and 
guidance conformance monitoring internal and 
external audits mitie group plc  
annual report and accounts 2012
47
governance accounts business review overview
financial risks
category areas of risk mitigation
inadequate liquidity 
to meet requirements
obligations
facility maturity risk difficulty in reﬁnancing change of 
credit terms with client and suppliers credit control and 
cash ﬂow management terms of borrowing instruments 
increased pension scheme liabilities
committed bank facility in place spread across 
six banks and ongoing relationships with funders 
us private placement funds of £100m and long term 
maturity £40m of overdraft facilities in place
regular reporting on key indicators statements of 
compliance with borrowing powers daily and weekly 
monitoring of bank balances and net debt financial 
procedures manual
crystallisation of losses 
on uninsured risks
risk of breach of insurance conditionscovenants failure 
to log andor provide sufficient and complete information 
for each business activityrisk exposure exposure to self
insurance failure to adequately control activities 
group and division business management system 
coordination of qhse business risk and insurance 
information annual review of insurance cover use of 
expert insurance and other advisers for risk assessment
failure of material 
counterparty 
or joint venture
financial instability and failure risk of clients 
suppliers advisers insurers and funding providers 
increased in current climate funding becomes more 
expensive or is withdrawn breach of banking covenants 
pension scheme counterparties may be underfunded 
due to poor investment performance
legal review of contracts and formal regular 
counterparty status assessment delegated authority 
for approval and review of counterparty relationships 
diversiﬁcation of counterparty base to limit 
dependencies governance of pension schemes 
operational risks
category areas of risk mitigation
major health safety or 
environmental incident
incident caused by mitie or its subcontractors working 
at height working with electricity gas asbestos or other 
hazardous materials driving and vehicle safety fire water 
and waste management food safety manual handling 
and slips trips and falls
ongoing training for all employees supported by qhse 
professionals provision of appropriate equipment and ppe 
speciﬁc procedures in place for high risk areas internal and 
external audits
trading position 
compromised due 
to system control 
or process failure
failure of critical systems controls processes or 
networks network cyber attack insufficient data storage 
nonconformance with legislation industrial action 
deﬁned business management systems policies control 
framework and delegated authorities malicious software 
protection multiple network routes to data centres 
experienced inhouse it resources systems support and back
ups diversity and geographic spread of operations flexible 
workforce and network access disaster recoverybusiness 
continuity plans application of due process internal audit 
including the use of computer assisted techniques 
inability to attract and 
retain talented people
attraction motivation retention and development 
of talented people performance management 
management training
competitive remuneration talent management and 
personal development plans succession planning 
mentoring and graduate programme leadership 
development training mitie group plc  
annual report and accounts 2012
48


 
roger matthews 
nonexecutive chairman  
chairman of the nomination committee 
member of the remuneration committees 
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 a nonexecutive chairman 
on the board of lsl property services plc and was recently 
appointed chairman for pertemps network group limited 
trustee of cancer research uk 
ian stewart 
nonexecutive deputy chairman  
ian was appointed as chief executive of mitie group plc 
in 2001 and was appointed as nonexecutive deputy 
chairman in march 2007 ian was a founding member of 
mitie ian has announced his retirement from the board with 
effect from 21 may 2012 
ruby mcgregorsmith cbe 
chief executive 
ruby was appointed group finance director of mitie group 
plc in december 2002 was appointed chief operating 
officer in september 2005 and was appointed the group’s 
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 ruby has been a nonexecutive 
director on the board of michael page international plc 
since may 2007 is their senior independent nonexecutive 
director chairs their audit committee and is a member of 
their nomination and remuneration committees ruby is also 
a trustee for business in the community bitc a businessled 
charity focused on promoting responsible business practice 
and until recently chaired race for opportunity a part of the 
bitc organisation with a focus on diversity in the workplace 
last year ruby was awarded honorary doctorates by both 
kingston university and the university of the west of england 
followed in early 2012 with the honour of a commander of 
the order of the british empire for her services to business and 
diversity in business in march of this year ruby was 
announced by the home secretary as chair of the women’s 
business council a focused oneyear working group aiming 
to ensure action by government business and others to 
maximise women’s contribution to economic growth 
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 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 during the year was a member of the 
finance and risk committee of bitc she has recently 
become a mentor on the icaew’s women in 
leadership programme 
bill robson 
executive director 
bill joined mitie group plc in january 1992 following the 
acquisition of trident maintenance services limited he was 
appointed as an executive director in august 2001 and now 
holds the position of managing director of the group’s 
property management division 
larry hirst cbe  
nonexecutive director 
member of the audit nomination and remuneration committees 
larry joined mitie as a nonexecutive director on 1 february 
2010 he held the position of chairman of ibm europe middle 
east and africa until july 2010 and held a number of senior 
positions during his 32 year career with ibm including general 
manager ibm northern region and chief executive ibm uk 
and ireland larry was previously appointed as chairman of 
eskills sector skills council larry is a nonexecutive director 
of arm holdings plc and is also nonexecutive chairman 
of uk trade and industry technology board he is a trustee 
of the charity sentebale an ambassador to everywoman 
international advisor to british airways and a global 
ambassador to monitise plc  
david jenkins  
senior independent 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 was a governor of 
downe house school until completion of his term of 
appointment in november 2011 
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 crossrail and president of the chartered 
management institute terry also holds positions as  
nonexecutive chairman of the manufacturing technology 
centre and the national skills academy for railway 
engineering he is also a nonexecutive director of 
boxwood ltd and a trustee of the london transport museum 
terry was previously chief executive of tube lines limited and 
has held positions with bae systems rover group plc and 
lucas girling limited 
graeme potts 
nonexecutive director 
member of the audit nomination and remuneration committees 
graeme was appointed as a nonexecutive director in 
july 2006 graeme was formerly chief executive of reg 
vardy plc a divisional chief executive officer and executive 
director of inchcape plc and chief executive of rac 
motoring services he is a nonexecutive director of ben 
the automotive industry charity and is managing director 
of eden gm limited a motor retail group  
he is also a nonexecutive director of zetar plc and a  mitie group plc  
annual report and accounts 2012
49
overview business review governance accounts


the directors submit their report together with the audited consolidated financial statements of the mitie group of 
companies for the year ended 31 march 2012 the directors’ report includes the chairman’s statement the business 
review the corporate governance statement the remuneration report the directors’ responsibility statement 
and those documents that are referred to within the directors’ report and which are available at wwwmitiecom 
the company is required to set out a fair review of the business of the group including an analysis of the development 
and performance of the group during the reporting period the position of the group at the end of the reporting period 
and the principal risks and uncertainties facing the group this review is set out in the business review on pages 8 to 47 
and the chairman’s statement on pages 6 and 7  
the directors’ report 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 that report are subject to the limitations and 
restrictions provided by such law 
principal group 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 energy 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 39 to the 
financial statements the group operates a registered branch office in the isle of man  
governance overview 
the corporate governance statement together with the directors’ remuneration report provides details of key 
aspects of mitie’s corporate governance environment and the board has confirmed that the group has complied 
with all the relevant provisions set out in the uk corporate governance code 2010 the ‘code’ throughout the year 
our achievements during 2012 are underpinned by a strong culture of governance in our corporate governance 
statement we explain how the main principles of good governance are applied and the principal changes we have 
made to our systems of assurance risk management and control during the last financial year the board recognises 
that the manner in which the group is governed is critical to its long term success for which it is accountable to 
shareholders 
during 2012 the board with the help of its committees has continued to ensure that balanced and sufficient time 
is spent reviewing and discussing strategy risk performance investor engagement and key matters of governance 
this is facilitated by focused planning to ensure that the right information is provided to support the decision making 
of the board key areas of governance that have been reviewed during the year include  
− board composition – the nomination committee has reviewed the composition of the board and its committees and 
the refreshing of the board to ensure the rights skills and experience are represented to support the growth of the 
group the board continues to operate a formal board evaluation and is mindful of the requirement under the code 
to carry out an externally facilitated board evaluation every three years all directors with the exception of ian 
stewart will be standing for reelection at this year’s annual general meeting agm  
− board diversity – mitie has welcomed the focus on board diversity and the board continues to believe the issue of 
diversity should be tackled in a manner that considers all areas of the diversity and inclusion agenda of which gender 
forms a part  
− external audit tender – the board took a decision to tender the provision of external audit services to the group and 
carried out a rigorous review process which involved presentations and responses from four potential providers of 
audit services  
− risk and business assurance – following a review of mitie’s risk management systems and internal audit processes 
we have introduced an enterprise risk management system to enhance the way in which risk is managed assessed 
and measured throughout the group 
− decision making – the board has completed its review of delegated authorities to ensure that they continue to be 
adequate appropriate and sufficient to support the business in the context of the growth of the organisation and its 
changing jurisdictional presence  
  mitie group plc  
annual report and accounts 2012
50

  

the role of the board  
the board is collectively responsible for the longterm success of the company and accordingly reviews and agrees 
the strategy for the group proposed by the executive directors on an annual basis in setting the strategy the board 
takes account of key matters such as market trends competitive environment privatepublic sector approach 
international aspects people and talent and the mitie model ensuring at all times that sufficient consideration is given 
to risk and internal controls 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 
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 management of the group’s risk profile and monitoring the group’s corporate 
governance arrangements decisions and 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 is available at 
wwwmitiecominvestorscorporategovernance 
board composition 
the membership of the board as at 31 march 2012 and biographical details of the directors including details of 
committee chairmanships and other positions held are given on page 48 to comply with relevant provision of the 
code all directors with the exception of ian stewart will submit themselves for reelection at the forthcoming agm 
and details are provided in the notice of agm which is available at wwwmitiecominvestors after serving with mitie 
for 25 years of which 22 have been on the plc board ian stewart resigned as a nonexecutive director with effect 
from 21 may 2012  
during the year nonexecutive director independence was considered by the board the board determined that 
all nonexecutive directors as at 31 march 2012 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 
the board is comprised of four independent nonexecutive directors a nonexecutive director deemed non
independent as a result of his prior role as chief executive of the group the nonexecutive chairman and three 
executive directors the board has five formally constituted committees the audit committee the nomination 
committee the remuneration committee the investment committee and the results committee for which the duties 
and responsibilities of each are set out in the terms of reference available on the investor section of mitie’s website 
at wwwmitiecominvestorscorporategovernance the work of the committees is explained on pages 51 and 52 
the division of responsibilities and leadership 
there is a clear division of responsibility between the roles of chairman and chief executive as formally set out in the 
terms of reference for each of these roles  
the chairman is a nonexecutive director and is responsible for the effective running and leadership of the board 
ensuring its effectiveness he liaises with the company secretary on the annual board plan and agrees and sets the 
board agendas key matters covered at each board meeting include strategy enterprise risk management financial 
and management reporting investor relations and corporate governance with updates received from each of the 
committee chairmen he ensures that sufficient time is allocated to promote healthy discussion and open debate 
supported by the right level and quality of information to assist the board in reaching its decisions the chairman 
encourages openness and fluid communication between executive and nonexecutive directors a culture which has 
been facilitated by meetings between the chairman and individual directors the chairman ensures that the non
executive directors contribute effectively and that the executive and nonexecutive directors are 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 she is responsible for developing and effectively implementing strategy 
following approval of the strategic and financial plan by the board the chief executive’s remit includes proposing 
investment into new business and geographical areas and ensuring at all times that the group’s risk profile is 
appropriately considered she ensures the timely and accurate disclosure of information to the board and to 
shareholders she leads the executive directors and senior management team in the daytoday running of the group’s 
business under clear delegation of authority from the board the chief executive maintains regular dialogue with the 
chairman on all important company matters and together they provide coherent leadership of the group   mitie group plc  
annual report and accounts 2012
51
overview business review governance accounts

the nonexecutive directors  
nonexecutive directors are responsible for exercising their independent skill and judgement in reviewing the proposals 
for the strategic direction of the group the nonexecutive directors constructively challenge and probe the executive 
directors offering a breadth of knowledge experience and individual skills and are responsible for contributing to the 
formulation and development of strategy the nonexecutive directors monitor high level corporate reporting and 
satisfy themselves as to the integrity of financial information and the operation of key financial controls 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 role of the senior independent director is to make 
himself 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 the senior independent director in particular reviews information on major shareholders and financial 
analysis to obtain a balanced understanding of the issues and concerns of shareholders explained further below 
is the senior independent director’s role in succession planning and performance evaluation for the chairman 
the committees of the board 
the audit committee 
the company has a formally constituted audit committee comprised of independent nonexecutive directors who 
are all considered as being appropriately experienced to fulfil their duties and the chairman 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 is generally responsible for 
− monitoring and reviewing the integrity of the group’s corporate reporting which includes any formal announcements 
relating to the group’s financial performance and 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 enterprise risk management structures and 
− making recommendations to the board on shareholder resolutions for the appointment of and remuneration 
for external auditors  
the chairman of the committee will be available at the agm to answer any questions about the work of the 
committee 
during the financial year the committee met three times and meetings are attended by the company’s external 
auditors the chairman the chief executive the group finance director and the enterprise risk director the matters 
under consideration at these meetings included 
− generally monitoring the group’s corporate reporting process and the statutory audit of the annual 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 tendering of external audit services for the group and the reappointment of the external auditors 
− the effectiveness of the external auditors including the appropriateness and skills of the audit team 
− compliance with the nonaudit services policy and maintenance of auditor independence 
− the approval of the group risk assurance framework and the internal audit plan 
− 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 meets separately with the external auditors and the enterprise risk director without the presence 
of the executive directors 
the remuneration committee 
information about the structure and processes for the remuneration committee is included on page 64 within 
the remuneration report  mitie group plc  
annual report and accounts 2012
52

  

the nomination committee 
the nomination committee is responsible for identifying and nominating for the approval of the board candidates 
to fill board vacancies and to consider the need to refresh the skills experience and diversity represented on the 
board to support the growth of the business it leads the process for appointments to the board on an appointment 
directors are made aware of what is expected from them in terms of time commitment committee service and 
involvement outside board meetings 
all directors receive a personally tailored induction to mitie which includes visits to company and key client sites and 
they receive an information pack which includes copies of mitie’s memorandum and articles of association latest 
annual report and accounts committee terms of reference and copies of recent board and committee minutes and 
supporting papers directors are given access to the virtual boardroom which as well as holding all board reports holds 
the board handbook containing essential information about the company board and committee terms of reference 
directors’ statutory duties governance and regulatory guidelines the group’s approved delegated authorities and an 
overview of the group’s insurance arrangements the handbook is reviewed and updated regularly as and when 
regulatory developments arise training and development for directors continues to be a key focus and additional 
briefing notes are circulated on matters such as changes in the regulatory and governance environment 
in respect of changes to the membership on the board or its committees the nomination committee makes 
appropriate recommendations following a careful and considered evaluation of the balance of skills knowledge 
experience and term served it seeks to ensure that the directors continue to provide the requisite skills knowledge 
and experience to support the development and needs of a growing organisation and diversity forms an important 
part in this process mitie welcomes general principles underpinning the need to consider diversity at board level and 
sees this as an opportunity to help organisations shift their behaviour around diversity the board believes that setting 
aspirational diversity targets could drive a different behaviour that is not necessarily in the best interests of the 
organisation and the issue of board diversity should be tackled in a manner that considers all areas of the diversity 
agenda diversity at board level has to be balanced against the required skills and experience and should be a natural 
fit into any recruitment or succession planning and talent management process  
during the year the nomination committee reviewed the composition and chairmanship of the board and each 
of its committees and the board has determined that all nonexecutive directors were independent in character and 
judgement the membership of the audit nomination and remuneration committees were widened to include all the 
nonexecutive directors and the board has confirmed that it is satisfied that its current composition is appropriate 
having regard in particular to the integrity skills knowledge and experience of its directors and the size and nature 
of the business 
the investment committee 
in order to further strengthen the company’s governance structures and facilitate the internal approvals process 
the board has approved the terms for the establishment of an investment committee which comprises of the chief 
executive and group finance director the investment committee reviews and approves proposals on matters such 
as acquisitions disposals capital expenditure and operational transactions presented in accordance with the group 
delegated authorities  
the results committee 
in addition the board has approved the establishment of a results committee which comprises of the chief executive 
and group finance director this committee assists the board in approving matters such as interim and final results 
announcements other routine nonmaterial announcements dividend payments and shareholder communications   mitie group plc  
annual report and accounts 2012
53
overview business review governance accounts

board meetings and meeting attendance 
all directors are expected to allocate sufficient time to the company to discharge their responsibilities effectively 
and where possible attend all board meetings and the agm any time commitment matters are addressed by the 
chairman with the director concerned  
during the year ended 31 march 2012 there were six scheduled board meetings additional unscheduled board 
meetings were held to deal with the review and approval of material contracts acquisitions and issues relating 
to shares and other administrative matters information contained in board papers is generally well presented and 
over the past 12 months has continued to improve to ensure effective decision making on areas critical to group’s 
development the board has introduced an electronic boardroom and all board papers are now distributed 
electronically which assists in the more efficient delivery of reports each year the board holds a dedicated 
strategy meeting and a budget meeting 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
1
remuneration
1
nomination
1
number of meetings held in year  6 3 5 2
  
r j matthews 6– 5 2
i r stewart  5– – –
r mcgregorsmith cbe 6– ––
s c baxter  6– – –
w robson  5– – –
d s jenkins  53 4 1
g j potts  6 2 of 2 5 1 of 1
t k morgan cbe 63 52
l hirst cbe 6 3 2 of 2 1 of 1
note 
1 the membership of the audit nomination and remuneration committees were widened during the year to include all the nonexecutive directors 
to assist with the business conducted at board and committee meetings all directors are supplied with an agenda 
and supporting papers for all board meetings in a timely manner and from time to time detailed presentations from 
nonboard members on operational matters in addition members receive monthly reports from the chief executive 
and group finance director on the operational and financial performance of the group during the course of the year 
the structure and content of these reports has been reviewed to help improve the quality of information and ensure 
they continue to provide information that reflects the dynamics of the businesses and the markets within which the 
company operates such reports can also include updates on postacquisition performance contract wins and losses 
organic growth management accounts and results   mitie group plc  
annual report and accounts 2012
54

