big plans
bigger  
aspirations
mitie group plc
annual report and accounts 2011
the strategic outsourcing  
and energy services company governance
directors’ report 46
board of directors 47
directors’ report 
corporate governance statement 50
directors’ report statement of 
directors’ responsibilities 60
remuneration report 61
accounts
independent auditors’ report  
to the members of mitie group plc 70
consolidated income statement 71
consolidated statement  
of comprehensive income 72
consolidated balance sheet 73
consolidated statement  
of changes in equity 75
consolidated statement of cash ﬂows 7 6
notes to the consolidated  
ﬁnancial statements 78
independent auditors’ report to 
the members of mitie group plc 1 13
company balance sheet 1 14
notes to the company  
ﬁnancial statements 1 15
shareholder information ibc
overview
mitie at a glance 02
chairman’s statement 04
business review
chief executive’s strategy overview 06
key performance indicators 12
key client case studies 15
our approach
 vodafone 16
 rollsroyce 18
 waitrose 20
 historic royal palaces 22
 orbit housing association 24
new contract summary 26
market overview 29
operating review 32
sustainability review 35
financial review 39
factors that could affect our business 44 business review governance accounts overview
mitie group plc 
annual report and accounts 201 1
01
it’s our ability to adapt and 
change that will help us achieve 
our aspirations – and it’s what 
continues to set us apart
we’re equally proud of the 
things that remain the same… 
as always we are driven  
by the quality commitment  
and passion of our people 
who enable us to deliver 
consistently strong growth  
year after year mitie group plc 
annual report and accounts 201 1
facilities  
management
technical facilities  
management
security cleaning catering document 
management and reprographics 
reception and front of house waste 
management environmental services 
landscaping pest control
clients include
integrated fm mechanical and 
electrical engineering maintenance 
mobile multisite fm specialist technical 
services carboncare energy services 
lighting design and maintenance 
building management systems and 
controls compliance services
our business
the shape of 
our business
created by 
our clients
we specialise in outsourcing and energy services everything we do 
is driven by meeting the outsourcing needs of our clients
we work in close partnership with each client to provide everything 
from strategic consultancy to service delivery 
in simple terms we think we manage and we deliver on their behalf
clients include
£8822m
201 1 revenue 
£4371m
201 1 revenue 
  review of operations 
32
  review of operations 
32 business review governance accounts overview
mitie group plc 
annual report and accounts 201 1
03
02
property  
management
asset  
management
property maintenance building 
refurbishment painting rooﬁng 
interior ﬁtout fire protection plumbing 
mechanical and electrical engineering 
installation solar photovoltaic panels 
insurance claims management 
and repairs
decentralised energy centre 
development lowcarbon data centre 
development renewable energy 
integration energy services company 
esco management community 
infrastructure
clients include clients include
£5097m
201 1 revenue 
£624m
201 1 revenue 
one of the ‘ingredients’ caterers who is part  
of our 1team on the rollsroyce contract
  review of operations 
32
  review of operations 
32 mitie group plc 
annual report and accounts 201 1
strong results…  
and exciting market 
opportunities
revenue 
 £m
100
2007
2008
2009
2010
2011
15219
12288
1407 2
17201
18914
165
2007
2008
2009
2010
2011
operating proﬁt 
before other items 
 £m
805
622
722
930
1083
89
2007
2008
2009
2010
2011
proﬁt before tax  
 £m
67 9
566
759
868
797
chairman’s statement
roger matthews chairman business review governance accounts overview
mitie group plc 
annual report and accounts 201 1
05
04
overview
we have had another year of strong 
progress at mitie with doubledigit 
growth in revenue earnings and 
dividends this is an excellent 
performance against a uk economic 
backdrop that remains challenging 
and is a testament to the passion and 
hard work of our people 
during the year we have made excellent 
progress on our key strategic initiatives 
continuing to invest in our people 
technology facilities management fm 
and energy propositions as well as our 
overseas capability we were delighted 
to retain and expand contracts with  
rollsroyce and vodafone which 
conﬁrmed our strategy of providing 
integrated fm and energy services 
we also acquired dalkia fm in ireland 
and made a signiﬁcant investment in the 
fast developing decentralised energy 
market we start the new ﬁnancial year 
in a strong and conﬁdent position
results
during the year revenues grew by 100 
to £18914m 2010 £17201m operating 
proﬁt before other items increased by 
165 to £1083m 2010 £930m reﬂecting 
an improved margin of 57 2010 54 
proﬁt before tax and other items increased 
by 153 to £1057m 2010 £917m 
earnings per share before other items 
grew by 159 to 226p per share 2010 
19 5p per share 
we have retained our strong focus 
on cash reporting cash inﬂows from 
operations of £1025m 2010 £984m 
for the year which represents excellent 
conversion of ebitda to cash of 
867 2010 952 the balance sheet 
is extremely strong with net debt at the 
year end at 065 times ebitda at £7 65m 
2010 £866 m after using debt funding 
of £7 3m for an acquisition 
we have recently reﬁnanced our bank 
facilities and now have committed 
bank facilities of £250m until september 
2015 which will be available for draw 
down after the agm we also drew down 
£100m equivalent of us private placement 
debt in december 2010 in a mix of notes 
which mature between seven and nine 
years both of these facilities leave us in 
a strong position to take advantage of 
valuecreating acquisition opportunities 
as they arise 
we continue to see strong growth in 
our order book which increased by 
63 during the year and now stands 
at a record £68bn 2010 £64bn 
our sales pipeline currently stands at 
