mitie group plc
8 monarch court
the brooms
emersons green
bristol bs16 7fh
t 0117 970 8800
f 0117 302 6743
e groupmitiecouk
mitie group plc 
mitie group plc
annual report and accounts 2009
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13012ra08coverqxd13012ra08coverqxd  28509  1231  page 1 group proﬁle
we’re a strategic outsourcing 
and asset management company
what does that mean
providing everything from strategic
consultancy to facilities and 
project management to worldclass
delivery on the ground
we work with our clients 
in three ways 
strategy and consultancy
facilities and project management
service delivery
in other words
we think
we manage
and we deliver
this annual report and accounts contains forwardlooking statements 
such statements do not relate strictly to historical or current 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 group plc in good faith based on the information available to them 
as at the date of approval of this annual report and accounts 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 annual report and accounts and accordingly all
such statements should be treated with caution nothing in this annual report
and accounts should be construed as a proﬁt forecast
shareholder information
results
2010 interim management statement 10 july 2009
2010 halfyearly results 23 november 2009
dividends
2009 halfyearly dividend 33p paid 5 february 2009
2009 final dividend 36p proposed
2009 final ex dividend date 8 july 2009
2009 final dividend record date 10 july 2009
2009 final dividend last date for 
receiptrevocation of drip mandate 20 july 2009
2009 final dividend payment date 7 august 2009
annual general meeting
2009 annual general meeting 10 july 2009 230pm
company details
mitie group plc 
8 monarch court
the brooms
emerson green
bristol bs16 7fh 
telephone 0117 970 8800
fax 0117 302 6743
email groupmitiecouk
website wwwmitiecouk
registered number sc 19230
registrars
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
telephone 0870 162 3100
website wwwmitiesharescom
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 
0871 664 0381 or contact them by sending
an email to ssdcapitaregistrarscom
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 wwwmitiecouk
13012ra08coverqxd13012ra08coverqxd  28509  1231  page 2 mitie group plc  
annual report and accounts 2009
overview
01
financial and operational highlights
revenue
£15219m  82 
operating profit before amortisation
£805m  115 
earnings per share before other items
172p  154 
dividend per share 
69p  150
200910 budgeted revenue secured
74
order book
£49bn  £05bn 
underlying group margins
53  02 
multiservice and fm as  of revenue
33  5 
net funds
£109m
cash conversion
975
contents
overview
highlights 01
mitie at a glance 02
financial record 04
chairman’s statement 05
business review
chief executive’s strategy review 06
market overview 10
key performance indicators 12
key factors that could affect our business 14
operating review 16
financial review 28
corporate responsibility 31
governance
directors’ and governance report 36
statement of directors’ responsibilities 49
remuneration report 50
accounts
independent auditors’ report to
the members of mitie group plc 60
consolidated income statement 61
consolidated statement of 
recognised income and expense 62
consolidated balance sheet 63
consolidated cash ﬂow statement 65
notes to the consolidated 
ﬁnancial statements 66
independent auditors’ report to
the members of mitie group plc 97
company balance sheet 98
notes to the company ﬁnancial statements 99
shareholder information ibc
visit our website to get more information
mitiecoukinvestors
 of acquisition related intangible assets
other items are noncash acquisition related items being amortisation of
intangible assets and unwinding of discount on deferred contingent consideration
13012ra08p0115qxdlayout 1  28509  1147  page 01 mitie group plc
annual report and accounts 2009 02
mitie at a glance
there is a lot more to mitie than 
you might think all of our thinking
managing and delivering is 
centred around our clients’ needs
they always come ﬁrst
we are a strategic outsourcing 
and asset management company
that delivers a range of integrated
services to support the buildings
and infrastructure of our clients 
key facts 
revenue
£15219m
people employed
51486
order book
£49bn
location and listing
uk based – ftse 250
financial position
strong balance sheet –
net funds of £109m
engineering security
climate control
project management facilities management property management
value environment energy
plumbing
front of house cleaning
think 
forward thinking strategy and consultancy
ideas to keep our clients ahead of the game
manage 
practical experienced management 
of people resources time and money 
to achieve success for our clients
deliver 
a broad range of integrated service delivery
to make buildings and their facilities
smarter greener safer and better run
13012ra08p0115qxdlayout 1  28509  1148  page 02 mitie group plc  
annual report and accounts 2009
overview
03
pest control
rooﬁng
mail and repro catering
technical asset management
refurbishment painting waste maintenance landscaping
we provide services
to our clients through
three key service areas…
facilities management
integrated facilities management 
fm and a range of services including 
energy management space planning
document management front of 
house catering cleaning maintenance
landscaping pest control security 
waste and environmental management
property management
framework and partnering agreements
project management roofing repairs 
and redecoration interior fitout
plumbing and heating social housing
maintenance and refurbishment and 
fire protection
asset management
provision integration management 
and maintenance of technical assets
meeting the demands of the lowcarbon
economy energy design generation and
certification mechanical and electrical
infrastructure data and life systems
which serve and
support the following
market sectors
government 18
finance and professional 14
manufacturing 9
education 9
social housing 8
retail 7
property management 7
technology and 
communications 6
healthcare 6
utilities 5
transport and logistics 5
leisure 3
construction 3
1 public sector 41
2 private sector 59
1
2
13012ra08p0115qxdlayout 1  28509  1148  page 03 mitie group plc
annual report and accounts 2009 04
financial record
 of acquisition related intangible assets
other items are noncash acquisition related items being amortisation of intangible assets 
and unwinding of discount on deferred contingent consideration
revenue
82
£m
7997
9356
12288
2007 2008 2009 2006 2005
14072
15219
operating profit before
amortisation 115
£m
443
483
599
2007 2008 2009 2006 2005
722
805
profit before tax
118
£m
479
505
566
2007 2008 2009 2006 2005
679
759
earnings per share before
other items 154
p
88
99
123
2007 2008 2009 2006 2005
149
172
earnings per share
168
p
88
98
119
2007 2008 2009 2006 2005
143
167
dividend per share
150
p
34
43
51
2007 2008 2009 2006 2005
60
69
13012ra08p0115qxdlayout 1  28509  1148  page 04 mitie group plc  
annual report and accounts 2009
overview
05
chairman’s statement
we are delighted to announce that 
mitie has delivered another year of 
doubledigit earnings growth against 
a backdrop of unprecedented market
conditions revenues have grown by
82 to £15219m operating profit before
amortisation ebita by 115  to £805m
and cash conversion stands at 975 
this result is particularly pleasing in a year
where economic conditions have been
extremely challenging and demonstrates
the resilience of the mitie business 
which is well diversified in terms of its 
client base and market sector exposure 
strategy
our strategy is to deliver stakeholder value
through a focus on sustainable profitable
growth to achieve this we have to
anticipate changes in our markets and
react quickly currently our clients are
increasing levels of outsourcing and seeking
supply chain efficiencies through larger
integrated contracts in response to 
our clients’ changing needs we have
improved our operating structure invested
in additional specialist resources and while 
we are experiencing slowing in some areas
we are seeing record levels of opportunity
and are securing many exciting longterm
integrated contracts
acquisitions remain a key part of our
strategy with no gearing at the year end
we are extremely well positioned to take
advantage of value creating opportunities
we look for quality companies with strong
management teams that complement or
fit within our existing business and operate 
in growth markets
results
our performance during the year 
saw revenues grow by 82 to £15219m
2008 £1 407 2m  operating profit before
amortisation ebita increased by 115 to
£805m 2008 £722m reflecting an enhanced
margin of 53 2008 51 with profit before
tax rising by 118 to £759m 2008 £679m
adjusted earnings per share grew by 154 
to 172p per share 2008 149p per share 
the business remains very cash generative
and has reported a cash inflow from
operations of £944m 2008 £782m for the
year which represented cash conversion 
of 975 2008 903 the balance sheet 
is extremely strong with net funds at the year
end of £109m 2008 net debt £156m 
we have secured bank facilities of £2300m
which are in place to january 2012 of which
£100m was utilised at the year end this leaves
the group well positioned to take advantage
of acquisition opportunities as they arise
we are pleased to report growth of 114 in
our order book during the year which now
stands at an impressive £49bn 2008 £44bn
dividend
on the basis of our strong performance
during the year and our solid prospects for
the future the board is recommending an
increased final dividend of 36p per ordinary
share adding up to a total dividend per
share for the year of 69p a 150 increase
on 2008 in line with our dividend policy to
maintain dividends in line with underlying
earnings growth at a cover ratio of 25 times
adjusted earnings subject to shareholder
approval at the annual general meeting
the dividend will be paid on 7 august 2009 to
shareholders on the register at 10 july 2009
main board
there were a number of changes to the
board during the year david ord and
cullum mcalpine both retired from the
board on 31 july 2008 as a result i was
appointed nonexecutive chairman and
chairman of the nomination committee
and david jenkins was appointed senior
independent director and chairman of the
audit committee the board is extremely
grateful for the leadership and valuable
contributions from david and cullum during
their six years on the board and wish them
every success in the future
we are delighted that terry morgan has
agreed to join the board on 1 july 2009 as a
nonexecutive director he will immediately
following the conclusion of the agm on the
10 july 2009 assume the role of chairman
of the remuneration committee from
ishbel macpherson terry is currently chief
executive of tube lines and will become
chairman of crossrail later this year 
terry has extensive experience of change
strategy and operations across a number 
of large complex organisations and he will
make a valuable contribution to our board
people
since becoming chairman i have been
extremely impressed by the strength 
depth and positive attitude of the mitie
team as part of my induction programme
i visited all of our divisions and the quality 
of our people is selfevident
the effective daytoday management 
of our business is critical it requires the skill
and expertise that comes only with hard
work commitment and experience 
mitie’s financial results and strength have
only been possible due to the hard work 
of its people whose expertise and
dedication remain our most important
assets we would therefore like to thank
them all for their contribution to another
excellent set of results
outlook
we have entered the new financial year 
in a positive position with a strong order
book and bid pipeline committed banking
facilities and no debt 
we recognise the economic challenges
that are facing our own business and that
of our clients but see continued opportunities
for sustainable profitable growth for mitie
through our ability to enhance efficiency 
in extended scope outsourced solutions
and the introduction of innovation in asset
management for our clients we look forward
to another good year of growth for mitie
roger matthews
chairman
“mitie has continued its growth
record in 2009” of acquisition related intangible assets
13012ra08p0115qxdlayout 1  28509  1148  page 05 mitie group plc
annual report and accounts 2009
business review
a review of our strategy by the chief executive
06
mitie is in a strong position we have an
excellent track record an experienced
management team a strong balance
sheet and a broad client base
overall the group is performing very well
and making strong progress we are seeing
a clear trend for increased outsourcing 
and a drive for efficiency as client budgets
come under pressure during this stage of
the economic cycle we expect to benefit
from this trend and see opportunities for
growth as we contribute to our clients’
cost and operational efficiency through
extended scope outsourced solutions 
and the introduction of innovation in 
asset management our financial strength
strategic consultancy management
experience and broad range of services
mean that mitie is an attractive partner 
for both new and existing clients alike
against this backdrop of opportunity
however certain areas of our business 
such as our interior fitout retail engineering
and our plumbing business with its exposure
to the new build housing market have been
affected by the recession these areas of
our business are continuing to experience
challenging conditions however as markets
improve they should be some of the first 
to benefit 
as an organisation that deals with change
on a daily basis for our clients we also
continually assess the efficiency of how we
work the current market conditions have
reinforced this behaviour and we are 
taking a responsible approach to the
review of our activities with the longterm
future of the business our priority we have
considered the ways we engage with our
clients our management structure and 
our risk profile 
we are being cautious about the credit 
risk that we take on at the moment 
this could have an effect on our top line
growth in certain markets but our client
acceptance criteria will give us stability 
in the long term our margins are under
pressure but this is not a new trend 
and we are skilled at focusing on the
maintenance and development of our
margin performance naturally we protect
our margins by ensuring that we always
have an efficient cost base
as part of this process we have 
made changes to the structure of our
business with effect from 1 april 2009 
our engineering services division has 
been renamed asset management to
demonstrate the move away from the
traditional contracting environment 
to a total asset lifecycle approach 
which will include consultancy design 
installation and maintenance and we 
will be enhancing our asset maintenance
capability going forward through the
combination of engineering maintenance
and services property services becomes
property management to show the wider
range of property management and project
management abilities that we now offer
whilst facilities services becomes facilities
management to reflect the shift in emphasis
towards total facilities management and
multiple services contracts as clients look for
better value and improved levels of service 
our teams are highly motivated focused
on supporting our clients in these very
uncertain market conditions and are using
their experience and fresh thinking to give
us a competitive edge we are pleased
that we are dealing with the current
climate really well and are securing some
great new contracts
our strategy 
to deliver stakeholder value 
through a focus on sustainable
proﬁtable growth
strategy achieved by
1 clients
deliver value to our clients by providing worldclass service
2 people
recruit motivate and retain the best talent in the industry
3 risk
take a longterm view to protect our business and manage risk
4 responsibility
act responsibly and build a reputation that enhances 
our brand to all stakeholders
5 integration
leverage our strong position to secure more integrated 
and larger scale contracts
6 proﬁtability
focus on growing a proﬁtable business maintaining margins
7 acquisitions
supplement our organic growth with selective acquisitions
13012ra08p0115qxdlayout 1  28509  1148  page 06 mitie group plc
annual report and accounts 2009
business review
07
3 risk
we take risks everyday as part of our daily
life in business it is our duty to understand
the risks we face appreciate the impact
that those risks may have on our people
clients or wider stakeholders and to 
devise appropriate strategies to manage
mitigate or eliminate these risks mitie 
does all of that and we then ensure that
everyone in the business understands their
role in our risk management process and
can behave accordingly
having an appropriate risk management
process does not mean that we are so
measured in our approach that we lose
competitive advantage we classify our
risks into four areas strategic operational
ﬁnancial and compliance strategic risks
are those that could affect our longterm
strategic objectives operational risks 
arise from our daytoday activities which
if not managed could affect business
performance financial risks have a 
direct impact on our ﬁnancial position
and compliance risk covers risks that
relate to legal and regulatory sanctions
and damage to goodwill arising from
failure to comply with applicable laws
and regulations
the assessment of risks is part of our 
culture every mitie business has a risk
register that identiﬁes the particular issues
relating to that part of our operations
and activities these are consolidated 
into the overall mitie group risk register
which considers our highlevel risks and is
reviewed and considered by our board
our risk management team conducts
regular reviews and assessments
to ensure that our risk identiﬁcation and
management processes remain relevant
to the shape of our business the wider
market conditions and most importantly
that any risk mitigation strategies are
being followed
2 people
it is easy to say that our people are 
our greatest asset but they really are 
we are only as good as the people that
prepare our client strategies manage
projects and facilities and deliver services
as they are so important to us we have 
a three part people strategy
firstly we make sure that each employee
has the best possible career journey with
mitie we have a consistent approach
that reinforces our culture and values 
we evaluate skills identify gaps and
provide appropriate training and support
to ensure success we use a performance
management process so that we can be
fair in our measurement of performance
and appraisal this encourages good
levels of performance and minimises
employment risks 
secondly we have an integrated
human resources hr team structure 
to provide a professional and efficient
service that meets the needs of our
people and the future requirements 
of the business we employ specialists in
key areas including the management 
of tupe pensions and employment law
the third part of our people strategy
makes sure that we will have the right
talented people for the future we have 
a structured approach to succession
planning reward and incentivisation
leadership management development
and professional development it gives 
us a motivated mitie team that is
determined to outperform the market
the result is that we have a very people
centric business with a strong leadership
and management style but with the
ﬂexibility to drive the group forward
people
our mitie stars awards recognise
people who show true passion for 
their work going above and beyond
the call of duty
risk management
we empower our people to stop 
and think before doing their work
safety is part of our culture
clients
we apply strategic thinking
management skill and an unrivalled
range of services to meet our 
clients’ needs
1 clients
our clients are at the centre of everything
that we do if we do not have satisﬁed
clients who are prepared to make a
positive recommendation about mitie 
we do not have a sustainable future 
from their ﬁrst day with us our people 
are trained to think about our clients’
objectives what does the client want
from mitie how can we contribute to
their business and organisational issues
our clients expect us to deliver value
for money in this economic climate
we continually evaluate our cost base 
to ensure that we are deploying resources
efficiently this applies to all areas of 
our business and we run a lean business
to make sure that our clients feel the full
beneﬁt from our efforts 
our clients represent the future of our
business so we make sure that we have
the best possible relationships with them
understand the issues that affect them
and regularly engage with them at all
levels to make sure that we are getting 
it right we conduct client satisfaction
surveys to check that we are providing 
a quality service and are in tune with our
clients’ strategic direction
13012ra08p0115qxdlayout 1  28509  1149  page 07 mitie group plc
annual report and accounts 2009
business review
a review of our strategy by the chief executive
08
integrated offer
at heathrow terminal 5 our people 
are an integral part of the travelling
experience
4 responsibility
corporate responsibility cr has always
been at the core of the way we work at
mitie and is an essential part of our culture 
our success for over 21 years has come
from having a responsible business model
that has responded to the everchanging
requirements of an increasingly wide
group of stakeholders cr is part of our
business strategy because it helps us 
to deliver sustainable proﬁtable growth
we have ﬁve pillars in our cr framework
health and safety is critical we employ
over 50000 people and good health 
and safety performance is vital for 
their wellbeing and improves business
performance
community engagement is also important
our people want to work for a company
that is recognised for helping to make 
a difference to the lives of others 
whether that is through our volunteering
programmes or charity work
the environmental agenda makes it
imperative for us to manage and reduce
our impact on the environment we also
support our clients to improve their energy
efficiency reduce waste streams and
improve cost efficiency 
focusing on our people helps to improve
business results we train develop and
reward our people well which improves
retention motivation and stability 
we develop our service delivery
capabilities to support the needs and core
businesses of our clients and the changing
market this helps to maintain our long
term relationships and contributes to the
successes of our respective organisations
5 integration
mitie is an integrated business integration 
is important for efficiency and supports 
our client proposition of seamless service
delivery all of our businesses use common
systems and processes and are transitioning
to a common ﬁnancial and hr platform
this is important because as clients ask us 
to provide a wider range of services they
want to be dealing with just one mitie 
team that operates the same way
integration however is more than 
systems it is also about attitude 
ownership and leadership 
increasingly our clients want us to be
integrated with their own operations 
so that we can help them to achieve 
their business and organisational goals 
they want a seamless service that
reinforces their corporate image
so that their employees and clients 
can’t tell where they stop and we start 
this is crucial and allows them to maintain 
a complete focus on their core business 
areas and activities 
6 proﬁtability
ultimately the objective of any commercial
organisation is to be proﬁtable mitie has 
a 21year track record of continuous
proﬁtable growth we have a total ﬁnancial
focus on proﬁts and cash in these markets
with changing risk proﬁles it is still important 
to achieve revenue growth through taking
market share but it is crucial to maintain
proﬁt margins and be paid on a timely 
basis for the work we have performed 
our cash conversion target is 90
we manage our ﬁnancial performance
with a series of key performance indicators 
that are consistent and applied throughout
the business 
responsibility
we invest in seven mitie construction
skills centres in secondary schools
around the uk providing over 1 000 
1416 yearold boys and girls and 
their communities with access to
construction skills and qualiﬁcations
career advice and work experience
proﬁtability
we recognise that focusing on
proﬁtability rather than top line growth
is a key factor in creating value for 
our stakeholders so we have always
based the senior team’s incentives 
on proﬁtrelated performance 
the results a 21year track record 
of continuous growth in earnings
09 08 07 06 05 04 03 02 01 00 99 98 97 96 95 94 93 92 91 90 89 88
5
10
15
13012ra08p0115qxdlayout 1  28509  1149  page 08 mitie group plc
annual report and accounts 2009
business review
09
acquisitions
we have a track record of 
delivering and integrating selective
acquisitions to support our strategic
growth objectives
we monitor our progress towards
meeting our strategic goals through
our ﬁnancial and nonﬁnancial key
performance indicators which are
set out on pages 1213 
7 acquisitions
we have a low market share in all of our
markets we expect to grow organically 
by taking market share from competitors
but we are also well positioned to create
stakeholder value through acquisition 
at 31 march 2009 we had no net debt
and undrawn committed funding facilities
of £2200m out of a £2300m total facility
this gives us the financial capacity 
and flexibility to make selected value
enhancing acquisitions should the board
consider this to be appropriate 
our approach to acquisitions remains
conservative we are looking for quality
businesses with strong management teams
that complement or fit within our existing
business and operate in growth markets
13012ra08p0115qxdlayout 1  28509  1149  page 09 mitie group plc
annual report and accounts 2009
business review
a review of our strategy by the chief executive
public sector
10
market overview
we have a wide range of clients 
and exposure to many market sectors 
this provides us with a balanced portfolio 
of market conditions and protects our
earnings from fluctuations this is particularly
important in the current economic climate
where we are seeing uncertainty in some
sectors that is likely to continue in the 
shortterm 
currently our business demonstrates 
a 5941 privatepublic sector split in its
revenues and we believe that this remains
an appropriate split for our business and 
mix of services it is possible that this may
change in the shortterm as a higher
proportion of gdp is represented by
government spending but is appropriate 
in the longerterm
we target our sales and marketing
resources at those sectors that we 
believe offer the greatest opportunity 
and our sector focus varies as economic
conditions change our business model
gives us the flexibility to take advantage 
of opportunities as they arise
education and healthcare are 
good areas to be established in
during the year we have been
successful in increasing our penetration
of the education and healthcare
markets we have secured key
contracts in the building schools for 
the future scheme to provide facilities
management to schools in derbyshire
and kent in the healthcare market 
we have secured more work with
great ormond street and new work
with north middlesex hospital and 
st george’s healthcare nhs trust
summary of key sectors
education
education is a solid longterm market 
for both capital and operational
expenditure there is a trend towards 
the procurement of integrated fm services
which counteracts the diverse nature of
sector funding both the building schools 
for the future and pfi programmes are
major drivers of growth mitie is the largest
pfi fm education service provider in uk
target market size is £130bn pa and 
our market share is 10
government central and local
government spending is forecast to 
remain stable in the shortterm in the
mediumterm budgets will be under
pressure as tax revenues decrease
government departments and local
authorities such as existing clients the
department for communities and local
government the department for culture
media and sport and the department 
for education and skills will require greater
efficiencies from service partners 
overview
public sector spending is likely to take 
an increasingly dominant position 
as uk economic conditions remain
uncertain
key facts
– spending committed until 2012 in
areas such as education housing
and healthcare
– capital and maintenance expenditure
split 5050
– trend towards consolidation 
of suppliers and procurement 
of integrated fm services and
– pressures on public purse likely 
to encourage further outsourcing 
more commercial procurement 
and increased spend on fm services
private sector
summary of key sectors
finance and professional services
mitie has a significant presence in the
finance services sector with all businesses
having major contracts we are very well
placed to work in partnership with clients
such as pwc standard life and barclays 
to increase cost effiency and to provide
facilities management and service delivery
across the uk the current impetus for
change is creating an unprecedented
number of opportunities target market size
is £50bn pa and our market share is 43
transport and logistics
transport is a key sector for mitie it is 
a longterm growth sector where our
specialist services and sector focus 
are highly attractive to clients we are
having a high degree of success in this
sector extending existing and securing 
new contracts with baa firstgroup and 
eurostar target market size is £110bn pa
and our market share is 07
overview
we have a high quality private sector
client base with strong representation
across many sectors however most
private sector businesses are expected to
be cutting back on expenditure over the
next 12–18 months as economic conditions
remain uncertain clients are focused on
optimising the efficiency of their cost base
this means that outsourcing contracts 
are becoming larger covering more
services and wider geography
consolidation particularly amongst our
clients creates uncertainty but also
provides an opportunity to increase
market share
key facts
– construction sector will be challenging
for at least 18 months
– more opportunity in fm where 
mitie provides essential services
– availability of labour should improve
and
– selectivity of opportunities is crucial
13012ra08p0115qxdlayout 1  28509  1149  page 10 mitie group plc
annual report and accounts 2009
business review
11
looking forward
we are delivering a strong and consistent
ﬁnancial and operational performance
our business is growing well and we 
are experiencing a very strong sales
pipeline clients’ budgets in both the 
public and private sector are under
pressure supporting demand for efficiency
and value for money which in turn leads 
to more outsourcing 
we know that the global economic
environment is going to remain challenging
for some time but we operate in a market
where contracts are becoming more
sophisticated larger and longer term in
duration this gives us conﬁdence in our
business model as we expand our strategic
offering to our clients
we have a ﬂexible business which can
easily adapt to meet our clients’ changing
needs with the signiﬁcant level of current
opportunities we are conﬁdent that our 
future performance will remain strong
we are encouraged by the contracts that
we have recently secured and anticipate
continued strong growth in the years ahead
ruby mcgregorsmith
chief executive
healthcare
healthcare is a market with considerable
potential for increased levels of outsourcing
with spending driven by the uk’s ageing
population demographic the sector 
offers stable revenue streams and low
credit risk with clients such as st george’s 
and north middlesex hospital in london
hull hospital and great ormond street
hospital target market size is £110bn pa
and our market share is 08
local government strategic partnerships
will leverage private sector skills and
ﬁnance to improve efficiency there will 
be a trend towards larger contracts with 
a broader range of management and
service provision target market size is
£70bn pa and our market share is 39
social housing
social housing is a key public policy area
with the need for sustainable communities
high on the agenda the development 
and maintenance of high quality public
housing stock is a core part of government
strategy decent homes programmes and
repair and maintenance contracts offer 
us considerable opportunity government 
has ambitious plans for affordable housing
through the homes and communities
agency to support local governments 
and communities this sector with 
clients such as birmingham city council 
dacorum borough council and milton
keynes district council offers good 
growth potential with longterm contracts 
target market size is £100bn pa and 
our market share is 12
utilities
the utilities companies represent an
attractive market for mitie with dependable
cash ﬂow and spending commitments 
in common with many other sectors the
drive for improved operational efficiency 
is leading to larger longer term contracts
sustainability and renewable energy are 
key areas we have a good presence in this
market with major contracts with rwe npower
and thames water target market size
is £80bn pa and our market share is 10
technology and communications
our focus in this area is in data centre 
and infrastructure support and regular
maintenance and support activities 
mitie supports the capital and revenue
expenditure streams in this market 
target market size is £40bn pa and 
our market share is 23
manufacturing
an important sector for mitie and one 
where we are actively supporting our clients
in these challenging times our focus is to
develop our longstanding relationships with
key clients such as rollsroyce target market
size is £50bn pa and our market share is 27
retail
the majority of the retail market is 
focused on cost reduction we are 
working closely with our clients to meet
their business needs target market is 
£50bn pa and our market share is 21
property management
this market is heavily inﬂuenced 
by property occupancy levels 
traditionally contracts are single service
there is little trend towards multiservice 
or fm contracts target market size is
£60bn pa and our market share is 18
leisure
as a high proportion of leisure spend is
discretionary we are introducing innovation
for our clients to improve efficiency 
target market size is £20bn pa and our 
market share is 23
13012ra08p0115qxdlayout 1  28509  1149  page 11 mitie group plc
annual report and accounts 2009
business review
how we performed – our kpis
12
1 clients
6 proﬁtability
2 people

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 we have reduced our kpi to 11
keeping it well below the 20 target level

840
850
2007 2008 2009 2006
860
880
kpi
non 
financial

914
2007 2008 2009 2006
not 
measured
920
930
kpi
non 
financial

51 51
2007 2008 2009 2006
51
53
kpi
financial

12
18
2007 2008 2009 2006
14
11
kpi
financial
description
mitie is a people business and we pride 
ourselves in creating and nurturing outstanding
management monitoring how successful we 
are in retaining our people is an important 
measure for us
target
enhance focus on the development and retention
of management to maintain a retention rate of
over 900
comment
we have increased our management retention
rates to 930
description
our operating proﬁt before amortisation ebita
margin provides us with a good indicator of 
the proﬁtability of our business where we have
material nonrecurring charges such as integration
costs we exclude these from our measure
target range
maintain ebita margins between 50 and 60 
per annum
comment
we have improved our margin by 02 to 53
of acquisition related intangible assets  
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 900
comment
we have improved our contract retention rate 
in our facilities management division to 880
13012ra08p0115qxdlayout 1  28509  1149  page 12 mitie group plc
annual report and accounts 2009
business review
13
7 acquisitions
acquisitions remain a key part of our
strategy as detailed on page 9 we seek
to acquire quality companies with quality
management that complement or fit
within our existing business
we have completed the successful integration 
of the acquisitions that we made in march 2008 
– the acquisition of catering partnership has
expanded the scale and capability of our
catering offering and has enabled us to bid 
for signiﬁcantly larger contracts in this market 
– the dw tilley rooﬁng business acquisition has
been successfully integrated with our existing
rooﬁng business to form a truly national rooﬁng
refurbishment company
4 responsibility
description
we are conscious of the impact of our operations
on the environment our co2 emissions are
calculated using defra conversion factors
following a review of our fuel and utilities usage 
the rate of co2 emissions per mitie employee is
calculated using the average number of people
employed during the year
objective
understand and minimise the environmental
impact of our operations
comment
our normalised co2 emissions per employee 
are consistent with the prior year 
5 integration
description
with 67 of our revenue being generated 
through single service contracts we have a great
opportunity for growth 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
kpi
non 
financial
tonnes equivalent
co 2 per employee
070
2007 2008 2009 2006
not 
measured
064 064
25
50
75