  

director 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 64 executive directors are entitled to retain any fees earned from these 
external appointments 
directors’ interests  
with regards to the appointment and replacement of directors the company is governed by its articles of association 
and the code the companies acts and related legislation the articles may be amended by special resolution of the 
shareholders  
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 which has operated effectively during the reporting period 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 
director 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  
board evaluation  
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 
the chairman with the company secretary reviews the evaluation process and has considered the extent to which 
such a process should be externally facilitated and has reported to the nomination committee on its conclusions 
this year it was recommended that the board continue with an evaluation process that uses a combination of a formal 
appraisal questionnaire and onetoone meetings the questionnaire was separately reviewed and refreshed to ensure 
that the questions remain meaningful objective and support an open and transparent process and focus on board 
composition and contributions meeting processes and the performance of the chairman which is reviewed 
separately and led by the senior independent director  
the conclusions and recommendations flowing from the evaluation are reviewed by the chairman with the chief 
executive and shared with the board it is a constructive process used to improve performance and help shape 
the future composition of the board the board has confirmed that whilst there is an overall level of satisfaction with 
the performance of the board and that of its committees and directors there was a continuing need for the board 
to focus on the implementation of the growth strategy and ensuring it has the skills experience and diversity 
to achieve it  
director reelection 
as part of the formal board evaluation the board has considered the performance of each director and is satisfied 
that they continue to be effective and demonstrate clear commitment to their role all directors with the exception 
of ian stewart will submit themselves for reelection at the forthcoming agm   mitie group plc  
annual report and accounts 2012
55
overview business review governance accounts


risk management and internal control 
the board is responsible for determining the level of acceptable risk that is appropriate for the group when establishing 
and operating to achieve the group’s strategic objectives it regularly reviews the effectiveness of the group’s risk 
management programme and systems of internal control both the board and the audit committee receive regular 
updates from the enterprise risk director for the group on potential risks that may impact upon the group and the 
environment in which it 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 good governance and 
integrity competence fairness and responsibility throughout the group essential to this is the recruitment and retention 
of highly skilled 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 
responsibilities are clearly defined and delegated in accordance with the group’s delegated authorities and 
authorisation registers and ensure compliance with the matters reserved for the board the 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 periodically the board reviews the delegated authorities to consider the authorities in light of activities within 
the organisation to ensure that they continue to facilitate the way in which the group operates 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 to support the business further the group 
function 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 enterprise 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 
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 and reviewing regular 
internal audit reports from the enterprise risk function 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 enterprise risk director who 
reports 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 to further encourage a culture of risk management within the business the executive board 
regularly reviews the programme of risk management undertaken across the group to demonstrate the importance 
of the management and assessment of risk at a senior level 
during 2011 mitie enhanced its approach to risk management by bringing together existing risk management 
resources into an enterprise risk function led by an enterprise risk director this restructured approach allows the 
company to strengthen capability and resource through the sharing of best practice across the group 
the board confirms that there is a continuing process for identifying evaluating and managing significant risks faced 
by the group which is monitored in accordance with the revised guidance on internal control issued by the financial 
reporting council this work has focused on the assurance framework that exists within the group the use and 
compilation of risk registers and an increase in the use of computer assisted audit techniques  
the board confirms that its risk assessment process has been in place throughout the reporting year and up to the date 
of approval of the annual report and accounts the board considers the nature and extent of the significant risks it 
takes in setting strategies which are detailed further in the section regarding risk factors that could affect the business 
on pages 46 and 47 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 
in the group’s risk register which is maintained by the group’s enterprise risk function this register is reviewed   mitie group plc  
annual report and accounts 2012
56

  

periodically by the board and 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 reported potential economic 
crimes and whistleblowing activity is communicated to the audit committee along with the results of investigations 
carried out these investigations have not identified any risks that result in a material unmitigated exposure to  
reviewing the effectiveness of the system of internal control 
in line with turnbull guidance and c21 of the code the board performs a formal annual assessment of the operation 
and effectiveness of the system of internal control covering all material controls including financial operation and 
compliance controls 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 enterprise risk director 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 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 they are effective 
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 board and management 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 
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 supports its 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 which are reviewed by either the group finance 
team or internal audit and presented to the audit committee and the board for final approval as appropriate  
external auditor 
each year the audit committee reviews auditor performance in respect of audit services audit related services 
and nonaudit services and is committed to ensuring the independence and objectivity of the external auditors  
during the year mitie invited tenders for its external audit services four audit firms were invited to participate and 
a formal process of interviews and evaluations followed the tender process included the review of the company’s 
existing auditor performance in respect of services provided audit related services nonaudit related services and 
independence and objectivity the audit committee concluded that deloitte llp should be appointed given the 
relevant experience of their london team in both the plc environment and support services sector and their proposal 
with regard to the execution of the audit plan the audit committee recommended to the board the continued 
engagement of deloitte llp as the company’s external auditor and has recommended their reappointment at the 
agm deloitte llp has expressed willingness to continue in office as auditors and accordingly the board is 
recommending a resolution for reappointment for approval by shareholders at the forthcoming agm  
the audit committee has approved a nonaudit services policy that ensures that it has visibility over the levels of  
nonaudit work performed by the auditors and requires notification to the chairman of the audit committee for any 
nonaudit spend with the auditors that on an annual basis cumulatively exceeds 100 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 nonaudit services provided to the group 
during the year included taxation services and corporate finance services in relation to acquisitions  
the group  mitie group plc  
annual report and accounts 2012
57
overview business review governance accounts

this policy also 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 6 to the financial statements the audit committee confirms that the requirements 
of the nonaudit services policy have been met throughout the year 
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 
going concern 
the directors acknowledge the financial reporting council’s going concern and liquidity risk guidance for directors 
of uk companies issued in october 2009 and ‘an update for directors of listed companies responding to increased 
country and currency risk in financial reports’ 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 pages 8 to 47 
the financial position of the group its cash flows liquidity position and borrowing facilities are described in the financial 
review on pages 42 to 45 in addition note 27 to the consolidated financial statements includes details of 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 benefits from a large number of longterm contracts with a broad range of public and private customers 
which provide a strong forward order book of £86bn and high visibility of secured work 83 of budgeted revenue 
for the financial year ending 31 march 2013 as a consequence the directors believe that the group is well placed to 
manage its business risks successfully the group’s financial forecasts taking into account possible sensitivities in trading 
performance indicate that the group will be able to operate within the level of its committed borrowing facilities 
the group’s committed borrowing facilities comprise £1002m of us private placement loan notes expiring between 
december 2017 and december 2019 which were issued in december 2010 and its committed banking facilities 
the group renegotiated its banking facilities in march 2011 and its committed facility of £250m will remain in place 
until september 2015  
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  

the board is committed to an ongoing proactive dialogue with institutional and private investors and continues to 
support the introduction of the uk stewardship code applicable to institutional shareholders to further encourage 
engagement between the company and its shareholders a full programme of formal and informal events institutional 
investor meetings and presentations are also held following the half yearly and preliminary results announcements 
which are led by the chief executive and group finance director  
the chairman and senior independent director are available for additional meetings with shareholders upon request 
the board encourages the ongoing dialogue between the directors and investors and as such all directors with the 
exception of david jenkins were present at the 2011 agm and made themselves available for direct discussions with 
shareholders latest group information financial reports corporate governance and sustainability matters halfyearly 
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 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 also regularly updated and provided with investor feedback broker 
updates and detailed analyst reports following the halfyear and preliminary results presentations the chairman 
is responsible for ensuring that the board is made aware of the issues and concerns of the major shareholders 
the agm also allows shareholders to address and discuss any issues surrounding the group directly with the executive 
and nonexecutive directors  mitie group plc  
annual report and accounts 2012
58

  

electronic communications 
the directors remain committed to improving and extending the electronic methods in which the company 
communicates with its shareholders not only allowing the latest information on the group to be provided instantly 
but recognising the environmental benefits the board encourages each shareholder to join the growing number 
of investors electing to receive their information electronically and further details on how to register are provided 
on the inside back cover of this report 
agm  
mitie’s agm will be held on 11 july 2012 at 230pm at ubs 1 finsbury avenue london ec2m 2pp as is required 
by the code all directors with the exception of ian stewart will be standing for reelection at the agm 

capital structure 
share capital and powers of shareholders 
the group is financed through both equity share capital and debt instruments details of changes to the company’s 
share capital are given in note 31 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 prorata 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  
share capital authorisations 
at the 2011 agm shareholders authorised 
− the directors to allot shares up to an aggregate nominal amount of £340167218 shares representing one third of 
the issued share capital plus 16804451 outstanding commitment in respect of options granted under mitie’s share 
schemes such total equating to 380 of the issued share capital as at 31 march 2011  
− the disapplication of preemption rights over allotted shares up to an aggregate nominal value equal to £447234 
or a maximum 17889365 shares representing 5 of the issued share capital as at 31 march 2011  
during the reporting period the directors utilised both these authorities and the preceding authority to allot 9507937 
shares to an aggregate nominal amount of £237698 to employees participating in mitie’s share schemes and to 
minority shareholders in consideration for mitie model shares 
− the company to make market purchases of its own shares up to a total of 35778731 shares representing 10 
of the issued share capital as at 31 march 2011 
on 25 may 2011 mitie commenced a programme to purchase its shares in the market in order to offset shares 
issued on 17 august 2011 to satisfy the consideration payable for the purchase of minority interests under the mitie 
model during the financial year to 31 march 2012 the company purchased 5400000 shares nominal value £135000 
and which equates to 149 of the issued share capital at year end in the market for a total consideration of £123m 
at an average price of 2275p per share the highest price paid was 2559p per share and the lowest price paid was 
2086p per share it is not mitie’s current intention to operate a formal share purchase programme outside of this 
arrangement although it may purchase shares to offset share scheme exercise activity at its discretion 
further details of these authorisations are available in the notes to the 2011 notice of agm and shareholders are 
referred to the 2012 notice both are available at wwwmitiecominvestors which contains similar provisions in 
respect of the company’s share capital  mitie group plc  
annual report and accounts 2012
59
overview business review governance accounts
restrictions on the trading of shares 
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 clawback 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 wwwmitiecominvestorscorporategovernance 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 36 to the accounts  
recipients of mitie group plc shares received under a mitie investment model are restricted from selling the 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  
the group operates a share trading and insider dealing policy which provides a framework to prepare and maintain 
lists of those persons who have access to inside information relating to mitie and explains to employees the rules 
regarding dealing in mitie group plc shares by mitie’s employees who have been identified as insiders a list of insider 
names is held by the company secretary and those identified are informed individually and asked to read understand 
and follow the procedures detailed in the policy lists are maintained electronically and all identified insiders receive 
an email notification advising of the group’s relevant close periods  
significant interests in mitie’s share capital 
as at 18 may 2012 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 
massachusetts financial services company 17993365 509
majedie asset management limited 18111472500
fmr llc 18000006 504
axa im sa 18003137 499
details of the directors’ interests in the share capital of the company are detailed within the remuneration report on 
pages 72 and 73  
other share matters 
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 and employee share plans none of these are considered to be 
significant in terms of their likely impact on the normal course of the business for the group 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  

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  
equitybased incentives 
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 and the 
savings related share option scheme which is open to all eligible employees of the group in addition following 
shareholder approval at the 2011 agm mitie launched a share incentive plan to all eligible employees in january 2012   mitie group plc  
annual report and accounts 2012
60

  

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 the company in 2011 the group launched a £10m entrepreneurial fund to back management 
teams with innovative ideas for starting mutually owned businesses the board remains committed to supporting 
growing businesses through the fund which builds on a long history of partnering with management teams to start up 
new business ventures during the year the company has invested over £4m from the entrepreneurial fund in the form 
of mitie model startups second generation equity schemes and other equity incentive based businesses 
under the terms of certain shareholder agreements and articles of association relating to mitie model 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 in consideration for these purchases the company generally has the option to settle payment in cash 
or in mitie shares  
on 17 august 2011 the company announced the purchase of certain minority shareholdings in five of its subsidiary 
companies mitie cleaning services limited mitie engineering maintenance caledonia limited mitie landscapes 
limited mitie property services uk limited mpsukl and mitie transport services limited in accordance with the 
respective articles of association and shareholders’ agreements of those companies the total maximum consideration 
for all five transactions amounted to £146m being satisfied as to £20m in cash and as to the remaining £126m by the 
issue of 5265964 new ordinary shares of 25p each valued at 2387p per share being the closing market price per mitie 
share on 27 july 2011 as a result of these acquisitions mitie now owns 100 of the issued share capital of all five 
companies with the exception of mitie landscapes limited of which 89 of the issued share capital will be owned 
the selling shareholders gave certain warranties and assurances relating to past and future performance of the relevant 
subsidiary companies the shares issued in consideration are being held in safe custody for a maximum period of two 
years and may be sold to meet any claims that the company may have in the future in relation to those warranties and 
assurances 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 
as part of the arrangements to purchase shares in mpsukl the company entered into an agreement to purchase 
shares held by kenneth robson a relative of william robson an executive director of the company in mpsukl 
kenneth robson served notice on mitie to sell 40000 b ordinary shares in mpsukl at the same time as other 
shareholders for a total consideration of £05m this equated to 111 of mpsukl’s issued share capital shareholders 
approved the substantial property transaction at a general meeting held on 10 november 2011 and an application 
was made to the uk listing authority and the london stock exchange in respect of the consideration shares due to 
kenneth robson  
recipients of shares under this incentive scheme are generally restricted from selling the mitie shares received 
as consideration for a minimum of two years on 10 november 2011 shareholders also approved three new equity 
participation schemes under the mitie model which gives entrepreneurial managers the opportunity to create wealth 
by taking the risk of taking equity stakes in new businesses or more mature businesses in conjunction with mitie and then 
dependent on a preagreed pricing structure offering to sell that stake to mitie between the fifth and tenth years from 
the date of establishment of the business shareholders approved the introduction of the schemes allowing certain 
employees to share in any additional value which they help to create at this year’s agm the board is seeking a 
general approval from shareholders that allows the company to enter into such schemes pursuant to the listing rules 
communication with employees 
communication with mitie’s employees remains a high priority the group communicates with employees through 
the use of groupwide mailings employee magazines and updates employeefocused initiatives media networks 
and the provision of access to broadcasts of periodic financial presentations  
we are also committed to developing our use of social media tools as an effective way of communicating with 
our people because we recognise that these methods can provide great ways of allowing our people to give 
us feedback share ideas and engage with the wider mitie community 
our social media tools are supported by a groupwide intranet system which improved communications and 
information sharing across the business and includes blog updates by the executive board members and 
functional teams   mitie group plc  
annual report and accounts 2012
61
overview business review governance accounts