£1 14bn and our contracted revenue for 
the year ending 31 march 2012 is 81 of 
budgeted revenue 2010 75 
dividend
we continue to generate attractive 
dividends and dividend growth for 
our shareholders the board has 
recommended an increased ﬁnal 
dividend of 49p per ordinary share 
providing a total dividend per share for 
the year of 9 0p a 154 increase on 2010 
this is consistent with our dividend policy 
to maintain dividends in line with 
underlying earnings per share growth 
at a cover ratio of 25 times adjusted 
earnings subject to shareholder 
approval at the annual general meeting 
the dividend will be paid on 12 august 
201 1 to shareholders on the register at 
24 june 201 1
board
after serving for 1 7 years at mitie of 
which nine have been on the board 
roger goodman stepped down 
as a plc director on 31 march 201 1 
we thank him for his valuable 
contribution to the board
people
we would like to thank all of our people 
for  their exceptional efforts and support 
and to welcome the 5327 people who 
joined us during the year we are now 
a company of 61906 individuals which 
makes us one of the uk’s largest private 
sector employers 
in particular we would like to welcome 
those who joined us following our 
acquisition of dalkia fm in ireland
it is our talented dedicated people 
who allow us to achieve consistently 
strong results and maintaining the 
motivation of our people is critical to our 
future success we remain focused on 
recognising and rewarding exceptional 
team performance nurturing talent and 
providing opportunities for our people 
to succeed in their careers
outlook
mitie is in an excellent position we 
continue to focus on organic growth 
supplemented by selective acquisitions 
and the development of our integrated 
business model overseas
we have a diverse highquality client 
base across both the public and private 
sectors which underpins our consistent 
track record this has enabled us to 
continue investing in our people 
technology and new markets all of 
which supports our strong order book 
and growing sales pipeline
there are exciting opportunities in our 
markets as clients across the board 
look to introduce further innovation and 
efficiencies into their businesses we are 
ﬁnancially robust and have a clear 
strategy for the development of our 
business we are conﬁdent that mitie will 
continue to build on its long track record 
of sustainable proﬁtable growth
roger matthews  
chairman
basic earnings per share 
before other items 
 p
159
2007
2008
2009
2010
2011
149
128
17 2
226
19 5
10 1
2007
2008
2009
2010
2011
basic earnings per share 
 p
167
11 9
143
169
186
154
2007
2008
2009
2010
2011
dividend per share 
 p
69
51
60
78
90 mitie group plc 
annual report and accounts 201 1
responding  
to changing client needs
this has been another good year for mitie with doubledigit growth  
in revenues operating proﬁt and eps 
but you probably know that already the ﬁgures are well reported in the  
media and feature prominently throughout this report for all to see
in this statement i intend to focus on the story behind that success  
and how as an aspirational company we achieve aspirational goals
chief executive’s strategy overview
ruby mcgregorsmith chief executive governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
07
price value
shift
1980
inhouse
1990
single service
2000
bundled services
2010
integrated fm
2015
strategic outsourcing
06
overview
mitie’s strength is that we never forget 
that we’re a service company – 
we deliver the everyday outsourced 
services that clients need in order to build 
their own businesses our broad scope 
and capabilities mean that we are the 
people responsible for everything from 
managing property estates and 
reducing energy consumption to 
providing engineers cleaners and security 
officers controlling pests gritting roads 
and much more besides 
we can do these things very efficiently 
which is how we can save our clients 
money our approach starts with getting 
the speciﬁcation exactly right and 
agreeing service levels with the client 
then with contracts in place we mobilise 
our teams very effectively people transfer 
is complex and made even more so by 
legislation – but it is vital to get it absolutely 
spot on then we blend our experience 
and skills innovative it processes and 
industryleading training and 
development to deliver exactly what 
we say we will deliver exactly how we 
promised it that’s why mitie clients tend 
to stay mitie clients and why our business 
has grown for 23 consecutive years
at all times the markets are driven by 
our clients as are we the evolution of the 
outsourcing market is neatly encapsulated 
in the chart below – and what it shows 
in a nutshell is that the industry is on a long 
journey from providing single services to 
bundled services and then in some cases 
more integrated services
but what the chart doesn’t show is that 
each client is on a journey of their own 
they are all at different stages and they 
all  have dramatically different needs 
which are changing at their own 
individual pace life at mitie is never dull 
because every day somebody asks us to 
do something different it’s our job to meet 
those needs as and when they change
join the discussion  
or keep uptodate
social media gives our people a 
forum where they can discuss the 
things that matter most to them
where our clients go 
we go…
we’re there for our clients and 
support them with everything they 
need as they progress and develop 
   see what we did for rollsroyce
18–19
spreading our wings
the international side of our business 
is growing as our clients want support 
beyond the uk
ou ou ou u our r r r r w w wi wi wings sp sp pre re re re read ad ad ad ad g i in ing 
outsourcing market evolution
security
me engineering
catering
cleaning
maintenance
pest control
broader cost savings
single point contact
standardised provision
best practice
integrated delivery
management information 
systems
property management
overseas
 
consultancy
supply chain
project management
buildings management  
and services
business process outsourcing
technology