2007 2008 2009
single  
service
multiservice  
 fm
description
it is important that we continue to target a progressive
dividend policy that provides an appropriate return 
to shareholders and that provides a dividend which
grows in line with the underlying earnings of the group 
dividend cover is calculated by reference to our
underlying cashbased earnings which we measure
using our basic eps before amortisation of intangibles
imputed interest charges relating to acquisitions and
material nonrecurring charges there were no material
nonrecurring charges in 2009 or 2008 the adjusted
eps after these items is 172p 2008 149p giving rise
to underlying growth of 154
target range
at least in line with underlying earnings growth 
at a cover rate of 25 times adjusted earnings
comment
our dividend growth for the year is 150  
giving cover of 25 times adjusted earnings

265
186
2007 2008 2009 2006
176
150
kpi
financial

950
1144
2007 2008 2009 2006
903
975
kpi
financial
description
the efficiency with which we manage the
generation of cash is an important indicator 
for our business mitie is built on a sound
understanding of the importance of cash and
working capital management and that ethos
remains critical to our business the conversion 
of the group’s earnings before interest tax
depreciation and amortisation ebitda to cash
is one of the signiﬁcant cashﬂow indicators 
for mitie
target range
over 900 of group ebitda converted to cash
comment
we have achieved our target this year with 975
of group ebitda being converted to cash
3 risk 
per 1 000
employees
61
51
2007 2008 2009 2006
40
39
kpi
non 
financial
description
reportable accidents are deﬁned as fatalities
major injuries and injuries resulting in absence 
from work of over three days our people are 
our greatest asset providing them with a safe
environment in which to work is of paramount
importance to us so we use a kpi for reportable
accidents to assess our performance
objective
retain focus on reducing the risk of accidents 
in our business
comment
our focus on health and safety has enabled 
us to reduce reportable accidents to 39 per 
1000 employees
13012ra08p0115qxdlayout 1  28509  1149  page 13 mitie group plc
annual report and accounts 2009
business review
key factors that could affect our business
14
risk area potential impacts mitigation
financial risk including liquidity
strategy area
– risk
– responsibility
– proﬁtability
– acquisitions
– clients
funding may not be readily available
to support the expansion of the
group’s activities
pension fund assets may not meet future
pension liabilities
financial performance of the business
could be adversely affected by uncertain
economic conditions loss of clients
a reduction in services taken by clients
and failure to adhere to credit terms as
a result of changes in their own financial
position could affect the group
committed banking facilities of £2300m
are in place until 2012 in addition to £350m
of overdraft facilities to support daytoday
operations and strategic growth targets
operational cash ﬂow is prioritised through
a set of kpis and the group had net funds
of £109m at 31 march 2009
trustees manage the pension liabilities and
the required contribution rates are set on
the basis of independent actuarial advice
the group’s own deﬁned beneﬁt scheme
is well funded and we aim to maintain
a broadly neutral funding position in the
mediumterm
management of pension risk on contracts
requires the support of independent advisers
and the approval of the group finance
director and in certain cases the board
financial trading performance compared
to budget is reviewed on a monthly basis
cash performance is monitored daily
systems are in place to monitor and
manage credit risk exposure across the
group’s client base
large account management strategy
including director level client relationships
where appropriate ensures a consistent
focus on changes in our clients’
environments and financial position
health safety and environment
strategy area
– risk
– responsibility
– people
– clients
health and safety failures may lead
to a serious injury or fatality of an
employee client or member of the public
property damage or airwater pollution
may lead to signiﬁcant ﬁnancial penalties
loss of reputation criminal convictions
and business disruption
responsibility for health and safety rests
with the chief executive who is supported
by the board line management and
advised by the head of health safety and
environment and a network of dedicated
health safety and environment advisers
a structured training programme is in place
to develop and improve employee health
and safety knowledge
processes and procedures are
accredited to ohsas 18001and are
under regular review to ensure a safe
working environment for our employees
our clients and the public
mitie’s system of internal control is designed to support our strategy and to identify and
manage the risks that have the potential to impact upon mitie and upon the environment
in which we operate on page 44 of the directors’ and governance report we have
detailed the processes that we use to identify and manage these risks in the table below
we have highlighted the principal risks and uncertainties that could aﬀect us
13012ra08p0115qxdlayout 1  1609  1629  page 14 mitie group plc
annual report and accounts 2009
business review
15
risk area potential impacts mitigation
acquisitions
strategy area
– risk
– proﬁtability
– acquisitions
the strategic risks associated with
acquisitions include a failure to ensure 
a cultural ﬁt a failure to gain visibility of 
and price in key risk issues and a failure 
to realise synergistic and operational
targets following acquisitions these may
result in ﬁnancial targets not being met 
an experienced due diligence team
supported by internal specialists and
external professionals advise the 
executive board throughout each
acquisition process 
all material acquisitions are approved 
by the board and following the purchase
an executive director is appointed as 
an integration sponsor who is responsible for
ensuring a smooth and successful transition
employment regulations
strategy area
– clients
– people
– risk
– responsibility
– proﬁtability
failure to adhere to regulations concerning
the transfer of staff in and out of the
business would result in business disruption
and signiﬁcant ﬁnes 
the employment of persons who do not
have the right to work in the uk would 
lead to signiﬁcant ﬁnancial penalties and
damage to the mitie brand and reputation
early involvement of hr and legal 
specialists prior to transfer supported 
by external specialists
processes are in place to ensure that 
all legally required documentation 
is obtained from employees and
subsequently monitored
skill shortages
strategy area
– clients
– people
– risk
without the right mix of employees mitie
would be unable to deliver mobilise and
service existing and new contracts
regular review of remuneration
incentivisation and reward structures
ongoing emphasis on equity based
incentivisation for employees and other
employee incentive and reward schemes
mitie has signed up to the uk government’s
skills pledge to help all eligible employees
achieve the equivalent of ﬁve gcses at
grades a c
construction engineering and facilities
management apprentice schemes 
are in place
new business business 
retention and contracting
strategy area
– clients
– risk
– proﬁtability
the group is increasingly tendering for 
and securing more complex and larger
multiservice business if risks are not priced
correctly on a complex or large multi
service contract the ﬁnancial performance
of the contract will be affected leading to
pressure on service delivery and potentially
loss of business over time
greater opportunities to secure new 
work in the current climate as potential
clients focus on cost efficiencies and 
look to outsource their noncore services
the internal control environment includes 
a strict bid and contract review process
along with an approval mechanism 
the bid and contract review involves 
both internal and external specialists 
and for material bids the board
potential opportunities and the bid pipeline
is monitored by the executive board
infrastructure and systems
strategy area
– clients
– risk
– responsibility
– proﬁtability
a system failure failure to control systems
implementation including sap or the
collapse of our infrastructure would limit
mitie’s ability to meet operational and
regulatory commitments which may lead
to contractual breaches and ﬁnes 
investment in our infrastructure and systems
will improve the reliability of our services
and enhance our brand reputation 
infrastructure requirements are regularly
reviewed by the board to ensure they are
appropriate to the operations undertaken
and assist with the successful delivery of
services to clients 
new systems implementations are
appropriately resourced and controlled 
13012ra08p0115qxdlayout 1  28509  1149  page 15 mitie group plc
annual report and accounts 2009 16
business review
operating review
on 1 april 2009 we took a decision to
rebrand our three operating divisions 
to facilities management previously
facilities services property management
previously property services and asset
management previously engineering
services further  we elected to enhance
our asset management proposition 
through its combination with our
engineering maintenance business 
which had previously been a part of our
facilities services business the commentary 
and ﬁnancial data below reﬂects the
performance of our three divisions in the
organisational structures that applied during
the period to 31 march 2009 and reﬂects 
the new branding a proforma analysis 
of the ﬁnancial results of the business for 
the year ended 31 march 2009 in the new
organisation is set out in the notes to the
consolidated financial statements
facilities management
our facilities management division delivers
facilities consultancy management and
service delivery to our clients within the
division during the year ended 31 march
2009 we recognised five principal business
lines which were facilities management
which comprises our managed services
business services client services and 
pfi businesses cleaning and environmental
which encompasses our cleaning
landscaping and pest control businesses
security engineering maintenance 
and catering 
the division has had a good year securing
many new contracts and expanding 
many existing contracts by providing
additional services adding to our order
book which has increased to £42bn 
2008 £36bn
revenue in the division increased by 
148 to £9422m 2008 £8204m with
operating profit growing by 108 to 
£542m 2008 £489m operating profit
margins decreased to 58 2008 60 
as we have enhanced investment in 
our business development capabilities
results summary
during the year  we have focused on
developing our facilities management 
fm and multiservice offerings and on
increasing the integration between our ﬁve
business lines in the bidding and operation
of our contracts we have improved 
our processes for managing customer
relationships and coordinating our sales
process to promote cross selling by
enhancing the management information
shared across the division
we are seeing opportunities as well 
as challenges from the effects of the
recession as clients look for innovative
solutions to reduce costs and exposure 
to risk during the year  we have seen 
an increasing number of opportunities 
in bidding for new contracts within the
division as well as an increase in existing
clients looking to reduce costs our ability 
to work together with clients through 
multiservice and fm contracts
consolidating their supply chains 
and internal management structures 
along with our efﬁcient processes and
technology helps them to create savings
and efﬁciencies where appropriate 
we have also been able to support clients
by proactively identifying temporary cost
reduction measures to existing services 
our national coverage and wide range 
of capabilities means that we are one 
of a limited number of service providers 
that can deliver full scope fm contracts 
the economic climate is providing an
impetus for clients to move towards larger
multiservice and fm contracts in order 
to consolidate their supply chains and 
save costs 
in order to take full advantage of the
opportunities within this market area 
which provides signiﬁcant potential 
for mitie we have invested in our fm
capabilities during the year  recruiting 
key individuals to the business to provide
enhanced strategic leadership that will
complement our proven service delivery
capability in this area 
during the year  we have secured new
work in both the private and public sectors
as all organisations look to outsourcing 
noncore services to create efﬁciencies
our work to identify key market sectors
during the year has been supported by
notable successes including
within the education sector  mitie has
solidiﬁed its position as the largest provider
of fm services to pfi schools in the uk
following success in the governments
£450bn building schools for the future
bsf programme to rebuild or refurbish 
all schools in england 
in december  we secured preferred bidder
status on the derbyshire county council 
bsf project the contract will total £650m
for mitie running over a period of 25 years 
and will see mitie providing fm services to
46 schools across the county the contract
forms part of the equitix consortium 
which has been selected as preferred
bidder working in partnership with 
derbyshire county council as part of the 
ﬁrst phase of their £7500m transformation 
of secondary education  
standard life
at standard life’s headquarters in
edinburgh our ‘ingredients’ food
service team has achieved a catering
sales increase by introducing a 
new food and signage concept 
the concept reflects the high quality
fresh food offer and provides clear
labelling and communication to 
help standard life employees with 
their food and beverage choices 
our continued commitment and 
focus on enhancing the customers
experience is aimed at improving 
the perception of workplace catering
as a real employee benefit
2009 2008 change
facilities management £m £m 
revenue 9422 8204 148
operating profit 
before amortisation 542 489 108
operating margin 58 60 –02
 of acquisition related intangible assets
13012ra08p1627qxdlayout 1  28509  1209  page 16 mitie group plc
annual report and accounts 2009
business review
17
kate glassup
aviation director  mitie
think
mitie has proved itself as a valuable multiskilled
partner to baa helping to assist it with its objective 
of reducing its supplier base whilst delivering a
quality service to meet the needs of its passengers
and airlines through careful planning we were able
to recruit train and obtain airside security clearance
for 400 new cleaners for the opening of terminal 5 
to ensure that the service at the uk’s largest free
standing building could start on schedule we have
also assisted baa to develop a robust new service
for its passengers with restricted mobility prm 
after new legislation required the airport operator 
to provide a uniﬁed service instead of individual
airlines taking care of their own passengers 
this has enabled mitie and baa to standardise 
the prm service making it easier for passengers 
with disabilities to travel through stansted airport 
and heathrow terminals 1 2 and 4
manage
mitie now manages more than 1200 people on the
baa contract coping with the peaks and troughs 
in seasonal demands and supplying extra people
depending on the security alert status our specialist
cleaners work at height especially at terminal 5
where it is essential that the ﬂoor to ceiling glass 
walls and the departure lounge’s singlespan
waveform glass roof are clean in order to let the
natural light in and enhance the amazing views 
of the world’s busiest international airﬁeld  
by investing in the latest heavy duty cleaning
technology we have been able to increase 
the productivity of our people and increase the
efﬁciency of the service reducing costs we have
also invested in the prm service and are the only
company in the uk to own ambulifts that can lift
passengers with restricted mobility on to the new
airbus a380 plane 
deliver
mitie delivers a range of services at different airports
for baa including delivering the waste management
at heathrow terminal 5 the cleaning at heathrow
terminals 1 5 and at gatwick’s north and south
terminals and the prm service on behalf of baa at
heathrow terminals 1 2 4 and at stansted airport
we also provide people to help passengers comply
with liquid restrictions before going through security
at heathrow terminals 1 and 2
baa
our work with baa has grown from 
a cleaning contract at terminal 5 
to one of our largest multiservice
contracts working at all of baa’s
london airports
13012ra08p1627qxdlayout 1  28509  1209  page 17 mitie group plc
annual report and accounts 2009 18
we have been steadily expanding 
our relationship with barclays for 
the last 12 years to make it one of 
our largest multiservice contracts
business review
operating review
think
as one of barclays’ top facilities providers we have
worked together to ﬁnd different and joined up
ways of providing our services maximising the 
cost savings provided to barclays whilst consistently
raising our standards across the services to meet 
and exceed increased service level targets of 90
manage
we have implemented our leading it systems to 
help us manage the contract efﬁciently including
our tracker system which monitors the 1500
cleaners that clean the barclays retail branches 
at night the system allows us to track lone workers
and teams making sure that they are safe and that
the branches will always be clean and tidy for their
customers each morning in order to make sure that
standards are being met our vision it system allows
us and the client to view live audit data on cleaning
standards we also manage mobile cleaning and
engineering teams who are always onhand to be
onsite within two hours to react to any emergency
calls from our 24hour customer support centre 
deliver
mitie has more than 2400 people involved in the
barclays contract providing the cleaning security
pest control and waste management services 
to barclays corporate ofﬁces as well as the 
cleaning at 1340 of its retail branches and
mechanical and engineering maintenance to 
400 of its retail branches around the uk we have
also recently secured the contract to provide front
of house and telephony services to barclays head
ofﬁce in canary wharf
barclays
wendy cuthbert
head of corporate real estate services – uk barclays
13012ra08p1627qxdlayout 1  28509  1210  page 18 mitie group plc
annual report and accounts 2009
business review
19
we have also signed a 31year contract 
to deliver total facilities management to
three new pfi schools in kent mitie will be
working for telereal trillium who is leading 
a consortium of partners in a £6000m 
deal to completely rebuild or substantially
refurbish the first ten secondary schools in
kent’s extensive bsf programme this initial
contract award for mitie is valued in 
excess of £400m and with a further eight
pfi schemes likely to be added to the
contract it is expected that the overall
contract value will increase substantially
over the term mitie has the exclusive rights
to deliver fm to the schools which will
include the overall management and
helpdesk engineering and building fabric
maintenance security and all soft services
comprising caretaking cleaning catering
and grounds maintenance 
in the utilities sector  we have been 
made preferred bidder for a sixyear
integrated facilities management contract
with thames water utilities ltd twul 
the estimated total value of the contract
for mitie is over £1000m which will cover
twul’s entire estate including their head
office and laboratory as well as operational
buildings throughout the thames region 
mitie will have responsibility for managing
and delivering a variety of expertise and
services which will include a tailored asset
management strategy enabling the client 
to identify and target effective capital
investment reducing annual operational
expenditure this will be combined with a
range of other services driven through a
dedicated helpdesk system
in the technology and communications
sector  our contract with cable and
wireless continues to grow having secured
new catering and security contracts with
the telecommunications company the
threeyear catering contract includes the
provision of staff restaurants cafés deli bars
and hospitality at seven cable and wireless
offices around the country including its
europe asia and us business head office 
in bracknell the new security management
contract over three years will include the 
provision of manned guarding electrical
security and response services to more than
900 cable and wireless sites in the uk and
more than 15 sites in europe 
our original fm and mechanical and
engineering contracts with cable and
wireless have also been expanded to
include its acquisition of telecommunication
company thus in 2008 meaning that the
total value of work that we perform for
cable and wireless is now in excess of
£200m per annum 
we have secured a new integrated fm
contract with syngenta a worldleading
agribusiness following a tender process
that aimed to consolidate their supply
chain and improve the management of
their international research centre estate
near bracknell the threeyear contract
includes maintenance helpdesk cleaning
landscaping waste mailroom and
reprographics services
in the healthcare sector we have secured
a multiservice contract with st george’s
healthcare nhs trust whose main site in
tooting south west london is one of the
uk’s largest teaching hospitals the seven
year contract will result in the employment
of 500 people providing cleaning and
catering services across the trust’s estate 
our healthcare team has also successfully
retained its domestic and portering services
contract with north middlesex university
hospital nhs trust which it has held since
2003 the new contract will run for a further
three years with an enlarged scope 
which includes the provision of onsite
security services 
mitie has had a very successful 
year increasing our presence in the
transport and logistics sector  securing
several signiﬁcant highproﬁle contracts
our new contract with eurostar will see 
mitie providing security services at their 
st pancras international ebbsﬂeet
international and ashford international
terminals as well as taking responsibility 
for security at their temple mills engineering
base mitie’s specialist transport security
team will work alongside eurostar’s own
team to support them in providing a safe
secure environment for travellers and staff
the team of over 330 ofﬁcers will undertake
a variety of roles including customer service
support searching of trains passengers and
baggage and 24hour control of access in
and out of all sites 
in other areas of the transport and logistics
sector  we have secured a ﬁveyear
contract with firstgroup plc valued at
£260m over ﬁve years to provide support
services to their bus division mitie will be
cleaning moving and refuelling all of
firstgroup’s buses as well as cleaning their
premises and workshops in the london 
and berkshire areas we have also secured
a new security contract with the port of
felixstowe adding to our existing threeyear
catering contract which was secured 
in may 2008 to provide staff catering
hospitality and vending services
the last 12 months have been challenging
ones for the ﬁnance and professional
sector  and just as the sector was one of 
the ﬁrst to feel the effects of the credit crisis
it has also been one of the ﬁrst sectors to
look to outsourcing to try to reduce costs 
we have been steadily extending the
scope of our relationship with standard 
life mitie was already working with
standard life providing them with
engineering and interior ﬁtout services on
several of their new developments around
the country in turn this led to mitie securing
a ﬁveyear cleaning contract last year 
in june 2008 we furthered our relationship
by securing our largest ever catering
contract to provide standard life with staff
restaurants café bars delis retail shops
hospitality and ﬁne dining for the next 
ﬁve years this success has been built 
on the back of expanding the scale and
capability of our catering business through
the acquisition of catering partnership 
in march 2008 which now allows mitie 
to bid competitively for signiﬁcantly larger
catering contracts 
we have secured several new contracts 
in canary wharf including a new contract
with citigroup to provide front of house
reception and security services at their
canary wharf uk headquarters we have
also secured a threeyear contract with
credit suisse to provide cleaning and
washroom services at their offices in canary
wharf and pall mall valued at £61m 
13012ra08p1627qxdlayout 1  28509  1210  page 19 mitie group plc
annual report and accounts 2009 20
property management
our property management division
provides property maintenance and
project management services including 
a complete range of repair  refurbishment
redecoration and ﬁtout expertise for both
the private and public sectors with a focus
on social housing
during the year property management
increased revenue by 43 to £2979m
2008 £2857m the integration of the 
dw tilley rooﬁng business which was
acquired in march 2008 was successfully
completed in the period operating proﬁt
grew by 193 to £179m 2008 £150m
with operating margins up at 60 
2008 53
in the current volatile market property
management is following a dual strategy 
to deliver services that are cash generative
in the immediate term and secondly
through longer term relationships and forms
of partnering agreements that can deliver
beneﬁts for both our clients and mitie 
whilst adding to our forward revenue
visibility our forward order book for the
division remains at £05bn 2008 £05bn
results summary
property management is focused on
providing services that support everyday
lives creating and maintaining better
working and living environments 
whether this is in social housing healthcare
education industry or commerce 
our ability to satisfy our markets will stand 
us in good stead to maintain growth 
both now and in the future 
the successful integration of our latest
acquisition national roofing specialists 
dw tilley ltd has increased our national
coverage and strengthened our presence
in the roofing market where we focus on
renewal and repair in both the public and
private sectors 
our enlarged roofing business together
with the national footprint of our other
niche services in decoration specialist
coatings and fire protection has resulted 
in generating further value to clients who
are now able to draw on a wider range 
of services aligning our services even 
closer to the needs of our clients through
our multiservice offering is helping to drive
organic growth 
in the commercial property management
market we have seen a shift away from 
the development of new space towards 
an increase in the reconfiguration of
existing space to accommodate change
this stabilising effect is creating opportunity
for our refurbishment teams at the same
time clients have a need for increased
property maintenance to enable the
building and businesses within them 
to continue to operate effectively and
efficiently property management is 
well placed to benefit from these market
changes indeed we have recently
secured a significant contract as part of
mitie’s facilities management contract with
thames water  a large proportion of which
is capital work refurbishment 
in the public sector  we will benefit from 
the government’s fiscal stimulus package
following the announcement to bring
forward £30bn of capital spending from
201011 to 200910 in a sector that is
benefiting from government spending 
and where healthy competition is driving
innovation we are confident of our ability
to grow and will continue to make further
investments in this area
business review
operating review
tenant liaison officer of the year 
in march kelly onley a tenant liaison
officer tlo working for mitie on our
responsive repairs and voids contract
with milton keynes council won the
contractors tenant liaison officer 
of the year award at the connecting
people awards southern region 
final kelly who has worked with mitie
for a little over two and a half years
received the award for her hard 
work and passion in providing a 
great service to her tenants kelly is
responsible for liaising with tenants 
in 12000 homes over a widespread
geographic area she plays a key 
role in the lives of many tenants and 
is a listening ear if there is anything 
that they are unsure about mitie is 
very proud of what kelly has achieved 
and is committed to providing this
same level of service that kelly has
been recognised for  throughout our
social housing contracts
2009 2008 change
property management £m £m 
revenue 2979 2857 43
operating profit 
before amortisation 179 150 193
operating margin 60 53 07
 of acquisition related intangible assets
13012ra08p1627qxdlayout 1  28509  1210  page 20 mitie group plc
annual report and accounts 2009
business review
21
think
a key objective of the project was to ensure that 
the absolute minimum amount of waste was sent 
to landﬁll an extensive consultation exercise
enabled us to establish a number of opportunities 
to reuse and recycle a broad range of materials
resulting in us achieving a recycling rate for the
project of more than 99 with the building fully
occupied throughout we also carried out extensive
planning in order to refurbish the building with
minimal disruption to tenants we were able to
create extra space and improved lighting on the
main ofﬁce ﬂoor by removing the screed ﬂooring 
to maximise ﬂoor to ceiling height and by
introducing 26 roof lights to ensure the maximum
amount of daylight is achieved each roof light 
was equipped with electric solar controlled blinds 
to reduce heat gain and solar glare 
manage
our management of the project has not only 
led to us delivering a tailormade service to 
satisfy all our clients’ requirements but also 
resulted in the project consistently achieving 
a score in excess of 35 out of 40 in the considerate
contractors scheme removing the screed ﬂooring
from the main ofﬁce ﬂoor meant that we had 
to remove 520 tonnes of screed with pneumatic
breakers with a noise window of only two and 
a half hours a day 
deliver
work included a full strip out of both the reception
and the main ofﬁce ﬂoor areas to create better
working conditions we transformed the reception
area to reﬂect the client’s corporate image 
this included the installation of new reception 
desks marble ﬂooring and audiovisual equipment
telereal trillium 
we have recently completed 
the 111000 sq ft refurbishment 
of 236 gray’s inn road london 
for telereal trillium one of mitie’s 
largest customers
david osullivan
senior projects manager  telereal trillium
13012ra08p1627qxdlayout 1  28509  1210  page 21 mitie group plc
annual report and accounts 2009 22
business review
operating review
think
in line with sentinel’s customer objectives we have
questioned and challenged our overall approach 
to ensure all customers receive a prompt and
efficient service that offers real benefits we have
worked with sentinel to undertake value engineering
workshops to streamline key service processes 
one example of this is the introduction of the 
repair time allocation system working with sentinel 
we devised a system that detailed the different
types of repairs and the average time it takes to
complete the job it also included the operatives
available for the repair along with their trade
expertise this system has enabled the customer
service centre to predict the time it takes to
complete the repairs as well as making sure 
the right person is allocated to the right job 
as a result sentinel’s customers benefit from a 
direct appointments system and a more efficient
and costeffective repairs service  
manage
we understand the importance of reducing 
the turnaround times for empty houses in order 
to save costs for our clients and increase the 
number of available homes we have worked 
with sentinel to rationalise workﬂow to avoid
duplication and waste by adopting ‘lean thinking’
methods by managing the voids process as 
a whole and communicating with all parties
concerned we can reduce the time wasted before
and after our involvement as a result we have
signiﬁcantly reduced the key to key turnaround 
time for void properties 
deliver
mitie now repairs and maintains more than 
7300 homes in the north hampshire area for 
sentinel and will be delivering decent homes
planned works and gas servicing over the next 
ﬁve years by employing local people we help 
to create sustainable communities and pride
ourselves on providing better standards of living 
for our customers
sentinel housing association
mitie has recently been awarded 
a new ﬁveyear asset management
contract with sentinel housing
association the largest local housing
association in north hampshire
val bagnell
executive director  sentinel housing association
13012ra08p1627qxdlayout 1  28509  1210  page 22 mitie group plc
annual report and accounts 2009
business review
23
our work in the social housing sector
includes response repair  cyclical
maintenance and decent homes
contracts our principal focus within the
sector is to secure repair and maintenance
works which provide better longterm
opportunities however  we have also been
successful in securing a number of new
decent homes contracts during the year 
as we have seen an increasing number 
of opportunities with funding being
released by the government in order 
to try to accelerate the progress of the
decent homes programme to meet 
the government’s target to upgrade 
36m homes in the uk
amongst the new repairs and
maintenance work secured during the
year  we will be providing daytoday
responsive repairs to 6500 properties
throughout hampshire wiltshire and
berkshire in a fouryear contract with
wessex housing partnership with a total
value of £92m we have also signed 
a contract with origin housing group
valued at £72m over four years to deliver 
a responsive repairs voids and adaptations
service to the tenants of 5300 homes across
north london and the home counties 
in north hampshire we have renewed and
expanded our repairs and maintenance
contract with sentinel housing association
the contract valued at £500m over five
years started in april 2009 and will see us
delivering services to 7300 homes we have
also been successful in securing a fiveyear
painting contract with gloucester city
homes valued at £30m which will involve
painting the outside of all 4700 of the
organisation’s homes as well as communal
areas in a number of buildings in essex 
we successfully achieved a contract
extension from thurrock council to paint 
an additional 2600 of their properties
decent homes projects secured during 
the year include a fiveyear contract 
with bracknell forest homes which has 
a total value of £175m this newly formed 
notforprofit housing association owns and
manages 5600 excouncil properties and
the contract will see us fitting new kitchens
and bathrooms in half of these homes 
as well as carrying out electrical work 
we have secured an £80m decent homes
contract with redbridge homes to replace
kitchens bathrooms heating and electrics
in approximately 1200 homes 
we have also entered into a fiveyear 
£125m decent homes agreement with
knightstone housing association we will 
be replacing kitchens bathrooms windows
doors and central heating in approximately
3000 knightstone homes across the 
south and west of england in liverpool 
we secured a framework contract to deliver
decent homes works to liverpool mutual
homes where mitie is one of eight partners
who will be allowed to bid for £3500m of
improvement works over the next four years
within the government sector  we secured
a £90m threeyear contract with walsall
council to deliver response and planned
maintenance to civic buildings across the
borough the contract will involve working
at about 800 properties in walsall including
schools leisure centres libraries museums
and other councilowned buildings 
and will see us engaging the local supply
chain from the outset
earlier in the year  we succeeded in
securing several new fitout projects 
within the ﬁnance and professional sector
these include a £20m refurbishment
project for scottish widows at 24 hanover
square the project included upgrading 
the buildings infrastructure and refurbishing 
all seven floors of the building the work
included installing new power  data and
heating and cooling systems updating the
core areas with new lavatories and
installing a new lift as well as carrying out
decoration and floor finishes throughout
we also secured a £30m interior fitout
contract with firstrand bank which will 
see us fitting out their newly consolidated
london office this involves transforming
27000 sq ft of the building which includes
creating a new client reception area 
as well as fitting out meeting conference
and breakout areas
as expected we have experienced a 
slow down in some niche areas of property
management during the year this has
affected both our plumbing and heating
work with newbuild housing projects and
our interior fitout work within the private
sector our exposure to both these areas is
minimal and in the second half of the year 
we have focused on deploying these
transferable skills into public sector work
dudley council  
as a partner to dudley council
delivering a cyclical interior and
exterior painting programme to help
improve its 23000 properties mitie has
enabled maximum efficiency and 
use of resources for our customer by
combining interior works programmes
with exterior  focusing on exterior
painting from march to december 
and concentrating our resources on
interior painting programmes between
december and march dudley council
receives a service that doesn’t peak 
or trough and what’s more tenants
benefit from improved scheduling 
and a better consultation process 
both mitie and dudley council share
office accommodation and the
success of delivering our service 
from a joint working environment has
justified our client’s decision to invest 
in similar shared arrangements on 
all of its other partnering contracts
even better  our work won a ‘very
highly commended’ award from the
painting and decorating association
which speaks volumes about what 
we do
13012ra08p1627qxdlayout 1  28509  1210  page 23 mitie group plc
annual report and accounts 2009
24
business review
operating review
    asset management
our asset management division provides
the integration management and
maintenance of technical assets to meet
the demands of the lowcarbon economy
including energy design generation 
and certiﬁcation infrastructure projects
building services and mechanical and
electrical engineering on 1 april 2009 
our engineering maintenance business 
was combined with asset management 
to further enhance our market proposition 
in this area
the asset management division continued
its transition to a new business model 
with a lower risk work mix resulting in 
an expected drop in revenue for the 
year of 64 to £2818m 2008 £3011m
operating proﬁt for the division increased
by 12 to £84m 2008 £83m and
operating margins grew by 02 to 30
2008 28
results summary
asset management has continued 
to evolve its business during the year to 
meet the changing requirements of our
clients as they respond to government
legislation on energy generation and
carbon output energy performance and
efﬁciency are now evaluated on a different
set of criteria and we are working with
many clients to achieve demanding 
new objectives
within this context of accelerating 
change we have made signiﬁcant
progress towards our aim of building more
longterm partnerships with our clients
public and private sector organisations 
alike are incorporating the drive to reduce
energy consumption within their strategic
plans for upgrading their estates regardless
of the economic environment framework
agreements already in place are yielding
substantial beneﬁts for our clients and for
mitie and valuable new business contracts
have been secured during the year
our order book has decreased slightly 
to £02bn 2008 £03bn
organisations that support large estates 
are turning to us for our knowledge 
and expertise to help them mitigate the 
impact of legislation and comply with
measures such as the carbon reduction
commitment while optimising efﬁciency
and returns on investment our strength
here is being able to approach the 
project holistically from establishing the
right energy procurement mix to designing
and integrating the electrical and
mechanical equipment 
asset management operates broadly
across public and private sector markets
ensuring a secure business base in
uncertain economic times 
the public sector market has remained
strong and focused primarily on health 
and education in the healthcare sector 
we are helping our clients reduce costs
direct more resources into their core clinical
and welfare objectives and work towards
wider nhs efﬁciency targets 
we provided guy’s and st thomas’ hospital
with two embedded generation systems
that will generate signiﬁcant savings by
enabling electricity to be produced onsite
while using the waste heat for space
heating and hot water it will also reduce
the hospital’s dependence on traditional
forms of energy supply 
during the year we have provided 
further support on the enabling works 
for the 10year redevelopment at 
great ormond street hospital again 
we have demonstrated our effectiveness 
in providing operational continuity in 
mission critical situations in this fully
occupied site meticulous planning and
proactive communications are essential 
to ensure minimum disruption to patients
and staff and complete resilience for
clinical activities our experience of working
in live environments has ensured that each
section of the enabling works has been
successfully achieved to tight timescales
university campus suffolk
mitie has engineered a newbuild
stateoftheart energy efficient
building for university campus suffolk
the design provides energy cost
savings for the client by minimising 
the energy footprint of the building
utilising a combination of technologies
including low energy cooling systems
intelligent lighting and a heat 
recovery system mitie was instrumental
in ensuring the design concept was
developed to a successful outcome
and working with the architects 
and other contractors delivered 
the building in time for the new 
2008 university intake against a very
challenging programme the building
was awarded an ‘excellent’ rating 
by breeam building research
establishment’s environmental
assessment method the leading 
and most widely used environmental
assessment method for buildings
2009 2008 change
asset management £m £m 
revenue 2818 3011 –64
operating profit 
before amortisation 84 83 12
operating margin 30 28 02
13012ra08p1627qxdlayout 1  28509  1210  page 24 mitie group plc
annual report and accounts 2009
business review
25
think
mitie has been working closely with the university 
of plymouth for over ﬁve years developing a real
understanding of the unique set of pressures
inﬂuences and needs that face the higher
education market with all the projects that we
undertake we get involved with the design teams 
at an early stage in order to provide our engineering
expertise and a different perspective when looking
at the design strategy 
manage
recognising the importance of working as part 
of an integrated team we have established strong
relationships with the learning facilities and estates
departments other university staff main contractors
and consultants making us a trusted and reliable
source of expertise our professionalism and
commitment to ﬁnish each project on time and 
to budget has ensured that the relationship with 
the university of plymouth has gone from strength 
to strength with beneﬁts of our ongoing relationship
resulting in quicker response times knowledge of
university procedures and better integration with 
all members of the team 
deliver
to date mitie has managed 17 projects for the
university in the last eight years with a total value 
of more than £200m our work for the university has
included heating lighting air conditioning cabling
wiring and other mechanical and electrical works
projects have included work on residential units and
academic buildings including the university’s striking
roland levinsky building
university of plymouth 
mitie’s strong relationship with the
university of plymouth has delivered
numerous benefits to the universitys
ongoing improvement programme 
chris bunce
deputy director of learning facilities university of plymouth
13012ra08p1627qxdlayout 1  28509  1210  page 25 mitie group plc
annual report and accounts 2009
26
business review
operating review
think
in this fully occupied site mitie has demonstrated 
its effectiveness in providing operational continuity 
in mission critical situations meticulous planning 
and proactive communications have been 
essential to ensure minimum disruption to patients
and staff and complete resilience for clinical
activities our experience of working in live
environments has ensured that each section 
of the projects that we have undertaken has 
been successfully achieved to tight timescales
manage 
working at height the projects have involved 
large crane lifts of heavy equipment into and 
out of the centre of the site and mitie has 
worked closely with the gosh estates department 
and the hospital’s project consultants to minimise 
the impact of these and all other activities on the 
daily operation of the hospital  
deliver
the engineering projects that mitie has delivered 
to gosh include chiller replacements infrastructure
works and other work totalling more than £62m
added to this mitie also provides the cleaning in 
the hospital and event services within the hospital’s
roof garden
great ormond street hospital gosh
mitie provides a range of services 
to great ormond street hospital
including engineering projects
helping with the £3200m phase 2 
of the hospital’s redevelopment
graham mills
estates director  great ormond street hospital
13012ra08p1627qxdlayout 1  28509  1211  page 26 mitie group plc
annual report and accounts 2009
business review
27
sainsbury’s  
mitie has helped sainsbury’s to pilot
new ways to reduce the retailer’s
carbon footprint at its new store on 
the outskirts of dartmouth by installing
two quiet revolution wind turbines 
that will provide renewable energy 
that will be used onsite the store has 
been specifically designed to reduce
the amount of co2 emitted into the
atmosphere and it is expected to 
save about a third on its energy bills
in the education sector  we are working
with schools colleges and universities to
upgrade existing facilities and develop 
new ones two of our projects at university
campus suffolk and penryn college in
cornwall have been awarded an excellent
breeam rating – the world’s most widely
used environmental assessment method 
for buildings the technologies deployed 
to achieve this include biomass boilers 
solar hot water collection rainwater
recovery and wind turbines at barnet
college a groundsource system is now
bringing natural heat from 100 metres
below the earth’s surface under our
ongoing framework agreement with the
university of plymouth three prestigious new
buildings were completed in 2008 two of
them general academic buildings and the
third an accommodation block together
with substantial refurbishment works 
we continued to undertake a large
amount of work in the government sector
debut regional prime contractor in the
south west for defence estates has
responsibility for the delivery of novel and
complex capital works projects through
their supply chain partner we have been
working under this framework agreement
for over ﬁve years and continue to
undertake a variety of large projects
characterised by highly collaborative
methods and a pricing structure that
provides certainty for each project for 
all concerned
the private sector market has been
affected by the economic downturn but
despite this mitie has continued to develop
its business property owners and occupiers
driven by changing legislation are focusing
on the need to develop new models for
managing their estates and on ways to
redirect capital expenditure away from
noncore activities we are providing
innovative solutions that will deliver greater
returns on investment through major gains
in efﬁciency that will also meet government
targets on energy and carbon 
at 200 aldersgate a challenging city site
comprising two linked blocks on a major
roundabout at the end of london wall 
we are providing infrastructure
refurbishment category a ﬁtout and the
replacement of 19 separate plant areas 
this year we have undertaken further 
work in the ﬁnance and professional sector
for standard life investments a client that
mitie works with across all three divisions 
in planning their new ofﬁce in guildford 
the company employed us to develop a
bespoke energy solution that would meet
government legislation that at least 10 
of all new buildings’ energy should come
from renewable sources we evaluated 
the potential of numerous technologies 
to achieve the necessary compliance
optimise efﬁciency and provide a sensible
pay back period within the life cycle
model the groundsource system we
speciﬁed delivers substantial savings against
a traditional system of a similar scale 
in technology and infrastructure we have
extended into framework agreements 
with several major banking institutions and
continue to work with data centre owners
and operators within the technology and
communications sector some of our
projects involve providing huge amounts of
resilient power and cooling to data centre
spaces for clients including global switch
the work we undertake is targeted at
increasing the effective use of power and
providing continuity and stability for critical
data systems in the most efﬁcient and
sustainable way 
our work with edf energy in the utilities sector
has successfully demonstrated our expertise
in the management of energy mitie has
established a strategic partnership with 
edf energy one of the uk’s largest energy
companies to assist them in developing
embedded onsite electricity generation
schemes to meet the obligations of the
carbon emissions reduction target cert
this came into effect in april 2008 and
requires suppliers to help redirect energy
generation away from national networks 
to local schemes in addition we extended
our involvement in the provision of 
efficient energy generation by securing 
a partnership to distribute and deploy
proven wind turbines 
13012ra08p1627qxdlayout 1  28509  1211  page 27 mitie group plc
annual report and accounts 2009 28
business review
financial review
mitie has delivered another set of strong
results for the year  building on our 21year
track record of growth our business 
model continues to show resilience despite
economic uncertainties and our earnings
continue to be backed by solid cash flows
and good future visibility
key performance indicators kpis
mitie is committed to delivering sustainable
profitable growth which consistently 
delivers stakeholder value our results have
reflected this through yearonyear growth
in revenues earnings and dividends over 
a 21year period and our strategy is geared
to ensure this continues 
we have carefully selected our financial
kpis to ensure that the overall financial
performance of the group is measured
reported and aligned to our strategy 
our financial kpis focus on the level and
quality of our earnings and cash flows 
the control of capital expenditure and the
sustainability of dividends the group has
performed strongly against these measures
during this and previous years and we 
are satisfied that the historic trends in 
our kpi performance demonstrate our
continued commitment to a profitable 
and sustainable business model
we are pleased to report another 
year of doubledigit earnings and
dividend growth 
2009 2008 increase
£m £m 
revenue 15219 14072 82
operating profit before 
acquisition related amortisation 805 722 115
amortisation of acquisition 
related intangible assets 19 19
operating profit 786 703 118
net investment revenue 
and finance costs 27 24
profit before tax 759 679 118
tax 215 206
profit after tax 544 473 150
effective tax rate 283 303
basic eps before other items 172p 149p 154
basic eps 167p 143p 168
dividend per share 69p 60p 150
 other items are noncash acquisition related items being amortisation of intangible
assets and unwinding of discount on deferred contingent considerations
13012ra08p2835qxdlayout 1  28509  1215  page 28 mitie group plc
annual report and accounts 2009
business review
29
sustainable profitable growth 
revenue for the year ended 31 march 2009
increased by 82 to £15219m our revenue
streams are supported by a diverse portfolio
of clients exposure to a wide industry 
sector base and supported by a strong
order book which now stands at £49bn
looking forward revenue for the year
ended 31 march 2010 is now 74 secured
2008 78
operating profit before amortisation 
of acquisition related intangible assets
ebita increased by 115 to £805m 
2008 £722m we monitor and manage
ebita profit margins for the group as one of
our financial kpis and are pleased to report
an increase in the group’s ebita margin 
to 53 2008 51 in the year this reflects
the strengthening of margins in property
management to 60 2008 53 and
asset management to 30 2008 28
offset by a small reduction in facilities
management to 58 2008 60 
where we have enhanced investment 
in our business development capabilities 
in that area
the charge in respect of the amortisation 
of intangible assets arising on acquisitions
remains consistent with the prior year at
£19m 2008 £19m reflecting the absence
of acquisitions in the year operating profit
after the amortisation of intangibles relating
to acquisitions was £786m 2008 £703m
investment and finance charges for the
year increased to £27m 2008 £24m 
this charge includes the noncash finance
charges of £06m 2008 £08m relating to
the unwinding of the discounted deferred
contingent consideration in respect of
acquisitions made in prior years and £06m
2008 nil in respect of the mark to market
of three callable interest rate swaps
excluding the noncash finance charges
investment and finance charges for the
year reduced to £15m 2008 £16m
the tax charge for the year was £215m
2008 £206m representing an effective
rate of tax on our profit on continuing
operations of 283 2008 303 
these results generated profit after tax 
for the year of £544m 2008 £473m 
an increase of 150 on the prior year 
after minority interest charges of £13m
2008 £23m £531m 2008 £450m 
is attributable to the shareholders of 
mitie group plc
cash flow and liquidity
the underlying cash performance of the
group remains excellent and is a key focus
area for our financial and operational
teams around the group
the conversion of ebitda to cash is a
financial kpi for the group in the year
ended 31 march 2009 we converted 
975 of our ebitda to cash 2008 903
continuing our track record of consistently
achieving our kpi target level of 90 
strong operating cash of £944m up 207
on the prior year has helped to reduce 
our net debt at 31 march 2009 we had 
no net debt 2008 £156m and instead
held net funds of £109m comprising cash
balances of £285m 2008 £426m loans 
of £100m 2008 £500m and loan notes
and obligations under finance leases of
£76m 2008 £82m deposits held by our
captive reinsurance company which are
not readily available to the group but 
are included in our cash balance totalled
£73m 2008 £124m at 31 march 2009
the group’s committed banking facility
which expires in january 2012 remains
unchanged from the prior year end at
£2300m the principal covenants in respect
of this facility require that the maximum
level of debt must not exceed 35 times
ebitda and that the minimum profit to
interest cover ratio for the group is 31 
the group has operated within these
covenants throughout the year 
the average borrowing rate on drawn
funds under the facility during the year 
was libor  40 basis points our overdraft
facilities total £350m 2008 £400m
stakeholder value
our track record of delivering stakeholder
value through earnings and dividend
growth continued this year with basic 
eps before other items increasing by 154
to 172p per share 2008 149p per share
basic eps before acquisitionrelated
amortisation increased by 163 to 171p
per share 2008 147p per share while
basic eps was 167p per share 2008 143p
per share an increase of 168 our fully
diluted basic eps measure rose to 165p 
per share 2008 141p per share
our basic eps result continues to support
our commitment to dividend growth in line
with our adjusted earnings per ordinary
share after excluding other items this policy
ensures that our dividends continue to 
track our underlying earnings and are 
not distorted by noncash accounting
adjustments relating to amortisation and
imputed finance charges arising from
acquisitions this has resulted in a full year
dividend of 69p per share 2008 60p per
share an increase of 150 for the year
and reflects a dividend cover of 25 times
on our adjusted eps measure our final
dividend for the year ended 31 march 
2009 will be paid subject to shareholder
approval on 7 august 2009 to shareholders
on the register as at 10 july 2009
pensions
the strength of our balance sheet 
and hence our future financial stability 
is supported further by the strength of 
our pension scheme funding despite the
significant recent decline in pension asset
values this places the group in a position 
of strength in the market during the year 
we completed the triennial valuation 
of the group’s own defined benefit pension
scheme which was scheduled to take
place as at 31 march 2008 no material
actuarial surplus or deficit arose on the
completion of this valuation
13012ra08p2835qxdlayout 1  28509  1215  page 29 mitie group plc
annual report and accounts 2009
the net position of all the pension schemes
included on the group’s balance sheet 
is a small net deficit of £04m 2008 £75m
surplus the main mitie group defined
benefit scheme continued to show 
a small surplus of £30m 2008 £99m 
the group also contributes to a 
number of defined contribution pension
schemes as well as making contributions 
to its customers’ defined benefit 
pension schemes under admitted body
local government status and other
arrangements in respect of certain
employees who have transferred to the
group under tupe the group’s defined
benefit pension obligations in respect 
of schemes in which the group is
committed to funding amounted 
to £34m 2008 £24m
employee incentivisation
mitie is a people business and it is 
essential that we continue to offer structures
that allow our management teams to
participate in the success of the group
which in turn delivers value to our
stakeholders the opportunity for certain 
of our management teams to own an
equity stake in some of our subsidiary
businesses has been key to the success 
of the group 
this year we elected to acquire some 
or all of the minority interests in the equity
share capital of seven of our subsidiaries
the total maximum consideration payable
in respect of these acquisitions is £133m
being satisfied by £09m in cash and £100m
by the issue of 46 million new 25p ordinary
shares valued at 21875p per share 
the balance of £24m of the consideration
is deferred and will be paid in new mitie
shares by 30 september 2010 subject to 
the attainment of specified profit targets 
by the relevant companies in the financial
years to 31 march 2010 
in addition we settled deferred
consideration totalling £05m in respect 
of the acquisition last year of part of the
minority shareholdings in mitie technology
 infrastructure limited which was satisfied
by the issue of 02 million new mitie shares
£07m of deferred consideration in respect
of the purchase last year of catering
partnership holdings limited was settled 
in cash during the year £12m of loan notes
in respect of the acquisition of mitie pest
control limited formerly eagle pest control
services uk limited were also redeemed
summary
mitie has delivered another set of strong
results for the year  building on our 21year
track record of growth our business model
continues to show resilience despite
economic uncertainties and our earnings
continue to be backed by solid cash flows
and good future visibility
we retain our focus on growth going
forward and will utilise our financial 
strength to support that growth objective
be it acquisitive organic or through 
the use of our startup model overall 
our balance sheet is strong and with low
gearing and committed facilities we have
a sound platform for future sustainable
profitable growth 
suzanne baxter 
group finance director
30
business review
financial review
13012ra08p2835qxdlayout 1  28509  1215  page 30 mitie group plc
annual report and accounts 2009
business review
31
despite the challenging global economic
situation our commitment to corporate
responsibility cr remains undiminished
and undeterred cr is a key differentiator
for us and our commitment to and delivery
of our cr strategy makes sound business
sense our cr programme contributes 
to our ability to sustain our growth in the
future as clients look to do business with
responsible likeminded organisations 
think
our corporate responsibility strategy 
is fully integrated into our longterm 
mission to responsibly deliver quality
services opportunity for our people 
and sustainable growth
manage
our cr activities draw on professionals 
from across the whole mitie group with 
a diverse range of skills qualifications 
and experience together they bring 
a wealth of good ideas on how we can 
act responsibly and deliver effectively 
to our stakeholders
deliver
it’s everyone at mitie’s responsibility 
to support and contribute to mitie’s 
cr objectives working hard to improve 
their surroundings and upholding our
reputation as a worldclass business
delivering worldclass services
key cr issues business impact mitie action
key cr social economic ethical and environmental business risks and opportunities
social issues –
community investment
– shortage of funds for community
infrastructure development
a decrease in public investment levels 
could impact business opportunities 
– employee volunteering in community
projects 
– employee probono professional support
– inkind donations of equipment 
and vehicles
– employee fundraising for charities
economic issues – 
barriers to employment
– insufﬁcient skill levels
– educational underachievement
– low aspiration levels
potential challenges in recruiting high
calibre employees due to low literacy
numeracy and employability skill levels 
in some area
– skills pledge ‘skills for life’ literacy 
and numeracy training 
– comprehensive learning and
development programme
– construction skills centres and 
real apprentice programme 
ethical issues –
business practice
– ethical procurement within supply chain
– ethical business relationships
potential damage to mitie’s reputation
affecting business if mitie’s supply 
chain partners are perceived to be
operating unethically
– ethical business practice policy
compliance
– prequaliﬁcation procedures and 
cr audits of suppliers undertaken
environmental issues –
carbon footprint
– reduce energy consumption and waste
– increase recycling
reducing carbon footprint should reduce
costs and impact of volatile energy prices 
– signiﬁcant internal capacity utilised 
to measure monitor and manage 
carbon footprint
– investment in it solutions reducing 
travel dependency
– increased recycling facilities
– company vehicle carbon cap and
improved fuel procurement reducing
transport related costs and emissions
business review
corporate responsibility
13012ra08p2835qxdlayout 1  28509  1215  page 31 mitie group plc
annual report and accounts 2009 32
business review
corporate responsibility
mitie group plc endorses the business for
social responsibility deﬁnition of corporate
responsibility as ‘achieving commercial
success in ways that honour ethical 
values and respect people communities
and the natural environment’ the national
recognition we have received and the
numerous achievement awards we have
won to date demonstrate our commitment
to implementing cr
stakeholder engagement is central 
to our cr practices motivating and
rewarding our people working with clients
developing a responsible and proﬁtable
business for investors and interacting with
local communities
we are proud of our public profile in 
cr and are particularly pleased to have
increased our score of 815 and retained
our silver status in the business in the
community bitcfinancial times
companies that count index we are
pleased to announce that our real
apprentice scheme and construction 
skills centres have also been reaccredited
in the bitc big tick awards for excellence
2009 our 2009 report on cr activities has
been published and is available on our
website at wwwmitiecouk
the key cr social economic ethical 
and environmental business risks and 
the material impact that these may 
have on the business have been 
identiﬁed and assessed mitie has carefully
considered these risks and has realised
opportunities and implemented initiatives 
to mitigate them
health and safety
we recognise that for effective
management of health and safety 
to occur throughout mitie ownership 
and engagement begins at the highest
level responsibility for health and safety 
is led at main board level by ruby
mcgregorsmith chief executive 
ruby is supported by the management
team of each business mitie’s head of
health safety and environment hse 
and a network of experienced and
dedicated hse professionals 
during the year we commenced the first 
phase of a health and safety leadership
programme aimed at enhancing the
knowledge of mitie’s senior managers 
in modern health and safety risk
management the first phase of the
programme was targeted at the operating
board of each mitie business 117 senior
managers have since taken part in the
workshops actively participating and
committing to an improved refocus 
on risk management our significant
investment of time and resource in this 
area is a demonstration of our commitment
to achieving continual improvement in
health and safety management
effective management systems
we are wholly committed to improving 
our health and safety performance 
via a management system approach 
to this end it is a requirement for every mitie
business to be certified to the internationally
recognised standard for health and safety
management systems – ohsas 18001
during the year  our property management
division achieved certification in full to
ohsas 18001 and in addition two newly
acquired businesses one in property
management the other in our catering
business were subject to a rigorous
integration programme into the health 
and safety management system both new
businesses achieved certification to ohsas
18001 during april 2009 we are happy to
report that 98 of mitie businesses have
now achieved 18001 certification
we are pleased to have retained 
our silver status in the bitcfinancial
times companies that count index
with a score of 815
corporate responsibility report 2009 
our annual corporate responsibility
report gives a comprehensive 
overview of our cr approach
performance and targets to order 
a copy or download a pdf version
please visit
wwwmitiecoukcr 
13012ra08p2835qxdlayout 1  28509  1215  page 32 mitie group plc
annual report and accounts 2009
business review
33
health and safety training
at mitie our people are our greatest asset
and as such we place the highest priority 
in ensuring our people have the right
competencies to carry out their work safely
we have developed a prioritised approach
to managing health and safety risks 
with significant training focus and resource
directed at key risks to the business such 
as work at height occupational road 
risk slips and trips and manual handling 
our formal training programmes in support
of these areas continued during the year 
with the following training achievements
course 2009 2008
health and safety
leadership 117 –
iosh managing safely 390 297
managing work at height 423 138
people
mitie is dedicated to implementing a
comprehensive and proactive human
resources strategy with policies to ensure
that all employees are treated equally
fairly and in a responsible manner 
we’re committed to providing an
environment that enables our people 
to reach their full potential 
employee development and training is
essential for us to maintain our competitive
edge in our challenging market sectors 
we offer a comprehensive range of career
and personal development programmes 
during the year we spent over £34m 
on training courses providing over 35000
delegate days across 445 different courses
our training centre at frimley green 
surrey was used on 200 days during the
same period hosting training courses 
and meetings for over 2600 people
including six corporate responsibility
awareness seminars
skills pledge
in our corporate responsibility report 
2008 we reported our commitment 
to the uk government’s skills pledge 
over the past year we’ve established 
a dedicated skills pledge team drawing 
on the knowledge and expertise of our 
hr training and communications
specialists from across mitie the team
has developed the framework established
the relationships and implemented the 
policies to offer our people some excellent
learning and development opportunities 
mitie’s facilities management division 
is the first to implement the skills pledge
working in conjunction with our delivery
partner jigsaw training we now offer 
our people a number of skills for life 
courses to help them brush up on their
maths and english skills as well as access 
to national vocational qualifications 
nvqs and apprenticeships 
our challenging target is to deliver 
8700 national v ocational qualifications 
by 2012 this investment will enable 
us to have a better skilled and qualified
workforce bringing tangible business
benefits and competitive advantage 
as well as enhancing the literacy
numeracy and employability potential 
of our people
talent management
our awardwinning real apprentice
scheme is now in its fourth year and has
recently been reaccredited in the bitc
awards for excellence 2009 in the last 
four years the scheme has also won the
2006 premises and facilities management 
pfm partners with people award and 
the greater london training award 
in particular  we’re very proud that four 
of the original seven apprentices who
joined mitie following the pilot scheme 
in 2005 are still with us today 
the real apprentice scheme has 
an 80 retention rate after six months’
employment the 77th apprentice to
successfully complete the programme 
has recently been offered a fulltime job
with us the east london business alliance
now cites the scheme as a blueprint 
for other employers to follow and has 
rolled out real apprentice programmes
with ten other employers across three 
east london boroughs
mitie respects the rights of its people 
and those of our supply chain partners 
by endorsing the tenets of the international
labour organisation declaration on
fundamental principles and rights at 
work and the ethical trading initiative 
‘base code’ our investment and
commitment to equality and diversity 
has increased signiﬁcantly during the 
past year and will continue to develop as
we implement new initiatives and training
opportunities to support our people 
service delivery
mitie is committed to proactively
developing mutually beneﬁcial trading
relationships and promoting corporate
responsibility with our commercial
stakeholders based upon a foundation 
of trust and cooperation 
in 2007 we established a supplier
improvement programme to ensure that