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 and social networking sites continue 
to play an important part of engagement and communication with employees  
the group continues to operate its groupwide mitie stars programme to recognise and reward exceptional 
performance by its people the mitie’s got talent groupwide talent contest continues to be supported and 
encourages employee engagement and recognition the group sustainability report contains further details 
of these initiatives and is available from wwwmitiecom 
employees remain actively involved in the group’s activities via an employee forum this year the forum held two 
meetings and included presentations by senior management or functional heads as requested by the employee 
representatives the executive board will continue to seek increasing involvement and activity of the employee 
representatives during the year the group launched an employee engagement survey in certain parts of the 
group to gather feedback on the employee experience  
employee diversity and inclusion 
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 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  
further information can be found within the group’s dedicated sustainability report which can be found at 
wwwmitiecom 

financial results and dividends 
a detailed commentary on the financial results of the group for the year is contained within the financial review 
on pages 42 to 45 of this report the profit before taxation for the financial year is £945m 2011 £868m  
− the directors declared an interim dividend of 44p per ordinary share with a total value of £155m 2011 £144m 
which was paid to shareholders on 6 february 2012  
− the directors recommend a final dividend of 52p per ordinary share with a total value of £184m based upon the 
number of shares issued as at 16 may 2012 2011 £175m the final dividend for the year will be paid on 7 august 
2012 subject to shareholder approval at the agm to ordinary shareholders on the register on 22 june 2012 
− the total dividend per ordinary share for the year ended 31 march 2012 is 96p 2011 90p 
the company operates a dividend reinvestment plan drip which allows shareholders to build their holding by using 
the cash dividend to purchase additional shares in mitie further details on the operation of the drip are included at the 
back of this report and are available from mitie’s registrar 
during the reporting period the trustees of the company’s employee benefit trusts waived dividends on shares held 
 
  mitie group plc  
annual report and accounts 2012
62

  

financial instruments 
the group’s financial instruments include bank loans finance leases overdrafts us private placement loan notes 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 26 to the financial statements  
events after the balance sheet date 
there have not been any significant events post the balance sheet date 
payment of creditors 
the group manages its procurement and supply chain with increasing consideration of its impact on the company’s 
profitability reputation and sustainability objectives and is committed to proactively developing mutually beneficial 
and sustainable trading relationships with all of our stakeholders based on a foundation of trust and cooperation 
the group’s ethical business practices policy provides a framework and demonstrates our values and commitment to 
developing and implementing ethical business practices throughout the organisation 
the group’s policy is to comply with the terms of payment agreed with suppliers on the group’s standard purchasing 
terms as notified to suppliers notification of these terms is issued with each generated purchase order and a copy of 
the group’s standard purchasing terms can be found at wwwmitiecomsuppliers at 31 march 2012 the group had 
35 days’ purchases outstanding 2011 36 days 
future developments 
the operating review sets out the board’s view on the 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 £160648 2011 £190738 the total 
value of community investment was £541401 2011 £534015  
the directors of mitie group plc confirm that they do not and will not make political donations  
by order of the board 
 
marieclaire haines  
company secretary 
21 may 2012 
  mitie group plc  
annual report and accounts 2012
63
overview business review governance accounts

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 
− 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 and 
− make an assessment of the company’s ability to continue as a going concern  
in the parent company accounts the directors have elected to prepare the financial statements in accordance with 
uk generally accepted accounting principles 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 
− state whether applicable accounting standards have been followed subject to any material departures disclosed 
and explained in the financial statements and 
− prepare financial statements on the going concern basis unless it is inappropriate to presume that the company will 
continue in business  
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 cbe suzanne baxter  
chief executive  group finance director 
21 may 2012 21 may 2012 
  mitie group plc  
annual report and accounts 2012
64

 

this report has been prepared on behalf of the board 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 
and covers all directors who served on the board during the reporting period the remuneration committee believes 
in and promotes good governance through the adoption of the code compliance with the listing rules and due 
reference to other guidelines which together should provide shareholders with a practical framework and 
reference point  
certain elements of this report need 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 11 july 2012 
section a the following information is not subject to audit 

membership 
the remuneration committee met five times in the year and is comprised of solely nonexecutive directors of the 
company the members of the remuneration committee are terry morgan cbe committee chairman david jenkins 
graeme potts larry hirst cbe and roger matthews ruby mcgregorsmith cbe chief executive and the group hr 
director attended committee meetings by invitation only to provide further information on the company’s 
performance and the performance and remuneration of the executive directors 
advisers to the committee 
during the year the committee requested the attendance of and sought advice from kepler associates appointed 
by the committee in 2007 kepler associates provide no other services to the company  
terms of reference  
the terms of reference for the committee are available on the company’s website and 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 
− determining 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 plans including the selection of participants the setting of option prices and the setting of 
performance targets and 
− drafting and approving the directors’ remuneration report and any remuneration related resolutions to be put 
to the shareholders at the group’s agm  
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 are aligned to the corporate objectives 
and business strategy and take 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 an open and constructive 
dialogue where changes to 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 and individual performance 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 continues 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 committee continues to believe that exceptional performance should be matched with appropriate remuneration 
to attract retain and motivate directors and management and ensures that packages are linked to and support the 
longterm performance of the company  
  mitie group plc  
annual report and accounts 2012
65
overview business review governance accounts
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 the executive 
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 to align the interests of the 
senior executive team with those of shareholders bonuses are structured to reward the 
attainment of the strategic target of longterm 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 committee believes and is satisfied that the remuneration policy is appropriate and takes account of the group’s 
performance and strategic objectives and will 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 
the company operates a share ownership policy to encourage the buildup of equity in the company by both its 
executive directors and senior executives under this policy all executive directors are required over time to build and 
maintain a target 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 on the 1 may each year the committee reviews the expected target holding for the 
executive directors calculated as a percentage of salary 
table 1 share ownership update 
number of ordinary 
shares owned as at 
31 march 2012
value of target  
holding at 1 may 2011 
based on  
 of salary as at  
31 march 2012  
value of  
holding as at 
31 march 2012
1
percentage of 
target holding 
achieved as at 
31 march 2012
r mcgregorsmith cbe 564268£765000 £1577129 100
s c baxter  212538 £487500 £594044 100
w robson  1622686 £320000 £4535407 100
note 
1 calculated at a share price of 2795p being the closing market price on 31 march 2012  

the overall package for executive directors consists of a fixed element salary and certain benefits and a variable 
performancerelated element annual performancerelated bonus and longterm equitybased incentives and has 
been structured 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 and other benefits 
the committee’s advisers provide an annual review of total remuneration relative to sector and size comparators and 
including base salary annual bonus longterm incentives and pension the committee considers this review and 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 and in the context of salary increases across the organisation 
as a whole  
the executive directors received salary increases during the year averaging less than 4 and took account of the 
range of factors described above the continued growth and performance of the group and the performance of the 
individual executive directors with due consideration of the outcomes of the benchmarking exercise for the current 
year the remuneration committee approved salary increases averaging 3 
the other benefits offered to the executive directors consist of contributions to a pension scheme private healthcare 
and the provision of a car allowance mitie group plc  
annual report and accounts 2012
66


annual bonus 
performancerelated remuneration is designed to drive mitie’s performance and be aligned to the group strategic 
objective of achieving longterm sustainable profitable growth the annual bonus rewards mainly shortterm company 
performance but also has a link to longerterm performance through a link to strategic targets and partial delivery in 
mitie group plc shares 
for the 20112012 performance year executive directors had the opportunity to earn bonuses of up to 125 of salary 
with any bonus earned above 100 of salary deferred into mitie group plc shares for two years and forfeited should 
the director leave the business during this period up to 100 of salary is earned for the achievement of group 
budgeted profit growth and the remaining 25 of salary is assessed on a series of nonfinancial strategic targets 
in setting the nonfinancial strategic targets the committee had due consideration of the longerterm success of 
the company and the aligning of interests with shareholders and continues to believe that the performance targets 
for the annual bonus are sufficiently stretching for the maximum bonus payment 
during the year under review mitie achieved the profit growth target in full and 100 of base salary will be paid in 
cash the remuneration committee decided that significant overall progress had been achieved on the nonfinancial 
strategic targets and therefore awarded a further 25 of base salary deferred into mitie group plc shares for 
two years 
for the 201213 performance year the remuneration committee has approved two changes to the annual bonus 
scheme structure a sliding scale has been introduced into the element of the bonus based on financial targets which 
will pay out 90 of salary for threshold performance to 110 of salary at stretch the upper end of the scale is intended 
to reward the achievement of exceptional financial performance and the sliding scale in general to ensure that bonus 
payouts are not unduly sensitive to small changes in performance given the extension of the financial performance 
targets the committee feels that a modest uplift in the bonus opportunity for financial performance from 100 to 110 
of salary is appropriate in addition the bonus opportunity for the chief executive on the strategic objectives element 
has been increased by 25 to 50 of salary this increase recognises her significant influence on the achievement of 
these objectives overall the maximum bonus opportunity for the chief executive will therefore increase to 160 of base 
salary while the maximum opportunity for the other executive directors will increase to 135 of base salary any bonus 
amount over 100 of base salary will be deferred in shares for a two year period 
sharebased incentives 
the remuneration package reinforces longterm decision making and sustainable profitable growth through the use 
of sharebased incentives for executive directors and certain senior executives the principal tools designed to support 
this ethos are the company’s ltip as described on page 68 and the share ownership policy as described on page 
65 vesting of share awards under the ltip is based on performance measured over three years which 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 5 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  
details of executive directors participation in the group’s share schemes are set out below 

all directors are appointed for an indeterminate period of office but are subject to annual reelection at the agm in 
accordance with the 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 2 executive director’s service contracts 
contract term 
date of 
agreement notice period 
r mcgregorsmith cbe rolling contract  01apr03 12 months
s c baxter  rolling contract  10apr06 12 months
w robson  rolling contract  01apr03 12 months mitie group plc  
annual report and accounts 2012
67
overview business review governance accounts
 

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 ruby mcgregorsmith cbe receives fees of £51000 per annum in respect of her role as a nonexecutive 
director of michael page international plc and is entitled to retain any fees earned 

nonexecutive directors’ fees 
the fee level is designed 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  
following an external benchmarking exercise the fees for nonexecutive directors were increased from £40000 to 
£46000 effective from the 1 april 2011 an increase from £5000 to £7000 per annum was also approved and paid to 
nonexecutive directors who also chair one of the committees of the board this was the first increase to nonexecutive 
director fees since 2006 no increases were made in respect of the chairman  
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 an initial term of three years which is 
terminable on either three or six months’ notice and thereafter on a rolling term  
table 3 nonexecutive directors’ engagement terms 
 additional duties
date of 
engagement initial contract term notice period
r j matthews  
 
chairman
chairman of nomination committee 
04dec06 3 years 6 months
i r stewart deputy chairman 30mar07 3 years 6 months
d s jenkins 
 
senior independent 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

mitie remains committed to fostering a culture of employee involvement in the business through equity participation 
whereby employees are enabled to build a stake in the company through the company’s various equitybased 
incentive schemes 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  
equitybased incentive schemes 
the group currently operates six equitybased incentive schemes as set out below and the interests of the executive 
directors in each of these schemes are set out in tables 4 to 8 of section b below  
2001 saye scheme 2001 saye and 2011 saye scheme 2011 scheme 
the 2001 and the 2011 saye schemes are the company’s nondiscretionary option schemes open to all eligible 
employees and 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 2001 saye scheme 
the 2001 saye scheme expired in september 2011 and future awards may only be granted under the 2011 
saye scheme rules following the adoption of new plan rules at the company’s 2011 agm 
2011 share incentive plan 2011 sip 
at the 2011 agm shareholders approved the adoption of the 2011 sip which allows employees to use their salary 
to purchase shares in the company eligible employees are offered the opportunity to buy company shares from  
pretax earnings as part of a regular share purchase plan shares are currently purchased monthly using employees’ 
deductions and are placed in trust all the executive directors participate in this scheme with each director 
contributing the maximum permitted under the plan rules for which details are set out in table 4 of section b   mitie group plc  
annual report and accounts 2012
68


2001 executive share option scheme 2001 esos and 2011 executive share option scheme 2011 esos 
new 2011 esos plan rules were adopted by shareholders at the 2011 agm the 2001 and 2011 esos are discretionary 
schemes and therefore not open to all employees of the group the award of options under the 2011 esos is focused 
on employees who are below main board level and who do not participate in the ltip  
currently 2011 esos is used to retain 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 in any single year are limited to 100 of an individual’s base salary awards made prior 
to 2011 were granted with a single performance threshold for vesting of average growth in earnings per share over the 
threeyear vesting period in excess of inflation measured as rpi plus 4 per annum in order to ensure a consistent 
and aligned approach to performance criteria across other mitie schemes for awards granted in 2011 the committee 
approved a performance threshold based on a nominal eps measure and accordingly 2011 awards were granted 
with a performance measure of 6 per annum compound growth over a threeyear performance period 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 2011 esos the board continues to believe that esos 
offers incentive and motivation to those employees nominated for awards and proposes to continue with awards on 
the basis explained above 
the share options detailed in table 5 of section b were granted to executive directors prior to 2007 under the 2001 
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 these grants to ruby mcgregorsmith cbe and suzanne baxter there have been no grants to 
directors under the 2001 or 2011 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  
long term incentive plan ltip 
the ltip is a discretionary scheme rather than being open to all employees of the group and 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 2017 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 in exceptional circumstances such as recruitment the rules allow for 
awards of up to 250 of an employee’s annual base salary 
the performance criteria for the ltip is based on growth in the eps of mitie the committee continues to believe that 
eps is a key longterm performance measure for mitie as it is aligned with the group’s strategy and kpis but recognises 
that measures need to be reviewed regularly to ensure that they continue to align with the group’s strategy and 
are effective as an incentive the committee is currently reviewing the performance criteria for 2012 ltip awards 
any significant changes will be discussed with major shareholders in advance and disclosed in next year’s report  
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 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  
at the time when the ltip scheme was introduced rpi growth was considered a broad proxy for underlying 
economic growth in the uk for this reason the eps performance measure was linked to rpi however the committee 
believes this is no longer a valid assumption and the correlation between the company’s earnings growth and uk rpi 
growth is increasingly limited since rpilinked yearonyear uplifts to contract values are not a big feature of the  mitie group plc  
annual report and accounts 2012
69
overview business review governance accounts
 
mitie business model during the year the committee consulted with its shareholders on this issue and following this has 
replaced the real eps growth targets with nominal eps growth targets for 2011 and future ltip awards  
accordingly for ltips granted in 2011 the lower performance threshold at which 25 of an award vests is 7 per 
annum and the upper performance threshold is 13 per annum awards to all executive directors during the year were 
200 of salary  
during the year the committee assessed the outcome of the 2008 ltip awards the vesting of these awards was 
conditional on achieving performance within the following performance scale – the lower performance threshold 
at which 25 of an award vests was rpi  5 per annum and the upper performance threshold was rpi  14 per 
annum the upper performance threshold applicable to the 2008 ltip award was assessed to have been achieved 
and consequently the awards granted in 2008 vested in full on 30 june 2011  
table 6 in section b provides details of the ltip awards granted to and exercised by the executive directors as well 
as the performance targets governing the vesting of ltip awards granted in prior years  
share dilution 
the company manages dilution rates within the abi guidelines of 10 of issued ordinary share capital in respect of  
all employee schemes esos and saye and 5 in respect of discretionary schemes 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 4 share dilution at 31 march 2012 
 dilution 
all share plan maximum 10  72
discretionary share plans maximum 5 44

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 2012 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 2012 was 2795p the highest and lowest prices during the 
year were 2883p and 1961p respectively 
17201
2007
600
800
1000
1200
1400
1600 mitie group plc               ftse 250               ftse 350 support services
£pftse rebased to mitie from 010407
2008 2009 2010 201 1 2012
 mitie group plc  
annual report and accounts 2012
70

section b information subject to audit 

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 
2012 
 total 
£’000 
2011
 total 
£’000
executive directors    
r mcgregorsmith cbe 510 5101281021316 1279 1229
s c baxter  325 325 81 65 – 16 812 790
w robson  320 320 80641316 813 778
nonexecutive directors    
r matthews  140 – –––– 140 140
i r stewart 46 – –––– 46 40
d s jenkins  53 – –––– 53 45
g potts  46 – –––– 46 40
t k morgan cbe
2
 53 ––––– 53 45
l hirst cbe 46 ––––– 46 40
total  1539 1155 289 231 26 48 3288 3147
3
note  
1 deferred into mitie group plc 25p shares 
2 the fees in consideration for the services of terry morgan cbe were paid to tkm management services limited 
3 the prior year total remuneration has been restated to take account of the resignation of n r goodman  mitie group plc  
annual report and accounts 2012
71
overview business review governance accounts
 

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 2011 
£’000
increase in 
accrued 
pension during 
the year  
£’000 
real increase in 
accrued 
pension 
£’000
accrued 
pension 
31 march 2012 
£’000 
r mcgregorsmith cbe 152 2 17
w robson  37 3 1 40
table 3 defined benefit pension scheme transfer values  
transfer values 
31 march 2011 
£’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 2012 
£’000
r mcgregorsmith cbe 12602 15 167
w robson  596 0 1 21 750
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 two directors who are members of the scheme at a rate of 10 2011 10 of the 
value of the benefit cap of £123600 in addition the two directors received a salary supplement of 20 of salary 
2011 20 
suzanne baxter is not a member of the mitie group plc defined benefit pension scheme the value of the pension 
benefits provided to suzanne baxter mirror the value of the pension benefits provided to the other executive directors 
under the capped defined benefit arrangements albeit that her benefits are currently provided through a separate 
defined contribution arrangement following an assessment of the value of her defined contribution pension scheme 
assets as at 31 march 2011 no pension contributions were required for suzanne baxter for the year ended 31 march 
2012 2011 nil suzanne baxter received a salary supplement of 20 of base salary 2011 20  
given the complexity and ongoing annual cost around determining comparable values of pension benefits the 
remuneration committee approved the decision to allow suzanne baxter entrance into the mitie group plc defined 
benefit pension scheme ceasing all further contributions into the defined contribution scheme suzanne baxter entered 
the scheme in april 2012 there is no change to the value of suzanne baxters total remuneration as the result of this 
change 