data management
asset investment
energycarbon
addon specialist services mitie group plc 
annual report and accounts 201 1
the more things change…
the recession has been a major driver for 
change in our marketplace clients are 
restructuring and rethinking to reduce 
costs and they are turning to us for 
assistance at the same time they are 
looking to improve the way they manage 
energy and taking advantage of our 
energy services offering which helps cut 
carbon while also reducing costs this is 
ensuring that in the uk our core market 
attractive opportunities for growth remain
75 of our contract awards this year have 
come from the private sector and we 
are seeing a lot of activity at the moment 
there is also a move towards more 
integrated facilities management – 
not only in the uk but also overseas 
when clients tell us that they would like 
the mitie services they enjoy in the uk to 
be available in other countries we will 
do everything in our power to make it 
happen our relationship with rollsroyce 
is a case in point where during 2010 we 
went from being a uk supplier to one 
who partners with them across europe 
the international opportunities for 
our business are growing fast and 
will continue to do so as we help more 
clients like rollsroyce be more efficient 
outside the uk around 40 of our top 
100 clients are multinationals so the 
opportunity is clear and we are actively 
looking at how we can support them 
the acquisition of dalkia fm in ireland 
which was ﬁnalised in june is an 
important step along this pathway 
dalkia provides outsourcing solutions 
to clients in several different sectors and 
their experience has given us proven 
fm capability in a new territory
in the public sector budgetary pressures 
remain which will create further 
opportunities for mitie in the coming 
months and years we are wellplaced to 
support our public sector clients and have 
close working relationships with the 
cabinet office and other bodies local 
government justice and health are just 
three of the sectors where we can see 
great opportunities indeed several 
of these have already come to fruition 
including the contract to provide a full 
custody and detention service at the 
campsﬁeld house immigration centre 
this is our ﬁrst contract in the prisons sector 
– and i am conﬁdent that we can go on to 
win many more
the need for all organisations to use 
fewer natural resources is changing our 
marketplace as our clients rethink the 
way they supply and consume energy 
energy management is and should be 
integral to facilities management and 
we have invested considerably in these 
capabilities – we are now one of the 
top two energy services companies in 
the uk we believe energy services will 
in time be part of every contract we 
operate and are wellpositioned to 
take advantage of this opportunity
…the more they stay the same
entrepreneurial spirit has always been one 
of the qualities that makes mitie different 
it is part of our dna and goes right back 
to the birth of the company examples 
of that entrepreneurship in action are 
everywhere – not only in the creative way 
we approach contracts but also in the 
practical support we have given people 
to help them develop their careers and 
grow successful outsourcing businesses 
since 1988 we have consistently backed 
the idea of equity and opportunity with 
funds and support and have helped 
over 80 successful startups in that time 
in fact the acronym mitie stands for 
‘management incentive through 
investment equity’ 
during the year we refreshed this idea 
by launching the ‘mitie entrepreneurial 
programme’  a £10m fund to back teams 
with innovative ideas for starting mutually
owned businesses the ‘mitie model’ 
gives management teams an equity 
stake in a business which they then grow 
over a ﬁve to tenyear period and which 
is eventually acquired by us in full
public sector 
opportunities
budgetary pressures will create 
further opportunities for mitie in the 
coming months and years
moving into  
new sectors 
we continue to identify 
opportunities in new markets 
sectors and regions 
42
of our top 100 customers 
are multinational businesses
£10m
entrepreneurial fund to attract 
dynamic management teams 
to our business – ﬁnd out more at 
wwwmitiecomentrepreneurs
chief executive’s strategy overview
“  i’m glad i’m part of the mitie 
staff group”
  leondinzy 
twitter comment  
february 201 1
 governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
09
08
our strategy
a strategy to deliver stakeholder 
value through a focus on sustainable 
proﬁtable growth lies at the heart of our 
business and has done so for ﬁve years 
the strategy has worked well and is largely 
unchanged although each year the 
areas of focus can change 
as we introduce new services and 
ways of delivering them in order to 
meet the changing needs of our clients 
there will be an increased emphasis 
on entering new markets in particular 
we anticipate that energyrelated 
services will be a growing focus for 
us over the next few years as will our 
presence in overseas markets just as 
our clients are seeking to make their 
operations more efficient so too are we 
which is why we have added operational 
excellence as an element that underpins 
our strategy we have made some 
changes to the kpis we report to reﬂect 
these changes and these can be found 
on pages 12–14 
a strategy which underpins our customer proposition…  
why mitie 
we have an entrepreneurial culture that is embedded in our dna 
we motivate our people by developing their careers and rewarding excellent 
performance 
we provide the essential services our clients need to run their buildings and infrastructure
we have the largest range of both hard and soft facilities management services 
and broadest coverage across the uk plus a growing european presence
we are experts at mobilising contracts 
we have sector specialists to tailor our services to speciﬁc industries
we use the best technology to provide the most efficient services 
we develop energy solutions that offer a secure and sustainable decentralised 