our signiﬁcant suppliers are aligned with 
our cr principles and are accountable 
for their own supply chains the supplier
improvement programme includes cr
audit reviews of signiﬁcant suppliers
undertaken by professionals from our
sustainable procurement forum this has
proven to be invaluable in sharing best
practice and also in identifying areas 
where room for further improvement 
can be made
mitie’s sustainable procurement forum 
was established to
– adopt and share best practice
purchasing and supply standards
– develop mutually beneﬁcial collaborative
trading relationships and
– promote sustainable and ethical 
trading practices
our clients expect us to be able to
demonstrate high levels of cr performance
and because of our commitment to 
cr we are able to respond positively to
their increasingly tougher prequaliﬁcation
and tender requirements we also utilise 
our considerable environmental
experience and capabilities by providing
sustainability related guidance for our
clients helping them to reduce their
carbon footprint 
13012ra08p2835qxdlayout 1  28509  1215  page 33 mitie group plc
annual report and accounts 2009 34
business review
corporate responsibility
environment
we are aware of the impact that our
business operations may have on the
natural environment and we endeavour 
to minimise and mitigate such effects
where possible by utilising environmentally
benign materials and practices we respect
our environment and share best practice
with all of our stakeholders as we strive to
achieve our environmental targets
vehicle fleet management
between april 2008 and march 2009 we
have purchased 150 low co2 emission 
fuel efficient vehicles as part of our vehicle
replacement programme – helping to
decrease the impact on the environment
we have achieved our aim to reduce 
our average vehicle fleet co2 to below
160 co2 gkm our fleet average emissions
for 2009 are nearly 4 lower at 154 co2 gkm 
this has seen a reduction of around 14 
in co2 emissions compared to the vehicles
they replaced 
we will continue to reduce the average
vehicle fleet co2 emissions by purchasing
another 100 low emission vehicles as 
part of our replacement programme 
and by investing in onboard telematic
tracker systems
we constantly seek to improve the
environmental performance of our vehicle
fleet by investigating alternative fuels and
lower emission engine types 
v ehicle fleet fuel consumption accounts 
for around 90 of our co2 emissions and
improvements in fleet management to
reduce this impact have been prioritised
with immediate improvements realised
new fleet vehicles purchased have 
the latest euro v compliant engines and
lower emissions ratings changes to fuel
procurement the introduction of car
sharing schemes and the installation of
telematic vehicle trackers to optimise 
travel distances have reduced fuel
consumption and emissions 
during the year we also made further
investments in telephone and video
conferencing facilities to help reduce
business related travel
sustainability strategy 
mitie is a member of the renewable energy
certification scheme british wind energy
association and have building research
establishments bre microregeneration
accreditation
we have significant sustainability expertise 
at every level of our organisation which 
is demonstrated in the comprehensive
range of services offered to our clients 
this expertise and experience is underpinned
by formal academic qualifications and
professional chartered status of many of 
its key people mitie provides continuing
professional development opportunities 
to its people to enhance their potential 
we currently have 12 qualified low carbon
energy assessors and 21 going through the
cibse approved training process to become
qualified energy assessorslow carbon
consultants to enable them to inspect
buildings and authorise them to issue energy
performance certificates and display of
energy certificates
key performance indicators
change
unit 2009 2008 
total revenue £m 15219 14072 82
average number of employees no 50054 47959 44
total co2 emissions tonnes
e
32280 30627 54
normalised co2 emissions per employee tonnes
e
064 064 –
normalised co2 emissions per £m revenue tonnes
e
212 218 –27
co2 equivalent emissions were calculated using defra conversion factors
mitie has increased revenue by 82 and employed 44 more people over the previous ﬁnancial reporting period co2 emissions have
increased by 54 – whilst normalised emissions per employee have been maintained and normalised emissions per £m revenue have
decreased by 27
13012ra08p2835qxdlayout 1  28509  1215  page 34 mitie group plc
annual report and accounts 2009
business review
35
community
mitie’s community investment strategy 
is not simply about making financial
donations to causes and charities 
we pride ourselves on committing our 
time resources and specialist skills to
supporting the communities we serve 
in return we create longterm 
relationships with future mitie clients
suppliers and employees
at the cornerstone of mitie’s community
investment strategy is our extensive
volunteering programme during the 
year professionals from every level of 
mitie participated in seven world of 
work days across the uk the days are 
a great way to share our experiences
knowledge and offer advice to the 
bright young minds of the future 
all while raising the profile of our business
and promoting career opportunities 
with mitie to people from a diverse 
range of backgrounds
during the year our people participated 
in seven world of work events at schools
throughout the uk a number of schools
including stoke newington school 
are home to mitie’s constructions skills
centres where we offer vocational 
training to pupils “mitie’s volunteers 
always go above and beyond the 
call of duty the pupils find their passion
infectious and they play an integral role 
in showing them that there is a whole 
world of jobs out there for the taking” 
les prior  work related learning project
officer  ealing and hillingdon education
business partnership
research underpins our own experiences
that clear business benefits result 
from employee supported volunteer
programmes clients increasingly expect
their suppliers to ‘add value’ above 
and beyond their contracted service
commitments and our community
investment programme is clearly 
able to demonstrate that we do this
in total we spent 458 days on volunteering
projects during the year
construction skills centres
mitie’s construction skills centres at seven
schools throughout the uk are providing
craft skills and vocational education to
about 500 students each year – significantly
improving their employment prospects 
we were proud to host a ‘seeing is
believing’ visit at our skills centre at castle
v ale school birmingham in 2008 this event
demonstrated the value of employer
engagement and helped to increase
understanding of social issues among
business leaders and educationalists 
the skills centre visit inspired action by
encouraging other business leaders to 
work together to address serious issues
facing society such as skills shortages 
and low aspiration levels our example 
was commended by hrh prince charles 
at st james palace in february 2009
we feel our direction echoes the bitc
statement ‘education employability 
and economic renewal are serious issues
across the uk which impact on both
business and society they need to be top
of the corporate agenda – it’s never been 
more important’
community investment 
change 
unit 2009 2008 
total community investment £k 6037 5921 20
profit before tax £m 759 679 118
total community investment as  of profit before tax  080 087 –007
donations to charity and community projects £k 1840 1512 217
matchfunded cash donations to charities £k 211 134 575
v alue of employee time volunteered £k 1032 1029 03
v alue of gifts inkind donations £k 2009 2111 –48
community affairs management costs £k 945 1135 –168
political donations – it is not mitie’s policy to contribute political donations
mitie’s community investment increased by £116k 20 compared to the previous reporting period for clarity and accountability
purposes we have reported separately the value of ‘gifts inkind’ and ‘expenses and leveraged funds’ increased donations to 
charities 217 and matchfunding 575 respectively are the most notable differences reported for this period
our actions speak louder than words and we’re committed to embedding our corporate responsibilities into everyday operations
policies procedures and practices while remaining true to the core mitie value that defines the business providing opportunities for
people to develop to their full potential
13012ra08p2835qxdlayout 1  28509  1216  page 35 mitie group plc
annual report and accounts 2009
directors’ and governance report
introduction
the directors submit their report together with the audited consolidated ﬁnancial statements of the mitie group of companies group
for the year ended 31 march 2009 the directors’ and governance report is comprised of the directors’ report the corporate governance
report the report of the audit committee the directors’ responsibility statement all other parts of this annual report and accounts
and those documents that are referred to within this report and are available at www mitiecoukinvestorscorporategovernance
compliance with the code
the board recognises that the manner in which the group is governed is critical to the longterm success of the business and 
is committed to the principles of corporate governance for which the board is accountable to shareholders as detailed in the
combined code on corporate governance published by the financial reporting council in june 2006 code this report together
with the directors’ remuneration report provides details of key aspects of mitie’s corporate governance environment and explains
the manner in which the board has applied the principles and provisions of good governance as set out in section 1 of the code 
the board conﬁrms that throughout the year ended 31 march 2009 the group has complied with the provisions set out in section 1 
of the code with the exception that
– the board did not consist of at least an equal number of independent nonexecutive and executive directors code a32 between
1 april 2008 and 31 march 2009 – further details relating to this noncompliance are provided on page 39 – this nonconformance will
be rectiﬁed upon the appointment of terry morgan and
– the audit committee did not consist of at least 3 independent nonexecutive directors code c31 between 31 july 2008 and 
31 march 2009 – further details relating to this noncompliance are provided on page 42 – this nonconformance will be rectiﬁed
upon the appointment of terry morgan 
– the nomination committee did not consist of a majority of independent nonexecutive directors code a41 between 31 july 2008
and 31 march 2009 if the chairman is included in such calculation – further details relating to this noncompliance are provided on
page 41
these noncompliances have principally arisen following the retirements of david ord and cullum mcalpine as directors of the
company and the appointment of roger matthews to the role of chairman having previously been an independent nonexecutive
director during the reporting period the board has been conducting an extensive search for an additional nonexecutive director
and is pleased to announce that terry morgan will be joining the board as an independent nonexecutive director on 1 july 2009
further details of this search process and appointment are given on page 39
basis of report
this report together with the other parts of this annual report and accounts and other documents incorporated by reference has
been prepared and is published in accordance with and in reliance upon applicable english company law and the liabilities of 
the directors in relation to this report are subject to the limitations provided by such law
36
13012ra08p3659qxdlayout 1  28509  1218  page 36 mitie group plc 
annual report and accounts 2009
governance
board of directors
roger matthews  ‡
nonexecutive chairman and chairman of the nomination committee
roger was appointed as a nonexecutive director of mitie group plc in december 2006 and was later appointed as nonexecutive
chairman in july 2008 roger previously held the roles of group finance director of j sainsbury plc and group managing director 
and group finance director of compass group plc roger is nonexecutive chairman of lsl property services plc
ian stewart
nonexecutive deputy chairman
ian was appointed as chief executive of mitie group plc in 2001 and was appointed as nonexecutive deputy chairman on 
30 march 2007 ian was a founding member of mitie he is a nonexecutive director of generation uk limited suppliers of scaffolding
access and safety systems
ruby mcgregorsmith ‡
chief executive
ruby was appointed as group finance director of mitie group plc in december 2002 later appointed as chief operating ofﬁcer in
september 2005 and subsequently as chief executive in march 2007 prior to joining mitie ruby held a range of senior roles within the
support services sector  primarily at serco group plc in addition she is a nonexecutive director of michael page international plc and
chair of race for opportunity a part of the business in the community bitc organisation with a focus on diversity in the workplace
suzanne baxter
group finance director
suzanne was appointed as group finance director of mitie group plc in april 2006 suzanne is a chartered accountant prior to joining
mitie she specialised in mergers and acquisitions related transaction support and also held a number of commercial and operational
roles with serco group plc suzanne holds a seat on the opportunity now advisory board a part of the bitc organisation with a focus
on gender diversity in the workplace and is also a member of the finance and risk committee of bitc
roger goodman
group corporate development director
roger joined mitie group plc in 1993 and was appointed as an executive director in august 2001 roger is a nonexecutive director 
of the business services association and asset skills council which advocates the growth of the support services industry proﬁle and 
the development of skills in the sector in addition he is chairman of networkers international plc
bill robson
director responsible for property services
bill joined mitie group plc in january 1992 following the acquisition of trident maintenance services limited and was appointed 
as an executive director in august 2001
david jenkins  † ‡
senior nonexecutive director and chairman of the audit committee
david was appointed as a nonexecutive director in march 2006 david was previously a senior partner with deloitte llp 
in london having spent over 20 years in assurance and advisory services david is chairman of development securities plc 
and a nonexecutive director of renewable energy systems holdings limited he is a governor of downe house school
ishbel macpherson  † ‡
nonexecutive director and chairman of the remuneration committee
ishbel was appointed as a nonexecutive director in july 2005 ishbel was previously an investment banker for over 20 years specialising
in uk midmarket corporate ﬁnance and held positions at dresdner kleinwort wasserstein and hoare govett ishbel is a nonexecutive
director of dignity plc and game group plc and senior independent nonexecutive director at speedy hire plc and hydrogen 
group plc
graeme potts 
nonexecutive director
graeme was appointed as a nonexecutive director in july 2006 graeme previously held appointments with inchcape plc rac
motoring services and reg v ardy plc he is a nonexecutive director of ben the motor  allied trades benevolent fund and is 
nonexecutive chairman of bikers legal defence limited graeme is a managing director of eden gm limited a motor retail group
† member of the audit committee
‡ member of the nomination committee
 member of the remuneration committee
further biographical details of those directors seeking reappointment at the 2009 agm are provided in the notice of agm which 
will be available at wwwmitiecoukinvestors on 8 june 2009
37
13012ra08p3659qxdlayout 1  28509  1218  page 37 mitie group plc
annual report and accounts 2009
directors’ and governance report
business review
principal activities
mitie group plc the company is the holding company of the group the principal activity of the company is to provide
management services to the group the group’s activities are focused on the provision of strategic outsourcing and asset
management services in support of the buildings facilities and infrastructure of its clients further details of the subsidiary 
undertakings of the company principally affecting the proﬁts or net assets of the group in the reporting period are listed in 
note 36 to the ﬁnancial statements 
business review
the company is required to set out a fair review of the business of the group during the reporting period including an analysis of 
the position of the group at the end of the reporting period and the principal risks and uncertainties facing the group details of 
this review are contained in this directors and governance report and the following sections of this annual report and accounts 
– the chairman’s statement on page 5 
– the chief executive’s review on pages 6 to 11 
– the operating review including the statement of principal risks and uncertainties on pages 14 to 27 and
– the ﬁnancial review on pages 28 to 30
proﬁt and dividends
the proﬁt before taxation for the ﬁnancial year is £759m 2008 £679m the directors have declared  recommended dividends 
as follows
– paid on 5 february 2009 an interim dividend of 33p per ordinary share £107m
– recommended a ﬁnal dividend of 36p per ordinary share £116m 
– total ordinary dividend 69p per share 2008 60p £223m
the ﬁnal dividend subject to shareholder approval at the agm will be paid on 7 august 2009 to ordinary shareholders on the register
on 10 july 2009 the company operates a dividend reinvestment plan drip 
going concern
the directors acknowledge the financial reporting council guidance on going concern issued in november 2008 the group beneﬁts
from a well diversiﬁed portfolio of service offerings providing stability in the current economic climate in addition the group has a
broad diverse customer base with a good balance between public and private sectors underpinned by a large number of longterm
contracts contributing to a forward order book of £49bn mitie beneﬁts from a very strong balance sheet the group has available
£2300m of committed funding lines of which £2200m remained undrawn at 31 march 2009 which are not renewable until 2012 and
the group currently operates well within the ﬁnancial covenants associated with this facility as a consequence the directors believe
that the group is well placed to manage its business risk successfully and accordingly the group continues to adopt the going
concern basis in preparing its annual report and accounts
corporate governance
board of directors
the membership of the board as at 31 march 2009 and biographical details of the directors including details of committee
chairmanships and other positions held are given on pages 36 and 37 during the year two nonexecutive directors retired from 
the board david ord and cullum mcalpine david ord was succeeded as chairman by roger matthews a nonexecutive director
of the company since december 2006 on 31 july 2008 roger matthews consequently stepped down from the audit committee
cullum mcalpine was succeeded as senior independent nonexecutive director and as chairman of the audit committee by 
david jenkins on 31 july 2008 david jenkins consequently stepped down as chairman of the nomination committee and was
replaced by roger matthews these retirements and board changes occurred in accordance with the board’s preexisting orderly
succession planning 
directors are appointed and may be removed in accordance with the articles of association of the company and the provisions 
of the companies acts all directors are subject to reelection at intervals of no more than three years in accordance with the articles
of association and the code the notice of agm contains details of those directors who are retiring by rotation and are proposed for
reelection as part of the formal board evaluation the board has considered the performance of each director seeking reelection
and is satisﬁed that they continue to be effective and demonstrate clear commitment to their role
38
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annual report and accounts 2009
governance
director independence
during the year  nonexecutive director independence was considered by the board the board determined that all nonexecutive
directors as at 31 march 2009 with the exception of the deputy chairman ian stewart were independent in mind and judgement
and free from any material relationship that could interfere with their ability to discharge their duties effectively speciﬁc consideration
was given to david jenkins’ prior role with deloitte llp previously deloitte  touche llp mitie’s external auditors the board
determined that david is independent given that he had not been involved in the provision of services to mitie and the passage 
of time since his departure from deloitte llp
board and committee composition and balance
as part of the ongoing review of board performance as set out below the nomination committee and the board speciﬁcally
reviewed the roles of chairman and senior independent nonexecutive director  and the composition and chairmanship of each of 
its committees the board and the nomination committee recognised that partly as a result of the changes in board composition
detailed above there was an imbalance in the number of nonindependent directors and independent nonexecutive directors 
the board was broadly satisﬁed that its composition was appropriate having regard in particular to the integrity skills knowledge and
experience of its directors and the size and nature of the business and having regard to its desire that the board does not become too
large and unwieldy however  it was mindful of the need to maintain a balanced board and consequently announced the initiation of
a search process for an additional independent nonexecutive director to serve on the board and the audit committee the
nomination committee reviewed the skills knowledge and experience required to ﬁll this additional position and provided a detailed
speciﬁcation to the external search consultancy engaged to conduct the search process this detailed search process 
was concluded on 30 march 2009 when the board was pleased to announce that terry morgan will be joining the board as an
independent nonexecutive director on 1 july 2009 terry will serve on the audit committee and will chair the remuneration committee
with effect from 10 july 2009 further details in relation to terry morgan are provided in the notes to the notice of agm following terry’s
appointment the board will consist of four independent nonexecutive directors a nonexecutive director deemed nonindependent
as a result of his prior role as ceo of the group the nonexecutive chairman and four executive directors this will 
not result in absolute compliance with code a32 of the combined code and whilst the board remains broadly satisﬁed with the
composition and balance following terry’s appointment it will continue to keep the matter under careful review 
director appointment induction and training
the board has a general policy that all new directors are subject to election by the shareholders at the ﬁrst agm after their
appointment that each new director receives a tailored induction suitable to their role and that all new directors receive a tailored
information pack which includes a copy of mitie’s memorandum and articles of association latest annual report and accounts
committee terms of reference and copies of recent board minutes and supporting papers 
review of board performance
the board is committed to effective and rigorous review of its performance and that of the committees and individual directors and
accordingly a formal evaluation of the performance and effectiveness of the board its committees and of each director is performed
annually director performance evaluation for the current year has been carried out using a combination of formal appraisal
questionnaires completed by all board members and through informal meetings and discussions the results of these reviews are
reported to the board and used to improve the board’s performance results of the prior year appraisal process identiﬁed an overall
level of satisfaction with the performance of the board and that of its committees and directors notwithstanding this several further
improvements in board operation have been implemented during the reporting year including the restructuring of reporting format
and content the greater use of board brieﬁngs by nondirector executive board members and the rotation of board meetings around
various group operational locations
directors’ interests and rights
details of the beneﬁcial and nonbeneﬁcial interests including share options of each director and connected persons in the ordinary
share capital of the company are provided in the remuneration report none of the executive or nonexecutive directors has a
service contract with a notice period greater than 12 months all directors have access to management and the operating businesses
of mitie at their request and have secure remote access to board and other relevant papers held on a dedicated online facility
directors’ indemnities
the company maintains directors’ and ofﬁcers’ liability insurance providing appropriate cover for any legal action brought against 
its directors andor ofﬁcers the 2007 agm approved various amendments to the memorandum and articles of association of the
company to extend the protection provided to directors in respect of any litigation against directors relating to their position as a
director of the company these changes were made possible by recent amendments to company law the amended memorandum
and articles of association 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 
39
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annual report and accounts 2009
director conﬂicts
the board has a formal policy on the declaration and management of director conﬂicts in accordance with the amendments to the
articles of association approved by shareholders at the 2008 agm 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
board responsibility
matters that are exclusively dealt with by the board include setting group objectives and strategies approving business plans and
budgets and monitoring performance against these approving material tenders acquisitions disposals and business startups
approving the group’s halfyearly and annual report and accounts appointing and removing the chairman directors and
company secretary and monitoring the group’s corporate governance arrangements these matters are set out in a schedule 
of matters reserved for the board which was approved by the board on 19 march 2009 and which is available at 
wwwmitiecoukinvestorscorporategovernance
chairman and chief executive division of responsibility
there is a clear division between the roles of chairman and chief executive as formally set out in the terms of reference for each of
these roles these terms of reference have been reviewed as part of the review of the job speciﬁcation of the chairman the chairman
is responsible for the effective running of the board this includes ensuring that the nonexecutive directors contribute effectively 
and that the board is aware of the views of major shareholders he is also responsible for ensuring that the board addresses major
challenges faced by mitie and for the effective performance of the board and its committees the chairman is available to consult
with shareholders throughout the year and will be available at the agm the chief executive is responsible for all aspects of the
operation and management of the group and its business within the authorities delegated by the board
the role of the executive and nonexecutive directors
the executive directors are collectively responsible for proposing strategy and for making and implementing operational decisions
nonexecutive directors are responsible for exercising their independent skill and judgement and contributing to the formulation 
of strategy policy and decision making the terms of appointment of the nonexecutive directors’ and the executive directors’ 
service contracts are available for inspection at mitie’s registered ofﬁce the head ofﬁce and at the agm the senior independent
nonexecutive director is available to shareholders should they have concerns which have not been resolved through the normal
channels of chairman chief executive or group finance director or for which such contact is inappropriate in the circumstances
external appointments and commitments
executive directors are permitted to accept appointments outside the group providing permission is sought from the chairman and
the chief executive and that the additional appointments do not interfere with the directors’ ability to effectively discharge their duties
the commitments outside the group of the executive directors are detailed in the remuneration report on page 58 executive directors
are entitled to retain any fees earned from these external appointments
board meetings
directors are supplied with an agenda and supporting papers for all board meetings on a timely basis this ensures that each director 
is appropriately briefed and able to properly discharge their duties papers submitted regularly for the board’s review include reports
on current trading and performance corporate development activities health and safety and matters relating to corporate
governance the board will also receive from time to time detailed presentations from nonboard members on operational 
matters the board its committees and its directors have access to the advice and services of the company secretary and where
appropriate external independent legal advice funded by mitie in addition to scheduled board and committee meetings during 
the year  the chairman met with the nonexecutive directors on several occasions without the executive directors being present
40
directors’ and governance report
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annual report and accounts 2009
governance
all directors are expected where possible to attend all board meetings and the agm during the year ended 31 march 2009 
there were 6 scheduled board meetings additional unscheduled board meetings were held to deal with administrative matters
predominantly for the approval of the issue of shares dedicated budget review meetings have also been held directors’ attendance
at scheduled board and committee meetings audit remuneration and nomination of which they are members is shown in the
following table
director board audit remuneration nomination 
number of meetings held in year 6 3 4 4
r j matthews
1
6133
i r stewart 6 – – – 
r mcgregorsmith
2 3
6– – 4
s c baxter
2 
6 – – – 
n r goodman 6 – – – 
w robson 5 – – – 
d s jenkins 6344
i j s macpherson 6344
g j potts 6– 4– 
d c ord
4
2– – 1
c mcalpine
4
2111
1 roger matthews stepped down from the audit committee and was appointed to the remuneration and nomination committee upon his appointment as chairman 
on 31 july 2008
2 ruby mcgregorsmith and suzanne baxter attend the audit committee meetings on the invitation of the committee chairman
3 ruby mcgregorsmith attends the remuneration committee meetings on the invitation of the committee chairman
4 david ord and cullum mcalpine resigned as directors on 31 july 2008
board committees
the board has four formally constituted committees the audit committee the executive committee the nomination committee 
and the remuneration committee the duties and responsibilities of each committee are set out in its terms of reference which are
available at www mitiecoukinvestorscorporategovernance further details in relation to the composition role and functioning of
each committee are set out below in addition the group operates an executive board it is not a formally constituted committee of
the board operating solely under the delegated powers of the chief executive but is charged with supporting the chief executive in
the operational management of the group 
executive committee 
the executive committee members are ruby mcgregorsmith suzanne baxter roger goodman and bill robson it functions primarily
as an approval and signing committee and meets on an ad hoc basis as and when required with powers speciﬁcally delegated to it
on a case by case basis by the board in respect of speciﬁc matters
nomination committee
as at 18 may 2009 the members of the committee are roger matthews committee chairman ishbel macpherson david jenkins
and ruby mcgregorsmith during the year the nomination committee’s members were david jenkins and ishbel macpherson both
of whom are independent nonexecutive directors cullum mcalpine who was an independent nonexecutive director prior to his
retirement as a director david ord who was the chairman prior to his retirement as a director and ruby mcgregorsmith who is 
a nonindependent executive director the committee is compliant with the code in that throughout the reporting period there has
been a majority of independent directors if the chairman is excluded for the purposes of this calculation if the chairman is included
and deemed nonindependent for the purposes of this calculation then the committee was not compliant with code a41 for 
the period from 31 july 2008 to 31 march 2009 during the year four meetings of the committee took place a key function of the
committee is to evaluate the balance and composition of the board and ensure that new directors bring the requisite skills knowledge
and experience required for the role being considered during the year the committee oversaw the board succession planning as
described more fully above
41
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annual report and accounts 2009
remuneration committee
as at 18 may 2009 the members of the committee are ishbel macpherson committee chairman david jenkins roger matthews
and graeme potts during the year the remuneration committee’s members were ishbel macpherson david jenkins and graeme
potts all of whom are independent nonexecutive directors cullum mcalpine who was an independent nonexecutive director prior
to his retirement as a director and roger matthews who was independent prior to 31 july 2008 and upon appointment as chairman
but who is no longer deemed independent under the code following his appointment as chairman the committee held four meetings
during the year the board has previously reported that a search has been initiated to recruit an additional nonexecutive director to
join the board and on 30 march 2009 announced the appointment of terry morgan with effect from 1 july 2009 upon appointment
terry will serve on both the audit committee and the remuneration committee and will assume the role of chairman of the remuneration
committee from ishbel macpherson with effect from 10 july 2009 
the key duty of the remuneration committee is to make recommendations to the board on the individual remuneration packages 
of executive directors as a part of this process the committee oversaw the administration of the group ltip  esos and sa ye schemes
as further detailed in the remuneration report and the benchmarking and review of executive director remuneration during the
year the committee has been advised by the external remuneration consultant kepler associates in relation to executive director
remuneration through formal benchmarking with market and industry comparators kepler associates do not have any connection
with the group other than their formal appointment as advisers by the remuneration committee the board is responsible for reviewing
and setting the remuneration of the nonexecutive directors further details on executive and nonexecutive director remuneration are
given in the remuneration report
audit committee
role of the committee
the audit committee is generally responsible for
– monitoring and reviewing the integrity of the group’s ﬁnancial statements and of any formal announcements relating to the group’s
ﬁnancial performance and for reviewing any signiﬁcant ﬁnancial reporting judgements therein
– monitoring and reviewing the independence and objectivity of the group’s external auditors the objectivity and effectiveness of the
audit process and the effectiveness and implementation of the group policy on the provision of nonaudit services the nonaudit
services policy
– monitoring and reviewing the integrity and effectiveness of the group’s internal ﬁnancial controls environment internal audit function
and business risk management structures
– making recommendations to the board on shareholder resolutions for the appointment of and remuneration for  external auditors
the terms of reference of the committee are available at wwwmitiecoukinvestorscorporategovernance and include the
requirements of rule 721 of the disclosure and transparency rules dtr and the code that the company has a formally constituted
audit committee comprised of independent nonexecutive directors 
the chairman of the committee will be available at the agm to answer any questions about the work of the committee
committee composition
the committee consists entirely of independent nonexecutive directors and is currently chaired by david jenkins during the year the
audit committee comprised david jenkins ishbel macpherson roger matthews and cullum mcalpine cullum mcalpine ceased to
be a member of the committee upon his retirement from the board on 31 july 2008 david jenkins succeeded cullum mcalpine as
chairman of the committee on 31 july 2008 roger matthews left the committee immediately upon his appointment as chairman 
of the company on 31 july 2008 
all members of the committee are considered as being appropriately experienced to fulﬁl their duties whilst david jenkins and ishbel
macpherson continue to be deemed as at the date of this report by the board to have signiﬁcant recent and relevant ﬁnancial
experience through their qualiﬁcations and their previous appointments 
the committee ordinarily consists of at least three members and requires two members to be present to be quorate between 
31 july 2008 the date of retirement of cullum mcalpine and roger matthews ceasing to be a member of the committee upon his
appointment as chairman and 31 march 2009 the committee comprised only two members contrary to code c31 as mentioned
above the board has previously reported that a search has been initiated to recruit a suitably qualiﬁed additional nonexecutive
director to join the board and serve on the audit committee and on 30 march 2009 announced the appointment of terry morgan with
effect 1 july 2009 upon appointment terry will serve on the audit committee and the remuneration committee 
42
directors’ and governance report
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annual report and accounts 2009
governance
meetings of the committee
during the year the audit committee held 3 meetings see above summary the audit committee invited the external auditors 
chief executive group finance director and head of business risk to attend relevant parts of the meetings of the committee 
the matters under consideration at these meetings included
– generally monitoring the group’s ﬁnancial reporting process and the statutory audit of the annual and consolidated group accounts
– the halfyearly financial report and annual report and accounts
– critical accounting policies and judgements
– the review of the external auditors’ audit plan nature and scope of work and overall summary of key issues and judgements
– the reappointment of the external auditors
– the approval of fees for the external auditors
– the effectiveness of the external auditors including the appropriateness and skills of the audit team
– compliance with the nonaudit services policy by the external auditors and maintenance of auditor independence
– the approval of the group risk assurance framework and the internal audit plan for the year ending 31 march 2009 and for the year
ending 31 march 2010
– the review of key internal audit reports and ﬁndings and 
– generally monitoring the effectiveness of the internal control audit and risk management systems and functions
the committee also met separately with the external auditors and the head of business risk without the presence of the 
executive directors
external auditors
the audit committee is committed to ensuring the independence and objectivity of the external auditors and conﬁrms that the
requirements of the nonaudit services policy have been met throughout the year the audit committee has approved a nonaudit
services policy that ensures that the audit committee has visibility over the levels of nonaudit work performed by the auditors and
requires the consent of the chairman of the audit committee for any nonaudit spend with the auditors that on an annual basis
cumulatively exceeds 50 of the annual audit fee andor where any item regardless of amount is considered signiﬁcant the audit
committee is satisﬁed that this policy provides sufﬁcient control over the levels of nonaudit spend with the auditors whilst providing
sufﬁcient ﬂexibility for the group finance director to approve expenditure on advice below those levels this policy generally restricts
the external auditors from performing work which will result in them auditing their own work making management decisions for the
group creating a conﬂict of interest ﬁnding themselves in the role of advocate for mitie or creating any potential threat to their
independence additionally the external auditors will only be considered for the provision of nonaudit services if they are best suited
to perform the work in question deloitte llp also maintains its own internal controls designed to safeguard its independence 
a summary of the fees paid to the external auditors is given in note 4 to the ﬁnancial statements
internal audit
the remit of the audit committee also includes monitoring the internal audit function as reported above and the arrangements by
which employees may raise concerns regarding any matters of ﬁnancial reporting or other perceived improprieties across the group
during the year ‘whistleblowing’ activity has been communicated to the committee along with the results of investigations carried out
these investigations have not identiﬁed any risks that result in a material unmitigated exposure to the group
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annual report and accounts 2009
internal control
internal control and risk management
the board recognises that it is responsible for the group’s system of internal control and for reviewing its effectiveness this system is
designed to support the group’s pursuit of achieving its objectives and strategies and also the identiﬁcation and management of risks
that may impact upon mitie and upon the environment in which the group operates the system of internal control is designed to
manage rather than eliminate the risk of failing to achieve these objectives and strategies and it will only provide reasonable and not
absolute assurance against material misstatement and loss
internal audit function
the group operates an internal audit function which reports directly to the group counsel and the chairman of the audit committee
during the reporting period the size of the internal audit function has been doubled in recognition of the increasing size and complexity
of the group and the increasing emphasis placed upon remediation rectiﬁcation and reaudit of issues identiﬁed through the internal
audit programme
internal control systems culture responsibility and accountability
the board and senior management are responsible for maintaining and developing a culture of integrity competence fairness and
responsibility throughout the group essential to this is the recruitment and retention of 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 in order to delegate responsibilities clearly and effectively to the
group’s operating businesses and to ensure compliance with the matters reserved for the board a formal delegated authorities matrix
is issued to all operating subsidiaries that includes both ﬁnancial and nonﬁnancial authorities and matters relating to strategy contract
approval recruitment capital expenditure banking transactions and speciﬁc group policies each operating subsidiary is headed by
a managing or regional director who has authority to manage their business within this framework of delegated authorities and group
policies and procedures outlined above to support the business further  the group has a team of specialist resources with individuals
responsible for speciﬁc functions including legal health and safety it  insurance human resources tax pensions purchasing ﬁnance
and business risk regular dialogue between these functions and the operating businesses provides additional support and forms a key
part of the system of internal control
internal control systems information and communication
the group maintains a number of systems and processes that report relevant information to group executive management and the
board as necessary this includes ﬁnancial and nonﬁnancial information regarding business performance compliance with policy 
and procedure relevant regulations and business critical matters at an operational level each division and business holds regular
executive board meetings to maintain and develop relationships between separate divisions and to address speciﬁc matters regional
meetings are also held and are attended by regional representatives of each division senior group management also regularly
attend these meetings
internal control systems risk management
the board conﬁrms that there is a continuing process for identifying evaluating and managing signiﬁcant risks faced by the group 
the board also conﬁrms that this process has been in place throughout the year under review and up to the date of approval of the
annual report and accounts and that this process is monitored by the board in accordance with the revised guidance on internal
control issued by the financial reporting council the process for identifying evaluating and managing principal 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 post controls risk evaluation the principal risks identiﬁed from this process are recorded on the
group’s risk register which is maintained by the group’s business risk function this register is reviewed periodically at least twice per
year by the board
monitoring the system of internal control
the board is responsible for monitoring the group’s system of internal control and for reviewing its effectiveness monitoring is carried out
throughout the year via the receipt and review of various reports presentations and discussions with management as set out above
speciﬁcally the audit committee supports the board by monitoring and guiding the activities of the internal audit function including
approving the internal audit programme reviewing regular internal audit reports from the business risk function and via meetings with
the head of business risk the internal audit programme is designed to provide a level of assurance over key risks as identiﬁed in the
group risk register and is developed by the head of business risk who reports to the general counsel and independently to the audit
committee the audit committee also receives regular reports from the external auditors who contribute a further independent
perspective on certain aspects of the internal ﬁnancial control systems arising from their work as necessary the audit committee will
have dialogue with the executive directors on their control responsibilities and in particular  those relating to speciﬁc matters reported
by internal or external audit
44
directors’ and governance report
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annual report and accounts 2009
governance
reviewing the effectiveness of the system of internal control
the board performs a formal annual assessment of the operation and effectiveness of the system of internal control and updates this
assessment prior to the signing of the annual report and accounts this includes consideration of reports on principal risks controls 
and their effectiveness from the heads of each central team function and an independent report from the head of business risk
summarising key audit ﬁndings 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 board conﬁrms that management has
taken steps during the year to improve further the system of internal control embed effective controls further into the operations of 
the group and to address improvements as they come to management’s attention these steps are monitored to ensure they are
implemented appropriately and that ultimately they are effective
auditors
disclosure of information to the auditors
each of the directors in ofﬁce as of the date of approval of this annual report and accounts conﬁrms that
– so far as heshe is aware there is no relevant audit information being information required by the auditors in the preparation of their
report of which the company’s auditors are unaware and
– heshe has each taken all the steps that heshe ought to have taken as a director to make himselfherself aware of any relevant
audit information and to establish that the company’s auditors are aware of such information
this conﬁrmation is given and should be interpreted in accordance with section 234za of the companies act 1985
reappointment of auditors
on 1 december 2008 deloitte  touche llp changed its name to deloitte llp deloitte llp has expressed their willingness to continue 
in ofﬁce as auditors and the resolution to reappoint them will be proposed at the forthcoming agm
share capital and shareholder matters
capital structure and powers of shareholders
details of changes to the company’s share capital are given in note 27 to the ﬁnancial statements the company has a single class 
of shares – 25p ordinary shares – with no right to any ﬁxed income and with each share carrying the right to one vote at general
meetings of the company under the company’s articles of association holders of ordinary shares are entitled to participate in any
dividends pro rata to their holding the board may propose and pay interim dividends and recommend a ﬁnal dividend for approval
by the shareholders at the agm a ﬁnal dividend may be declared by the shareholders in a general meeting by ordinary resolution
but such dividend cannot exceed the amount recommended by the board 
certain shares that are issued as consideration upon acquisition by the company of the shares of minority shareholders in mitie 
model companies have restrictions placed upon them that prevent the transfer of such shares for periods of up to two years 
following allotment otherwise there are no speciﬁc restrictions on the size of any shareholding or on the transfer of shares which are
both governed by the provisions of the articles of association of the company available at www mitiecoukinvestorscorporate
governance 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 33 to the accounts shares held by the mitie employee beneﬁt 
trust 2007 and the mitie employee beneﬁt trust 2008 abstain from voting
the 2008 agm authorised
– the directors to allot under s80 companies act 1985 up to 118691000 shares representing 375 of the issued share capital as 
at the date of the notice of agm – during the reporting period the directors utilised this authority and the preceding authority 
to allot 6194836 shares
– the disapplication under ss9495 companies act 1985 of preemption rights over allotted shares up to a total of 15841116 shares
representing 5 of the issued share capital as at the date of the notice of agm and
– the company to make market purchases of its own shares up to a total of 31682321 shares representing 10 of the issued share
capital as at the date of the notice of agm
45
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annual report and accounts 2009
further details of these authorisations are available in the notes to the 2008 notice of agm available at www mitiecoukinvestors
shareholders are referred to the 2009 notice of agm which accompanies this report andor is available at www mitiecoukinvestors
which contains similar such provisions during the year to 31 march 2009 there have been no purchases by the company of mitie
shares the exact amount and timing of future purchases will be determined by the company and will be dependent on market
conditions and other factors it is the company’s present intention to cancel any shares it buys back rather than hold them in treasury
but this policy will be reviewed on a case by case basis further details on the proposed renewal of powers for share buyback and the
allotment of shares in the company are provided in the notice of agm
with regards to the appointment and replacement of directors the company is governed by its articles of association the code 
the companies acts and related legislation the articles may be amended by special resolution of the shareholders the powers of the
directors are described in the matters reserved to the board available at www mitiecoukinvestorscorporategovernance and as
set out above
under the terms of certain shareholder agreements relating to mitie model companies and the articles of association of those
companies certain minority shareholders in such companies may provide an option for the purchase by the company of their minority
shares the mechanism for calculating the price to be paid in respect of such transfer is transparent on an armslength basis and in
accordance with the pricing structure generally applicable for other transfers under the mitie model details of these structures are
generally available to the extent incorporated into the articles of association for individual mitie model companies from companies
house at wwwcompanieshousegovuk there are also a number of other agreements with provisions that take effect alter or
terminate upon a change of control of the company such as bank facility agreements property lease arrangements and employee
share plans none of these are considered to be signiﬁcant in terms of their likely impact on the business or the group as a whole 
the directors are not aware of any agreements between the company and its directors or employees that provide for compensation
for loss of ofﬁce or employment that occurs solely because of a takeover bid
substantial interests in share capital
as at 15 may 2009 the company has been notiﬁed of the following signiﬁcant holdings of voting rights in its shares under the disclosure
and transparency rules 
number of 
ordinaryshares  of
of 25p each share capital
majedie asset management limited 16327802 505
invesco limited 16135005 499
mirabaud investment management limited 15673517 495
legal  general group plc 12666918 392
fidelity international limited 10065118 322
shareholder communications
the board is committed to an ongoing dialogue with institutional and private investors the principal method of communication
between the board and shareholders remains news announcements the halfyearly financial report the annual report and
accounts the corporate responsibility report and mitie’s website wwwmitiecouk a full programme of formal and informal 
events institutional investor meetings and presentations are also held following the halfyearly financial report and preliminary 
results announcements which are led by the chief executive and group finance director the chairman and senior independent
nonexecutive director  are available for additional meetings with shareholders upon request the company believes that such
meetings should be at the instigation of shareholders and should not be at the active solicitation of the company during the reporting
period no such requests were received by the company although all the nonexecutive directors were present at the 2008 agm 
and entered into direct discussions with shareholders both with and without executive directors present latest group information
ﬁnancial reports corporate governance and cr matters halfyearly financial report and preliminary results presentations major
shareholder information and all announcements are made available to shareholders via the mitie website wwwmitiecouk which
has a speciﬁc area dedicated to investor relations 
signiﬁcant importance is attached to investor feedback on the group’s performance and as such the executive board receives 
an investor relations report at each meeting detailing corporate news share price activity investor relations activity and major
shareholder movements the board is updated by the executive directors on these matters and receives detailed analyst feedback
following the halfyearly financial report and preliminary results presentations the agm also allows shareholders to address and
discuss any issues surrounding the group directly with the executive and nonexecutive directors
46
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annual report and accounts 2009
governance
electronic communications
the directors remain committed to improving and extending the methods in which the company communicates with its shareholders
and wish to move towards an increase in electronic communication at the 2007 agm shareholders approved certain amendments
which aligned the company’s articles of association with the new provisions of the companies act 2006 in relation to electronic
shareholder communications the board has been disappointed with the level of uptake by shareholders to date and would wish 
to encourage all shareholders to register to receive communications from the company electronically thus realising the environmental
and cost beneﬁts of reduced printing and carriage of hard copy reports and other communications details on how to register are
provided on the inside back cover of this report
agm
the 2009 agm will be held at the ofﬁces of ubs 2 finsbury avenue london ec2m 2pp at 230pm on 10 july 2009 the notice of agm will
be available at www mitiecoukinvestors on 8 june 2009
operational matters
employee involvement and employee equitybased incentivisation
the board remains committed to fostering and developing a culture of employee involvement in the business through communication
with employees and equity involvement whereby employees are enabled to build a stake in the company through the company’s
various equitybased incentive schemes 
direct communication with employees continues to have a high priority the group communicates with employees through the use 
of groupwide mailings and updates employeefocused initiatives the use of groupwide and business speciﬁc intranet sites and
provision of access to broadcasts of periodic ﬁnancial presentations through the use of their own communication processes each of
the group’s businesses is encouraged to ensure that employees are kept informed on group and individual business developments
the group continues to operate its groupwide mitie stars programme to recognise and reward exceptional performance by its
people and in 2008 launched mitie’s got talent as a groupwide talent contest to encourage employee engagement and
recognition the group cr report contains further details of these initiatives employees remain actively involved in the group’s
activities via an employee forum this year the forum held two meetings chaired by the group hr director the board will continue to 
seek increasing involvement and activity of the employee representatives 
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
its long term incentive plan ltip to incentivise and reward senior members of the mitie management team and its executive share
option scheme esos for certain other employees below board level during the reporting period shareholders approved
modiﬁcations to the group’s sa ye scheme sa ye to reduce the savings contract period from ﬁve years to three years with the aim of
increasing employee uptake the board is pleased to report that uptake in the subsequent sa ye award increased against uptake in
2007 the board will continue to review and where appropriate recommend amendments to equityincentive schemes in order to
maximise the effectiveness and incentive value of such schemes
the ltip and the esos are both discretionary schemes and are therefore not open to application by all employees of the group 
the sa ye an inland revenue approved scheme is open to all uk employees the esos established in 2001 has been approved by
her majesty’s revenue and customs hmrc and options over shares to an individual limit of £30000 can be awarded under the
approved element of the scheme options have in the past been awarded under this scheme to executive directors but following the
introduction of the ltip  the esos has been focused on employees below main board level under the esos there is a limit on the grant
level set at 100 of an individual’s base salary and the scheme has following changes to the scheme approved by shareholders at
the 2007 agm a single performance threshold for vesting of the options – average growth in earnings per share over the threeyear
vesting period must exceed inﬂation measured as rpi plus 4 the scheme permits the grant of share appreciation rights and the
settlement of outstanding unapproved options with share appreciation rights further details of grants under the three equitybased
incentive schemes are provide in note 33 to the ﬁnancial statements
the group has historically grown by giving entrepreneurial managers the opportunity to create wealth by taking the risk of starting a
new business taking equity stakes at fair value in those new businesses in conjunction with mitie and then dependent on a preagreed
pricing structure offering to sell that stake to mitie predominantly in exchange for mitie shares at the option of mitie this incentivisation
scheme typically provides for such managers to elect to offer their stake in their business to mitie between the ﬁfth and tenth years 
from the date of establishment of the business recipients of shares under this incentivisation scheme are generally restricted from
selling the mitie shares received as consideration for a minimum of two years the board believes that this is a unique business model
that has driven mitie’s past performance and continues to ensure a close alignment of interest between mitie shareholders and the
management and employees of the group it is the board’s current intention to continue to utilise such structures
47
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annual report and accounts 2009
employee involvement disability and opportunities
the board remains committed to developing further a culture that encourages the inclusion and diversity of all of the group’s
employees through respecting and appreciating their differences and to promoting the continuous development of employees
through skills enhancement and training programmes the group’s employment policies are designed to attract retain train and
motivate the very best people recognising that this can be achieved only through offering equal opportunities regardless of gender 
race religion age disability sexual orientation or any other aspect of diversity applications from disabled persons are always fully
considered bearing in mind the aptitudes of the applicant concerned it is the policy of the group that the training career
development and promotion of disabled persons including those who become disabled whilst employees of the group should 
as far as reasonably possible be identical to that of other employees
financial instruments
the group’s ﬁnancial instruments comprise bank loans ﬁnance leases overdrafts and performance guarantees in addition various
other ﬁnancial instruments such as trade creditors and trade debtors arise from its trade the use of interest rate swaps and currency
swaps 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 22 to the
ﬁnancial statements
payment of creditors
the group’s policy is to comply with the terms of payment agreed with suppliers preferably on the group’s standard purchasing terms
as notiﬁed to suppliers or otherwise to adhere to the suppliers’ standard terms at 31 march 2009 the group had 34 days’ purchases
outstanding 2008 40 days
fixed values
the board does not believe that there is any material difference between the book value and the current open market value of the
group’s interests in land and buildings
events after the balance sheet date
there have not been any signiﬁcant events since the balance sheet date
future developments
the operating review sets out the board’s view on likely future developments of the group
research and development
given the nature of the group’s activities it does not carry out any material research and development work
donations
donations to charity and community projects made during the year amounted to £184018 2008 £151154 it is the group’s policy 
not to make political donations and during the reporting period no political contributions were made 2008 £nil the total value of
community investment as disclosed in more detail in our cr report 2009 was £603659 2008 £592132
branch ofﬁces
the group does not operate any registered branch ofﬁces outside of the uk but does have subsidiary companies in guernsey and
jersey and operates outside of the uk on a clientspeciﬁc basis further details of the group’s principal subsidiaries are given in note 36
to the ﬁnancial statements
by order of the board
marieclaire haines
company secretary
18 may 2009
48
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governance
statement of directors’ responsibilities
statement of directors’ responsibilities in respect of the accounts
the directors are responsible for preparing the annual report and accounts the directors are required to prepare the ﬁnancial
statements for the group in accordance with international financial reporting standards as adopted by the eu ifrs and have
chosen to prepare company ﬁnancial statements in accordance with united kingdom generally accepted accounting practice 
uk gaap
in the case of international financial reporting standards ifrs accounts international accounting standard 1 requires that ﬁnancial
statements present fairly for each ﬁnancial year the company’s ﬁnancial position ﬁnancial performance and cash ﬂows this requires
the faithful representation of the effects of transactions other events and conditions in accordance with the deﬁnitions and
recognition criteria for assets liabilities income and expenses set out in the international accounting standards board’s ‘framework 
for the preparation and presentation of financial statements’ in virtually all circumstances a fair presentation will be achieved by
compliance with ifrs where applicable the directors are also required to properly select and apply accounting policies present
information including accounting policies in a manner that provides relevant reliable comparable and understandable information
and provide additional disclosures when compliance with the speciﬁc ifrs requirements is insufﬁcient to enable users to understand
the impact of particular transactions other events and conditions on the entity’s ﬁnancial position and ﬁnancial performance 
in the case of uk gaap accounts the directors are required to prepare ﬁnancial statements for each ﬁnancial year which give a true
and fair view of the state of affairs of the company and of the proﬁt or loss of the company for that period in preparing these ﬁnancial
statements the directors are required to select suitable accounting policies and then apply them consistently make judgements and
estimates that are reasonable and prudent and state whether applicable accounting standards have been followed subject to any
material departures disclosed and explained in the ﬁnancial statements 
the directors are responsible for keeping proper 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 
the directors are also responsible for the maintenance and integrity of the company website financial statements published by the
company on this website are prepared in accordance with uk legislation which may differ from legislation in other jurisdictions 
to the best of each director’s knowledge the ﬁnancial statements prepared in accordance with the applicable set of accounting
standards and contained within this annual report and accounts give a true and fair view of the assets liabilities ﬁnancial position
and proﬁt or loss of the group and the undertakings included in the consolidation taken as a whole and the management report
which is incorporated into the directors’ report includes a fair review of the development and performance of the business and the
position of the company and the undertakings included in the consolidation taken as a whole together with the description of the
principal risks and uncertainties they face 
by order of the board
ruby mcgregorsmith suzanne baxter
chief executive group finance director
18 may 2009 18 may 2009
49
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annual report and accounts 2009
remuneration report
introduction
this remuneration report summarises mitie’s remuneration policy and particularly its application in relation to the directors 
where this information is required to be audited by mitie’s auditors we have marked this as ‘audited information’ shareholders will 
be able to vote on this remuneration report at the 2009 agm further details are contained in the notice of agm which is available 
at wwwmitiecoukinvestors
the role of the remuneration committee
details of the composition and responsibilities of the remuneration committee are given in the directors’ and governance report 
on page 42 during the reporting year  committee meetings have included consideration of the following items
– reviewing the external competitiveness of the structure and value of executive director remuneration
– reviewing and approving executive director base salaries annual bonus payments and equityrelated incentive awards
– reviewing and approving awards under the 20089 bonus plan and setting award levels and targets for the 200910 bonus plan
– reviewing and approving vesting levels for grants made under the mitie group plc executive share option plan esos and mitie
group plc sa ye scheme sa ye
– setting individual award levels and approving structure and performance targets for the mitie group plc long term incentive plan
ltip and setting overall award levels and approving structure and performance targets for all share schemes
– reviewing amending and approving the draft remuneration report to shareholders and the remuneration related resolutions to be
put to the shareholders at 2009 agm 
the terms of reference of the committee are available on the group’s website wwwmitiecouk and upon request from the 
company secretary at thecompanysecretarymitiecouk
we have structured our remuneration report into the following parts
executive remuneration at a glance
key messages along with key information on policy and pay
remuneration explained
an explanation of our overall reward structure and performance during the year
remuneration in detail
full audited detailed disclosure of our remuneration
executive remuneration at a glance
principles of our remuneration policy
performance linked company performance determines a significant element of our remuneration 
failure to achieve success is reflected in our performance linked pay elements
shareholder aligned our discretionary schemes are based on eps growth aligning the interests 
of shareholders and members of our senior executive team
comprehensive and simple our remuneration policy is not overcomplicated and allows our executives 
to concentrate on growth of the group
50
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governance