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 to 8 below 
table 4 directors’ interests in shares purchased under the mitie group plc share incentive plan 2011  
shares 
purchased as at
31 march 2011
1
number of 
partnership 
shares acquired 
in year
2
number of 
matching shares 
awarded 
in year
3
total number 
of shares
outstanding at
31 march 2012
4
r mcgregorsmith cbe 
    
share incentive plan  – 527 52 579
s c baxter   
share incentive plan – 527 52 579
w robson  
share incentive plan – 527 52 579
note  
1 the share incentive plan was launched in january 2012  
2 shares were acquired at a market price of 28455p on 13 march 2012 executive directors contributed the full annual amount of £1500 permitted under the plan  
3 shares were purchased in the market at a price of 28455p on 13 march 2012 awards of matching shares must in normal circumstances be held for at least three years 
from the date of award and are subject to forfeiture if corresponding partnership shares are withdrawn during that period 
4 the market price of the company’s shares as at 31 march 2012 was 2795p the highest and lowest prices during the year were 2883p and 1961p respectively  mitie group plc  
annual report and accounts 2012
72


table 5 directors’ interests in options granted under the mitie group plc 2001 executive share option scheme  
 
esos options 
outstanding at  
1 april 2011 
granted 
during 
the year
lapsed 
during 
the year
exercised 
during 
the year
esos options 
outstanding at
31 march 2012
1
exercise  
price  
p exercisable between
r mcgregorsmith cbe 
  
unapproved scheme  100000 – – – 100000 162 0608 0615
unapproved scheme 100000 – – – 100000 191 0609 0616
s c baxter  
  
unapproved scheme  35000 – – – 35000 191 0609 0616
approved scheme 15000 – – – 15000 191 0609 0616
note 
1 the market price of the company’s shares as at 31 march 2012 was 2795p the highest and lowest prices during the year were 2883p and 1961p respectively 
table 6 directors’ interests in nilcost options granted under the mitie group plc 2007 long term incentive plan  
 
year of 
grant
1
ltip options 
outstanding at  
1 april 2011 
granted during 
the year at 
22324pshare
lapsed 
during 
the year
exercised 
during
the year
2
ltip options 
outstanding at
31 march 2012
3
exercise  
price  
p exercisable between
r mcgregorsmith 2008 409894 – –409894 –nilcost – –
 2009 430338 ––– 430338 nilcost 0612 0613
 2010 438989 ––– 438989 nilcost 0613 0614
 2011 – 446663–– 446663 nilcost 0614 0615
s c baxter 2008 273262 – – 273262 –nilcost – –
 2009 282847 ––– 282847 nilcost 0612 0613
 2010 283103 ––– 283103 nilcost 0613 0614
 2011 – 284638–– 284638 nilcost 0614 0615
w robson 2008 129564 – 129564 –nilcost – –
 2009 134422 ––– 134422 nilcost 0612 0613
 2010 137072 ––– 137072 nilcost 0613 0614
 2011 – 280259–– 280259 nilcost 0614 0615
note 
1 the performance criteria applicable to the 2008 awards are lower and upper performance thresholds of rpi5 pa and rpi14 pa respectively  
the performance criteria applicable to the 2009 and 2010 awards are lower and upper performance thresholds of rpi5 pa and rpi10 pa respectively 
 the performance criteria applicable to the 2011 award are lower and upper performance thresholds of 7 pa and 13 pa respectively 
 the directors acquired a conditional joint beneficial interest with the mitie employee benefit trust 2008 in the shares awarded under the ltip in 2008 2009 2010 
and 2011 the full beneficial interest will transfer to the director only if the performance criteria applicable to the award are met 
2  the committee assessed the extent to which the performance conditions applicable to the 2008 awards had been satisfied and approved the vesting of awards 
on 30 june 2011 awards are capable of exercise from 30 june 2011 to 29 june 2012 at the date these awards vested the market price of the company’s shares 
was 23894p this compares to a market price on the date of award on 30 june 2008 of 2120p  
3 the market price of the company’s shares as at 31 march 2012 was 2795p the highest and lowest prices during the year were 2883p and 1961p respectively  
  mitie group plc  
annual report and accounts 2012
73
overview business review governance accounts
table 7 director share ownership  
 
number of 
ordinary mitie 
shares 
beneficially 
owned as at
31 march 2012
1
number of 
ordinary mitie 
shares 
beneficially 
owned as at 
1 april 2011 
or date of 
appointment 
if later
executive directors 
r mcgregorsmith cbe 564268 341071
s c baxter  212538 71230
w robson  1622686 1555835
nonexecutive directors 
r matthews  100000 100000
i r stewart  2020000 2020000
d s jenkins  50000 50000
g potts  15000 15000
t k morgan cbe 0 0
l hirst cbe 25000 25000
note 
1 a proportion of the shares were sold on 30 september 2011 to settle tax liabilities arising from the vesting and exercise of the 2008 ltip award 
table 8 directors’ interests in mitie subsidiary companies under the mitie model  
 
number of 
shares 
31 march 2012
number of 
shares 
1 april 2011
r mcgregorsmith cbe  
mitie transport services ltd c ordinary shares of £1 each – 900
table 8 above details the beneficial interests of the directors who were in office on 31 march 2012 in the share 
capital of certain of the company’s subsidiary companies these interests were acquired under the mitie model further 
details of which are given in the corporate governance statement on page 60 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 
on the 17 august 2011 mitie group plc acquired the remaining minority interest in mitie transport services limited 
including ruby mcgregorsmith’s holding of 900 c ordinary shares of £1 each the consideration of £38106 was paid 
in 11523 mitie group plc ordinary shares of 25p each and £10600 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 2012
74

for the year ended 31 march 2012 
we have audited the group financial statements of mitie 
group plc for the year ended 31 march 2012 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 39 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 auditor’s 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 auditor 
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 and express an opinion on 
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 in 
addition we read all the financial and nonfinancial 
information in the annual report to identify material 
inconsistencies with the audited financial statements if we 
become aware of any apparent material misstatements 
or inconsistencies we consider the implications for 
our report 
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 2012 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  
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 
− 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 in relation to going concern 
− the part of the corporate governance statement 
relating to the company’s compliance with the nine 
provisions of the uk corporate governance code 
specified for our review and 
− certain elements of the report to shareholders by the 
board on directors’ remuneration 
other matters 
we have reported separately on the parent company 
financial statements of mitie group plc for the year 
ended 31 march 2012 and on the information in the 
directors’ remuneration report that is described as 
having been audited  
 
colin hudson fca senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
london united kingdom 
21 may 2012 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  mitie group plc  
annual report and accounts 2012
75
overview governance accounts business review

for the year ended 31 march 2012 
 2012 2011
notes 
before
other
items
£m
other
 items 
£m 
total 
£m
before  
other  
items
£m  
other 
 items
£m 
total 
£m
continuing operations   
revenue 34 20025 – 20025 18914 –18914
cost of sales  16864 – 16864 15935 – 15935
gross profit  3161 – 3161 2979 – 2979
   
administrative expenses  2044 100 2144 1896 188 2084
operating profit  46 1117 100 1017 1083 188 895
   
investment revenue 8 04 – 04 04 – 04
finance costs 9 76 – 76 30 01 31
net finance costs  72 – 72 26 01 27
   
profit before tax  1045 100 945 1057 189 868
tax 10 249 25 224 264 50 214
profit for the year   796 75 721 793 139 654
   
attributable to   
equity holders of the parent  794 75 719 791 139 652
noncontrolling interests  02 – 02 02 – 02
  796 75 721 793 139 654
earnings per share eps    
– basic 12 226p 21p 205p 226p 40p 186p
– diluted 12 220p 21p 199p 222p 39p 183p
 other items are analysed in note 5 
 
 
 
 
  mitie group plc  
annual report and accounts 2012
76

for the year ended 31 march 2012 
 
 
notes 
2012 
£m 
2011
£m
profit for the year  721 654
other comprehensive incomeexpense   
actuarial losses on defined benefit pension schemes 37 163 11
exchange differences on translation of foreign operations  05 05
gainloss on a hedge of a net investment taken to equity  04 04
cash flow hedges   
 losses arising during the year  – 14
 reclassification adjustment for lossesgains included in profit and loss  01 09
tax creditcharge on items taken directly to equity  39 01
other comprehensive expense for the year net of tax  126 16
   
total comprehensive income for the financial year  595 638
   
attributable to   
equity holders of the parent  593 636
noncontrolling interests  02 02
  mitie group plc  
annual report and accounts 2012
77
overview governance accounts business review

at 31 march 2012 
 
notes 
2012
£m
2011
£m
noncurrent assets  
goodwill  13 3477 3330
other intangible assets 14 658 647
property plant and equipment 15 641 593
interest in joint ventures and associates 17 04 –
financing assets 21 91 –
trade and other receivables 19 226 116
deferred tax assets 23 96 91
total noncurrent assets  5193 4777
  
current assets  
inventories 16 57 55
trade and other receivables 19 5071 4701
cash and cash equivalents 22 608 1306
total current assets  5736 6062
  
total assets  10929 10839
  
current liabilities  
trade and other payables 25 4614 4329
current tax liabilities  132 166
financing liabilities 26 54 26
provisions 30 12 45
total current liabilities  4812 4566
  
net current assets  924 1496
  
noncurrent liabilities  
financing liabilities 26 1630 2048
provisions 30 44 82
retirement benefit obligation 37 173 30
deferred tax liabilities 23 107 133
total noncurrent liabilities  1954 2293
  
total liabilities  6766 6859
  
net assets  4163 3980
  mitie group plc  
annual report and accounts 2012
78

at 31 march 2012 
 
notes 
2012  
£m 
2011
 £m
equity   
share capital 31 90 89
share premium account 32 925 806
merger reserve 32 936 851
sharebased payments reserve 32 52 75
own shares reserve 32 183 138
other reserves 32 03 02
hedging and translation reserve 32 06 04
retained earnings  2304 2238
equity attributable to equity holders of the parent  4121 3919
   
noncontrolling interests  42 61
total equity  4163 3980
the financial statements were approved by the board of directors and authorised for issue on 21 may 2012 they were 
signed on its behalf by 
 
ruby mcgregorsmith cbe suzanne baxter 
chief executive  group finance director  mitie group plc  
annual report and accounts 2012
79
overview governance accounts business review

for the year ended 31 march 2012 
 
share 
capital  
£m 
share 
premium 
account 
£m 
merger 
reserve 
£m
share
based 
payments 
reserve 
£m
own 
shares 
reserve 
£m
other 
reserves 
£m
hedging 
and 
translation 
reserve
£m
retained 
earnings 
£m 
attributable 
to equity 
holders of 
the parent 
£m 
non
controlling 
interests 
£m
total 
£m
at 1 april 2010 88 767 803 54 81 02 – 1923 3556 78 3634
total comprehensive 
income – – – – – – 04 640 636 02 638
shares issued  01 39 48 – – – – – 88 – 88
dividends paid – – – – – – – 289 289 02 291
purchase of own shares  – – – – 57 – – – 57 – 57
sharebased payments – – – 21 – – – 12 33 – 33
acquisitions and other 
movements in non
controlling interests – – – – – – – 48 48 17 65
at 31 march 2011 89 806 851 75 138 02 04 2238 3919 61 3980
total comprehensive 
income – – ––––02595 593 02 595
shares issued  02 119 85 – – – – – 206 – 206
dividends paid – – – – – – – 326 326 02 328
purchase of own shares  – – – – 74 – – – 74 – 74
share buybacks 01 – – – – 01 – 124 124 – 124
sharebased payments – – – 23 29 – – 23 29 – 29
tax on sharebased 
payment transactions – – – – – – – 10 10 – 10
acquisitions and other 
movements in non
controlling interests  – – – – – – – 112 112 19 131
at 31 march 2012 90 925 936 52 183 03 06 2304 4121 42 4163 mitie group plc  
annual report and accounts 2012
80

for the year ended 31 march 2012 
notes 
2012 
 £m 
2011 
£m
operating profit   1017 895
adjustments for   
sharebased payment expense 36 29 33
defined benefit pension charge 37 25 35
amendment to defined benefit pension scheme past service cost 37 – 41
defined benefit pension contributions 37 45 79
acquisition related items 5 09 –
depreciation of property plant and equipment 15 188 179
amortisation of intangible assets 14 111 108
lossgain on disposal of property plant and equipment  01 01
operating cash flows before movements in working capital   1335 1129
increase in inventories  01 16
increase in receivables  450 708
increase in payables  256 620
decrease in provisions  38 –
cash generated by operations   1102 1025
income taxes paid 244 143
facility arrangement fee paid  25 –
interest paid  75 25
net cash from operating activities   758 857
investing activities   
interest received  04 02
purchase of property plant and equipment  217 210
purchase of subsidiary undertakings net of cash acquired 33 239 118
investment in joint ventures and associates  04 –
investment in financing assets 21 84 –
purchase of other intangible assets 14 77 50
disposals of property plant and equipment  17 30
net cash outflow from investing activities  600 346 mitie group plc  
annual report and accounts 2012
81
overview governance accounts business review

for the year ended 31 march 2012 
 
notes 
2012
 £m
2011 
£m
financing activities  
repayments of obligations under finance leases  31 32
proceeds on issue of share capital  99 27
repayments of loan notes on purchase of subsidiary undertakings  – 58
bank loans repaid  395 37
private placement notes raised  – 1002
purchase of own shares 32 74 57
share buybacks 31 124 –
equity dividends paid 11 326 289
noncontrolling interests dividends paid  02 02
net cash outflowinflow from financing  853 554
  
net decreaseincrease in cash and cash equivalents  695 1065
  
net cash and cash equivalents at beginning of the year  1306 237
effect of foreign exchange rate changes  03 04
net cash and cash equivalents at end of the year  608 1306
net cash and cash equivalents comprise  
cash at bank  608 1306
  608 1306
  
 
reconciliation of net cash flow to movements in net debt 
 
notes 
2012 
£m
2011 
£m
net decreaseincrease in cash and cash equivalents  695 1065
effect of foreign exchange rate changes  03 04
decrease in bank loans  402 32
private placement notes raised  – 1002
noncash movement in private placement notes and associated hedges  03 03
repayments of loan notes on purchase of subsidiary undertakings  – 58
issue of loan notes on purchase of subsidiary undertakings  – 39
increase in finance leases  05 14
increasedecrease in net debt during the year  304 101
  
opening net debt  765 866
closing net debt 29 1069 765
 
 mitie group plc  
annual report and accounts 2012
82

for the year ended 31 march 2012 

basis of preparation 
the group’s financial statements for the year ended 31 march 2012 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 2011 
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 
− ias 24 revised ‘related party disclosures’ 
− amendment to ifric 14 ‘prepayments of a minimum funding requirement’ 
− ifric 19 ‘extinguishing financial liabilities with equity instruments’ and 
− amendments resulting from may 2010 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 
− amendments to ifrs 7 ‘financial instruments disclosures’ – transfers of financial assets 
− ifrs 9 ‘financial instruments’ 
− amendments to ias 12 ‘income taxes’ – recovery of underlying assets 
− ias 27 revised ‘separate financial statements’ 
− ias 28 revised ‘investments in associates and joint ventures’ 
− ifrs 10 ‘consolidated financial statements’  
− ifrs 11 ‘joint arrangements’ 
− ifrs 12 ‘disclosures of interests in other entities’ 
− ifrs 13 ‘fair value measurement’ 
− amendments to ias 19 ‘employee benefits’ 
− amendments to ias 1 ‘presentation of financial statements’ – presentation of items of other comprehensive income  
− amendments to ifrs 7 ‘financial instruments disclosures’ – offsetting financial assets and financial liabilities and 
− amendments to ias 32 ‘financial instruments presentation’ – offsetting financial assets and financial liabilities 
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 as follows 
− amendments to ias 19 ‘employee benefits’ will impact the measurement of various components representing 
movements in the defined benefit pension obligation and associated disclosures but not the group’s total obligation 
it is likely that following the replacement of expected returns on plan assets with a net finance cost in the income 
statement the profit for the period will be reduced and accordingly other comprehensive income increased 
beyond the information above it is not practicable to provide a reasonable estimate of the effect of these standards 
and interpretations at this stage  mitie group plc  
annual report and accounts 2012
83
overview governance accounts business review