energy supply
we develop secure and maintain critical technology infrastructure 
we manage energy with our endtoend carboncare offering
y 
l 
a strategy which underpins our c cus usto tomer proposition
1 clients
provide worldclass services to attract new clients and retain and expand 
contracts with existing clients
2  people
recruit motivate retain train and develop 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  new markets 
expand our capabilities in complementary markets and different countries and 
increase the proportion of our energy services revenues
6  operational excellence 
improve the operational efficiency of everything we do
7  acquisitions
support our growth with selective acquisitions
“  cardiff airport goes green 
75 of waste now being 
recycled with the 
help of partner company  
mitiegroupplc”
  cardiffairport 
twitter comment  
march 201 1
sustainable proﬁtable growth strategy 
 “  …saying hello to all the 
newest european and uk 
colleagues who join us 
tomorrow mitie – 1 team for 
rollsroyce emea – 6th dec 
2010 – what an exciting 
future ahead”
  leon jones
facebook comment  
october 2010
acquiring new skills – 
building our offering and 
providing new solutions
   read about how we use 
woodchips to provide the 
energy for a supermarket… 
20 mitie group plc 
annual report and accounts 201 1
focused on our people
our new hr director katherine thomas 
is putting a spotlight on talent
giving our people a voice
we communicate with our 
people in the ways they are 
most comfortable with
mitec
our new technology centre in 
northern ireland is a totally secure 
hub for remote monitoring
sustainability
mitie has always been a responsible 
business and we focus our sustainability 
activities in seven areas which are aligned 
to our proﬁtable growth strategy this is 
explained in detail on pages 36–38
investing in technology
we approach all our contracts from the 
perspective of partnership – we want to 
work with our clients not just for our clients 
and to win their trust in all that we do 
technology plays a key role here 
because it enables us to show clients 
exactly what we are doing and when 
we are doing it in real time
for example our miworld system allows 
a client to see everything from the 
temperature of a factory to the current 
status of an engineer visit or when the 
security guard last clocked on and off – 
it is all at the click of a mouse on a 
dashboard on his or her pc such 
knowledge can highlight inefficiencies 
and duplications and create further 
opportunities to manage costs
handheld pdas personal digital assistants 
are now used across our business over a 
large number of sectors and service lines 
the technology is designed to meet the 
diverse requirements of all our different 
contracts and is quick and easy to deploy 
pdas allow us to do operational tasks 
including the scheduling of our mobile 
workforce in a much more efficient way 
for example each month we use pdas 
to conduct in excess of 1400 audits and 
to schedule over 25000 planned and 
reactive activities
supporting our people
the other way we build trust is through 
our people all 61906 of them most are 
based onsite and work at the sharp end 
of the business whether they are facing 
our clients each day or working behind 
the scenes we work hard to engage and 
develop all of our people
communication with so many people 
on so many different sites many of them 
working shifts can be a real challenge 
just as we deliver services in the way 
that our clients want them delivered 
so we also communicate with our people 
in the ways that they’re most comfortable 
with in addition to all of the traditional 
methods of communication that 
means social media – and in particular 
facebook twitter and youtube 
our view is that these sites give our 
people an important forum where they 
can discuss the things that matter most 
to them we take on board what people 
are saying and when issues are raised 
we always respond
in october 2010 we appointed 
katherine thomas as our new group 
hr director she brings a wealth of 
experience to the role having previously 
worked at bt as group talent and 
leadership director and has already 
begun to formalise our people agenda 
we now have a more structured 
approach to hr issues with a clear vision 
for where we want to be in 2014 with an 
emphasis on issues such as recruitment 
and retention talent management 
succession planning and leadership 
development
chief executive’s strategy overview governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
11
10
wwwfacebookcomgroupmitie 
twittercommitiegroupplc 
wwwyoutubecomusermitiegroupplc
in 2010 we launched the ﬁrst mitie 
graduate programme we also 
established a diversity and inclusion 
steering group with the purpose of 
strengthening our commitment to 
achieving equality diversity and inclusion 
in the workplace and community
the consistent hard work of our people 
was recognised in the form of a number 
of awards throughout the year our real 
apprentice scheme was the winner in the 
innovation category at the ﬁrst european 
employee volunteering awards the 
groundbreaking programme helps to 
break down barriers and get the long
term unemployed and people with 
a physical or mental disability back into 
the world of work at the other end of the 
spectrum we were recently awarded 
global supplier of the year by rollsroyce 
these are just a sample of the enormous 
achievements of our people which 
regularly attract industry recognition

looking forward
these are very good results and this 
year we have been awarded a number 
of transformational contracts we have 
secured some signiﬁcant work in the 
private sector where we have excellent 
relationships with our clients and are 
differentiated by our energy services 
capabilities and use of technology 
we have been appointed to several 
large public sector frameworks and 
have a strong pipeline of opportunities 
in local government social housing 
justice and health
the opportunities in outsourcing and 
energy services in the uk and abroad 
are signiﬁcant our strong balance 