51
executive remuneration explained
general remuneration policy
the remuneration policy for the company’s executive directors and other group senior executives is shaped by the need to align the
interests with the interests of mitie’s shareholders the policy has particular regard to the company’s and the group’s longstanding
culture of encouraging equity ownership in order to achieve this alignment the committee and the board continue to believe that
the principle of equity incentivisation has been a key driving force in the past success of the group and that consequently in order to
maintain and develop further mitie’s performance culture the remuneration packages of executive directors and other group
executives should continue to contain significant performancerelated equitybased elements
ongoing assessment
the committee is advised by its external remuneration consultants kepler associates in addition the group human resources director
provides guidance to the committee members kepler associates provide no other services to the company
the committee tests the remuneration structure regularly to ensure that it remains aligned with business needs and is appropriately
positioned relative to the market benchmarking is conducted against sector and size comparators in respect of base salary total
cash and total remuneration provided by our external remuneration consultants the committee also takes account of a range of
other factors when determining appropriate salary levels including market conditions and the responsibilities and skills of the individual
directors the committee believes that the executive team should be motivated by the success of the company and as such upper
quartile performance should be rewarded with an upper quartile package 
at the time of signing this report the committee is reviewing the structure of the executive director remuneration package to ensure 
it remains appropriate for 2009 the committee will confirm the agreed structure following consultation with the company’s major
shareholders and disclose any changes in the 200910 remuneration report
13012ra08p3659qxdlayout 1  28509  1219  page 51 mitie group plc
annual report and accounts 2009
remuneration package
the overall package for executive directors consists of a fixed element salary and certain benefits and a variable element annual
performancerelated bonus and longterm equitybased incentives the balance between these fixed and variable elements is set
out in this remuneration report 
base salary – reviewed annually as described above
beneﬁts – the benefits package for the executive directors consists of private healthcare and the provision of a company car
allowance 
annual bonus – v ariable remuneration is designed to drive further mitie’s performance the annual bonus scheme is structured to align
a significant element of the remuneration of executive directors with shortterm company performance bonuses to executive directors
are awarded at a maximum of 100 of base salary dependent on the achievement of group budgeted performance levels or
performance against the budget of the respective areas of the business within the individual director’s direct control targets were
achieved in the year ended 31 march 2009 resulting in the payment of maximum bonuses at a rate of 100 of salary
the committee is currently reviewing the structure of the 2009 annual bonus and will finalise the plan following consultation with the
company’s major shareholders
share based incentives – the ltip and the executive director shareownership policy are designed to engender longterm decision
making and sustainable growth
ltip
historically executive directors and senior executives were incentivised through a mix of options granted under the esos and 
through shareholdings in the company acquired through equity participation in subsidiary companies of the group that were
structured in accordance with the mitie model in 2007 this policy was replaced by the sole use of awards granted under the ltip
certain executive directors still retain options granted under the esos and details of this scheme can be found on page 55 there is no
retesting of performance conditions for any incentive programme
the ltip was established in 2007 and is the principal equitybased incentive scheme for executive directors awards may be granted
under 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 after 26 july 2017 no payment other
than in respect of any individual recipients electing to pay income tax and national insurance where appropriate is required for the
grant of an award 
in 2008 with the approval of shareholders the upper limit on the market value as at grant of awards that an individual executive
director may receive in any ﬁnancial year was raised from 100 to 200 of annual base salary in that ﬁnancial year the committee
only intends to use this upper limit in respect of awards to ruby mcgregorsmith the chief executive and suzanne baxter the group
finance director and the previous upper limit of 100 of annual base salary will continue to be applied to other executive directors 
in exceptional circumstances such as recruitment or retention the rules currently allow for this limit to be increased to 250 of any
employee’s annual base salary as part of its review of the change in the upper grant limit the committee considered the introduction
of a second performance target for awards of over 100 of an executive director’s base salary the committee decided against this
believing it would dilute the clarity and simplicity of the scheme and that a single target is more in keeping with the other successful
equitybased incentive schemes that operate within the group 
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 changeof
control awards will be prorated both for time and performance subject to the discretion of the committee
the committee continues to believe that eps is the most appropriate longterm performance measure for mitie it brings the advantages
of simplicity and visibility of the value of the award which the committee believes enhances the ltip’s effectiveness as an incentive
tool awards will normally vest after three years provided that certain performance criteria have been met all awards are subject 
to performance conditions that require adjusted eps less inflation measured by the retail prices index – rpi to exceed certain
performance thresholds over a threeyear period where eps growth is less than inflation plus the lower performance threshold 
per annum none of the awards will vest awards vest in full for eps growth equal to inflation plus the upper performance threshold
v esting is on a straightline basis for performance between these levels for ltip awards made in 2008 the lower and upper performance
thresholds were rpi5 pa and rpi14 pa respectively the committee is currently reviewing the eps targets that will apply to 2009
ltip awards to ensure that these remain stretching and achievable in the current economic climate
52
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governance