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 the acquired dalkia 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 the results assets and liabilities of joint ventures and 
associates are accounted for under the equity method of accounting where necessary adjustments are made to the 
financial statements of subsidiaries joint ventures and associates to bring the accounting policies used into line with 
those used by the group  
interests of noncontrolling interest shareholders are measured at the noncontrolling interest’s proportion of the net fair 
value of the assets and liabilities recognised changes in a parent’s ownership interest in a subsidiary that do not result 
in a loss of control are accounted for within shareholders’ equity no gain or loss is recognised on such transactions and 
goodwill is not remeasured any difference between the change in the noncontrolling interest and the fair value 
of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent 
business combinations 
the acquisition of subsidiaries is accounted for using the acquisition 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 acquisition costs incurred are expensed 
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 
where applicable the consideration for an acquisition includes any assets or liabilities resulting from a contingent 
consideration arrangement measured at fair value at the acquisition date subsequent changes in such fair values are 
adjusted against the cost of acquisition where they result from additional information obtained within one year from 
the acquisition date about facts and circumstances that existed at the acquisition date all other subsequent changes 
in the fair value of contingent consideration classified as an asset or liability are recognised in accordance with ias 39 
either in profit or loss or as a change to other comprehensive income changes in the fair value of contingent 
consideration classified as equity are not recognised 
any business combinations prior to 1 april 2010 were accounted for using the standards in place prior to the adoption 
of ifrs 3 revised 2008 which differ in the following respects transaction costs directly attributable to the acquisition 
formed part of the acquisition costs contingent consideration was recognised if and only if the group had a present 
obligation the economic outflow was more likely than not and a reliable estimate was determinable and subsequent 
adjustments to the contingent consideration were recognised as part of goodwill mitie group plc  
annual report and accounts 2012
84


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 at the date of acquisition  
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 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 
joint ventures and associates 
the group has an interest in joint ventures which are entities in which the group has joint control of financial and 
operating policies the group also has an interest in associates which are entities in which the group has significant 
influence 
the group accounts for its interest in joint ventures and associates using the equity method under the equity method 
the group’s share of the posttax result of joint ventures and associates is reported as a single line item in the 
consolidated income statement the group’s interest in joint ventures and associates is carried in the consolidated 
balance sheet at cost plus postacquisition changes in the group’s share of net assets 
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 predominantly within the united kingdom 
revenue from a contract to provide services is recognised by reference to the stage of completion of the contract at 
the balance sheet date revenue from time and material contracts is recognised at the contractual rates as labour 
hours and tasks are delivered and direct expenses incurred in other cases where services provided reflect a 
contractual arrangement to deliver an indeterminate number of acts over the contract term revenue is recognised 
on a straightline basis unless this is not an accurate reflection of the work performed where a straightline basis is 
not appropriate for example if specific works on contracts represent a significant element of the whole revenue is 
recognised based on the percentage of completion method based on the proportion of costs incurred at the balance 
sheet date relative to the total estimated cost of completing the contracted work   mitie group plc  
annual report and accounts 2012
85
overview governance accounts business review

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 
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 
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 on a straightline basis over the noncancellable period for which the 
group has contracted to lease the asset together with any further terms for which the group has the option to continue 
to lease the asset if at the inception of the lease it is judged to be reasonably certain that the group will exercise 
the option 
foreign currency 
the financial statements of each of the group’s businesses are prepared in the functional currency applicable to that 
business transactions in currencies other than the functional currency 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  
nonmonetary 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 
on consolidation the assets and liabilities of the group’s overseas operations including goodwill and fair value 
adjustments arising on their acquisition are translated into sterling at exchange rates prevailing at the balance 
sheet date income and expenses are translated into sterling at average exchange rates for the period exchange 
differences arising are recognised directly in equity in the group’s hedging and translation reserve on disposal of a 
foreign operation the deferred cumulative amount recognised in equity relating to that particular foreign operation 
shall be recognised in the income statement   mitie group plc  
annual report and accounts 2012
86


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 based upon tax rates and legislation that have been enacted or substantively enacted at the balance 
sheet date 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 
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  mitie group plc  
annual report and accounts 2012
87
overview governance accounts business review

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 or 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 or 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 or cash
generating 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 fair value and subsequently 
at amortised cost appropriate allowances for estimated irrecoverable amounts are recognised 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 
financial liabilities comprise certain trade and other payables and financing liabilities including bank and other 
borrowings and are measured at initial recognition at fair value and subsequently at amortised cost with the exception 
of derivative financial instruments which are either classified as fair value through profit and loss or may be accounted 
for using hedge accounting bank and other borrowings are stated at the amount of the net proceeds after deduction 
of transaction 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 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs  mitie group plc  
annual report and accounts 2012
88


derivative financial instruments and hedge accounting 
the group uses derivative financial instruments including cross currency interest rate swaps and forward foreign 
exchange contracts to manage the group’s exposure to financial risks associated with interest rates and foreign 
exchange derivative financial instruments are initially recognised at fair value at the date the derivative contract is 
entered into and are subsequently remeasured to their fair value determined by reference to market rates at each 
balance sheet date and included as financial assets or liabilities as appropriate the resulting gain or loss is recognised 
in profit or loss immediately unless the derivative is designated and effective as a hedging instrument in which event 
the timing of the recognition in profit or loss depends on the nature of the hedge relationship  
the group may designate certain hedging instruments including derivatives as either fair value hedges cash flow 
hedges or hedges of net investments in foreign operations hedges of foreign exchange risk on firm commitments are 
accounted for as cash flow hedges at the inception of the hedge relationship the entity documents the relationship 
between the hedging instrument and the hedged item along with its risk management objectives and its strategy for 
undertaking various hedge transactions furthermore at the inception of the hedge and on an ongoing basis the 
group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting 
changes in fair values or cash flows of the hedged item 
fair value hedges 
hedges are classified as fair value hedges when they hedge the exposure to changes in the fair value of a recognised 
asset or liability changes in the fair value of derivatives that are designated and qualify as fair value hedges are 
recorded in profit or loss immediately together with any changes in the fair value of the hedged item that are 
attributable to the hedged risk the change in the fair value of the hedging instrument and the change in the hedged 
item attributable to the hedged risk are recognised in the line of the income statement relating to the hedged item 
hedge accounting is discontinued when the group revokes the hedging relationship the hedging instrument expires 
or is sold terminated exercised or no longer qualifies for hedge accounting the fair value adjustment to the carrying 
amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date 
cash flow hedges 
hedges are classified as cash flow hedges when they hedge the exposure to changes in cash flows that are 
attributable to a particular risk associated with either a recognised asset or liability or a forecast transaction the 
effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are 
recognised in other comprehensive income and accumulated in equity within the group’s translation and hedging 
reserve the gain or loss relating to any ineffective portion is recognised immediately in profit or loss  
amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or 
loss in the periods when the hedged item is recognised in profit or loss in the same line of the income statement as the 
recognised hedged item however when the forecast transaction that is hedged results in the recognition of a non
financial asset or a nonfinancial liability the gains and losses previously accumulated in equity are transferred from 
equity and included in the initial measurement of the cost of the nonfinancial asset or nonfinancial liability hedge 
accounting is discontinued when the group revokes the hedging relationship the hedging instrument expires or is sold 
terminated exercised or no longer qualifies for hedge accounting any gain or loss recognised in other comprehensive 
income at that time is accumulated in equity and is recognised when the forecast transaction is ultimately recognised 
in profit or loss when a forecast transaction is no longer expected to occur the gain or loss accumulated in equity is 
recognised immediately in profit or loss 
hedges of net investments in foreign operations 
hedges are classified as net investment hedges when they hedge the foreign currency exposure to changes in the 
group’s share in the net assets of a foreign operation hedges of net investments in foreign operations are accounted 
for similarly to cash flow hedges any gain or loss on the hedging instrument relating to the effective portion of the 
hedge is recognised in other comprehensive income and accumulated in the group’s translation and hedging reserve 
the gain or loss relating to any ineffective portion is recognised immediately in profit or loss gains or losses on the 
hedging instrument relating to the effective portion of the hedge accumulated in equity are reclassified to profit 
or loss in the same way as exchange differences relating to the foreign operation as described above   mitie group plc  
annual report and accounts 2012
89
overview governance accounts business review

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 
bid mobilisation and precontract costs 
rendering of services 
all bid costs are expensed through the income statement up to the point where contract award or full recovery of the 
costs is virtually certain 
the confirmation of the preferred bidder for a contract by a client is the point at which the award of a contract is 
considered to be virtually certain costs incurred after that point but before the commencement of services under the 
contract are defined as mobilisation costs these costs are capitalised and included within trade and other receivables 
on the balance sheet provided that the costs relate directly to the contract are separately identifiable can be 
measured reliably and that the future net cash inflows from the contract are estimated to be no less than the amounts 
capitalised  
the capitalised mobilisation costs are amortised over the life of the contract generally on a straightline basis or on a 
basis to reflect the profile of work to be performed over the life of the contract if the straightline basis is not considered 
to be appropriate for the specific contract to which the costs relate if the contract becomes loss making any 
unamortised costs are written off immediately 
construction contracts 
in the case of construction contracts precontract costs that are direct costs associated with securing a contract and 
which can be separately identified and measured reliably are included in the cost of the contract when the realisation 
of income from the contract is virtually certain their treatment is as for mobilisation costs above  
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 save as you earn saye options are treated as cancelled when employees cease to contribute 
to the scheme resulting in an acceleration of the remainder of the related expense 
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  mitie group plc  
annual report and accounts 2012
90


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 
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 
measurement and impairment of intangible assets 
the measurement of intangible assets other than goodwill on a business combination involves estimation of future 
cash flows and the selection of suitable discount rates determining whether goodwill and other intangible assets 
are impaired requires an estimation of the value in use of the cashgenerating units to which the 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 
and other intangible assets is £4135m 2011 £3977m at the balance sheet date see notes 13 and 14 management 
do not consider that any reasonably foreseeable change in the key assumptions would result in an impairment 
measurement of provisions and defined benefit pension obligations  
the group’s provisions per note 30 comprise deferred contingent consideration and insurance reserve 
the measurement of provisions and defined benefit obligations requires judgement in particular 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 £1485m 2011 £1268m see note 37  
the sensitivity of defined benefit pension obligations to changes in principal actuarial assumptions is shown below 
 
 
 
change in 
assumption 
increase
decrease 
in liability 
£m
discount rate 05 121
 –05 162
retail price inflation 05 58
 –05 30
consumer price inflation 05 30
 –05 30
salary increases 05 35
 –05 28
mortality rate 1 year 42
 mitie group plc  
annual report and accounts 2012
91
overview governance accounts business review
 

 
2012
£m
2011
£m
rendering of services 17664 16545
construction contracts  2361 2369
total revenue as disclosed in the consolidated income statement 20025 18914
investment revenue note 8 04 04
total revenue as defined in ias 18 20029 18918

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 
  2012 2011
 
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 9373 619 66 605 8822 562  64 526 
technical facilities 
management 4728 269 57 155 4371 246  56 155 
property 
management 5243 202 39 160 5097 214  42 130 
asset management 681 27 40 25 624 20  32 16 
 200251117 56945 18914 1042  55 827 
amendment to 
defined benefit 
pension scheme 
past service cost 
note 37 – – –– – 41  – 41 
total 200251117 56945 18914 1083  57 868 
 other items are analysed in note 5 
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 2012 or 2011 
the improvement to ifrs 8 issued in april 2009 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 
  2012 2011
 
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
united kingdom 19538 1099 56 931 18664 1073 57 861
other countries 487 18 37 14 250 10 40 07
total 200251117 56945 18914 1083 57 868
 other items are analysed in note 5  mitie group plc  
annual report and accounts 2012
92


the group separately identified and disclosed restructuring and acquisition related items termed ‘other items’  
 
2012 
£m 
2011
£m
administrative expenses  
restructuring costs relating to integration of dalkia fm eps ltd and dalkia fm in ireland – 48
restructuring costs of property management businesses – 48
acquisition costs 18 03
deferred consideration not paid 09 –
amortisation of acquisition related intangibles 91 89
 100 188
finance costs  
unwinding of discount on deferred contingent consideration – 01
other items before tax 100 189
tax on other items 25 50
other items net of tax 75 139

operating profit has been arrived at after chargingcrediting 
 
2012 
£m 
2011
£m
depreciation of property plant and equipment note 15 188 179
amortisation of intangible assets note 14 111 108
lossgain on disposal of property plant and equipment 01 01
staff costs note 7 9360 9225
a detailed analysis of auditor’s remuneration is provided below 
 
2012 
£’000 
2011
£’000
fees payable to the company’s auditor for the audit of the company’s annual accounts 33 50
fees payable to the company’s auditor and its associates for the audit of the company’s 
subsidiaries pursuant to legislation 396 625
other audit related services to the group – 10
total audit fees 429 685
 
tax services 161 142
corporate finance services 92 –
other services 20 261
nonaudit fees 273 403
  
total 702 1088
in addition to the amounts shown above the auditor received fees of £17000 2011 £19000 for the audit of the group 
pension scheme and trusts  mitie group plc  
annual report and accounts 2012
93
overview governance accounts business review
 

number of people 2012 2011
the average number of people employed during the financial year was 
facilities management 54503 50130
technical facilities management 4632 4682
property management 3672 3877
asset management 123 171
total group 62930 58860
the number of people employed at 31 march was 
total group 63569 61906
 
their aggregate remuneration comprised 
2012
£m
2011
£m
wages and salaries 8524 8428
social security costs 703 690
other pension costs 104 74
sharebased payments note 36 29 33
 9360 9225
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 

 
2012
£m
2011
£m
interest on bank deposits 04 02
other interest receivable  – 02
 
04 04

 
2012
£m
2011
£m
interest on bank loans 20 17
interest on private placement 37 11
facility fees 15 03
interest on obligations under finance leases 04 03
gainloss arising on derivatives in a designated fair value hedge 28 27
lossgain arising on adjustment for the hedged item in a designated fair value hedge 30 29
fair value movement on other derivative financial instruments – 01
unwinding of discount on deferred contingent consideration – 01
total interest expense 78 34
less amounts included in the cost of qualifying assets 02 03
 76 31
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 27 2011 14 to expenditure on such assets  mitie group plc  
annual report and accounts 2012
94


 
2012 
£m 
2011
£m
current tax 215 157
deferred tax note 23 09 57
 224 214
corporation tax is calculated at 260 2011 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 
 
2012 
£m 
2011
£m
profit before tax 945 868
tax at the uk corporation tax rate of 260 2011 280 246 243
  
nontaxable items 03 08
impact of changes in statutory tax rates 06 05
overseas tax rates 02 –
prior year adjustments 11 32
tax charge for the year 224 214
in addition to the amount charged to the consolidated income statement tax relating to retirement benefit costs 
and hedged items amounting to £39m has been credited directly to the statement of comprehensive income 
2011 charge of £01m and £10m 2011 £nil relating to sharebased payments has been credited directly to equity 

 
2012 
£m 
2011
£m
amounts recognised as distributions to equity holders in the year  
final dividend for the year ended 31 march 2011 of 49p 2010 41p per share 171 145
interim dividend for the year ended 31 march 2012 of 44p 2011 41p per share 155 144
 326 289
  
proposed final dividend for the year ended 31 march 2012 of 52p 2011 49p per share 184 175
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 2012
95
overview governance accounts business review

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 
 
2012
£m
2011
£m
net profit attributable to equity holders of the parent before other items

 794 791
other items net of tax

 75 139
net profit attributable to equity holders of the parent 719 652
 
number of shares 
2012
million
2011
million
weighted average number of ordinary shares for the purpose of basic eps 3515 3505
effect of dilutive potential ordinary shares share options 90 64
weighted average number of ordinary shares for the purpose of diluted eps 3605 3569
 
 
2012
p
2011
p
basic earnings per share – before other items

 226 226
basic earnings per share  205 186
diluted earnings per share – before other items

 220 222
diluted earnings per share  199 183
 other items are analysed in note 5 
the weighted average number of ordinary shares in issue during the year excludes those accounted for in the own 
shares reserve see note 32 
  mitie group plc  
annual report and accounts 2012
96