sheet and excellent cash conversion 
as well as a record order book and sales 
pipeline will enable us to achieve our 
growth aspirations the business is well 
positioned for continued sustainable 
proﬁtable growth
finally i’d like to place on record my 
thanks to all the people who have 
made mitie what it is today it’s your drive 
expertise passion and at times great 
sense of humour that underpins what 
we do it has been a real privilege to work 
alongside you all during the year
ruby mcgregorsmith  
chief executive
here’s what all this means 
for our performance…
£114bn
sales pipeline
£68bn
2012 order book
“  …very excited about the 
new mitec arc building 
in northern ireland 
any updates would 
be much appreciated”
  paul mccormick 
facebook comment  
october 2010
“  …hello all i have just 
realised i have broken 
my own record by being 
employed by the same ﬁrm 
for 5 years so mitie or i must 
be doing something right”
  joy mutlow 
facebook comment  
october 2010 mitie group plc 
annual report and accounts 201 1
key performance indicators
reportable accidents 
per 1000 employees
carbon dioxide emissions
retention of existing contracts 
within facilities management 
energy services 
 of revenue
description
in order to achieve sustainable proﬁtable growth  
we monitor the percentage of existing contracts 
retained in our facilities management division on  
a rolling 12month basis
target
achieve contract retention rates in excess of 90
comment
our contract retention rate in our facilities 
management division stands at 842 
description
sustainability will be an increasingly competitive 
advantage for us going forward as our clients look 
to us to help them improve their performance and 
reduce their costs
target
increase the proportion of energy services related 
revenue each year
comment
this is the ﬁrst year that we have been analysing our 
performance in this area
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 31 per  
1000 employees
description
in previous years emissions have been reported as co2 
this year they are reported as co2e to allow for all six 
greenhouse gases ghg and broken down into scopes 
1 2 and 3 in accordance with the ghg protocol 
emissions are calculated using the defra guidance on 
how to measure and report ghg emissions and apply 
the 2010 guidelines for company reporting last year’s 
total co2 emissions have been recalculated using co2e 
for scope 1 direct emissions gas and transport and 
scope 2 indirect energy purchased electricity but 
excludes landlord managed energy and expensed 
business fuel part of scope 3 we have also restated 
the 2010 data to allow for changes to the property 
portfolio and acquisitions the rate of co2e emissions 
per mitie employee is calculated using the average 
number of people employed during the year
objective
understand and minimise the environmental impact  
of our operations
comment
emissions per employee are lower than the prior year 
£
£
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions
£ £
£
£ £ £
2007
2008
2009
2010
2011
880
850
860
87 0
842
2007
2008
2009
2010
2011
not measured
not measured
not measured
not measured
340
2007
2008
2009
2010
2011
39
51
40
35
31
2007
2008
2009
2010
2011
087
082
not measured
not measured
not measured
monitoring 
and managing 
performance
delivering sustained 
proﬁt growth
we look at a range of indicators to assess our performance 
against our stated strategy these include kpis that are aligned 
to each of the elements of our strategy as well as the ﬁnancial 
indicators that we as a business are focused on
£
£
£
nonﬁnancial kpi
financial kpi
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
13
12
contract types split within mitie
description
as a substantial portion of our revenue was historically 
generated through single service contracts one of  
our opportunities for growth is through expanding  
our relationships with existing clients by providing other 
services we have seen a trend in the markets towards 
multiservice and fm contracts over the past few years 
and we are well positioned to meet the demands of  
this trend due to our broad range of services
we measure the percentage of revenue that is 
generated by these types of contracts in order to 
measure how well we are performing in this arena 
comment
58 of revenues are now attributable to multiservice 
and integrated fm contracts
£ £
75
50
25
2007
single service
multiservice  fm
2008 2010 2009 2011
management retention  secured revenue 
international 
 of revenue
description
we are focused on longterm recurring revenue 
streams at the start of each ﬁnancial year we 
calculate the percentage of our budgeted revenues 
that are already contracted
target
secure greater than 75 of budgeted revenues at the 
start of each ﬁnancial year
comment
at the start of the ﬁnancial year 2012 81 of budgeted 
revenues were secured 
description
we see increasing opportunities in international 
markets as our clients look to expand procurement 
and we beneﬁt from diversifying our revenue base
target
increase our proportion of international revenues
comment
our international revenues were 13 of group 
all of our divisions are focused on operating more 
efficiently and use many different measures to 
assess performance
from a group perspective the best way to assess our 
productivity is our group operating proﬁt margin which 
is also one of our key ﬁnancial performance indicators 
and found on the following spread
description
mitie is a people business and we pride ourselves in 
creating and nurturing outstanding management 
monitoring how successful we are in retaining our 
people is an important measure for us
target
enhance focus on the development and retention of 
management to maintain a retention rate of over 90
comment
our management retention rate was 89 5 for the year
this year we invested £7 3m in the acquisition of 
dalkia fm in ireland and £68m in minority interest 
acquisitions in six companies under the mitie model 
our strong cash ﬂows committed banking facilities 
and strong balance sheet have ensured that these 
investments can be made against a backdrop of 