share ownership policy
a shareownership policy for executive directors was introduced in 2007 at the same time as the ltip under this policy all executive
directors are required over time to build and maintain a shareholding in the company worth 100 of base salary during 2008 
this requirement was increased to 150 in respect of any executive director who is granted an ltip award of more than 100 of their
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 for the coming year  we do not propose to amend the share ownership policy
 of target 
number of ordinary holding achieved as 
target holding as shares owned percentage of salary 
at 1 may 2009 as at 31 march 2009 as at 1 may 2009
r mcgregorsmith 221955 183799 83
s c baxter 145983 10000 7
n r goodman 138661 899421 649
w robson 138661 1500713 1082
nonexecutive director remuneration
the remuneration for the chairman is recommended by the committee for approval by the board and reﬂects the responsibilities 
and commitment of this role the remuneration level for the role was last reviewed in 2007 following receipt of advice from external
remuneration consultants in relation to market comparators and was maintained at the level paid to the previous chairman on the
appointment of roger matthews on 31 july 2008
the fees for the nonexecutive directors are set by the chairman and the executive directors and they are reviewed annually 
the fee level is designed both to recognise the contribution and responsibilities of the role and to attract individuals with the experience
and skills required to contribute to the future development of the board and the group the nonexecutive directors are paid a basic
fee with an additional fee for chairmanship of committees 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 pensions or ancillary beneﬁts fee levels for the reporting year were maintained at 2007 levels
further details of fees paid to nonexecutive directors are provided in the audited section of this report
53
g
n
r
s
13012ra08p3659qxdlayout 1  28509  1219  page 53 mitie group plc
annual report and accounts 2009
remuneration in detail
introduction
this section of the report provides detail required under statute or under best practice guidelines that has not already been provided
above where this information is required to be audited by mitie’s auditors we have marked this as ‘audited information’ we believe
that this report complies with the principles of good corporate governance in relation to directors’ remuneration in accordance with
the combined code 2006 the directors’ remuneration report regulations 2002 relevant company law and the listing rules of the
financial services authority other than as set out below no other changes in directors’ interests have taken place since 1 april 2009
and no equitybased incentives have been granted to any director since 1 april 2009
directors’ remuneration 
table 1 provides details of directors’ remuneration paid to or receivable by each person who served as a director during the year
table 1 directors’ remuneration audited information
performance 
base related 
salaryfees bonuses beneﬁts pensions 2009 2008 
£’000 £’000 £’000 £’000 total £’000 total £’000
executive directors
r mcgregorsmith 435 435 16 12 898 769
s c baxter 290 290 16 40 636 571
n r goodman 275 275 16 12 578 507
w robson 275 275 16 12 578 507
nonexecutive directors
r matthews 107 – – – 107 40
i r stewart 40 – 1 – 41 75
d s jenkins 45 – – – 45 45
i j s macpherson 45 – – – 45 45
g potts 40 – – – 40 40
d c ord chairman
1
47 – – – 47 121
c mcalpine
1
15 – – – 15 45
total 1614 1275 65 76 3030 2765
notes 
1 david ord and cullum mcalpine retired as directors on 31 july 2008
pension and benefits
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 suzanne baxter is not a member of the mitie group plc deﬁned beneﬁt pension scheme as the scheme was closed to new
entrants in 2005 pension contributions for suzanne baxter at a rate of 135 of base salary 2008 135 are paid into a separate
deﬁned contribution pension scheme see table 1
table 2 deﬁned beneﬁt pension scheme beneﬁt audited information
increase in 
accrued accrued real increase accrued 
pension pension during in accrued pension 
31 march 2008 the year pension 31 march 2009 
£’000 £’000 £’000 £’000 
r mcgregorsmith 922 11
n r goodman 24 3 2 27
w robson 28 3 2 31
54
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annual report and accounts 2009
governance

table 3 deﬁned beneﬁt pension scheme transfer values audited information
transfer 
value of 
pension 
increase in increase 
contributions accrued after inﬂation 
transfer values made by pension net of transfer value 
31 march 2008 the director over the year contributions 31 march 2009 
£’000 £’000 £’000 £’000 £’000
r mcgregorsmith 57 9 2 2 56
n r goodman 389 9 3 10 413
w robson 367 9 3 4 367
equitybased incentive schemes
as set out above the group operates four formal equitybased incentive schemes the interests of directors’ in each of these schemes
is set out in tables 4 and 5 no options have been issued to any directors under the mitie group plc sa ye scheme there has not been
any variation in the terms and conditions governing any of the grants listed below since the relevant grant date no price is payable
upon award in respect of esos or ltip awards other than income tax and national insurance in respect of certain ltip awards
applicable exercise prices for options awarded are set out in table 4 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
the share options detailed in table 4 were granted under the esos and the performance conditions that applied at the date of 
grant require 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 becomes exercisable since the grant to ruby
mcgregorsmith and suzanne baxter detailed in table 4 there have been no grants to directors under the esos both the unapproved
part and the hm revenue  customs approved part and it is the company’s policy that equitybased incentives for directors in the
current reporting period will be based solely upon ltip awards
the ltip awards made in 2007 and 2008 detailed in table 5 are subject to the performance conditions that require adjusted eps 
less inﬂation measured by the retail prices index – rpi to exceed certain performance thresholds over a 3year period where eps
growth is less than inﬂation plus 5 per annum none of the awards will vest awards vest in full for eps growth equal to inﬂation plus 
14 per annum v esting will be on a straight line basis for performance between these levels
table 4 director interests in options granted under the mitie group plc 2001 executive share option scheme audited information
esos options granted lapsed exercised esos options
outstanding at during during during outstanding at exercise price exercisable 
1 april 2008 the year the year the year 31 march 2009 p between
r mcgregorsmith
unapproved scheme 100000 – – – 100000 162 06080615
unapproved scheme 100000 – – – 100000 191 06090616
s c baxter 
unapproved scheme 35000 – – – 15000 191 06090616
approved scheme 15000 – – – 35000 191 06090616
55
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annual report and accounts 2009
remuneration report
table 5 director interests in nilcost options granted under the mitie group plc 2007 long term incentive plan audited information
ltip options granted during lapsed exercised ltip options 
outstanding at the year at during during outstanding at exercise price exercisable 
1 april 2008 21225pshare the year the year 31 march 2009 p between
r mcgregorsmith 145440 – – – 145440 nil cost 07100711
– 409894 – – 409894 nil cost 08110812
s c baxter 102201 – – – 102201 nil cost 07100711
– 273262 – – 273262 nil cost 08110812
n r goodman 94340 – – – 94340 nil cost 07100711
– 129564 – – 129564 nil cost 08110812
w robson 94340 – – – 94340 nil cost 07100711
– 129564 – – 129564 nil cost 08110812
the directors acquired a conditional joint beneficial interest with the mitie employee benefit trust 2008 in the shares awarded under the ltip scheme in 2008 
the full beneficial interest will only transfer to the director if the performance criteria applicable to the award are met
share dilution
the company has stated its intent to manage dilution rates within the abi guidelines of 10 of issued ordinary share capital in respect
of both allemployee schemes and discretionary schemes the esos ltip and sa ye and 5 in respect of discretionary schemes the
esos and the ltip in calculating compliance with these guidelines the company allocates available ‘headroom’ on a tenyear ﬂat
line basis making adjustments for projected lapse rates and projected increases in issued share capital options granted under the ltip
are satisﬁed through the marketpurchase of shares held by mitie group plc ebt 2007 and the mitie group plc ebt 2008 the potential
dilution of the company’s issued share capital is set out in table 6 in respect of all outstanding options granted under the company’s
equitybased incentive schemes and which are to be satisﬁed through the allotment of new shares
table 6 share dilution
current 
total 
dilution
all share plan maximum 10 77
discretionary share plans maximum 5 40
total shareholder return performance
table 7 shows the total shareholder return performance of mitie shares compared with the ftse 250 and ftse 350 support services
indices over a 5year period to 31 march 2009 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 directors’ remuneration report regulations 2002 and assumes that all
dividends are reinvested 
the market price of the company’s shares as at 31 march 2009 was 18700p the highest and lowest prices during the year were
24500p and 15825p respectively
table 7 mitie 5year total shareholder return
source data stream
56
300
250
200
150
100
50
apr 2004 apr 2005 apr 2006 apr 2007 apr 2008 apr 2009
tsr rebased to 100
mitie
ftse 250
ftse 350
13012ra08p3659qxdlayout 1  28509  1219  page 56 mitie group plc 
annual report and accounts 2009
governance