 £m
cost 
at 1 april 2010 3240
acquisition of subsidiaries 116
impact of foreign exchange 04
change in deferred contingent consideration for subsidiaries acquired prior to 31 march 2010 30
at 1 april 2011 3330
acquisition of subsidiaries 149
impact of foreign exchange  04
change in deferred contingent consideration for subsidiaries acquired prior to 31 march 2010 02
at 31 march 2012 3477
accumulated impairment losses 
at 1 april 2010 –
at 1 april 2011 –
at 31 march 2012 –
carrying amount 
at 31 march 2012 3477
at 31 march 2011 3330
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 which align with 
the business segments as this is how goodwill is monitored by the group internally  
cost 
2012 
£m 
2011
£m 
facilities management 1616 1600
technical facilities management 955 827
property management 861 858
asset management 45 45
 3477 3330
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 one year financial budgets approved by the 
board extrapolated for four future years by a growth rate applicable to each unit with a terminal value using a 2 
inflationary growth rate assumption  
the pretax rates used to discount the forecast cash flows from cgus range from 85 to 90 2011 95 to 100 and 
are derived from the company’s posttax weighted average cost of capital which was 70 2011 80 at 31 march 
2012 and adjusted for the risks specific to the market in which the cgu operates all cgus have the same access to 
the group’s treasury functions and borrowing lines to fund their operations 
no reasonably foreseeable change in the key assumptions would result in an impairment of the goodwill of any 
of the cgus  
  mitie group plc  
annual report and accounts 2012
97
overview governance accounts business review

acquisition related 
 
customer 
relationships
£m
other
£m
total 
acquisition 
related 
£m 
software and 
development 
expenditure
£m
total
£m
cost  
at 1 april 2010 482 89 571 219 790
additions 2406 30 50 80
impact of foreign exchange 01 – 01 – 01
at 1 april 2011 507 95 602 269 871
additions 3610 46 77 123
impact of foreign exchange 01 – 01 – 01
at 31 march 2012 542 105 647 346 993
  
amortisation  
at 1 april 2010 99 10 109 07 116
charge for the year 66 23 89 19 108
at 1 april 2011 165 33 198 26 224
charge for the year 67 24 91 20 111
at 31 march 2012 232 57 289 46 335
  
carrying amount  
at 31 march 2012 310 48 358 300 658
at 31 march 2011 342 62 404 243 647
customer relationships are amortised over their useful lives based on the period of time over which they are 
anticipated to generate benefits these currently range from six to eight years other acquisition related intangibles 
include acquired software trade names and noncompete agreements 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 2012
98


 
freehold 
properties
£m
leasehold 
properties 
£m 
plant and 
vehicles 
£m 
total
£m
cost    
at 1 april 2010 51 85 836 972
additions – 61 195 256
acquired with subsidiaries – 17 17 –
disposals 03 06 118 127
at 1 april 2011 48 157 896 1101
additions – 05 248 253
transfers – 01 01 –
acquired with subsidiaries – – 01 01
disposals – 01 91 92
at 31 march 2012 48 160 1055 1263
   
accumulated depreciation and impairment   
at 1 april 2010 08 37 382 427
charge for the year 01 13 165 179
transfers – 11 11 –
disposals 01 05 92 98
at 1 april 2011 08 56 444 508
charge for the year 01 13 174 188
disposals – 01 73 74
at 31 march 2012 09 68 545 622
   
carrying amount   
at 31 march 2012 39 92 510 641
at 31 march 2011 40 101 452 593
the net book value of plant and vehicles held under finance leases included above was £97m 2011 £92m 
additions to fixtures and equipment during the year amounting to £36m 2011 £46m were financed by new 
finance leases 

 
2012 
£m 
2011
£m
workinprogress 40 41
materials 17 14
 57 55
 mitie group plc  
annual report and accounts 2012
99
overview governance accounts business review

the group’s interests in joint ventures and associates are accounted for in the consolidated financial statements using 
the equity method  
the group’s share of net assets of joint ventures and associates as at 31 march 2012 is as follows 
 
2012
£m
2011
£m
noncurrent assets 36 –
current assets 04 –
current liabilities 04 –
noncurrent liabilities 32 –
interest in joint ventures and associates 04 –
the group’s share of result of joint ventures and associates included in the consolidated income statement was £nil 
2011 £nil  

 
2012
£m
2011
£m
trade receivables note 19 2825 3035
amounts recoverable on contracts note 20  1142 943
other debtors note 19 154 141
financing assets note 21 91 –
cash and cash equivalents note 22 608 1306
 4820 5425
 
included in current assets 4543 5309
included in noncurrent assets 277 116
 4820 5425
with the exception of derivative financial instruments 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 2012
100


 
2012 
£m 
2011
£m
amounts receivable for the sale of services 2878 3104
allowance for doubtful debt 53 69
trade receivables 2825 3035
  
amounts recoverable on contracts note 20  1142 943
other debtors 154 141
prepayments and accrued income 1176 698
 5297 4817
  
included in current assets 5071 4701
included in noncurrent assets 226 116
 5297 4817
ageing of trade receivables 
 
2012 
£m 
2011
£m
neither impaired nor past due 2106 2198
not impaired and less than three months overdue 509 675
not impaired and more than three months overdue 226 169
impaired receivables 37 62
allowance for doubtful debt 53 69
 2825 3035
movement in the allowance for doubtful debt 
 
2012 
£m 
2011
£m
balance at the beginning of the year 69 107
impairment losses recognised 17 10
amounts written off as uncollectable 20 19
amounts recovered during the year 13 29
 53 69
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 35 days 2011 40 days 
the directors consider that the carrying amount of trade and other receivables approximates their fair value  mitie group plc  
annual report and accounts 2012
101
overview governance accounts business review

 
contracts in progress at the balance sheet date 
2012
£m
2011
£m
amounts due from contract customers included in trade and other receivables 1142 943
amounts due to contract customers included in trade and other payables – –
 1142 943
 
contract costs incurred plus recognised profits less recognised losses to date 7706 7213
less progress billings 6564 6270
 1142 943
 
included in current assets 956 827
included in noncurrent assets 186 116
 1142 943
 
at 31 march 2012 retentions held by customers for contract work amounted to £156m 2011 £158m  
included within amounts recoverable on contracts are mobilisation costs as detailed below 
mobilisation costs 
2012
£m
2011
£m
at 1 april  154 55
additions 120 125
amounts recognised in the income statement 64 26
at 31 march 210
 
included in current assets 73 46
included in noncurrent assets 137 108
 210 154

 
2012
£m
2011
£m
derivative financial instruments note 27 07 –
loans to joint ventures and associates 16 –
infrastructure assets 68 –
 91 –
 
included in current assets – –
included in noncurrent assets 91 –
 91 –
 154 mitie group plc  
annual report and accounts 2012
102


 
2012 
£m 
2011
£m
cash and cash equivalents 608 1306
 608 1306
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  
at 31 march 2012 £65m 2011 £70m of cash and cash equivalents were held in foreign currencies 
included in cash and cash equivalents are deposits totalling £76m 2011 £91m 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  
creditratings assigned by recognised international creditrating agencies and are managed through regular review 

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
intangible 
assets acquired
£m
share options
£m
shortterm 
timing 
differences 
£m 
tax losses 
£m 
total
£m
at 1 april 2010 02 21 130 17 88 16 10
chargecredit to income 08 18 32 03 57 03 57
creditcharge to equity and 
the statement of comprehensive 
income – 01–0201 – –
acquisition of subsidiaries  – – 08 – 13 – 05
reallocation – 04––04– –
at 1 april 2011 10 08 106 12 41 13 42
chargecredit to income 10 05 31 03 29 01 09
credit to equity and the 
statement of comprehensive 
income – 39 – 05 – – 44
acquisition of subsidiaries  – – 10 – – 06 04
at 31 march 2012 20 42 85 20 12 20 11
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 
 
2012 
£m 
2011
£m
deferred tax assets 96 91
deferred tax liabilities 107 133
net deferred tax liability 11 42
the group has unutilised income tax losses of £82m 2011 £50m that are available for offset against future profits 
in addition the group has £04m 2011 £04m of capital losses  
the uk government announced a reduction in the uk corporation tax rate from 26 to 24 from 1 april 2012 which 
was substantively enacted on 26 march 2012 the reduction in the balance sheet carrying value of deferred tax assets 
and liabilities to reflect the rate of tax at which those assets are expected to reverse has resulted in a deferred tax credit 
of £06m to the income statement the uk government has indicated that it intends to enact further reductions in the 
main tax rate of 1 each year down to 22 by 1 april 2014 future rate reductions would further reduce the uk deferred 
tax assets and liabilities recognised but the actual impact will be dependent on the deferred tax position at the time   mitie group plc  
annual report and accounts 2012
103
overview governance accounts business review

 
2012
£m
2011
£m
trade creditors 2189 2123
other creditors 215 162
accruals and deferred income 1535 1331
financing liabilities note 26 1684 2074
 5623 5690
 
included in current liabilities 3993 3642
included in noncurrent liabilities 1630 2048
 5623 5690
with the exception of derivative financial instruments and the private placement notes all financial liabilities are held 
at amortised cost the directors estimate that their carrying value approximates their fair value derivative financial 
instruments which are included in financing liabilities are initially recognised at fair value at the date the contract is 
entered into and are subsequently remeasured to their fair value through profit or loss unless they are designated as 
hedges for which hedge accounting can be applied see note 27 the carrying value of the private placement notes 
at 31 march 2012 includes a fair value adjustment for interest rate and currency risk of £08m 2011 £21m the fair 
value of the private placement notes is not significantly different from their carrying value 

 
2012
£m
2011
£m
payments received on account 25 31
trade creditors 2189 2123
other taxes and social security 650 682
other creditors 215 162
accruals and deferred income 1535 1331
 4614 4329
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 35 days 2011 36 days  
the directors consider that the carrying amount of trade and other payables approximates their fair value  mitie group plc  
annual report and accounts 2012
104


 
2012 
£m 
2011
£m
bank loans 566 968
private placement notes  1008 976
loan notes 16 16
derivative financial instruments 07 32
obligations under finance leases note 28 87 82
 1684 2074
  
included in current liabilities 54 26
included in noncurrent liabilities 1630 2048
 1684 2074
the banking facilities and private placement notes are unsecured but have financial and nonfinancial covenants 
and obligations commonly associated with these arrangements  
included in current liabilities are £38m 2011 £24m of obligations under finance leases see note 28 £nil 2011 £02m 
of derivative financial instruments see note 27 and £16m 2011 £nil of loan notes 
included in bank loans are £166m 2011 £118m of loans denominated in foreign currency 
private placement notes 
on 16 december 2010 the group issued us960m and £400m of private placement ‘pp’ notes in the united states 
private placement market the pp notes are unsecured and rank pari passu with other senior unsecured indebtedness 
of the group in order to manage the risk of foreign currency fluctuations and to manage the group’s finance costs 
through a mix of fixed and variable rate debt the group has entered into cross currency interest rate swaps the swap 
contracts have the same duration and other critical terms as the borrowings and are considered to be highly effective 
the amount maturity and interest terms of the pp notes are as shown below 
tranche maturity date amount interest terms swap interest
7 year 18 december 2017 us48m us fixed at 339 £ fixed at 388
7 year 18 december 2017 us48m us fixed at 339 £ libor  126
9 year 18 december 2019 £400m £ fixed at 438 na
the weighted average interest rates paid during the year on the overdrafts and loans outstanding were as follows 
 
2012 
 
2011

overdrafts 19 19
bank loans 18 10
private placement notes 36 36
loan notes – –
at 31 march 2012 the group had available £1934m 2011 £1323m of undrawn committed borrowing facilities in 
respect of which all conditions precedent had been met the facilities have an expiry date of 2015 the loans carry 
interest rates which are currently determined at 13 over libor details of the group’s contingent liabilities are 
provided in note 34   mitie group plc  
annual report and accounts 2012
105
overview governance accounts business review

the group’s treasury function monitors and manages the financial risks relating to the operations of the group 
these risks include interest rate risk foreign currency risk liquidity risk and credit risk the group seeks to minimise 
the effects of these risks by using derivative financial instruments to hedge these risk exposures the use of financial 
derivatives is governed by group policies and reviewed regularly group policy is not to trade in financial instruments 
hedging activities 
cash flow hedges 
the group holds a number of cross currency interest rate swaps designated as cash flow hedges biannual fixed interest 
cash flows arising over the periods to december 2017 and denominated in us from the us private placement market 
are exchanged for fixed interest cash flows denominated in sterling the group also holds a number of forward 
exchange currency contracts designated as hedges of highly probable forecast transactions all cash flow hedges 
were assessed as being highly effective as at 31 march 2012 
fair value hedges 
the group holds a number of cross currency interest rate swaps designated as fair value hedges fixed interest 
cash flows denominated in us from the us private placement market are exchanged for floating interest cash 
flows denominated in sterling all fair value hedges were assessed as being highly effective as at 31 march 2012 
hedge of net investment in foreign operations 
included in bank loans at 31 march 2012 was a borrowing of €95m 2011 €95m which has been designated as 
a hedge of the net investment in the republic of ireland business of dalkia fm in ireland and is being used to hedge 
the group’s exposure to foreign exchange risk on this investment gains or losses on the translation of the borrowing 
are transferred to equity to offset gains or losses on the translation of the net investment 
derivative financial instruments 
the carrying values of derivative financial instruments at the balance sheet date were as follows 
 
derivative financial instruments are measured at fair value fair values of derivative financial instruments are calculated 
based on a discounted cash flow analysis using appropriate market information for the duration of the instruments 
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 
the cross currency interest rate swaps are net settled and other contracts are gross settled 
 
assets
2012 
£m
assets  
2011  
£m 
liabilities
2012
£m
liabilities
2011 
£m
cross currency interest rate swaps designated  
as cash flow hedges – – 07 08
cross currency interest rate swaps designated  
as fair value hedges 07 – – 21
derivative financial instruments hedging private placement notes 07 – 07 29
callable interest rate swaps – – – 02
forward foreign exchange contracts – – – 01
 07 – 07 32
included in current assetsliabilities – – – 02
included in noncurrent assetsliabilities 07 – 07 30
 07 – 07 32 mitie group plc  
annual report and accounts 2012
106


foreign currency risk 
the group has limited exposure to transactional foreign currency risk from trading transactions in currencies other than 
the functional currency of individual group entities the group considers the need to hedge its exposures appropriately 
and will enter into forward foreign exchange contracts to mitigate any significant risks 
the group has some exposure to translational foreign currency risk from the translation of its operations in the republic 
of ireland and other european territories the group considers the need to hedge its exposures appropriately  
in addition on 16 december 2010 the group issued us960m and £400m of private placement ‘pp’ notes in the 
united states private placement market and this has been fully hedged into sterling using cross currency interest rate 
swaps see note 26 
interest rate 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 having issued us960m and £400m of private placement ‘pp’ notes in the united states 
private placement fixed rate market on 16 december 2010 the group has swapped us48m into floating rate debt 
see note 26 
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 2012 and reserves would decreaseincrease by £05m 2011 £06m  
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 cash and cash equivalents 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 
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 details of our bank facilities can be found in 
note 26 
the tables below summarise the maturity profile including both undiscounted interest and principal cash flows of the 
group’s financial liabilities  
at 31 march 2012 
within
one year 
£m
in the second 
to fifth years 
£m 
after  
five years 
£m 
total
£m
trade creditors 2189 – – 2189
other creditors 215 – – 215
accruals and deferred income 1535 – – 1535
financing liabilities 86 834 1067 1987
financial liabilities 4025 834 1067 5926
 
at 31 march 2011 
within
one year 
£m
in the second 
to fifth years 
£m 
after 
five years 
£m 
total
£m
trade creditors 2123 – – 2123
other creditors 162 – – 162
accruals and deferred income 1331 – – 1331
financing liabilities 61 1228 1080 2369
financial liabilities 3677 1228 1080 5985 mitie group plc  
annual report and accounts 2012
107
overview governance accounts business review

all financial liabilities other than financing liabilities are interest free details of financing liabilities are given in note 26 
all financial assets are recoverable within one year except for those disclosed as noncurrent in note 18 
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 
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 debt per note 29 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 which is monitored 
on a regular basis 

minimum lease payments  present value of lease payments
2012
£m
2011 
£m  
2012
£m
2011
£m
amounts payable under finance leases   
within one year 40 27  38 24
in the second to fifth years inclusive 54 62  49 57
after five years – 01  – 01
 94 90  87 82
less future finance charges 07 08 – –
present value of lease obligations 87 82  87 82
less amount due for settlement within 12 months  38 24 38 24
amount due for settlement after 12 months 49 58  49 58
the average remaining lease term is 31 months 2011 38 months for the year ended 31 march 2012 the average 
effective borrowing rate was 31 2011 29 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 