limited gearing with net debt to ebitda at 31 march 
201 1 at 065 and interest cover of 331 for the year
£
£
£
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational excellence 
7  acquisitions
our strategy
1 clients
2  people
3  risk
4  responsibility
5  new markets 
6  operational efﬁciency 
7  acquisitions
£
£
£
2007
2008
2009
2010
2011
740
750
780
750
810
2007
2008
2009
2010
2011
na
na
na
na
13
2007
2008
2009
2010
2011
930
914
920
920
895 mitie group plc 
annual report and accounts 201 1
group operating proﬁt margin 
before other items
capital expenditure  
as a  of revenue
conversion of ebitda to cash
dividend growth
description
our operating proﬁt margin before other items 
provides us with a good indicator of the proﬁtability 
of our business where we have material restructuring 
and acquisition related items such as integration costs 
we exclude these from our measure
target range
maintain operating proﬁt margins between 50  
and 60 per annum
comment
we have improved our margin by 03ppts to 57
  other items are restructuring and acquisition related 
items
description
our strength lies in the management of people and  
in the provision of suitable assets to support their work 
but our business is not capital intensive we continue  
to monitor and control capital expenditure and target 
growth and acquisitions in areas that do not require 
substantial capital expenditure
target range
maintain below 20 of revenue
comment
capital expenditure was 14 of revenue
description
the efficiency with which we manage the generation  
of cash is an important indicator for our business  
mitie is built on a sound understanding of the 
importance of cash and working capital management 
and that ethos remains critical to our business  
the conversion of earnings before interest tax 
depreciation and amortisation ebitda to cash  
is one of the signiﬁcant cashﬂow indicators for mitie
target range
over 800 of ebitda converted to cash
comment
we have achieved our target this year with 867  
of ebitda being converted to cash
description
it is important that we continue to target a dividend 
policy that provides an appropriate return to 
shareholders with a dividend which grows in line with 
the underlying earnings of the group dividend cover 
is calculated by reference to our underlying earnings 
which we measure using our basic eps before other 
items eps before other items is 226p 2010 19 5p 
giving rise to growth of 159
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 was 154 providing 
cover of 25 times adjusted earnings
£
£
financial key performance indicators
£
£
2007
2008
2009
2010
2011
53
51
51
54
57
2007
2008
2009
2010
2011
150
186
17 6
130
154
2007
2008
2009
2010
2011
11
18
14
15
14
2007
2008
2009
2010
2011
97 5
11 44
903
952
867
key performance indicators
our ﬁnancial kpis are focused 
on the quality of our earnings 
and cash ﬂows the control 
of capital expenditure and 
the sustainability of dividends 
we have performed strongly 
against these measures again 
this year governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
15
14
new awards  
new services 
new ways of  
delivering them
same passionate  
approach
 k key client case studies
 k new contract summary mitie group plc 
annual report and accounts 201 1
integrated solutions
ringing the changes 
for vodafone across 
the uk and ireland
our relationship with vodafone started with a technical facilities 
management contract that came into mitie through our acquisition  
of dalkia fm in 2009 
this had a base contract value of £6m per annum and 
last year vodafone moved to a fully integrated fm model across 
the uk and ireland with a base value of £16m
energy management is an 
important part of what we do for 
vodafone one of our goals is to 
help them meet their target of 
a 50 carbon reduction by 2020
n governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
17
16
not only do we provide vodafone 
with an unmatched breadth of 
services – we also pride ourselves on 
consistent quality and on our ability 
to meet our client’s needs at multiple 
sites across the uk and ireland 
we have expanded our work 
for vodafone signiﬁcantly 
bringing together our soft fm 
capabilities with the technical 
facilities and energy management 
skills that were enhanced through 
our acquisition of dalkia fm 
david richards  
transition director
£16m
annual contracted revenues
5
year contract with two oneyear extension periods
overview of services provided 
we are providing total facilities and 
energy management for vodafone 
across the uk and ireland the contract 
covers all properties including 
commercial offices the retail portfolio 
data centres mobile telephone 
exchanges warehouses and call centres
maintenance
security
cleaning landscaping and pest control
front of house services
supply chain management of a range  
of other services
recent achievements  
and developments
vodafone wanted a fullyintegrated  
fm model to drive efficiencies with  
its suppliers and fm team we offered
one seamless delivery model
intelligent information systems and kpis  
to achieve cost efficiencies
ten core service commitments
a joint board to hold innovation forums
this is a signiﬁcant contract for mitie  
as it reinforces the strategic rationale 
that underpinned the acquisition of 
dalkia fm it also demonstrates how we 
are working with our clients to introduce 
further innovation and efficiencies into 
their organisations by increasing the 
scale and scope of outsourced services  
we are looking forward to building upon 
this relationship with vodafone and 
supporting its property strategy in the 
years to come mitie group plc 
annual report and accounts 201 1
integrated solutions
helping rollsroyce  
on its journey as 
an organisation
our relationship with rollsroyce started life as a singleservice  
cleaning contract in east kilbride scotland in 1992 
over nearly two decades a lot has changed…
we have set up a newlook 
integrated facilities service brand 
‘1 team’ which will replace mitie 
branding on all services across  
the contract and is unique to our 
rollsroyce contract