directors’ interests in shares 
tables 8 and 9 detail the beneﬁcial interests of the directors who were in ofﬁce on 31 march 2009 in the share capital of the company
and in the share capital of certain of the company’s subsidiary companies respectively the interests of directors in these subsidiary
companies were acquired under the mitie model further details of which are given in the directors’ and governance report on page 47
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 current reporting period
table 8 director share ownership audited
number 
of ordinary 
mitie shares 
number owned as at 
of ordinary 1 april 2008
mitie shares or date of 
owned as at appointment 
31 march 2009 if later
executive directors 
r mcgregorsmith 183799 111498
s c baxter 10000 10000
n r goodman 899421 872108
w robson 1500713 1500713
nonexecutive directors 
r matthews 60000 20000
i r stewart 2020000 2020000
d s jenkins 50000 50000
i j s macpherson 25651 25651
g potts 15000 15000
table 9 director interests in mitie subsidiary companies under the mitie model audited
number number 
of shares of shares 
31 march 2009 1 april 2008
r mcgregorsmith
mtiie engineering services edinburgh ltd b ordinary shares of £1 each 2000 2000
mitie engineering services west midlands ltd b ordinary shares of £1 each – 1500
mitie services retail ltd b ordinary shares of £1 each 4000 10000
mitie transport services ltd c ordinary shares of £1 each 4500 4500
n r goodman
mitie catering services ltd b ordinary shares of £1 each – 8333
on 19 march 2009 mitie group plc acquired the minority interest in mitie engineering services west midlands ltd including 
ruby mcgregorsmith’s holding of 1500 b ordinary shares of £1 each the consideration paid to ruby mcgregorsmith of £1 was 
paid in cash on 28 august 2008 mitie group plc acquired 60 of the minority interest in mitie services retail ltd including 6000 
b ordinary shares of £1 each held by ruby mcgregorsmith the consideration paid to ruby mcgregorsmith of £158160 was paid 
in 72301 mitie group plc shares of 25p each and £156 in cash on 28 august 2008 mitie group plc acquired the minority interest 
in mitie catering services ltd including roger goodman’s holding of 8333 b ordinary shares of £1 each the consideration paid to
roger goodman of £5974761 was paid in 27313 mitie group plc shares of 25p each and £042 cash
57
13012ra08p3659qxdlayout 1  28509  1219  page 57 mitie group plc
annual report and accounts 2009
employment contracts for executive directors
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
contracts of the executive directors are set out below
table 10 executive director service contracts
date of notice 
agreement period
ruby mcgregorsmith 01apr 03 12 months
suzanne baxter 10apr 06 12 months
roger goodman 01apr 03 12 months
bill robson 01apr 03 12 months
policy on external appointments
the board recognises that the appointment of executive directors to nonexecutive positions at other companies can be beneﬁcial
both for the individual director and the wider group through the broadening of their experience and knowledge roger goodman
receives £40000 per annum in fees in respect of his role as chairman of networkers international plc ruby mcgregorsmith receives
£45000 per annum in fees in respect of her role as a nonexecutive director of michael page international plc as set out in directors’
and governance report executive directors are entitled to retain any fees earned from external appointments 
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 terms of three years which are terminable on six months’ notice
table 11 non executive director engagement terms
date of 
engagement notice date of 
terms period leaving notes
roger matthews 04dec 06 6 months – appointed chairman on 31 july 2008 
chairman of nomination committee
ian stewart 30mar 07 6 months – deputy chairman
david jenkins 31jan 06 6 months – senior independent nonexecutive director
and chairman of audit committee
ishbel macpherson 27jul 05 6 months – chairman of remuneration committee
graeme potts 01aug 06 6 months – 
david ord 26apr 04 6 months retired on 
31 july 2008 
cullum mcalpine 03aug 05 6 months retired on 
31 july 2008 
this report was approved by the board and has been signed on its behalf by
ishbel macpherson
chairman remuneration committee
18 may 2009
58
remuneration report
13012ra08p3659qxdlayout 1  28509  1219  page 58 59
accounts
independent auditors’ report 
to the members of mitie group plc 60
consolidated income statement 61
consolidated statement of 
recognised income and expense 62
consolidated balance sheet 63
consolidated cash ﬂow statement 65
notes to the consolidated 
ﬁnancial statements 66
independent auditors’ report 
to the members of mitie group plc 97
company balance sheet 98
notes to the company ﬁnancial statements 99
shareholder information ibc
mitie group plc 
annual report and accounts 2009
accounts
13012ra08p3659qxdlayout 1  28509  1219  page 59 mitie group plc  
annual report and accounts 2009 60 
independent auditors’ report to the members of mitie group plc  
for the year ended 31 march 2009 
we have audited the group financial statements of  
mitie group plc for the year ended 31 march 2009  
which comprise the consolidated income statement the 
consolidated statement of recognised income and expense 
the consolidated balance sheet the consolidated cash flow 
statement and the related notes 1 to 36 these group financial 
statements have been prepared under the accounting 
policies set out therein we have also audited the information  
in the directors remuneration report that is described  
as having been audited 
we have reported separately on the parent company 
financial statements of mitie group plc for the year ended  
31 march 2009  
this report is made solely to the company’s members as a 
body in accordance with section 235 of the companies act 
1985 our audit work has been undertaken so that we might 
state to the company’s members those matters we are 
required to state to them in an auditors’ report and for no  
other purpose to the fullest extent permitted by law we do  
not accept or assume responsibility to anyone other than the 
company and the company’s members as a body for our 
audit work for this report or for the opinions we have formed 
respective responsibilities of directors and auditors 
the directors responsibilities for preparing the annual report 
the directors remuneration report and the group financial 
statements in accordance with applicable law and 
international financial reporting standards ifrss as  
adopted by the european union are set out in the statement 
of directors responsibilities 
our responsibility is to audit the group financial statements 
in accordance with relevant legal and regulatory requirements  
and international standards on auditing uk and ireland 
we report to you our opinion as to whether the group financial 
statements give a true and fair view whether the group 
financial statements have been properly prepared in 
accordance with the companies act 1985 and article 4  
of the ias regulation and whether the part of the directors 
remuneration report described as having been audited has 
been properly prepared in accordance with the companies 
act 1985 we also report to you whether in our opinion the 
information given in the directors report is consistent with  
the group financial statements the information given in the 
directors report includes that specific information presented  
in the chairman’s statement the chief executive’s review  
the operating review financial review and the corporate 
governance statement that is cross referred from the business 
review section of the directors report 
in addition we report to you if in our opinion we have not 
received all the information and explanations we require for 
our audit or if information specified by law regarding directors 
remuneration and other transactions is not disclosed 
we review whether the corporate governance statement 
reflects the companys compliance with the nine provisions  
of the 2006 combined code specified for our review by the 
listing rules of the financial services authority and we report  
if it does not we are not required to consider whether the 
boards statements on internal control cover all risks and 
controls or form an opinion on the effectiveness of the  
groups corporate governance procedures or its risk and 
control procedures 
we read the other information contained in the annual report 
as described in the contents section and consider whether  
it is consistent with the audited group financial statements we 
consider the implications for our report if we become aware  
of any apparent misstatements or material inconsistencies  
with the group financial statements our responsibilities do not 
extend to any further information outside the annual report 
basis of audit opinion 
we conducted our audit in accordance with international 
standards on auditing uk and ireland issued by the auditing 
practices board an audit includes examination on a test basis 
of evidence relevant to the amounts and disclosures in the 
group financial statements and the part of the directors 
remuneration report to be audited it also includes an 
assessment of the significant estimates and judgments made 
by the directors in the preparation of the group financial 
statements and of whether the accounting policies are 
appropriate to the groups circumstances consistently  
applied and adequately disclosed 
we planned and performed our audit so as to obtain all  
the information and explanations which we considered 
necessary in order to provide us with sufficient evidence to  
give reasonable assurance that the group financial statements  
and the part of the directors remuneration report to be 
audited are free from material misstatement whether caused 
by fraud or other irregularity or error in forming our opinion  
we also evaluated the overall adequacy of the presentation  
of information in the group financial statements and the part  
of the directors remuneration report to be audited 
opinion 
in our opinion 
– the group financial statements give a true and fair view in 
accordance with ifrss as adopted by the european union  
of the state of the group’s affairs as at 31 march 2009 and  
of its profit for the year then ended 
– the group financial statements have been properly 
prepared in accordance with the companies act 1985  
and article 4 of the ias regulation 
– the part of the directors’ remuneration report described  
as having been audited has been properly prepared in 
accordance with the companies act 1985 and 
– the information given in the directors’ report is consistent 
with the group financial statements  
 
deloitte llp 
chartered accountants and registered auditors 
bristol united kingdom 
18 may 2009  
                mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
 
consolidated income statement 
for the year ended 31 march 2009 
61
  2009 2008 
 notes 
before  
other items
£m  
other items
£m  
total
£m 
before   
other items 
£m   
other items
£m  
total
£m 
continuing operations   
revenue 3 15219 – 15219 14072 – 14072
cost of sales  12616 – 12616 11452 – 11452
gross profit  2603 – 2603 2620 – 2620
   
other administrative expenses  1797 – 1797 1898 – 1898
amortisation of intangible assets  01 19 20 – 19 19
   
total administrative expenses  1798 19 1817 1898 19 1917
operating profit 3 4 805 19 786 722 19 703
 
investment revenue 6 08 – 08 12 – 12
   
other finance costs  29 – 29 28 – 28
unwinding of discount on 
deferred contingent 
consideration  –06 06 – 08 08
   
total finance costs 7 29 06 35 28 08 36
   
profit before tax  784 25 759 706 27 679
tax 8 222 07 215 214 08 206
profit for the year   562 18 544 492 19 473
 
attributable to   
equity holders of the parent  549 18 531 469 19 450
minority interests  13 – 13 23 – 23
  562 18 544 492 19 473
earnings per share eps    
– basic 10 172p 05p 167p 149p 06p 143p
– diluted 10 170p 05p 165p 147p 06p 141p
 other items are noncash acquisition related items being amortisation of intangible assets and unwinding of discount on deferred contingent consideration 
  mitie group plc  
annual report and accounts 2009 62 
consolidated statement of recognised income and expense 
for the year ended 31 march 2009 
 notes 
2009 
£m 
2008
£m 
actuarial lossesgains on defined benefit pension schemes 34 120 68
tax creditcharge on actuarial movement taken directly to equity 28 33  20
net expenseincome on defined benefit pension schemes recognised directly in equity  87 48
 
profit for the year  544 473
total recognised income and expense for the financial year  457 521
 
attributable to   
equity holders of the parent  444 498
minority interests  13 23 mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
63 
consolidated balance sheet  
as at 31 march 2009 
 notes 
2009
£m 
2008
£m 
noncurrent assets  
goodwill  11 2012 2033
other intangible assets 12 244 169
property plant and equipment 13 441 452
deferred tax assets 19 73 66
retirement benefit surplus 34 30 99
total noncurrent assets  2800 2819
 
current assets  
inventories 14 25 24
trade and other receivables 16 2858 3144
cash and cash equivalents 18 285 426
total current assets  3168 3594
  
total assets  5968 6413
 
current liabilities  
trade and other payables 21 2602 2896
financing liabilities 22 137 545
provisions 26 32 20
current tax liabilities  135 107
total current liabilities  2906 3568
  
net current assets  262 26
 
noncurrent liabilities  
financing liabilities 22 45 37
provisions 26 172 272
retirement benefit obligation 34 34 24
deferred tax liabilities 19 45 62
total noncurrent liabilities  296 395
  
total liabilities  3202 3963
  
net assets  2766 2450 mitie group plc  
annual report and accounts 2009 64 
consolidated balance sheet continued 
as at 31 march 2009 
 
 notes 
2009 
£m 
2008
£m 
equity   
share capital 27 81 79
share premium account 28 244 190
merger reserve 28 672 604
sharebased payments reserve 28 44 29
own shares reserve 28 52 20
other reserves 28 02 02
retained earnings 28 1674 1437
equity attributable to equity holders of the parent  2665 2321
 
minority interests  101 129
total equity  2766 2450
the financial statements were approved by the board of directors and authorised for issue on 18 may 2009 they were signed on its 
behalf by 
 
 
 
ruby mcgregorsmith  suzanne baxter 
chief executive   group finance director  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
65 
consolidated cash flow statement 
for the year ended 31 march 2009 
 notes 
2009 
£m 
2008 
£m 
net cash from operating activities 30 736 581
 
investing activities  
interest received  08 11
purchase of property plant and equipment  150 178
purchase of subsidiary undertakings  22 269
purchase of other intangible assets  90 66
disposals of property plant and equipment  28 46
net cash outflow from investing activities  226 456
 
financing activities  
repayments of obligations under finance leases  16 14
proceeds on issue of share capital  19 35
repayments of loan notes on purchase of subsidiary undertakings  12 80
bank loans repaidraised  400 300
purchase of own shares  32 20
equity dividends paid  208 173
minority dividends paid  02 03
net cash outflowinflow from financing  651 45
  
net decreaseincrease in cash and cash equivalents  141 170
 
net cash and cash equivalents at beginning of the year  426 256
  
net cash and cash equivalents at end of the year  285 426
 
net cash and cash equivalents comprise  
cash at bank  285 426
  285 426
 
 
 
reconciliation of net cash flow to movement in net fundsdebt  
2009 
£m 
2008 
£m 
net decreaseincrease in cash and cash equivalents  141 170
bank loans repaidraised  400 300
repayments of loan notes on purchase of subsidiary undertakings   12 80
issue of loan notes on acquisition of subsidiary undertakings   – 16
increase in finance leases   06 09
decreaseincrease in net debt during the year  265 75
opening net debt  156 81
closing net fundsdebt 25 109 156 mitie group plc  
annual report and accounts 2009 66 
notes to the consolidated financial statements 
for the year ended 31 march 2009 
1 basis of preparation and significant accounting policies 
basis of preparation 
the group’s financial statements for the year ended 31 march 2009 are prepared in accordance with international accounting 
standards ias and international financial reporting standards ifrs as issued by the international accounting standards board  
and as adopted for use in the european union  
as more fully detailed in the directors’ and governance report the group’s financial statements have been prepared on a going 
concern basis 
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 2008 except for the adoption of new standards 
and interpretations noted below adoption of these standards and interpretations did not have any significant effect on the financial 
position or performance of the group 
– ifric 12 ‘service concession arrangements’ and 
– ifric 14 ias 19 ‘the limit of a defined benefit asset minimum funding requirements and their interaction’  
the following standards and interpretations have been issued but are not yet effective  
– ifric 13 ‘customer loyalty programmes’  
– ifric 15 ‘agreements for the construction of real estate’ 
– ifric 16 ‘hedges of a net investment in a foreign operation’ 
– ifric 17 ‘distributions of noncash assets to owners’ 
– ifric 18 ‘transfers of assets from customers’ 
– ias 1 revised ‘presentation of financial statements’ 
– ias 27 revised ‘consolidated and separate financial statements’ 
– ifrs 3 revised ‘business combinations’ and consequential amendment to ias 27 ‘consolidated and separate financial 
statements’ ias 28 ‘investments in associates’ and ias 31 ‘interests in joint ventures’ 
– ifrs 8 ‘operating segments’ 
– amendments to ias 32 and ias 1 ‘puttable financial instruments and obligations arising on liquidation’ 
– amendments to ias 39 ‘financial instruments recognition and measurement’  
– amendments to ifrs 1 and ias 27 ‘cost of an investment in a subsidiary jointlycontrolled entity or associate’ 
– amendment to ifrs 2 ‘sharebased payment’  
– amendments resulting from may 2008 annual improvements to ifrss and 
– amendments resulting from april 2009 annual improvements to ifrss 
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 for the treatment of acquisition of subsidiaries when ifrs 3 comes 
into effect for business combinations for which the acquisition date is on or after 1 april 2010 
significant accounting policies under ifrs 
the significant accounting policies adopted in the preparation of the group’s ifrs financial information are set out below 
basis of consolidation 
the consolidated financial statements comprise the financial statements of mitie group plc and all its subsidiaries the financial 
statements of the parent company and subsidiaries are prepared in accordance with uk generally accepted accounting practice 
uk gaap 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 intragroup transactions have been eliminated  
in full 
subsidiaries are consolidated from the date on which control is transferred to the group and cease to be consolidated from the date 
on which control is transferred out of the group 
interests of minority shareholders are measured at the minority’s proportion of the net fair value of the assets liabilities and contingent  
liabilities recognised  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
67 
 
1 basis of preparation and significant accounting policies continued 
business combinations 
the acquisition of subsidiaries is accounted for using the purchase method the cost of the acquisition is measured at the aggregate  
of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments issued by the group in 
exchange for control of the acquiree plus any costs directly attributable to the business combination the acquiree’s identifiable assets 
liabilities and contingent liabilities that meet the conditions for recognition are recognised at their fair value at the acquisition date 
except for noncurrent assets or disposal groups that are classified as held for resale in accordance with ifrs 5 ‘non current assets held 
for sale and discontinued operations’ which are recognised and measured at fair value less costs to sell 
goodwill arising on acquisition is recognised as an asset and initially measured at cost being the excess of the cost of the business 
combination over the group’s interest in the net fair value of the identifiable assets liabilities and contingent liabilities recognised if after 
reassessment the group’s interest in the net fair value of the acquiree’s identifiable assets liabilities and contingent liabilities exceeds the 
cost of the business combination the excess is recognised immediately in profit or loss 
goodwill 
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary associate or jointly controlled entity at the date of acquisition cost of acquisition includes 
all deferred amounts that become payable in the future 
goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment losses it is 
reviewed for impairment at least annually any impairment is recognised immediately in profit or loss and is not subsequently reversed 
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units expected to benefit from the 
synergies of the combination cashgenerating units to which goodwill has been allocated are tested for impairment annually or more 
frequently when there is an indication that the unit may be impaired if the recoverable amount of the cashgenerating unit is less than 
the carrying amount of the unit the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit 
and then to the other assets of the unit prorata on the basis of the carrying amount of each asset in the unit an impairment loss 
recognised for goodwill is not reversed in a subsequent period 
on disposal of a subsidiary associate or jointly controlled entity the attributable amount of goodwill is included in the determination  
of the profit or loss on disposal 
goodwill arising on acquisitions before the date of transition to ifrs has been retained at the previous uk gaap amounts subject to 
being tested for impairment at that date goodwill written off to reserves under uk gaap prior to 1998 has not been reinstated and  
is not included in determining any subsequent profit or loss on disposal 
intangible assets 
intangible assets identified in a business acquisition are capitalised at fair value as at the date of acquisition  
development expenditure relating to software 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  mitie group plc  
annual report and accounts 2009 68 
notes to the consolidated financial statements continued 
 
1 basis of preparation and significant accounting policies continued 
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 fee income recognised in respect of services provided during the period stated net of value 
added tax and is earned almost exclusively within the united kingdom 
revenue from multiservice contracts consists of various components which operate independently of each other and for  
which reliable fair values can be established each component is accounted for separately as if it were an individual contractual 
arrangement 
revenue from longterm contracts represents the sales value of work done in the year including fees invoiced and estimates in respect 
of amounts to be invoiced after the year end profits are recognised on longterm contracts where the final outcome can be assessed 
with reasonable certainty in calculating this the percentage of completion method is used based on the proportion of costs incurred  
to the total estimated cost cost includes direct staff costs and outlays full provision is made for all known or anticipated losses on each 
contract immediately such losses are forecast 
gross amounts due from customers are stated at the proportion of the anticipated net sales value earned to date less amounts billed  
on account to the extent that fees paid on account exceed the value of work performed they are included in creditors as gross 
amounts due to customers 
variations in contract work and claims are included to the extent that they have been agreed with the customer 
interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable  
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s  
net carrying amount 
dividend income from investments is recognised when the shareholders’ rights to receive payment have been established 
operating profit 
operating profit is stated before investment revenue and finance costs  
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets that necessarily 
take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets until such time as the 
assets are substantially ready for their intended use or sale all other borrowing costs are recognised in profit or loss in the period in which 
they are incurred 
leasing 
finance leases which transfer to the group substantially all the risks and benefits incidental to ownership of the leased item are 
capitalised at the inception of the lease at the fair value of the leased item or if lower at the present value of the minimum lease 
payments lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve  
a constant rate of interest on the remaining balance of the liability finance charges are charged directly against income  
capitalised leased assets are depreciated over the shorter of the estimated life of the asset or the lease term 
leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases 
operating lease payments are recognised as an expense in the income statement on a straightline basis over the lease term  
any lease incentives are amortised over the lesser of the life of the operating lease or to the first opportunity for termination 
foreign currency 
transactions in foreign currencies are recorded at the rate of exchange at the date of transaction monetary assets and liabilities 
denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date  
nonmonetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the  
date when the fair value was determined nonmonetary items that are measured in terms of historical cost in a foreign currency  
are not retranslated 
exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are included in profit  
or loss for the period exchange differences arising on the retranslation of nonmonetary items carried at fair value are included in profit 
or loss for the period except for differences arising on the retranslation of 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  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
69 
 
1 basis of preparation and significant accounting policies continued 
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 recognised income and expense 
past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight
line basis over the average period until the benefits become vested 
the retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as 
adjusted for unrecognised past service cost and as reduced by the fair value of scheme assets any asset resulting from this calculation 
is limited to past service cost plus the present value of available refunds and reductions in future contributions to the plan  
taxation 
the tax expense represents the sum of the tax currently payable and deferred tax 
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the income statement 
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are 
never taxable or deductible the group’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date 
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities  
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the 
balance sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax 
assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial 
recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the tax profit nor the 
accounting profit 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered 
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
deferred tax is charged or credited in the income statement except when it relates to items charged or credited directly to equity  
in which case the deferred tax is also dealt with in equity 
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax 
assets and liabilities on a net basis  mitie group plc  
annual report and accounts 2009 70 
notes to the consolidated financial statements continued 
 
1 basis of preparation and significant accounting policies continued 
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 of the assets over their estimated useful lives and is calculated on a straightline basis as follows 
freehold buildings and long leasehold property – over 50 years 
leasehold improvements    – period of the lease 
plant and vehicles     – 3–10 years 
annually the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that 
those assets have suffered an impairment loss if any such indication exists the recoverable amount of the asset is estimated in order to 
determine the extent of the impairment loss if any where the asset does not generate cash flows that are independent from other 
assets the group estimates the recoverable amount of the cashgenerating unit to which the asset belongs  
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated future cash flows 
are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money 
and the risks specific to the asset for which the estimates of future cash flows have not been adjusted 
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the carrying amount  
of the asset cashgenerating unit is reduced to its recoverable amount an impairment loss is recognised as an expense immediately 
where an impairment loss subsequently reverses the carrying amount of the asset cashgenerating unit is increased to the revised 
estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would  
have been determined had no impairment loss been recognised for the asset cashgenerating unit in prior years a reversal of an 
impairment loss is recognised as income immediately 
inventories 
inventories are stated at the lower of cost and net realisable value 
costs represent materials direct labour and overheads incurred in bringing the inventories to their present condition and location  
net realisable value is based on estimated selling price less further costs expected to be incurred to completion and estimated selling 
costs provision is made for obsolete slow moving or defective items where appropriate 
financial instruments 
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party to the 
contractual provisions of the instrument the group derecognises financial assets and liabilities only when the contractual rights  
and obligations are discharged or expire 
assets that are assessed not to be individually impaired are subsequently assessed for impairment on a collective basis objective 
evidence of impairment for a portfolio of receivables includes the group’s past experience of collecting payments the number  
of delayed payments in the portfolio past the average credit period as well as observable changes in national or local economic 
conditions that correlate with default on receivables 
the carrying amount of the financial asset is reduced by the impairment loss directly with the exception of trade receivables where  
the carrying amount is reduced through the use of an allowance account when a trade receivable is considered uncollectable it is 
written off against the allowance account subsequent recoveries of amounts previously written off are credited against the allowance 
account changes in the carrying amount of the allowance account are recognised in the income statement 
financial assets comprise loans and receivables and are measured at initial recognition at amortised cost appropriate allowances  
for estimated irrecoverable amounts are recognised where there is objective evidence that the asset is impaired 
the group uses derivative financial instruments such as interest rate swaps to hedge and manage risks associated with interest  
the group does not currently designate any derivative financial instruments as qualifying for hedge accounting such derivative 
financial instruments are stated at fair value through profit and loss through investment revenue and finance costs with fair value 
determined by reference to market rates  
cash and cash equivalents comprise cash in hand and demand deposits and other shortterm highly liquid investments that are readily 
convertible to a known amount of cash and are subject to an insignificant risk of changes in value 
interest bearing bank loans and overdrafts are stated at the amount of the net proceeds after deduction of issue costs finance 
charges including premiums payable on settlement or redemption and direct issue costs are accounted for on an accruals basis in the 
income statement and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which 
they arise 
trade payables are measured at fair value there are no financial liabilities classified as held for trading 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs  mitie group plc 
annual report and accounts 2009
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71 
 
1 basis of preparation and significant accounting policies continued 
provisions 
provisions are recognised when the group has a present obligation legal or constructive as a result of a past event and it is probable 
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be 
made of the amount of the obligation where the group expects some or all of a provision to be reimbursed for example under an 
insurance contract the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain the 
expense relating to any provision is presented in the income statement net of any reimbursement if the effect of the time value of 
money is material provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market 
assessments of the time value of money and where appropriate the risks specific to the liability where discounting is used the increase 
in the provision due to the passage of time is recognised as a borrowing cost 
precontract costs 
all bid costs are expensed through the income statement up to the point where contract award or full recovery of costs is virtually 
certain bid costs incurred after this point are then capitalised within trade and other receivables on the contract award these bid costs 
are amortised through the income statement over the contract period by reference to the stage of completion of the contract activity 
at the balance sheet date 
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 straight
line basis over the vesting period based on the group’s estimate of shares that will eventually vest 
the group has taken advantage of the transitional provisions of ifrs 2 in respect of equitysettled awards and has applied ifrs 2 only  
to equitysettled awards granted after 7 november 2002 that had not vested before 1 april 2005 
2 critical accounting judgements and key sources of estimation uncertainty 
critical judgements in applying the group’s accounting policies 
in the process of applying the group’s accounting policies which are described in note 1 above management has made the 
following judgements that have the most significant effect on the amounts recognised in the financial statements 
revenue recognition 
revenue is recognised for certain project based contracts based on the stage of completion of the contract activity this is measured 
by comparing the proportion of costs incurred against the estimated wholelife contract costs except where this would not be 
representative of the stage of completion 
key sources of estimation uncertainty 
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have  
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are 
discussed below 
impairment of goodwill 
determining whether goodwill is impaired requires an estimation of the value in use of the cashgenerating units to which goodwill  
has been allocated the value in use calculation involves an estimation of the future cash flows of cashgenerating units and also the 
selection of appropriate discount rates to use in order to calculate present values the carrying value of goodwill is £2012m 2008 
£2033m at the balance sheet date see note 11 management do not consider that any reasonably foreseeable change in the key 
assumptions would result in an impairment  
retirement benefit obligations 
the calculation of defined benefit obligations is dependent on material key assumptions including discount rates mortality rates future 
returns on assets and future contribution rates the present value of defined benefit obligations at the balance sheet date is £1261m 
2008 £1294m see note 34  
the sensitivity of defined benefit obligations to changes in principal actuarial assumptions is shown below 
 
change in 
assumption 
change in 
liability 
£m 
discount rate 05 117
inflation 05 91
mortality rate 1 year 29
  mitie group plc  
annual report and accounts 2009 72 
notes to the consolidated financial statements continued 
 
3 business and geographical segments 
business segments 
the group manages its business on a service division basis these divisions are the basis on which the group reports its primary  
segmental information 
on 1 april 2009 we took a decision to rebrand our three operating divisions to facilities management previously facilities services 
property management previously property services and asset management previously engineering services further we elected to 
enhance our asset management proposition through its combination with our engineering maintenance business which had previously 
been a part of our facilities services business the financial data below reflects the performance of our three divisions in the 
organisational structures that applied during the period to 31 march 2009 but reflects the new branding a proforma analysis of the 
financial results of the business for the year ended 31 march 2009 is also set out below 
business segments – structure to 31 march 2009 
 2009 2008 
 
revenue 
£m  
operating   
profit before   
amortisation  
£m   
margin 
 
profit 
before tax 
£m 
revenue 
£m 
operating   
profit before   
amortisation  
£m   
margin 
 
profit 
before tax 
£m 
facilities management 9422 542 58 510 8204 489 60 446
property management 2979 179 60 171 2857 150 53 146
asset management 2818 84 30 78 3011 83 28 87
total 15219 805 53759 14072 722 51 679
 of acquisition related intangible assets 
business segments – structure from 1 april 2009 
 2009 
 
revenue 
£m  
operating   
profit before   
amortisation  
£m   
margin 
 
profit 
before tax 
£m 
facilities management 7818 472 60 443
property management 2979 179 60 171
asset management 4422 154 35 145
total 15219 805 53759
 of acquisition related intangible assets 
the revenue analysis above is net of inter segment sales which are not considered significant  mitie group plc 
annual report and accounts 2009
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73 
 