 
2012
£m
2011
£m
cash and cash equivalents note 22 608 1306
bank loans note 26 566 968
private placement notes note 26 1008 976
derivative financial instruments hedging private placement notes note 27 – 29
net debt before loan notes and obligations under finance leases 966 667
loan notes note 26 16 16
obligations under finance leases note 28 87 82
net debt 1069 765 mitie group plc  
annual report and accounts 2012
108


 
deferred 
contingent 
consideration 
£m 
 
insurance  
reserve 
£m 
total
£m
at 1 april 2011 45 82 127
amounts recognised in the income statement  09 11 20
deferred contingent consideration settled during the period 38 – 38
utilised within the captive insurance subsidiary – 27 27
amounts recognised through goodwill 14 – 14
at 31 march 2012 12 44 56
   
included in current liabilities   12
included in noncurrent liabilities   44
   56
 
 
deferred 
contingent 
consideration 
£m 
 
insurance  
reserve 
£m 
total
£m
at 1 april 2010 129 82 211
amounts recognised in the income statement  01 25 26
deferred contingent consideration settled during the period 81 – 81
utilised within the captive insurance subsidiary – 25 25
amounts recognised through goodwill 04– 04
at 31 march 2011 45 82 127
   
included in current liabilities   45
included in noncurrent liabilities   82
   127
during the year deferred contingent consideration of £29m in respect of the acquisition in 2008 of mitie tilley roofing 
limited formerly d w tilley limited was settled in cash due to attainment of profit targets this was £02m higher than 
the amount provided for at 31 march 2011 due to better than expected performance 
during the year deferred contingent consideration of £09m in respect of the acquisition in 2010 of dalkia fm in ireland 
was settled in cash due to attainment of certain targets the remaining £09m of deferred contingent consideration 
was not payable and was recognised in the income statement in accordance with ifrs 3 revised 2008 
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  mitie group plc  
annual report and accounts 2012
109
overview governance accounts business review

ordinary shares of 25p 
number 
million £m
allotted and fully paid 
  
at 1 april 2011 3578 89
issued for acquisitions 53 01
issued under share option schemes 42 01
share buybacks 54 01
at 31 march 2012 3619 90
   
at 1 april 2010 3532 88
issued for acquisitions 30 01
issued under share option schemes 16 –
at 31 march 2011 3578 89
during the year 53m 2011 30m ordinary shares of 25p were allotted in respect of the acquisition of noncontrolling 
interests at a midmarket price of 2387p 2011 2092p giving rise to share premium of £40m 2011 £16m and a 
merger reserve of £85m 2011 £48m 
during the year 42m 2011 16m ordinary shares of 25p were allotted in respect of share option schemes at a price 
between 117p and 254p 2011 117p and 226p giving rise to share premium of £79m 2011 £23m 
during the period 54m ordinary shares of 25p were purchased at market prices between 2086p and 2559p these 
were then cancelled  mitie group plc  
annual report and accounts 2012
110


share premium account 
the share premium account represents the premium arising on the issue of equity shares see note 31 
merger reserve 
the merger reserve represents amounts relating to premiums arising on shares issued subject to the provisions 
of section 612 of the companies act 2006 see note 31 
sharebased payment reserve 
the sharebased payment reserve represents credits relating to equitysettled sharebased payment transactions 
granted after 7 november 2002 that have not yet fully vested see note 36 
own shares reserve 
the group uses shares held in the employee benefit trust to satisfy options under the group’s ltip and sip share option 
schemes during the year 31m shares 2011 26m were purchased at a cost of £74m 2011 £57m the own shares 
reserve at 31 march 2012 represents the cost of 78m 2011 59m shares in mitie group plc with a weighted average 
of 79m 2011 53m shares during the year 
other reserves 
other reserves are comprised of the revaluation reserve of £02m 2011 £02m the capital redemption reserve 
of £04m 2011 £03m and other reserves of £01m 2011 £01m the movement on the capital redemption reserve 
relates to the share buybacks that were performed during the year see note 31 
hedging and translation reserve 
the hedging and translation reserve represents foreign exchange differences arising on translation of the group’s 
overseas operations movements relating to cash flow hedges and movements on net investment hedges 

during the year a net cash outflow of £239m arose on the acquisitions set out below 
 £m
utilyx holdings limited 145
direct enquiries holdings limited  02
acquisition costs 18
noncontrolling interests 20
deferred consideration 38
service management international limited 13
other 03
net cash outflow on acquisitions 239
  mitie group plc  
annual report and accounts 2012
111
overview governance accounts business review

current year acquisitions 
purchase of utilyx holdings limited 
on 10 january 2012 mitie acquired 100 of utilyx holdings limited for total consideration of up to £164m 
the transaction has been accounted for by the acquisition method of accounting in accordance with ifrs 3 2008 
below we provide provisional information on the acquisition 
 
book value 
£m 
fair value 
adjustments
£m
fair value
£m
net assets acquired  
intangible assets – 46 46
deferred tax assetliability 02 07 05
trade and other receivables 31 04 27
cash and cash equivalents 07 – 07
trade and other payables 27 12 39
net assets acquired 13 23 36
 
goodwill 128
total consideration 164
 
satisfied by 
 
cash 152
deferred contingent consideration 12
total consideration 164
  
net cash outflow arising on acquisition 
 
cash consideration 152
cash and cash equivalents acquired 07
net cash outflow 145
the goodwill arising on the acquisition of utilyx holdings limited is attributable to the underlying profitability of the 
companies in the acquired group expected profitability arising from new business and the anticipated future operating 
synergies arising from assimilation into mitie none of the goodwill recognised is expected to be deductible for income 
tax purposes 
provision is made for deferred contingent consideration at the directors’ best estimate of the likely future obligation 
deferred contingent consideration of up to £12m which may become payable before january 2013 subject to certain 
profit and other targets being attained is included above 
 mitie group plc  
annual report and accounts 2012
112


purchase of service management international limited 
during the period the group increased its stake in service management international limited from 50 to 100 for total 
cash consideration of £15m which resulted in goodwill of £18m  
purchase of direct enquiries holdings limited 
during the period the group purchased 51 of the share capital of direct enquiries holdings limited for cash 
consideration of £02m which resulted in goodwill of £03m there are further options to buy the remaining equity 
for cash up to a maximum of £83m depending on the financial performance over a five year period  
purchase of noncontrolling interests 
 
mitie
cleaning 
services ltd
£m
mitie 
engineering 
maintenance 
caledonia ltd
£m
mitie 
landscapes
 ltd
£m
mitie property 
services 
uk ltd 
£m
mitie 
transport 
services ltd 
£m 
total
£m
shares issued – mitie group plc 19 – – 92 15 126
cash consideration 03 – 11 05 01 20
total purchase consideration 22 – 11 97 16 146
   
noncontrolling interests 02 – 03 27 02 34
retained earnings 20 –08 70 14 112
total recognised in equity 22 – 11 97 16 146
 as disclosed in the halfyearly report for the six months to 30 september 2011 the purchase of 40000 b ordinary shares in the capital of mitie property services uk 
limited from kenneth robson a relative of bill robson a director of mitie was approved for the purposes of section 190 of the companies act 2006 by mitie 
shareholders at a general meeting on 10 november 2011 the acquisition was not reflected in the results to 30 september 2011 as approval was not obtained until 
after the period end but it has been included in the results to 31 march 2012 and is therefore included in the above disclosure 
the adoption of ias 27 ‘consolidated and separate financial statements’ revised 2008 in the year ended 31 march 
2011 has resulted in the difference between the change in noncontrolling interests and the consideration paid being 
recognised in retained earnings prior to adoption of the revised standard this amount was recognised in goodwill 
acquisition related costs included within other items note 5 amounted to £18m 
entities acquired during the year contributed £27m to revenue and £01m to the group’s operating profit before other 
items for the period if the acquisitions had taken place at the start of the period the group’s revenue and operating 
profit before other items would have been approximately £2011m and £112m respectively  
  mitie group plc  
annual report and accounts 2012
113
overview governance accounts business review

prior year acquisitions 
purchase of fm business of dalkia in ireland 
on 25 june 2010 mitie acquired 100 of dfm providers limited subsequently renamed mitie facilities management 
limited and dalkia energy and facilities limited subsequently renamed mitie limited together dalkia fm in ireland 
for total consideration of up to €125m the transaction has been accounted for by the acquisition method of 
accounting in accordance with ifrs 3 2008 below we provide final information on the acquisition the fair value of net 
assets acquired has not changed since the provisional information presented in the annual report and accounts 2011 
book value 
 £m 
fair value 
adjustments 
£m
fair value 
£m 
net assets acquired  
intangible assets 88 58 30
deferred tax liabilityasset 11 04 07
trade and other receivables 54 04 50
cash and cash equivalents 15 – 15
trade and other payables 49 08 57
current tax liability 02 – 02
net assets acquired 95 66 29
  
goodwill  77
total consideration  106
during the year deferred contingent consideration of £09m in respect of the acquisition of dalkia fm in ireland was 
settled in cash due to attainment of certain targets the remaining £09m of deferred contingent consideration was not 
payable and was recognised in the income statement in accordance with ifrs 3 revised 2008 

the company is party with other group companies to cross guarantees of each other’s bank and other borrowings 
commitments and overdrafts of £3908m 2011 £3680m 
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 £12m 2011 £45m per note 30 the actual amounts payable may vary up to a maximum of £12m 
2011 £69m 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 £332m 2011 £349m in the ordinary course of business these are 
not expected to result in any material financial loss 
 mitie group plc  
annual report and accounts 2012
114


the group as lessee 
 
2012 
£m 
2011
£m
minimum lease payments under operating leases recognised in income for the year 132 101
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 
 
2012 
£m 
2011
£m
within one year 117 99
in the second to fifth years inclusive 225 175
after five years 47 55
 389 329
operating lease payments represent rentals payable by the group for certain of its office properties and hire of vehicles 
and other equipment these leases have average durations ranging from three to ten years no arrangements have 
been entered into for contingent rental 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 based on growth in earnings per 
share over a threeyear period 
the group also awards performancerelated bonuses for executive directors which are deferred in shares and are 
accounted for as a sharebased payment charge 
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 a performance condition must be satisfied the performance condition is 
linked to the percentage growth in earnings per share over a threeyear period 
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 
the share incentive plan sip 
the sip was introduced in 2011 and is a nondiscretionary scheme open to all eligible uk resident employees under the 
scheme eligible employees are invited to invest in partnership shares which are purchased in the market on their behalf 
and held in a uk employee benefit trust one matching share is awarded for every ten partnership shares purchased 
and have a holding period of three years matching shares are funded by way of market purchases   mitie group plc  
annual report and accounts 2012
115
overview governance accounts business review
 

details of the share options outstanding during the year are as follows 
2012  2011
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  225 152  181 162
granted during the year 61 111  80 140
forfeited during the year 19 188  20 194
exercised during the year 55 146  16 151
outstanding at the end of the year 212 139  225 152
   
exercisable at the end of the year 33 196  30 202
 included within this balance are 01m 2011 02m 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 
 
2012
£m
2011
£m
long term incentive plan share options 14 16
executive share options 09 09
saye share options 06 08
 29 33
the weighted average share price at the date of exercise for share options exercised during the year was 243p 
2011 206p the options outstanding at 31 march 2012 had exercise prices other than nil in the case of the ltip 
ranging from 117p – 254p 2011 117p – 254p and a weighted average remaining contractual life of 46 years 
2011 44 years in the year ended 31 march 2012 options were granted in august 2011 in respect of the ltip and 
executive share option schemes the aggregate of the estimated fair values of the options granted on those dates 
was £61m in the year ended 31 march 2011 options were granted in june july and august 2010 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 was £44m 
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are 
as follows 
 2012 2011
share price p 191–243 191–230
exercise price p 0–254 0–254
expected volatility  28–36 28–36
expected life years 3–6 3–6
riskfree rate  148–525 149–525
expected dividends  222–410 222–393
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  
nontransferability exercise restrictions and behavioural considerations 
  mitie group plc  
annual report and accounts 2012
116


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 £79m 2011 £81m during the year as at 31 march 2012 contributions of £06m 
2011 £05m due in respect of the current reporting period had not been paid over to the schemes 
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  
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 scheme 
is a funded scheme 
the most recent actuarial valuation of the group scheme’s assets and the present value of their defined benefit 
obligations was carried out as at 1 april 2011 by chris vaughanwilliams fellow of the institute of actuaries from 
aon hewitt limited the next triennial valuation is due as at 1 april 2014 
other defined benefit schemes 
grouped together under ‘other schemes’ is one 2011 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 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 is 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 
assumptions 
in the prior year the uk government has announced that it will use the consumer price index cpi measure of inflation 
rather than the retail price index rpi to determine the level of future statutory pension increases this was treated as a 
change in defined pension benefits and recognised as a negative past service cost a credit of £41m was recognised 
in the income statement for the year ended 31 march 2011 
group scheme  other schemes
2012

2011 
  
2012 
 
2011

key assumptions used for ias 19 valuation    
discount rate 490 560  490 560
expected return on scheme assets    
 equity instruments 750 800  750 800
 debt instruments 450 500  450 500
 property 700 750  700 750
 other assets 100 150  100 150
 alternative assets 750 700  750 700
expected rate of salary increases 370 450  320 400
retail price inflation 320 350  320 350
consumer price inflation 220 270  220 270
future pension increases  320 350  320 280
 mitie group plc  
annual report and accounts 2012
117
overview governance accounts business review

  group scheme
  
2012
years
2011
years
post retirement mortality  
current pensioners at 65 – male  880 880
current pensioners at 65 – female  890 900
future pensioners at 65 – male  890 890
future pensioners at 65 – female  910 920
mortality for the other schemes is that used by the relevant scheme actuary 
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 
amounts recognised in administrative expenses in respect of these defined benefit schemes are as follows 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
current service cost  40 04 44 41 03 44
interest cost  66 01 67 62 07 69
expected return on scheme assets  81 05 86 70 08 78
negative past service cost ––– 34 07 41
 25 – 25 01 05 06
amounts recognised in the consolidated statement of comprehensive income are as follows 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
actual return on scheme assets 38 06 44 63 04 59
expected return on scheme assets  81 05 86 70 08 78
actuarial lossesgains on liabilities 116 05 121 10 18 08
 159 04 163 17 06 11
the cumulative amount of actuarial loss recognised since 1 april 2004 in the consolidated statement of comprehensive 
income is £410m 2011 £247m 
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 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
fair value of scheme assets  1207 107 1314 1145 98 1243
present value of defined  
benefit obligations  1379 106 1485 1175 93 1268
deficitsurplus in scheme  172 01 171 30 05 25
contract adjustment – 02 02 – 05 05
net pension liability 172 01 173 30 – 30 mitie group plc  
annual report and accounts 2012
118


movements in the present value of defined benefit obligations were as follows 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 1175 93 1268 1082 719 1801
current service cost  40 04 44 41 03 44
interest cost  66 01 67 62 07 69
contributions from scheme members  06 02 08 08 01 09
actuarial gains and losses  116 09 125 10 09 01
benefits paid  24 03 27 22 04 26
negative past service cost ––– 34 07 41
contract transfers ––– 28 617 589
at 31 march 1379 106 1485 1175 93 1268
movements in the fair value of scheme assets were as follows 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 1145 98 1243 1014 615 1629
expected return on scheme assets  81 05 86 70 08 78
actuarial gains and losses 43 02 41 07 12 19
contributions from the 
sponsoring companies 42 03 45 54 25 79
contributions from scheme members  06 02 08 08 01 09
benefits paid  24 03 27 22 04 26
contract transfers ––– 28 535 507
at 31 march  1207 107 1314 1145 98 1243
the analysis of the scheme assets at the balance sheet date was as follows 
 2012 2011
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
equity instruments 516 73 589 498 70 568
debt instruments 277 23 300 246 18 264
property 168 06 174 177 05 182
other assets 31 05 36 18 05 23
alternative assets 215 – 215 206 – 206
at 31 march  1207 107 1314 1145 98 1243
the pension schemes have invested in property occupied by the group with a fair value of £25m 2011 £39m 
generating rental of £03m 2011 £03m at 31 march 2012 the pension schemes held nil mitie group plc shares 
2011 nil 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  mitie group plc  
annual report and accounts 2012
119
overview governance accounts business review

the history of experience adjustments is as follows 
 group scheme
 
2012
£m
2011
£m
2010 
£m 
2009
£m
2008
£m
fair value of scheme assets 1207 1145 1014 773 886
present value of defined benefit obligations 1379 1175 1082 743 787
deficitsurplus in the scheme 172 30 68 30 99
 
experience adjustments on scheme liabilities  53 05 01 113 120
percentage of scheme liabilities  39 04 01 153 152
  
experience adjustments on scheme assets 43 07 145 212 41
percentage of scheme assets 36 06 143 274 48
 
 other schemes
 
2012
£m
2011
£m
2010 
£m 
2009
£m
2008
£m
fair value of scheme assets 107 98 615 458 523
present value of defined benefit obligations 108 98 652 492 547
deficit in the scheme 01 – 37 34 24
 
experience adjustments on scheme liabilities  02 09 07 109 52
percentage of scheme liabilities  20 92 10 222 100
  
experience adjustments on scheme assets 02 13 117 130 60
percentage of scheme assets 16 133 190 284 115
the estimated contributions expected to be paid to the group scheme during the current financial year are £46m 
2011 £40m and to other schemes £04m 2011 £03m 
as at 31 march 2012 contributions of £07m 2011 £08m due in respect of the current reporting period had not been 
paid over to the schemes 

transactions between the company and its subsidiaries which are related parties have been eliminated on 
consolidation and are not disclosed in this note 
during the year the group derived £91m 2011 £56m of construction revenue from contracts with joint ventures 
and associated undertakings at 31 march 2012 £15m 2011 £nil of invoices were outstanding  
the company purchased 40000 b ordinary shares in the capital of mitie property services uk limited from kenneth 
robson a relative of bill robson a director of mitie for a total consideration of £553600 by the allotment of 227482 
ordinary shares in mitie and £10600 in cash this transaction was approved for the purposes of section 190 of the 
companies act 2006 by mitie shareholders at a general meeting on 10 november 2011  
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  
the group’s key management personnel are the directors and nonexecutive directors whose remuneration is disclosed 
in the audited section of the directors’ remuneration report the sharebased payment charge for key management 
personnel was £10m 2011 £08m  
  mitie group plc  
annual report and accounts 2012
120


the companies set out below are those which were part of the group at 31 march 2012 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 
2012 
 voting 
rights owned 
at 31 march 
2012 
 ownership 
interest 
at 31 march
2012
  nominal
value owned
facilities  
management 
our facilities management division 
delivers facilities consultancy 
management and service delivery 
to our clients services include 
security business services 
managed services catering client 
services pfi cleaning landscaping 
and pest control 
mitie facilities services ltd 
 
mitie cleaning  
environmental services ltd 
 
mitie security holdings ltd 
1000 1000 1000
1000 1000 1000
 
945 
 
945 999
 
technical facilities 
management 
our technical facilities 
management division 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 
mitie technical facilities 
management ltd formerly 
dalkia energy  technical 
services ltd 
 