we have grown our passionate  
team which will work together to 
take service excellence to a whole  
new level
mitie now manages facilities across 
the uk and six european countries – 
norway finland sweden germany 
france and poland – with 61 sites 
in total
we now work closely with rolls–royce in support 
of its global property strategy from our single 
service cleaning contract in 1992 to a national 
cleaning contract in 1998 to ukwide facilities 
management in 2003 we have a proven 
delivery model and longterm relationship 
the new paneuropean agreement represents 
a signiﬁcant increase in the scope of our existing 
uk facilities management contract
1000 
mitie employees on the contract
across ages facil lities a mitie now m mana
chris franklin  
operations director emea governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
19
18
7
countries
61
sites
overview of services provided 
our new contract is for integrated 
facilities and energy management  
of our client’s properties in the uk and 
continental europe we deliver a large 
range of services including
space planning engineering  
and fabric maintenance
cleaning waste and pest control
catering reception and document 
management
security and emergency services
landscaping
recent achievements  
and developments
the new contract commenced in 
december 2010 and was awarded on 
the basis of several key success factors
cost savings
service quality and culture
consistent and standardised delivery  
with a ﬂexible model
performance management and  
continuous improvement
this is our largest contract and its 
expansion both at home and abroad 
represents trust in our ability to deliver 
integrated facilities management across 
the uk and europe we really value  
our 18year relationship with rollsroyce 
and we are looking forward to supporting 
its property and energy management 
strategy over the coming years
mitie group
annual report and accounts 
we will provide its property 
management team with asset  
and estate performance data  
from miworld – our integrated 
management information and  
data management platform  mitie group plc 
annual report and accounts 201 1
waitrose is part of the john lewis 
partnership which has a vision  
to create offgrid energy centres  
for stores and other sites
this project places the east cowes 
waitrose at the heart of its local 
community and means that the store 
has a negative carbon footprint
all of the energy needs of the 
store and more will be met by 
the energy centre
the energy centre is fuelled 
by woodchip biomass
innovative solutions
reducing energy prices 
and enhancing 
sustainability for waitrose
we are working with waitrose to deliver the retailer’s ﬁrst  
biomass powered carbonnegative store at east cowes on  
the isle of wight
ed  governance g accounts
mitie group plc 
annual report and accounts 201 1
business review
21
overview
20
david mackey  
key account director
90
reduction in consumption of grid electricity
overview of services provided 
part of a major regeneration scheme  
for the area the new supermarket at east 
cowes will be the ﬁrst waitrose on the isle 
of wight its energy requirements will be 
provided by an innovative decentralised 
energy centre – designed built and 
operated by mitie
waitrose will purchase its energy from mitie 
saving up to £1m over the contract term with no 
requirement for capital investment from the client
the energy centre will produce electricity  
heat and chilled water for the store –  
known as trigeneration
mitie offers guaranteed energy cost certainty 
over the lifetime of the centre
support for events and other functions
recent achievements  
and developments 
this energy centre will help our client to 
meet its sustainability commitments and 
provide them with energy security 
in a typical 2000m
2
 store it will reduce 
consumption of grid electricity by 90 
gas by 80 and cut carbon emissions by 
1257 tonnes per annum 
surplus energy will be exported to nearly  
170 local homes and a medical centre in the 
surrounding area
woodchip biomass fuel is sourced from 
sustainable woodlands of waitrose’ local 
suppliers on the isle of wight
this innovative model is able to be 
rolled out across other premises and 
establishes the kind of sustainable stores 
that waitrose can use in the future east 
cowes is the ﬁrst project to be delivered 
under a partnership between waitrose 
and mitie mitie group plc 
annual report and accounts 201 1
proven solutions
raising the standards 
through longterm 
partnership
our relationship with historic royal palaces started in 1993 
with the award of a cleaning contract for kensington palace 
many years and several awards later we now help look after 
four of london’s most iconic and bestloved premises
during our long relationship with  
historic royal palaces we have been 
ﬁnalists four times and winners twice 
in the kimberley clark golden service 
awards – known in the industry as 
the cleaning oscars
85 
recycling rates achieved
many years and several awards later we now help look after 
four of london’s most iconic and bestloved premises
david johnson  
managing director cleaning  
and environmental services governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
23
22
we assist historic royal palaces 
with some of the more unusual 
events which are held on their 
premises including ice skating 
ﬁreworks displays weddings and 
music festivals
we regularly provide increased 
ﬂexibility to assist with functions such 
as dinners receptions conferences 
and christmas parties 
100 
mitie employees on the contract
overview of services provided 
whilst many of our clients want a fully 
integrated fm offering others love us for 
our specialist single service capabilities – 
we have been providing cleaning and 
environmental services to historic royal 
palaces for 18 years now
kensington palace hampton court palace 
banqueting house tower of london
daily cleaning washroom services 
pest control window cleaning
waste  recycling
support for events and other functions
recent achievements  
and developments
we have recently renewed our contract 