3 business and geographical segments continued 
other segmental analysis – structure to 31 march 2009 
 
facilities 
management 
2009 
£m 
property  
management 
2009  
£m 
asset 
management
2009 
£m 
total 
2009 
£m 
assets by segment   
goodwill and other intangible assets 1608 455 193 2256 
divisional assets  2340 1054 832 4226 
 3948 1509 1025 6482 
unallocated   514
i
total assets  5968 
liabilities by segment  
divisional liabilities 1469 748 663 2880 
unallocated   322
i
total liabilities  3202 
  
total net assets  2766 
capital movements   
tangible assets 135 22 14 171 
depreciation charge 108 36 18 162 
intangible assets 99 44 19 74 
intangible amortisation 18 02 – 20 
i
 relates to interdivisional funding  mitie group plc  
annual report and accounts 2009 74 
notes to the consolidated financial statements continued 
 
3 business and geographical segments continued 
 
facilities 
management 
2008 
£m 
property  
management  
2008  
£m 
asset 
management  
2008  
£m 
total  
2008  
£m  
assets by segment   
goodwill and other intangible assets 1527 501 174 2202  
divisional assets  2508 1072 950 4530  
 4035 1573 1124 6732  
unallocated     319
i
total assets   6413  
liabilities by segment   
divisional liabilities 1628 817 758 3203 
unallocated    760
i
total liabilities   3963 
   
total net assets   2450  
capital movements    
tangible assets 144 34 22 200  
depreciation charge 96 31 17 144  
intangible assets 138 447 53 638  
intangible amortisation 17 02 – 19  
 i
 relates to interdivisional funding 
geographical segments 
predominantly all of the group’s operations are located in the united kingdom and the channel islands the group considers all 
operations form part of that single reportable geographical segment 
  mitie group plc 
annual report and accounts 2009
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75 
 
4 operating profit 
operating profit has been arrived at after chargingcrediting 
 
2009 
£m 
2008 
£m 
depreciation of property plant and equipment 162 144
amortisation of intangible assets  20 19
gain on disposal of property plant and equipment 08 17
staff costs note 5 7636 6977
a detailed analysis of auditors’ remuneration is provided below 
 
2009 
£’000 
2008 
£’000 
fees payable to the company’s auditors for the audit of the company’s annual accounts  45 40
fees payable to the company’s auditors and their associates for the audit of the company’s subsidiaries 418 390
total audit fees 463 430
 
tax services 61 90
other services 30 99
total nonaudit fees 91 189
 
total 554 619
in addition to the amounts shown above the auditors received fees of £16000 2008 £14500 for the audit of the group pension 
schemes and £23000 2008 £13000 of fees were incurred in relation to acquisitions and have been included in acquisition costs 
5 staff costs 
number of people 2009 2008 
the average number of people employed during the financial year was 
facilities management 45898 43654
property management 2716 2761
asset management 1440 1544
total group 50054 47959
 
the number of people employed at 31 march was 
total group 51486 49505
 
 
2009 
£m 
2008 
£m 
their aggregate remuneration comprised 
wages and salaries 6955 6344
social security costs 573 539
other pension costs 84 79
sharebased payments note 33 24 15
 7636 6977
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  mitie group plc  
annual report and accounts 2009 76 
notes to the consolidated financial statements continued 
 
6 investment revenue 
 
2009  
£m 
2008 
£m 
interest on bank deposits 07 02
other interest receivable  01 10
 08 12
7 finance costs 
 
2009  
£m 
2008 
£m 
interest on bank overdrafts and loans 25 26
interest on obligations under finance leases 03 03
interest rate swaps charge note 22 06 –
unwinding of discount on deferred contingent consideration 06 08
total interest expense 40 37
less amounts included in the cost of qualifying assets 05 01
 35 36
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 49 2008 63 to expenditure on such assets 
8 tax  
 
2009  
£m 
2008 
£m 
current tax 214 194
deferred tax note 19 01 12
 215 206
corporation tax is calculated at 280 2008 300 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 
 
2009  
£m 
2008 
£m 
profit before tax 759 679
tax at the uk corporation tax rate of 280 2008 300 213 204
  
expenses not deductible for tax purposes 11 08
tax losses not recognisedpreviously unrecognised 05 01
profit on disposal of property – 01
prior year adjustments 04 06
tax charge for the year 215 206
in addition to the amount charged to the consolidated income statement deferred tax relating to retirement benefit costs and share
based payments amounting to £25m has been credited directly to equity 2008 £23m charge see note 19 the benefit of tax savings 
relating to retirement benefit costs and sharebased payments amounting to £nil 2008 £08m has been credited directly to equity  mitie group plc 
annual report and accounts 2009
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77 
 
9 dividends 
 
2009 
£m 
2008 
£m 
amounts recognised as distributions to equity holders in the year 
final dividend for the year ended 31 march 2008 of 32p 2007 27p per share 101 84
interim dividend for the year ended 31 march 2009 of 33p 2008 28p per share 107 89
 208 173
 
proposed final dividend for the year ended 31 march 2009 of 36p 2008 32p per share 116 101
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  
10 earnings per share 
basic and diluted earnings per share have been calculated in accordance with ias 33 ‘earnings per share’ 
the calculation of the basic and diluted eps is based on the following data 
number of shares 
2009 
million 
2008 
million 
weighted average number of ordinary shares for the purpose of basic eps 3183 3143
effect of dilutive potential ordinary shares share options 40 49
weighted average number of ordinary shares for the purpose of diluted eps 3223 3192
the weighted average number of ordinary shares in issue during the year excludes those held by the mitie group plc employee benefit 
trust see note 28 
11 goodwill 
 £m 
cost 
at 1 april 2007 1484
acquisition of subsidiaries 495
acquisition of minorities 54
at 1 april 2008 2033
changes in fair values of subsidiaries acquired in prior years 01
decrease in deferred contingent consideration for subsidiaries acquired in prior years 117
acquisition of minorities 97
at 31 march 2009 2012
 
accumulated impairment losses 
at 1 april 2007 –
at 1 april 2008 –
at 31 march 2009 –
 
carrying amount 
at 31 march 2009 2012
at 31 march 2008 2033
goodwill acquired in a business combination is allocated at acquisition to the cashgenerating units cgus that are expected to 
benefit from that business combination goodwill has been allocated to cgus in the following business segments which is how goodwill 
is monitored by the group internally  mitie group plc  
annual report and accounts 2009 78 
notes to the consolidated financial statements continued 
 
11 goodwill continued 
 
cost 
2009  
£m 
2008 
£m 
facilities management 1445 1402
property management 410 471
asset management 157 160
 2012 2033
the group tests goodwill at least annually for impairment 
the recoverable amounts of the cgus are determined from value in use calculations the key assumptions for the value in use 
calculations are those regarding the discount rates growth rates and expected changes to selling prices and direct costs during the 
period management estimates discount rates using pretax rates that reflect current market assessments of the time value of money 
and the risks specific to the cgus the growth rates are based on industry growth forecasts changes in selling prices and direct costs  
are based on past practices and expectations of future changes in the market 
the group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next five 
years and extrapolates cash flows for the following five years based on an estimated growth rate of 2 2008 2 per annum this rate 
does not exceed the average longterm growth rate for the relevant markets 
the rates used to discount the forecast cash flows from cgus are as follows 
 
2009  
 
2008 
 
facilities management 106 114
property management 106 114
asset management 106 114
no reasonably foreseeable change in the key assumptions would result in an impairment  
12 other intangible assets 
 
customer 
relationships  
£m 
software and 
development 
costs  
£m 
total 
£m 
cost   
at 1 april 2007 117 – 117
additions 23 66 89
at 1 april 2008 140 66 206
additions  – 95 95
at 31 march 2009 140 161 301
 
amortisation   
at 1 april 2007 18 – 18
charge for the year 19 – 19
at 1 april 2008 37 – 37
charge for the year 19 01 20
at 31 march 2009 56 01 57
 
carrying amount    
at 31 march 2009 84 160 244
at 31 march 2008 103 66 169
customer relationships are amortised over the remaining period of the contract which currently ranges between six and eight 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 2009
accounts
overview
business review
governance
79 
 
13 property plant and equipment   
 
freehold 
properties 
£m 
leasehold 
properties  
£m 
plant and 
vehicles 
£m 
total 
£m 
cost   
at 1 april 2007 62 61 624 747
additions – 12 188 200
acquisition of subsidiaries – – 10 10
disposals 14 – 117 131
at 1 april 2008 48 73 705 826
additions 03 02 166 171
disposals – – 217 217
at 31 march 2009 51 75 654 780
 
accumulated depreciation and impairment  
at 1 april 2007 07 11 314 332
charge for the year 01 07 136 144
disposals 02 – 100 102
at 1 april 2008 06 18 350 374
charge for the year 01 10 151 162
disposals – – 197 197
at 31 march 2009 07 28 304 339
 
carrying amount  
at 31 march 2009 44 47 350 441
at 31 march 2008 42 55 355 452
the net book value of plant and vehicles held under finance leases included above was £47m 2008 £38m 
14 inventories 
 
2009 
£m 
2008 
£m 
workinprogress 13 06
materials 12 18
 25 24
15 financial assets 
 
2009 
£m 
2008 
£m 
trade receivables note 16 1595 1709
amounts recoverable on contracts note 17  873 1082
other debtors 56 33
cash and cash equivalents note 18 285 426
 2809 3250
all financial assets are classified as loans and receivables  mitie group plc  
annual report and accounts 2009 80 
notes to the consolidated financial statements continued 
 
16 trade and other receivables 
 
2009  
£m 
2008 
£m 
amounts receivable for the sale of services 1660 1755
allowance for doubtful debt 65 46
 1595 1709
 
amounts recoverable on contracts note 17  873 1082
other debtors 56 33
prepayments and accrued income 334 320
 2858 3144
ageing of trade receivables 
 
2009  
£m 
2008 
£m 
neither impaired nor past due 1117 1272
not impaired and less than three months overdue 432 398
not impaired and more than three months overdue 75 44
impaired receivables 36 41
allowance for doubtful debt 65 46
 1595 1709
movement in the allowance for doubtful debt 
 
2009  
£m 
2008 
£m 
balance at the beginning of the year 46 35
impairment losses recognised 23 37
amounts written off as uncollectable 03 10
amounts recovered during the year 01 16
 65 46
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 33 days 2008 38 days 
the directors consider that the carrying amount of trade and other receivables approximates their fair value 
17 amounts recoverable on contracts  
contracts in progress at the balance sheet date 
2009  
£m 
2008 
£m 
amounts due from contract customers included in trade and other receivables 873 1082
amounts due to contract customers included in trade and other payables 11 17
 862 1065
 
contract costs incurred plus recognised profits less recognised losses to date 9300 9807
less progress billings 8438 8742
 862 1065
at 31 march 2009 retentions held by customers for contract work amounted to £185m 2008 £191m   mitie group plc 
annual report and accounts 2009
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81 
 
18 cash and cash equivalents 
 
2009 
£m 
2008 
£m 
cash and cash equivalents 285 426
 285 426
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with an original maturity of three months  
or less the carrying amount of the assets approximates their fair value 
included in cash and cash equivalents are deposits totalling £73m 2008 £124m 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 
19 deferred tax  
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and 
prior reporting period 
 
accelerated 
tax 
depreciation  
£m 
retirement 
benefit 
obligations 
£m 
business 
combinations
£m 
sharebased 
payments 
£m 
shortterm 
timing 
differences  
£m 
tax losses 
£m 
total 
£m 
at 1 april 2007 09 01 33 20 41 02 38
chargecredit to income 06 07 10 03 12 – 12
charge to equity – 20 – 03 – – 23
chargecredit to goodwill – – 07 – 08 – 01
at 1 april 2008 03 28 30 20 37 02 04
creditcharge to income 01 13 05 02 02 10 01
creditcharge to equity – 33 – 08 – – 25
at 31 march 2009 04 08 25 10 35 12 28
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 
 
2009 
£m 
2008 
£m 
deferred tax assets 73 66
deferred tax liabilities 45 62
net deferred tax asset 28 04
the group has unutilised income tax losses of £56m 2008 £35m that are available for offset against future profits in addition the group 
has £05m 2008 £05m of capital losses deferred tax assets have not been recognised in respect of £17m 2008 £31m of these losses 
as their recoverability is uncertain 
20 financial liabilities 
 
2009 
£m 
2008 
£m 
trade creditors note 21 1565 1736
other creditors 81 66
accruals and deferred income 512 552
financing liabilities note 22 182 582
 2340 2936
all financial liabilities are held at amortised cost with the exception of interest rate swaps which are classified as fair value through profit 
and loss see note 22  mitie group plc  
annual report and accounts 2009 82 
notes to the consolidated financial statements continued 
 
21 trade and other payables 
 
2009  
£m 
2008 
£m 
payments received on account 16 11
trade creditors 1565 1736
other taxes and social security 428 531
other creditors 81 66
accruals and deferred income 512 552
 2602 2896
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 34 days 2008 40 days  
the directors consider that the carrying amount of trade and other payables approximates their fair value 
22 financing liabilities 
 
2009  
£m 
2008 
£m 
bank loans 100 500
secured loan notes 19 19
unsecured loan notes 16 28
interest rate swaps 06 –
obligations under finance leases note 24 41 35
 182 582
 
included in current liabilities 137 545
included in noncurrent liabilities 45 37
 182 582
all borrowings are in sterling the directors estimate that the carrying amount of the group’s borrowings approximates their fair value 
during the year £12m of loan notes in respect of mitie pest control limited formerly eagle pest control services uk limited  
were redeemed 
included in noncurrent liabilities are £29m 2008 £21m of obligations under finance leases see note 24 and £16m 2008 £16m  
of unsecured loan notes which are repayable between 2009 and 2013 
during the year the group entered into a series of callable swaps which represented good value at the time to convert from a 
variable rate to a fixed rate of interest as a result of the dramatic fall in interest rates these swaps had a negative mark to market value 
of £06m at 31 march 2009 which will reverse as the mark to market valuation tends towards zero as the swaps approach maturity or 
cancellation the contracts in place have a weighted average strike price of 44 and a maximum maturity of 2011 
 
2009  
 
2008 
 
the weighted average interest rates paid during the year on the overdrafts and loans outstanding  
were as follows  
overdrafts 44 64
bank loans 49 63
loan notes 30 49
at 31 march 2009 the group had available £220m 2008 £180m of undrawn committed borrowing facilities in respect of which all 
conditions precedent had been met the facilities have an expiry date of january 2012 the loans carry interest rates which are currently 
fixed at 12 and are currently determined at 04 over libor the secured loan notes are backed by a bank guarantee details of the 
group’s contingent liabilities are provided in note 31  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
83 
 
23 financial risk management objectives 
the group’s treasury function monitors and manages the financial risks relating to the operations of the group these risks include credit 
risk foreign currency risk liquidity risk and market risk 
credit risk  
the group’s credit risk to all of its banks and financial counterparties is monitored on an ongoing basis and formally reported quarterly 
the value of business placed with financial institutions is reviewed on a daily basis 
the group’s principal financial assets are bank balances and cash and trade and other receivables 
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the balance sheet are net of 
allowances for doubtful receivables an allowance for impairment is made where there is an identified loss event which based on 
previous experience is evidence of a reduction in the recoverability of the cash flows in addition where appropriate certain debts are 
subject to credit insurance 
the group has no significant concentration of credit risk with exposure spread over a large number of counterparties and customers 
foreign currency risk 
the group has very limited trading transactions in foreign currency and currently there is no hedging of these exposures any material 
transactions would be appropriately hedged 
liquidity risk 
the group monitors its risk to a shortage of funds using a cash flow projection model which considers the maturity of the group’s assets 
and liabilities and the projected cash flows from operations bank facilities which allow for appropriate headroom in the group’s daily 
cash movements are then arranged 
the tables below summarise the maturity profile of the group’s financial liabilities 
at 31 march 2009 
within  
one year  
£m 
in the second 
to fifth years 
£m 
total 
£m 
trade creditors 1565 – 1565
other creditors 81 – 81
accruals and deferred income 512 – 512
financing liabilities 137 45 182
financial liabilities 2295 45 2340
 
at 31 march 2008 
within  
one year  
£m 
in the second 
to fifth years 
£m 
total 
£m 
trade creditors 1736 – 1736
other creditors 66 – 66
accruals and deferred income 552 – 552
financing liabilities 545 37 582
financial liabilities 2899 37 2936
financial assets at 31 march 2009 and 31 march 2008 have a maturity of less than one year 
market risk  
the group’s activities expose it to the financial risks of interest rates the group’s treasury function reviews its risk management strategy 
on a regular basis and will appropriately enter into derivative financial instruments in order to manage interest rate risk group policy is 
not to trade in financial instruments 
if interest rates had been 05 higherlower and all other variables were held constant the group’s profit after tax for the year ended  
31 march 2009 and reserves would decreaseincrease by £01m 2008 £01m  
capital risk management  
the group manages its capital to ensure that entities in the group will be able to continue as going concerns while maximising the 
return to stakeholders through the optimisation of debt and equity the capital structure of the group consists of net fundsdebt per 
note 25 and equity per note 28  
the group’s capital structure is reviewed regularly the group is not subject to externally imposed regulatory capital requirements with 
the exception of those applicable to the group’s captive insurance subsidiary  mitie group plc  
annual report and accounts 2009 84 
notes to the consolidated financial statements continued 
 
24 obligations under finance leases 
 minimum lease payments  present value of lease payments 
 
2009 
£m 
2008  
£m  
2009  
£m 
2008 
£m 
amounts payable under finance leases    
within one year 15 14  14 14
in the second to fifth years inclusive 33 25  27 21
 48 39  41 35
less future finance charges 07 04  – –
present value of lease obligations 41 35  41 35
less amount due for settlement within twelve months  12 14  12 14
amount due for settlement after twelve months 29 21  29 21
the average remaining lease term is 33 months 2008 23 months for the year ended 31 march 2009 the average effective borrowing 
rate was 58 2008 58 interest rates are fixed at the contract date all leases are on a fixed repayment basis and no arrangements 
have been entered into for contingent rental payments all lease obligations are denominated in sterling 
the fair value of the group’s lease obligations approximates their carrying amount the group’s obligations under finance leases are 
secured by the lessors’ rights over the leased assets 
25 analysis of net fundsdebt  
 
2009  
£m 
2008 
£m 
cash and cash equivalents note 18 285 426
bank loans 100 500
net cashdebt before loan notes and obligations under finance leases 185 74
loan notes note 22 35 47
obligations under finance leases note 24 41 35
net fundsdebt 109 156
  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
85 
 
26 provisions 
 
deferred 
contingent  
consideration 
£m 
insurance 
reserve 
£m 
total 
£m 
at 1 april 2008 209 83 292
unwinding of discount on deferred contingent consideration 06 – 06
utilised during the year 12 33 45
other movements in the year 93 44 49
at 31 march 2009 110 94 204
 
included in current liabilities  32
included in noncurrent liabilities  172
  204
 
 
deferred 
contingent  
consideration  
£m 
insurance 
reserve 
£m 
total 
£m 
at 1 april 2007 03 86 89
unwinding of discount on deferred contingent consideration 08 – 08
utilised during the year 02 32 34
other movements in the year 200 29 229
at 31 march 2008 209 83 292
 
included in current liabilities  20
included in noncurrent liabilities  272
  292
during the year £05m of deferred contingent consideration in respect of the purchase last year of part of the minority shareholdings  
in mitie technology  infrastructure limited was settled by the issue of new mitie shares giving rise to a merger reserve of £05m 
furthermore £07m of deferred consideration in respect of the purchase last year of catering partnership holdings limited was settled  
in cash  
provision is made for deferred contingent consideration which may become payable from 2009 – 2013 subject to profit targets being 
attained at the best estimate of the directors a total of £24m was provided for deferred contingent consideration to the minority 
shareholders of mitie interiors limited mitie property services eastern limited and mitie technology  infrastructure limited 
in addition £117m of deferred contingent consideration has been released through goodwill  
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 2009 86 
notes to the consolidated financial statements continued 
 
27 share capital 
ordinary shares of 25p 
number  
million £m 
authorised   
at 31 march 2008 and 31 march 2009 5000 125
 
2009  
allotted and fully paid  
at beginning of year 3168 79
issued for acquisitions 48 01
issued under share option schemes 14 01
at end of year 3230 81
 
2008  
allotted and fully paid  
at beginning of year 3124 78
issued for acquisitions 24 01
issued under share option schemes 20 –
at end of year 3168 79
during the year 48m 2008 24m ordinary shares of 25p were allotted in respect of acquiring minority interests at a midmarket price of 
2188p 2008 2372p giving rise to share premium of £36m 2008 £nil and a merger reserve of £68m 2008 £55m  
during the year 14m 2008 20m ordinary shares of 25p were allotted in respect of share option schemes at a price between 95p and 
220p 2008 58p and 220p giving rise to share premium of £18m 2008 £24m  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
87 
 
28 reserves 
 
calledup 
share capital  
£m 
 share 
premium 
account 
£m 
merger 
reserve 
£m 
 share
based 
payments 
reserve 
£m 
 own shares 
reserve 
£m  
other 
reserves 
£m 
retained 
earnings 
£m 
total 
£m 
balance at 1 april 2008 79 190 604 29 20 02 1437 2321
shares issued and net premium 
arising in respect of acquisitions 01 36 68 – – – – 105
shares issued and net premium in 
connection with exercise of share 
options 01 18––– – – 19
profit for the year attributable to 
equity holders of the parent  – –– –– – 531 531
dividends paid – – – – – – 208 208
purchase of own shares by 
employee benefit trust – – – – 32 – – 32
sharebased payments – – – 15 – – 09 24
tax charge on items taken directly 
to equity – –– –– – 08 08
net actuarial loss on defined 
benefit pension schemes – – – – – – 120 120
tax credit on actuarial gain taken 
directly to equity – –– –– – 33 33
net expense on defined benefit 
pension schemes recognised 
directly in equity in the year – –– –– – 87 87
balance at 31 march 2009 81 244 672 44 52 02 1674 2665
the own shares reserve represents the cost of 22m shares in mitie group plc purchased in the market and held by the mitie group plc 
employee benefit trust to satisfy options under the group’s share option schemes see note 33  mitie group plc  
annual report and accounts 2009 88 
notes to the consolidated financial statements continued 
 
28 reserves continued 
 
calledup 
share capital  
£m 
 share 
premium 
account 
£m 
merger 
reserve 
£m 
 share
based 
payments 
reserve 
£m 
 own shares 
reserve 
£m 
other  
reserves  
£m 
retained 
earnings 
£m 
total 
£m 
balance at 1 april 2007 78 166 549 19 – 03 1102 1917
shares issued and net premium 
arising in respect of acquisitions 01 – 55 – – – – 56
shares issued and net premium in 
connection with exercise of share 
options – 24–––01 –23
profit for the year attributable to 
equity holders of the parent  – – – – – – 450 450
dividends paid – – – – – – 173 173
purchase of own shares by 
employee benefit trust – – – – 20 – – 20
sharebased payments – – – 10 – – 05 15
tax credit on items taken directly to 
equity – –– ––– 05 05
net actuarial gain on defined 
benefit pension schemes – –– ––– 68 68
tax charge on actuarial gain taken 
directly to equity – –– ––– 20 20
net income on defined benefit 
pension schemes recognised 
directly in equity in the year – –– ––– 48 48
balance at 31 march 2008 79 190 604 29 20 02 1437 2321
the own shares reserve represents the cost of 08m shares in mitie group plc purchased in the market and held by the mitie group plc 
employee benefit trust to satisfy options under the group’s share option schemes see note 33 
29 acquisition of subsidiaries 
purchase of minority interests 
 
mitie 
interiors ltd 
£m 
mitie 
services 
retail ltd 
£m 
mitie 
catering 
services ltd 
£m 
mitie  
property 
services 
eastern ltd  
£m 
other 
companies 
£m 
total 
£m 
minority interests 14 07 06 04 05 36
goodwill 42261206 11 97
total purchase consideration 56 33 18 10 16 133
 
shares issued – mitie group plc 32 30 15 09 14 100
deferred contingent consideration 22 – – 01 01 24
cash consideration  02 03 03 – 01 09
total purchase consideration 56 33 18 10 16 133
  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
89 
 
30 notes to the cash flow statement 
reconciliation of operating profit to net cash from operating activities 
2009 
£m 
2008 
£m 
operating profit  786 703
adjustments for 
sharebased payment expense 24 15
pension charge 15 21
pension contributions 55 47
depreciation of property plant and equipment 162 144
amortisation of intangible assets 20 19
gain on disposal of property plant and equipment 08 17
operating cash flows before movements in working capital 944 838
 
increasedecrease in inventories 01 101
decreaseincrease in receivables 286 369
decreaseincrease in payables 296 215
increasedecrease in provisions 11 03
cash generated by operations 944 782
 
income taxes paid 186 176
interest paid 22 25
net cash from operating activities 736 581
additions to fixtures and equipment during the year amounting to £21m 2008 £22m were financed by new finance leases  
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank 
and other shortterm highly liquid investments with a maturity of three months or less 
31 contingent liabilities  
the company is party with other group companies to cross guarantees of each other’s bank loans commitments and overdrafts of 
£265m 2008 £270m 
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 £110m 2008 £209m per note 26 the actual amounts payable may vary up to a maximum of £310m 2008 £312m 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 £206m 2008 £92m in the ordinary course of business these are not expected to result in any 
material financial loss  mitie group plc  
annual report and accounts 2009 90 
notes to the consolidated financial statements continued 
 
32 operating lease arrangements 
the group as lessee 
 
2009  
£m 
2008 
£m 
minimum lease payments under operating leases recognised in income for the year 47 52
at the balance sheet date the group had total outstanding aggregate commitments for future minimum lease payments under non
cancellable operating leases which fall due as follows 
 
2009  
£m 
2008 
£m 
within one year 36 15
in the second to fifth years inclusive 82 58
after five years 37 76
 155 149
33 sharebased payments 
equitysettled share option schemes 
the company has four share option schemes 
the mitie group plc long term incentive plan ltip 
the ltip was introduced in 2007 the awards of shares or rights to acquire shares the awards are offered to a small number  
of key senior management where offered as options the exercise price is nil the vesting period is three years if the awards remain 
unexercised after a period of four years from the date of grant the awards expire the awards may be forfeited if the employee  
leaves the group before the awards can be exercised a performance condition must be satisfied the number of awards that  
vest is determined by a sliding scale above the retail price index per annum compound growth in earnings  per share over a  
threeyear period 
the mitie group plc 1991 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day period 
immediately preceding the date of grant the vesting period is three years if the options remain unexercised after a period of ten years 
from the date of grant the options expire options may be forfeited if the employee leaves the group no options have been granted 
under this scheme since august 2001 
the mitie group plc 2001 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day period 
immediately preceding the date of grant the vesting period is three years if the options remain unexercised after a period of ten years 
from the date of grant the options expire options may be forfeited if the employee leaves the group before options can be exercised 
the performance condition that must be satisfied is that the percentage growth in the earnings per share over a threeyear period must 
be equal or greater than 100 per annum compound in respect of awards prior to july 2007 and 40 above the retail price per 
annum thereafter  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
91 
 
33 sharebased payments continued 
the mitie group plc 2001 savings related share option scheme 
the savings related share option scheme is open to all employees the exercise price is not less than 800 of the market value of  
the shares on the day preceding the date on which invitations to participate in the scheme are issued for options granted prior to 
september 2008 the vesting period is five years for options granted in september 2008 and thereafter the vesting period is three years 
if the options remain unexercised after a period of six months from the date of vesting the options expire options may be forfeited if the 
employee leaves the group 
details of the share options outstanding during the year are as follows 
 2009  2008 
 
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  138 163  129 143
granted during the year 67 155  45 194
forfeited during the year 18 176  16 148
exercised during the year 14 129  20 116
outstanding at the end of the year
i
 173 162  138 163
 
exercisable at the end of the year 22 144  17 132
i  included within this balance are 06m 2008 08m 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 
 
2009 
£m 
2008 
£m 
long term incentive plan share options 11 04
2001 executive share options 06 05
2001 savings related share options 07 06
 24 15
the weighted average share price at the date of exercise for share options exercised during the year was 201p 2008 264p the options 
outstanding at 31 march 2009 had exercise prices other than nil in the case of the ltip ranging from 95p – 254p 2008 58p – 254p and 
a weighted average remaining contractual life of 47 years 2008 51 years in the year ended 31 march 2009 options were granted in 
june july and september 2008 in respect of the ltip executive and savings related share option schemes the aggregate of the 
estimated fair values of the options granted on those dates is £40m in the year ended 31 march 2008 options were granted in july and 
august 2007 in respect of the ltip executive and savings related share option schemes the aggregate of the estimated fair values of 
the options granted on those dates is £30m 
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are as follows 
 2009 2008 
share price p 133–230 133–230
exercise price p 0–254 0–254
expected volatility  27–30 27–30
expected life years 3–6 4–6
riskfree rate  417–525 417–525
expected dividends  143–315 143–229
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 2009 92 
notes to the consolidated financial statements continued 
 