 
879 879 998
  
 
property  
management 
our property management division 
offers an integrated property 
management service including 
mechanical and electrical 
engineering energy and more 
general facilities management 
services in addition to the 
traditional services such as 
maintenance refurbishment 
painting roofing interior fitout fire 
protection plumbing and heating 
mitie property services 
uk ltd 
 
mitie built environment ltd 
 
environmental property 
services ltd 
1000 1000 1000
1000 1000 1000
1000 1000 1000
  
 
asset  
management 
our 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  
mitie asset management ltd
 
mitie infrastructure 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 2012
121
overview governance accounts business review

 
we have audited the parent company financial 
statements of mitie group plc for the year ended 
31 march 2012 which comprise the company balance 
sheet and the related notes 40 to 53 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 auditor’s 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 auditor 
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 and express an opinion on 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 
in addition we read all the financial and nonfinancial 
information in the annual report to identify material 
inconsistencies with the audited financial statements 
if we become aware of any apparent material 
misstatements or inconsistencies we consider the 
implications for our report 
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 2012 
− 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 matters prescribed by the companies act 2006 
in our opinion 
− the part of the directors’ remuneration report to be 
audited has been properly prepared in accordance 
with the companies act 2006 and 
− 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 and the part 
of the directors’ remuneration report to be audited 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 2012  
 
colin hudson fca senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
london united kingdom 
21 may 2012 
 
 
  mitie group plc  
annual report and accounts 2012
122

 at 31 march 2012 
 
 
notes 
2012 
£m 
2011
£m
fixed assets   
tangible assets 43 310 302
investments in subsidiary undertakings 44 6614 6454
total fixed assets  6924 6756
 
  
current assets   
debtors 45 516 493
total current assets  516 493
 
  
total assets  7440 7249
 
  
creditors amounts falling due within one year 46 2742 1623
provisions 48 –  45
total current liabilities  2742 1668
 
 
net current liabilities  2226 1175
 
  
total assets less current liabilities  4698 5581
 
  
creditors amounts falling due after more than one year 47 58 984
provisions 48 20 16
total liabilities  2820 2668
 
 
net assets  4620 4581
 
  
capital and reserves   
share capital 49 90 89
share premium account 50 925 806
merger reserve 50 936 851
sharebased payments reserve 50 91 78
own shares reserve 50 183 138
other reserves 50 04 03
profit and loss account 50 2757 2892
equity shareholders’ funds   4620 4581
the financial statements of mitie group plc company registration number sc 19230 were approved by the board 
of directors and authorised for issue on 21 may 2012 they were signed on its behalf by 
 
ruby mcgregorsmith cbe suzanne baxter 
chief executive  group finance director  mitie group plc  
annual report and accounts 2012
123
overview governance accounts business review

for the year ended 31 march 2012 

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 upon tax rates 
and legislation that have been enacted or substantively enacted at the balance sheet date 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 2012
124


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 save as you earn saye options are treated as 
cancelled when employees cease to contribute to the scheme resulting in an acceleration of the remainder of the 
related expense 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 37 to the consolidated financial statements sets out the 
details of the ias 19 ‘employee benefits’ net pension liability of £172m 2011 £30m  

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 2012 
of £328m 2011 £329m 
the auditor’s remuneration for audit services to the company was £33000 2011 £50000  
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 

 
2012 
£m 
2011
£m
amounts recognised as distributions to equity holders in the year  
final dividend for the year ended 31 march 2011 of 49p 2010 41p per share 171 145
interim dividend for the year ended 31 march 2012 of 44p 2011 41p per share 155 144
 326 289
  
proposed final dividend for the year ended 31 march 2012 of 52p 2011 49p per share 184 175
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 2012
125
overview governance accounts business review

 
plant and 
vehicles 
£m 
software and 
development 
costs
£m
total
£m
cost 
   
at 1 april 2011 105 263 368
additions 44 04 48
disposals 08 – 08
at 31 march 2012 141 267 408
  
accumulated depreciation  
at 1 april 2011 40 26 66
charge for the year 21 17 38
disposals 06 – 06
at 31 march 2012 55 43 98
  
carrying amount  
at 31 march 2012 86 224 310
at 31 march 2011 65 237 302
borrowing costs of £nil 2011 £03m were capitalised during the year as part of software and development costs 

 
£m
shares at cost 
at 1 april 2011 6570
additions 155
capital contribution re sharebased payments 13
at 31 march 2012 6738
 
provision for impairment 
at 1 april 2011 116
impairment 08
at 31 march 2012 124
 
carrying amount 
at 31 march 2012 6614
at 31 march 2011 6454
details of the acquisitions in the year are provided in note 33 of the consolidated financial statements and a listing 
of principal subsidiaries in note 39 the cumulative cost of noncompete agreements included in investments is £46m 
2011 £46m  mitie group plc  
annual report and accounts 2012
126

 

 
2012 
£m 
2011
£m
amounts owed by subsidiary undertakings 432 462
other debtors 20 06
prepayments and accrued income 64 25
 516 493
the directors consider that the carrying amount of debtors approximates their fair value 

 
2012 
£m 
2011
£m
overdraft 1335 256
loan notes 16 –
trade creditors 47 18
amounts owed to subsidiary undertakings 1156 1162
other taxes and social security 17 15
accruals and deferred income 107 99
corporation tax 64 73
 2742 1623
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 

 
2012 
£m 
2011
£m
loan notes – 16
bank loans 58 968
 58 984
for details of group borrowings see note 26 

deferred 
contingent 
consideration 
£m 
 
 
deferred tax 
£m 
total
£m
at 1 april 2011 45 16 61
utilised during the year 38 – 38
other movements in the year 07 04 03
at 31 march 2012 – 20 20
   
falling due within one year   –
falling due after more than one year   20
   20
details of the deferred contingent consideration are provided in note 30 of the consolidated financial statements  mitie group plc  
annual report and accounts 2012
127
overview governance accounts business review

ordinary shares of 25p 
number
million £m
allotted and fully paid 
  
at 1 april 2011 3578 89
issued for acquisitions 53 01
issued under share option schemes 42 01
share buybacks 54 01
at 31 march 2012 3619 90
 
at 1 april 2010 3532 88
issued for acquisitions 30 01
issued under share option schemes 16 –
at 31 march 2011 3578 89
details of movements in share capital during the year are provided in note 31 of the consolidated financial statements  

 
 
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  89 806 851 78 138 03 2892 4581
shares issued 02 119 85 – – – – 206
purchase of own shares  – – – – 74 – – 74
share buybacks 01 – – – – 01 124 124
sharebased payments – – – 13 29 – 13 29
profit for the year  – – – – – – 328 328
dividends paid 
to shareholders – – – – – – 326 326
balance at 31 march 2012 90 925 936 91 183 04 2757 4620
 £1924m is nondistributable £1877m having arisen from internal restructuring in the year ended 31 march 2008 and £47m in the year ended 31 march 2010 

details of contingent liabilities have been given in note 34 of the consolidated financial statements  mitie group plc  
annual report and accounts 2012
128

 

equitysettled share option schemes 
the company has four share option schemes as described in note 36 of the consolidated financial statements 
the company recognised the following expenses related to sharebased payments 
 
2012 
£m 
2011
£m
long term incentive plan share options 13 13
2001 executive share options 02 02
2001 saye share options 01 01
 16 16
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are 
as described in note 36 of the consolidated financial statements 

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 38 of the consolidated financial statements   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
2013 interim management statement 13 august 2012
2013 halfyearly results 19 november 2012
dividends
2012 halfyearly dividend 44p paid 6 february 2012
2012 final dividend 52p proposed
2012 final ex dividend date 20 june 2012
2012 final dividend record date 22 june 2012
2012 final dividend last date for receipt
revocation of drip mandate
13 july 2012
2012 final dividend payment date 7 august 2012
2012 annual general meeting
2012 annual general meeting 1 1 july 2012
company details
mitie group plc  
1 harlequin office park  
fieldfare  
emerson green  
bristol 
bs16 7fn 
telephone 44 0 1 1 7 970 8800 
fax 44 0 1 1 7 301 4159 
email groupmitiecom  
website wwwmitiecom
registered number sc 19230
registrars
capita registrars  
the registry 
34 beckenham road
beckenham
kent
br3 4tu
telephone 44 0 871 664 0300 
website wwwmitiesharescom
calls cost 10p a minute plus network extras lines are open 830am – 530pm mon – fri
designed and produced by radley yeldar  wwwrycom 
photography by ed robinson 
printed by park communications on fsc
®
 certiﬁed paper
park is an emas certiﬁed carbonneutral
®
 company and 
its environmental management system is certiﬁed to iso14001 
100 of the inks used are vegetable oil based 95 of press 
chemicals are recycled for further use and on average 99 
of any waste associated with this production will be recycled
this document is printed on think4 bright a paper containing 50 
post consumer recycled ﬁbre and 50 virgin ﬁbre sourced from 
well managed sustainable fsc certiﬁed forests the carbon intensity 
of the paper has been measured through the production process 
and an equivalent carbon credit offset has been purchased
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
shareholder information over 63000 people…  
making mitie better everyday
thank you all
mitie group plc
1 harlequin office park 
fieldfare 
emersons green 
bristol bs16 7fn 
united kingdom
t 44 0 1 1 7 970 8800
f 44 0 1 1 7 301 4159
e groupmitiecom


Summary:
 mitie group plc  
annual report and accounts 2012
28
marketplace overview
private sector
as companies continue to seek cost 
reductions in order to compete in tough 
market conditions they are focusing 
on the further outsourcing of noncore 
services increased demand is 
being driven by integrated facilities 
management fm and energy services
our organic growth is based on excellent 
client relationships we have worked 
alongside many of our clients for a number 
of years building trust and mutual respect 
that has translated into increased 
business there are many opportunities 
for us to repeat the growth achieved 
with existing clients such as rollsroyce 
v odafone and diageo while also exploring 
the potential of new relationships
we see signiﬁcant integrated fm 
opportunities in the ﬁnancial services 
and retail sectors and were pleased 
to see potential become reality with 
our appointment to service a £775m 
transformational contract for lloyds 
banking group 
the majority of ﬁnancial and retail 
sector clients operate with singleservice 
contracts and we anticipate that the 
next phase of outsourcing is likely to see 
a shift towards integrated property and 
energy management 
public sector
the public sector remains under 
pressure with central government and 
local authorities in the uk streamlining 
their cost bases in a trend that is 
likely to continue for the foreseeable 
future – and this is creating signiﬁcant 
opportunities for outsourcing the uk 
government’s 201 1 parliamentary 
white paper on open public services 
made clear that there remains a strong 
political will to introduce greater 
competition and reform into more 
areas of public services 
we remain predominantly focused 
on the justice social housing education 
and health sectors
the home office and ministry of justice 
moj have a ﬁve year strategic plan 
which runs from 2010 to 201 5 as part of 
this they have savings targets of 25 over 
four years and have initiated a number 
of programmes to meet that goal 
our own moj pipeline stands at some 
£1bn with many key contracts due to 
be decided during 2012 against a 
backdrop of full prisons and the rising 
costs of the justice process there are 
speciﬁc and extensive outsourcing 
opportunities in areas such as fm 
prisons management electronic 
monitoring community payback and 
probation trusts home office market 
opportunities include police services 
and immigration removal centres
in the health sector we are seeing 
a range of opportunities including 
a growing portfolio of energy services 
work to upgrade ageing infrastructure 
increasingly there is also a strong 
community element to these projects 
for example for camden council 
we developed an innovative energy 
scheme to supply up to 1500 council 
tenants with surplus heat from 
our energy plant at the royal free 
hospital in hampstead
to date we have seen limited 
momentum within local authorities 
to combine more services and 
rationalise their estates 
however the pipeline of outsourcing 
opportunities for the delivery of local 
public services remains strong across 
the uk 
exciting opportunities 
in changing markets
we work closely with clients in both the private and 
public sectors primarily in the uk but increasingly in other 
european countries too the trend towards integrated services 
is a longterm one and has been clearly identiﬁed in previous 
annual reports what is different now is the speed of change 
and the scale of contracts – more clients are asking more 
and more of us
in addition to helping them improve efﬁciency while reducing 
costs by outsourcing noncore services to us we also enable 
clients to reduce the amount of energy they use as well as the 
price they pay for it
£86bn
the current value of our secured order book
34
current revenue we generate from energy services 
£450bn
uk’s total energy efficiency spend by 2025 mitie group plc  
annual report and accounts 2012
29
governance accounts business review overview
in january 2012 the city of edinburgh 
council recommended mitie as the 
preferred bidder for its integrated facilities 
management contract a proposed 
seven year partnership which would 
have generated signiﬁcant beneﬁts 
to edinburgh creating 200 new jobs 
50 apprenticeships and with guaranteed 
savings of between £51m and £1 14m 
members of the city of edinburgh 
council subsequently voted not to 
approve the proposed contract 
whilst a disappointing outcome our 
proposal offered a model of the future of 
outsourcing and we will continue to invest 
in this area to support its future growth
energy services
our energy services business already 
accounts for 34 of our revenue and 
may rise even further as demand grows 
in both the public and private sectors 
for energy and carbon strategies driven 
by macroeconomic environmental 
and legislative factors
reduced consumption and diversiﬁed 
energy supply are major objectives for 
all clients the uk alone must spend 
£450bn on energy efficiency measures 
and supply infrastructure by 2025 
across the eu there are an estimated 
7001040 active energy service contracts 
with a market value of €67bn to €85bn 
this is expected to grow to around 
€25bn by 2020 energy management is 
now accepted as central to an effective 
fm service – in fact our energy services 
capability is part of every contract we 
operate and is absolutely fundamental 
to our larger bids 
already the second largest energy 
services company in the uk we are well
positioned for rapid growth our strengths 
are based around six core capabilities 
decentralised energy renewable 
energy energy consumption reduction 
carbon compliance data management 
and the introduction of innovative ideas 
and initiatives that raise awareness
international and new markets
we go where our clients need us 
to go and as they increasingly take  
a paneuropean approach to 
procurement we have expanded 
our services beyond the uk 
our work with rollsroyce now spans 
the continent and demonstrates our 
ability to provide integrated fm and 
energy services across borders
the opportunity is clear 43 of our top 
100 clients have international operations – 
and we are positioned to help them 
access the same efficiencies they enjoy 
in the uk
our european capability was initially 
provided via a partnership with service 
management international smi during 
201 1 we acquired the remaining 50 of 
smi’s equity capital the smi platform  
selfdelivers and supplychain manages 
fm portfolio services to multinational 
bluechip clients across 23 countries 
smi’s established supply chain of affiliates 
have an annual collective turnover of 
us85bn and employ 280000 people 
worldwide in august smi was appointed 
as a preferred bidder for a contract with 
givaudan to provide integrated fm in 
several european countries 
we currently have direct delivery 
capability in france germany poland 
and norway – and are targeting further 
growth in europe as we see further 
opportunities emerge in this market
in the uk we are constantly looking at 
ways to expand our range of services 
not only by using our entrepreneurial 
model to enter new markets but also 
through valuecreating acquisitions 
where appropriate 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
7  finance  professional services 16
8  retail 10
9  manufacturing  10
10  transport  logistics 7
11  property management 6
12  technology  communications 6
13  utilities 6
14  leisure 3
15  construction 1
major markets
revenues
1  central government 7
2  local government 4
3  other government 1
4  social housing 11
5  health 4
6  education 8
public sector
35  £07bn
private sector
65  £13bn
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
7  finance  professional services 10
8  property management 6
9  transport  logistics 6
10  retail 5
11  manufacturing  4
12  construction 3
13  technology  communications 2
14  utilities 2
15  leisure 2
sales pipeline
£112bn
1  central government 21
2  local government 18
3  other government 1
4  social housing 12
5  health 5
6  education 3
public sector
60  £67bn
private sector
40  £45bn