34 retirement benefit schemes  
defined contribution schemes 
the group operates a number of defined contribution retirement benefit schemes for qualifying employees the assets of the schemes 
are held separately from those of the group in funds controlled by the scheme providers the group paid employer contributions of 
£29m 2008 £32m during the year 
defined benefit schemes 
group defined benefit scheme 
the group operates a defined benefit pension scheme called the mitie group plc pension scheme where mitie group plc is the 
principal employer following the merger of the mitie group plc passport pension scheme with the mitie group plc pension scheme  
in may 2008  
the assets of the scheme are held separately from the group contributions to the scheme are charged to the income statement  
so as to spread the cost of pensions over the employees’ working lives with the group  
under the scheme the employees are entitled to retirement benefits varying between 0 and 66  of final salary on attainment  
of a retirement age of 65 no other postretirement benefits are provided the schemes are funded schemes 
the most recent actuarial valuation of the group scheme’s assets and the present value of their defined benefit obligations was carried 
out at 1 april 2008 by mr chris bamford fellow of the institute of actuaries 
other defined benefit schemes 
grouped together under ‘other schemes’ are one 2008 three scheme in which the group is a participating employer and a  
number of schemes to which the group makes contributions under admitted body status to our customers’ defined benefit schemes  
in respect of certain tupe employees these valuations are updated by the actuaries at each balance sheet date the present values  
of the defined benefit obligations the related current service cost and past service cost were measured using the projected unit  
credit method 
for the admitted body schemes principally the west midlands pension fund which are all part of the local government pension 
scheme the group will only participate for a finite period up to the end of the contracts the group is required to pay regular 
contributions as decided by the relevant scheme actuaries and detailed in the schemes’ schedule of contributions in a number of 
cases contributions payable by the employer are capped and any excess recovered from the body that the employees transferred 
from in addition in certain cases at the end of the contract the group will be required to pay any deficit as determined by the 
scheme actuary that is remaining for its notional section of the scheme 
 group schemes  other schemes 
 
2009
 
2008 
  
2009 
 
2008
 
key assumptions used for ias 19 valuation    
discount rate 660 630  660 630
expected return on scheme assets    
 equity instruments 800 800  800 800
 debt instruments 500 500  500 500
 property 750 750  750 750
 other assets 350 525  350 525
expected rate of salary increases 400 430  350 380
inflation 300 330  300 330
future pension increases  300 330  300 330
the overall expected return on assets is calculated as the weighted average of the expected return of each asset class the expected 
return on equities is the sum of dividend growth and capital growth net of investment expenses the return on gilts and bonds is the 
current market yield on longterm bonds the expected return on property has been set equal to that expected on equities less a 
margin the expected return on other assets is the rate earned by the scheme on cash and alternate assets 
the sensitivity of defined benefit obligations to changes in principal actuarial assumptions is shown in note 2 mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
93 
 
34 retirement benefit schemes continued 
amounts recognised in administrative expenses in respect of these defined benefit schemes are as follows 
 2009  2008 
 
group scheme
£m 
other schemes
£m 
total
£m  
group schemes 
£m 
other schemes
£m 
total
£m 
current service cost  22 13 35 32 20 52
interest cost  50 32 82 45 33 78
expected return on scheme assets  63 39 102 62 47 109
 09 06 15 15 06 21
amounts recognised in the consolidated statement of recognised income and expense are as follows 
 2009 2008 
 
group scheme
£m 
other schemes
£m 
total
£m 
group schemes 
£m 
other schemes
£m 
total
£m 
actual return on scheme assets 149 91 240 18 13 05
expected return on scheme assets  63 39 102 62 47 109
experience adjustments arising on plan 
liabilities  113 109 222 120 52 172
 99 21 120 76 08 68
the cumulative amount of actuarial loss recognised since 1 april 2004 in the consolidated statement of recognised income and 
expense is £105m 2008 £15m gain  
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 
 2009 2008 
 
group scheme
£m 
other schemes
£m 
total
£m 
group schemes 
£m 
other schemes
£m 
total
£m 
fair value of scheme assets  773 458 1231 886 523 1409
present value of defined benefit obligations  743 518 1261 787 507 1294
surplusdeficit in scheme  30 60 30 99 16 115
contract adjustment –26 26 – 40 40
net pension assetliability 30 34 04 99 24 75
  mitie group plc  
annual report and accounts 2009 94 
notes to the consolidated financial statements continued 
 
34 retirement benefit schemes continued  
movements in the present value of defined benefit obligations were as follows 
 2009 2008 
 
group scheme
£m 
other schemes
£m 
total
£m 
group schemes 
£m 
other schemes 
£m 
total
£m 
at 1 april 787 507 1294 827 606 1433
service cost  22 13 35 32 20 52
interest cost  50 32 82 45 33 78
contributions from scheme members  18 05 23 27 05 32
actuarial gains and losses  113 42 155 120 82 202
benefits paid  21 14 35 24 10 34
acquisition of subsidiaries ––– – 45 45
contract transfers –17 17 – 110 110
at 31 march 743 518 1261 787 507 1294
movements in the fair value of scheme assets were as follows 
 2009 2008 
 
group scheme
£m 
other schemes
£m 
total
£m 
group schemes 
£m 
other schemes 
£m 
total
£m 
at 1 april 886 523 1409 832 614 1446
expected return on scheme assets  63 39 102 62 47 109
actuarial gains and losses 212 130 342 44 60 104
contributions from the sponsoring companies 39 16 55 33 14 47
contributions from scheme members  18 05 23 27 05 32
benefits paid  21 14 35 24 10 34
acquisition of subsidiaries ––– – 21 21
contract transfers –19 19 – 108 108
at 31 march  773 458 1231 886 523 1409
the analysis of the scheme assets at the balance sheet date was as follows 
 2009 2008 
 
group scheme
£m 
other schemes
£m 
total
£m 
group schemes 
£m 
other schemes 
£m 
total
£m 
equity instruments 326 298 624 443 372 815
debt instruments 173 85 258 178 81 259
property 128 45 173 149 43 192
other assets 146 30 176 116 27 143
at 31 march  773 458 1231 886 523 1409
the pension schemes have invested in property occupied by the group with a fair value of £32m 2008 £32m generating rental of 
£03m 2008 £03m at 31 march 2009 the pension schemes held 17000 of mitie group plc shares 2008 53000 the pension schemes 
have not invested in any other assets used by the group transactions between the group and the pension schemes are conducted  
at arm’s length 
the mortality for the group schemes is based upon up to date tables which project mortality improvements in the future for a male 
aged 650 years the expected life is 873 years 2008 851 years and for a female aged 650 years the expected life is 897 years  
2008 880 years mortality for the other schemes is that used by the relevant scheme actuary  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
95 
 
34 retirement benefit schemes continued  
the history of experience adjustments is as follows 
 group schemes 
 
2009
£m 
2008
£m 
2007 
£m 
2006
£m 
2005
£m 
fair value of scheme assets 773 886 832 740 490
present value of defined benefit obligations 743 787 827 722 566
surplusdeficit in the scheme 30 99 05 18 76
 
experience adjustments on scheme liabilities  113 120 32 82 37
percentage of scheme liabilities  153 152 39 114 70
 
experience adjustments on scheme assets 212 41 05 93 23
percentage of scheme assets 274 48 10 126 50
 
 other schemes 
 
2009
£m 
2008
£m 
2007 
£m 
2006
£m 
2005
£m 
fair value of scheme assets 458 523 614 – –
present value of defined benefit obligations 492 547 614 – – 
deficit in the scheme 34 24 – – –
 
experience adjustments on scheme liabilities 109 52 10 – –
percentage of scheme liabilities  222 100 16 – –
 
experience adjustments on scheme assets 130 60 – – –
percentage of scheme assets 284 115 – – –
the estimated contributions expected to be paid to the group schemes during the current financial year are £50m 2008 £30m and 
to other schemes £16m 2008 £14m as at 31 march 2009 contributions of £14m 2008 £07m due in respect of the current reporting 
period had not been paid over to the schemes 
35 related party transactions  
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are not 
disclosed in this note 
no material contract or arrangement has been entered into during the year nor existed at the end of the year in which a director had 
a material interest no balances were outstanding at the year end  
amounts paid to key management personnel are given in the audited section of the directors’ remuneration report mitie’s long term 
incentive plan ltip was also offered to a small group of key senior management  mitie group plc  
annual report and accounts 2009 96 
notes to the consolidated financial statements continued 
 
36 principal subsidiaries  
the companies set out below are those which were part of the group at 31 march 2009 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 shareholdings 
in companies marked  are held directly by mitie group plc  
division activities principal subsidiaries 
at 31 march 
2009 
 voting 
rights owned 
at 31 march 
2009
 ownership 
interest 
at 31 march 
2009
 nominal 
value owned 
facilities management our facilities management division 
delivers facilities consultancy 
management and service delivery  
to our clients within the division  
during the year ended 31 march  
2009 we recognised five principal 
business lines which were facilities 
management which comprises our 
managed services business services 
client services and pfi businesses  
cleaning and environmental  
which encompasses our cleaning 
landscaping and pest control 
businesses security engineering 
maintenance and catering   
mitie facilities services ltd 
mitie cleaning  support 
services ltd 
mitie services retail ltd 
mitie transport services ltd 
mitie security holdings ltd 
1000  
 
959 
833 
861 
934 
1000
959
833
861
934
1000
959
833
861
999
property management our property management division 
provides property maintenance  
and project management services 
including a complete range of repair 
refurbishment redecoration and  
fitout expertise for both the private  
and public sector with a focus on  
social housing 
mitie property services uk ltd 
mitie interiors ltd 
robert prettie  co ltd 
792 
1000 
1000 
792
1000
1000
792
1000
1000
asset  
management 
our asset management division 
provides the integration management 
and maintenance of technical assets 
to meet the demands of the low
carbon economy including energy 
design generation and certification 
infrastructure projects building services 
and mechanical and electrical 
engineering on 1 april 2009 our 
engineering maintenance business was 
combined with asset management to 
further enhance our market proposition 
in this area 
mitie engineering holdings ltd 1000 1000
 
1000
 
the companies listed above represent the principal operating subsidiary companies of the group a full list of subsidiary companies will 
be annexed to the next annual return  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
97 
independent auditors’ report to the members of mitie group plc  
 
we have audited the parent company financial statements  
of mitie group plc for the year ended 31 march 2009 which 
comprise the company balance sheet and the related notes  
37 to 50 these parent company financial statements have  
been prepared under the accounting policies set out therein 
we have reported separately on the group financial statements  
of mitie group plc for the year ended 31 march 2009 and on the 
information in the directors remuneration report that is described 
as having been audited 
this report is made solely to the company’s members as a body  
in accordance with section 235 of the companies act 1985  
our audit work has been undertaken so that we might state  
to the company’s members those matters we are required to  
state to them in an auditors’ report and for no other purpose  
to the fullest extent permitted by law we do not accept or  
assume responsibility to anyone other than the company and the 
company’s members as a body for our audit work for this report 
or for the opinions we have formed 
respective responsibilities of directors and auditors 
the directors responsibilities for preparing the annual report  
and the parent company financial statements in accordance  
with applicable law and united kingdom accounting standards 
united kingdom generally accepted accounting practice  
are set out in the statement of directors responsibilities 
our responsibility is to audit the parent company financial 
statements in accordance with relevant legal and regulatory 
requirements and international standards on auditing  
uk and ireland 
we report to you our opinion as to whether the parent company 
financial statements give a true and fair view and whether the 
parent company financial statements have been properly 
prepared in accordance with the companies act 1985  
we also report to you whether in our opinion the directors report  
is consistent with the parent company financial statements  
the information given in the directors report includes that specific 
information presented in the chairman’s statement chief 
executive’s review operating review financial review and 
corporate governance statement that is cross referred from  
the business review section of the directors report 
in addition we report to you if in our opinion the company  
has not kept proper accounting records if we have not received 
all the information and explanations we require for our audit  
or if information specified by law regarding directors remuneration 
and other transactions is not disclosed
we read the other information contained in the annual report  
as described in the contents section and consider whether it is 
consistent with the audited parent company financial statements 
we consider the implications for our report if we become aware  
of any apparent misstatements or material inconsistencies with the 
parent company financial statements our responsibilities do not 
extend to any further information outside the annual report 
basis of audit opinion 
we conducted our audit in accordance with international 
standards on auditing uk and ireland issued by the auditing 
practices board an audit includes examination on a test basis  
of evidence relevant to the amounts and disclosures in the parent 
company financial statements it also includes an assessment  
of the significant estimates and judgments made by the directors 
in the preparation of the parent company financial statements 
and of whether the accounting policies are appropriate to  
the companys circumstances consistently applied and 
adequately disclosed 
we planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary  
in order to provide us with sufficient evidence to give reasonable 
assurance that the parent company financial statements are free 
from material misstatement whether caused by fraud or other 
irregularity or error in forming our opinion we also evaluated the 
overall adequacy of the presentation of information in the parent 
company financial statements 
opinion 
in our opinion 
– the parent company financial statements give a true and fair 
view in accordance with united kingdom generally accepted 
accounting practice of the state of the companys affairs as at 
31 march 2009 
– the parent company financial statements have been properly 
prepared in accordance with the companies act 1985 and 
– the information given in the directors report is consistent with the 
parent company financial statements 
 
deloitte llp 
chartered accountants and registered auditors  
bristol united kingdom 
18 may 2009 mitie group plc  
annual report and accounts 2009 98 
company balance sheet 
as at 31 march 2009 
  
 notes 
2009 
£m 
2008
£m 
fixed assets   
tangible assets 40 171 84
investments in subsidiary undertakings 41 4714 4677
total fixed assets  4885 4761
 
current assets   
debtors 42 331 334
total current assets  331 334
   
total assets  5216 5095
 
creditors amounts falling due within one year 43 1123 1331
provisions 45 24 11
total current liabilities  1147 1342
   
net current liabilities  816 1008
   
total assets less current liabilities  4069 3753
 
creditors amounts falling due after more than one year 44 16 16
provisions 45 86 189
total liabilities  1249 1547
   
net assets  3967 3548
 
capital and reserves   
share capital 46 81 79
share premium account 47 244 190
merger reserve 47 672 604
sharebased payments reserve 47 44 32
own shares reserve 47 52 –
other reserves 47 03 03
profit and loss account 47 2975 2640
equity shareholders’ funds   3967 3548
the financial statements were approved by the board of directors and authorised for issue on 18 may 2009 they were signed on its 
behalf by 
 
 
ruby mcgregorsmith   suzanne baxter 
chief executive    group finance director  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
99 
notes to the company financial statements 
for the year ended 31 march 2009 
37 significant accounting policies 
basis of accounting 
the separate financial statements of the company are presented as required by company law they have been prepared under the 
historical cost convention and in accordance with applicable united kingdom accounting standards and law  
the principal accounting policies are summarised below they have been applied consistently throughout the year and the  
preceding year 
investments 
fixed asset investments in subsidiaries are shown at cost less any provision for impairment  
tangible fixed assets 
tangible fixed assets are stated at cost less accumulated depreciation and any impairment in value depreciation is charged so as to 
write off the cost of the assets over their estimated useful lives and is calculated on a straightline basis as follows 
plant and vehicles   – 3–10 years 
software and development costs – 5–10 years 
the carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying 
value may not be recoverable if any such indication exists and where the carrying values exceed the estimated recoverable amount 
the assets or cashgenerating units are written down to their recoverable amount the recoverable amount of tangible fixed assets is the 
greater of net selling price and value in use in assessing value in use the estimated future cash flows are discounted to their present 
value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset 
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets that necessarily 
take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets until such time as the 
assets are substantially ready for their intended use or sale all other borrowing costs are recognised in profit or loss in the period in which 
they are incurred 
provisions 
provisions are recognised when the company has a present obligation as a result of a past event and it is probable that an outflow of 
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount  
of the obligation where the company expects some or all of a provision to be reimbursed for example under an insurance contract 
the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain the expense relating to any 
provision is charged to the profit and loss account net of any reimbursement if the effect of the time value of money is material 
provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of 
the time value of money and where appropriate the risks specific to the liability where discounting is used the increase in the provision 
due to the passage of time is recognised as a borrowing cost  
taxation 
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or 
substantively enacted at the balance sheet date 
deferred tax is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax or a right to 
pay less tax at a future date at rates expected to apply when they crystallise based on current tax rates and law timing differences 
arise from the inclusion of items of income and expenditure in tax computations in periods different from those in which they are 
included in the financial statements deferred tax is not provided on timing differences arising from the revaluation of fixed assets where 
there is no commitment to sell the asset or on unremitted earnings of subsidiaries and associates where there is no commitment to remit 
these earnings deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered 
deferred tax assets and liabilities are not discounted  mitie group plc  
annual report and accounts 2009 100 
notes to the company financial statements continued 
 
37 significant accounting policies continued 
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 fair value 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs 
financial assets and financial liabilities are recognised on the company’s balance sheet when the company becomes a party to the 
contractual provisions of the instrument 
sharebased payments 
the company operates a number of executive and employee share option schemes for all grants of share options and awards  
the fair value as at the date of grant is calculated using the blackscholes model and the corresponding expense is recognised on a 
straightline basis over the vesting period options over the company’s shares awarded to employees of the company’s subsidiaries  
are accounted for as a capital contribution within the carrying value of investments in subsidiary undertakings 
pensions  
pension costs represent amounts paid to one of the group’s pension schemes for the purposes of frs 17 ‘retirement benefits’ the 
company has been unable to identify its share of the underlying assets and liabilities of the group defined benefit pension scheme  
on a consistent and reasonable basis therefore the company is accounting for contributions to the scheme as if it were a defined 
contribution scheme note 34 to the consolidated financial statements sets out the details of the ias 19 ‘employee benefits’ net pension 
liability of £04m 2008 £75m asset  
38 profit for the year 
as permitted by section 230 of the companies act 1985 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 2009 of £531m 2008 £270m  
before an exceptional unrealised gain of £1877m which arose on the insertion of intermediate holding companies within the group 
the auditors’ remuneration for audit services to the company was £45000 2008 £40000  
the average number of persons employed being full time equivalents by the company during the year including directors was 111 
2008 107 
the costs incurred in respect of these employees were 
 
2009 
£m 
2008 
£m 
wages and salaries 82 67
social security costs 10 08
pension costs 05 03
sharebased payments note 49 12 05
 109 83
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  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
101 
 
39 dividends 
 
2009
£m 
2008 
£m 
amounts recognised as distributions to equity holders in the year 
final dividend for the year ended 31 march 2008 of 32p 2007 27p per share 101 84
interim dividend for the year ended 31 march 2009 of 33p 2008 28p per share 107 89
 208 173
 
proposed final dividend for the year ended 31 march 2009 of 36p 2008 32p per share 116 101
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 
40 tangible fixed assets 
 
plant and 
vehicles  
£m 
software and 
development 
costs 
£m 
total 
£m 
cost  
at 1 april 2008 37 66 103
additions 08 89 97
disposals 14 – 14
at 31 march 2009 31 155 186
 
accumulated depreciation  
at 1 april 2008 19 – 19
charge for the year 06 01 07
disposals 11 – 11
at 31 march 2009 14 01 15
 
carrying amount  
at 31 march 2009 17 154 171
at 31 march 2008 18 66 84
  mitie group plc  
annual report and accounts 2009 102 
notes to the company financial statements continued 
 
41 investments in subsidiary undertakings 
 £m 
shares at cost 
at 1 april 2008 4793
additions 141
decrease in deferred contingent consideration for subsidiaries acquired in prior years 116
capital contribution re sharebased payments 12
at 31 march 2009 4830
 
provision for impairment 
at 1 april 2008 116
at 31 march 2009 116
 
carrying amount 
at 31 march 2009 4714
at 31 march 2008 4677
details of the acquisitions in the year are provided in note 29 of the consolidated financial statements and a listing of principal 
subsidiaries in note 36 
42 debtors 
 
2009 
£m 
2008
£m 
amounts owed by subsidiary undertakings 269 280
other debtors 06 15
prepayments and accrued income 43 21
corporation tax 13 18
 331 334
the directors consider that the carrying amount of debtors approximates their fair value 
43 creditors amounts falling due within one year 
 
2009 
£m 
2008
£m 
trade creditors 38 08
amounts owed to subsidiary undertakings 190 153
other taxes and social security 22 25
overdraft 716 564
bank loans 100 500
secured loan notes 19 31
deferred tax 11 03
accruals and deferred income 27 47
 1123 1331
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 
details of the loan note movements in the year are provided in note 22 of the consolidated financial statements  mitie group plc 
annual report and accounts 2009
accounts
overview
business review
governance
103 
 
44 creditors amounts falling due after more than one year 
 
2009
£m 
2008
£m 
unsecured loan notes 16 16
 16 16
details of the unsecured loan notes are provided in note 22 of the consolidated financial statements 
45 provisions 
 
deferred 
contingent  
consideration 
£m 
at 1 april 2008 200
utilised during the year 05
other movements in the year 85
at 31 march 2009 110
 
falling due within one year 24
falling due after more than one year 86
details of provisions are provided in note 26 of the consolidated financial statements 
46 share capital 
ordinary shares of 25p 
number 
million £m 
authorised  
at 31 march 2008 and 31 march 2009 5000 125
 
2009 
allotted and fully paid 
at beginning of year 3168 79
issued for acquisitions 48 01
issued under share option schemes 14 01
at end of year 3230 81
 
2008 
allotted and fully paid 
at beginning of year 3124 78
issued for acquisitions 24 01
issued under share option schemes 20 –
at end of year 3168 79
details of movements in share capital during the year are provided in note 27 of the consolidated financial statements   mitie group plc  
annual report and accounts 2009 104 
notes to the company financial statements continued 
 
47 reserves 
 
calledup  
share capital  
£m 
share  
premium 
account  
£m 
merger 
reserve
£m 
sharebased 
payments 
reserve 
£m 
own shares   
reserve
i
£m   
other 
reserves  
£m 
profit  
and loss    
account
ii
 
£m    
total 
£m 
at beginning of year  79 190 604 32 – 03 2640 3548
shares issued and net 
premium arising in respect of 
acquisitions 01 36 68 – – – – 105
shares issued and net 
premium in connection with 
exercise of share options 01 18 – – – – – 19
purchase of own shares  – – – – 52 – – 52
sharebased payments – – – 12 – – 12 24
profit for the year  – – – – – – 531 531
dividends paid to 
shareholders – – – – – – 208 208
balance at 31 march 2009 81 244 672 44 52 03 2975 3967
i the presentation of the company’s investment in own shares has changed during the year to be included in the own shares reserve as a result the £52m above 
includes £20m of shares purchased in the previous period 
ii £1877m is nondistributable having arisen from internal restructuring in the year end 31 march 2008 
48 contingent liabilities  
details of contingent liabilities have been given in note 31 of the consolidated financial statements 
49 sharebased payments 
equitysettled share option schemes 
the company has four share option schemes as described in note 33 of the consolidated financial statements 
the company recognised the following expenses related to sharebased payments 
 
2009  
£m 
2008 
£m 
long term incentive plan share options 11 04
2001 executive share options 01 01
2001 savings related share options 00 00
 12 05
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are as described in 
note 33 of the consolidated financial statements 
50 related parties 
directors’ transactions 
details of related party transactions have been given in note 35 of the consolidated financial statements 
the company has taken advantage of the exemption in frs 8 not to disclose transactions with companies within the group 
  group proﬁle
we’re a strategic outsourcing 
and asset management company
what does that mean
providing everything from strategic
consultancy to facilities and 
project management to worldclass
delivery on the ground
we work with our clients 
in three ways 
strategy and consultancy
facilities and project management
service delivery
in other words
we think
we manage
and we deliver
this annual report and accounts contains forwardlooking statements 
such statements do not relate strictly to historical or current 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 group plc in good faith based on the information available to them 
as at the date of approval of this annual report and accounts 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 annual report and accounts and accordingly all
such statements should be treated with caution nothing in this annual report
and accounts should be construed as a proﬁt forecast
shareholder information
results
2010 interim management statement 10 july 2009
2010 halfyearly results 23 november 2009
dividends
2009 halfyearly dividend 33p paid 5 february 2009
2009 final dividend 36p proposed
2009 final ex dividend date 8 july 2009
2009 final dividend record date 10 july 2009
2009 final dividend last date for 
receiptrevocation of drip mandate 20 july 2009
2009 final dividend payment date 7 august 2009
annual general meeting
2009 annual general meeting 10 july 2009 230pm
company details
mitie group plc 
8 monarch court
the brooms
emerson green
bristol bs16 7fh 
telephone 0117 970 8800
fax 0117 302 6743
email groupmitiecouk
website wwwmitiecouk
registered number sc 19230
registrars
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
telephone 0870 162 3100
website wwwmitiesharescom
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 
0871 664 0381 or contact them by sending
an email to ssdcapitaregistrarscom
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 wwwmitiecouk
13012ra08coverqxd13012ra08coverqxd  28509  1231  page 2 mitie group plc
8 monarch court
the brooms
emersons green
bristol bs16 7fh
t 0117 970 8800
f 0117 302 6743
e groupmitiecouk
mitie group plc 
mitie group plc
annual report and accounts 2009
printed on take 2 silk a paper containing 75 
fsc certiﬁed recycled pulp diverted from landﬁll
take 2 silk is certiﬁed according to the rules of 
the forest stewardship council
if you have ﬁnished reading the report and no
longer wish to retain it please pass it on to other
interested readers or dispose of it in your recycled
paper waste thank you
design and production
radley yeldar  wwwrycom
print
mitie document solutions
13012ra08coverqxd13012ra08coverqxd  28509  1231  page 1


Summary:
 mitie group plc  
annual report and accounts 2009
overview
05
chairman’s statement
we are delighted to announce that 
mitie has delivered another year of 
doubledigit earnings growth against 
a backdrop of unprecedented market
conditions revenues have grown by
82 to £15219m operating profit before
amortisation ebita by 115  to £805m
and cash conversion stands at 975 
this result is particularly pleasing in a year
where economic conditions have been
extremely challenging and demonstrates
the resilience of the mitie business 
which is well diversified in terms of its 
client base and market sector exposure 
strategy
our strategy is to deliver stakeholder value
through a focus on sustainable profitable
growth to achieve this we have to
anticipate changes in our markets and
react quickly currently our clients are
increasing levels of outsourcing and seeking
supply chain efficiencies through larger
integrated contracts in response to 
our clients’ changing needs we have
improved our operating structure invested
in additional specialist resources and while 
we are experiencing slowing in some areas
we are seeing record levels of opportunity
and are securing many exciting longterm
integrated contracts
acquisitions remain a key part of our
strategy with no gearing at the year end
we are extremely well positioned to take
advantage of value creating opportunities
we look for quality companies with strong
management teams that complement or
fit within our existing business and operate 
in growth markets
results
our performance during the year 
saw revenues grow by 82 to £15219m
2008 £1 407 2m  operating profit before
amortisation ebita increased by 115 to
£805m 2008 £722m reflecting an enhanced
margin of 53 2008 51 with profit before
tax rising by 118 to £759m 2008 £679m
adjusted earnings per share grew by 154 
to 172p per share 2008 149p per share 
the business remains very cash generative
and has reported a cash inflow from
operations of £944m 2008 £782m for the
year which represented cash conversion 
of 975 2008 903 the balance sheet 
is extremely strong with net funds at the year
end of £109m 2008 net debt £156m 
we have secured bank facilities of £2300m
which are in place to january 2012 of which
£100m was utilised at the year end this leaves
the group well positioned to take advantage
of acquisition opportunities as they arise
we are pleased to report growth of 114 in
our order book during the year which now
stands at an impressive £49bn 2008 £44bn
dividend
on the basis of our strong performance
during the year and our solid prospects for
the future the board is recommending an
increased final dividend of 36p per ordinary
share adding up to a total dividend per
share for the year of 69p a 150 increase
on 2008 in line with our dividend policy to
maintain dividends in line with underlying
earnings growth at a cover ratio of 25 times
adjusted earnings subject to shareholder
approval at the annual general meeting
the dividend will be paid on 7 august 2009 to
shareholders on the register at 10 july 2009
main board
there were a number of changes to the
board during the year david ord and
cullum mcalpine both retired from the
board on 31 july 2008 as a result i was
appointed nonexecutive chairman and
chairman of the nomination committee
and david jenkins was appointed senior
independent director and chairman of the
audit committee the board is extremely
grateful for the leadership and valuable
contributions from david and cullum during
their six years on the board and wish them
every success in the future
we are delighted that terry morgan has
agreed to join the board on 1 july 2009 as a
nonexecutive director he will immediately
following the conclusion of the agm on the
10 july 2009 assume the role of chairman
of the remuneration committee from
ishbel macpherson terry is currently chief
executive of tube lines and will become
chairman of crossrail later this year 
terry has extensive experience of change
strategy and operations across a number 
of large complex organisations and he will
make a valuable contribution to our board
people
since becoming chairman i have been
extremely impressed by the strength 
depth and positive attitude of the mitie
team as part of my induction programme
i visited all of our divisions and the quality 
of our people is selfevident
the effective daytoday management 
of our business is critical it requires the skill
and expertise that comes only with hard
work commitment and experience 
mitie’s financial results and strength have
only been possible due to the hard work 
of its people whose expertise and
dedication remain our most important
assets we would therefore like to thank
them all for their contribution to another
excellent set of results
outlook
we have entered the new financial year 
in a positive position with a strong order
book and bid pipeline committed banking
facilities and no debt 
we recognise the economic challenges
that are facing our own business and that
of our clients but see continued opportunities
for sustainable profitable growth for mitie
through our ability to enhance efficiency 
in extended scope outsourced solutions
and the introduction of innovation in asset
management for our clients we look forward
to another good year of growth for mitie
roger matthews
chairman
“mitie has continued its growth
record in 2009” of acquisition related intangible assets
13012ra08p0115qxdlayout 1  28509  1148  page 05