with historic royal palaces this is the ﬁfth 
time since the contract was ﬁrst 
awarded back in 1993
we now employ in excess of 100 mitie staff  
across the palaces
we have achieved recycling rates of 85
our team has provided assistance during 
extreme weather to help keep all of the 
palaces open mitie group plc 
annual report and accounts 201 1
sustainable solutions
bringing home the 
beneﬁts to win  
additional business
having successfully worked with orbit south to provide reactive 
repairs to its social housing stock we were the natural choice when they 
decided to extend the contract across more regions and services
orbit has an ambition of ‘building 
brighter futures for people and 
communities’ which we are 
supporting with our longterm 
commitment to investing  
in the community 
our expanded contract is a tribute  
to the outstanding results we already 
deliver for orbit we are committed  
to continuing to deliver a ﬁrstclass 
service to both orbit and its residents
john lewthwaite  
regional manager social housing  acco acco acco acco acco acco acco acco a a a unts nts s s ts unts unts unts unts unts unts s s s t n n
mitie group plc 
annual report and accounts 201 1
overview business review
25
ove ove ve ove ve ve gove ove ove ove ove e ve ove ve ov v v v ov ov ov ov o go go o go o go o o go o o go o go o o go o o o go g g g g g g g rnan rnan rnan rnan rnan nan nan rnan rnan an rnan rnan rnan nan na rna na a rna a rn r ce ce ce ce ce ce e ce ce c c c c c c c c c
24
£110m
partnering contract over 10 years
overview of services provided 
since 2007  eps ltd which we acquired 
in 2009  held a contract with orbit south 
to provide reactive housing repairs in 
the bexley kent and surrey areas 
orbit’s vision is to develop longterm 
partnerships we were recently awarded 
additional work for orbit south as well 
as a new contract for orbit east
£110m partnering contract for ten years  
with an optional ﬁveyear extension
we will deliver reactive repairs voids  
and planned improvement works
the agreement covers 14000 homes across  
east anglia london and the south east
recent achievements  
and developments
not only was mitie the choice of 
orbit south and east we were also the 
favoured option for the organisation’s 
residents too orbit residents were 
involved in the selection process and 
wanted a contractor who was going to 
deliver a great service and also provide 
real value for money in addition to our 
strong track record we were able to 
offer residents a community investment 
package as part of the contract
£110000 community investment annually
typically includes refurbishment projects 
charitable work support for community initiatives
we will run events such as diy workshops  
and training days
one apprentice employed for every 
£1m turnover
we will create training opportunities  
and long term employment for local people
orbit’s vision for a longterm partnership 
and the length of the contract means  
we can continue to improve the service 
while keeping costs down 
orbit south
r o bt b b b mitie group plc 
annual report and accounts 201 1
some more of our 
recent successes
new contract summary
private sector
technology and communications
client contract timeframe total value
vodafone
total facilities and energy management for vodafone’s entire uk property portfolio including 
commercial offices retail portfolio data centres mobile telephone exchanges warehouses 
and call centres mitie will selfdeliver cleaning maintenance security business services 
landscaping and pest control and manage the supply chain of a range of other services 
including catering reprographics and transport
5 years
1 year
1 year
£80m
£16m
£16m
rwe npower
integrated facilities management contract to provide services which include mechanical 
and  electrical maintenance security and cleaning
5 years £455m
wte plant consortium
design build and operate a renewable energy power plant
10 years £28m
a leading provider of global it 
security and communication 
solutions
power and cooling resilience project coupled with multiple data hall ﬁtouts and other dc 
upgrade works across their estate
18 months £20m
cablewireless
retained our contract to provide integrated facilities management the scope of services 
has been designed to encompass all manned sites within its uk and ireland portfolio services 
include facilities management security help desk landscaping waste management 
recycling meeting room services mail services and couriers reception archiving car parking 
cleaning pest control catering and vending stationery health safety and environmental and 
transport services
3 years nd
oracle
security services in the uk and ireland
3 years £5m
finance and professional services
client contract timeframe total value
european investment bank
out of hours works on a building management system infrastructure upgrade for an 
occupied building
18 months £14m
kleinwort benson
fitout of six ﬂoors at kleinwort benson’s london office scope of works included ﬁttingout 
meeting rooms general office space and a high quality reception area
22 weeks nd
cushman  wakeﬁeld
design development and installation of the me services as part of an extensive 
redevelopment project involving the remodelling and reconstruction of a tower block
14 months £5m
leading law ﬁrm
full suite of business services including reception telephony office moves mail reprographics 
and desktop publishing
3 years £3m
allianz insurance
provide technical fm building services maintenance for new hq building in london as well 
as soft services including cleaning switchboard postroom and reception
3 years £35m
uk bank
lighting project in retail banking branches to provide improved more energy efficient lighting 
6 months £25m 
savings and investments 
company
security services across a range of locations in the edinburgh area
3 years £22m
international law ﬁrm
renewed a contract to provide document management distribution services and 
stationery provision
3 years £18m
retail
client contract timeframe total value
tesco
retained 100 of our existing business and added £13m of new business to our cleaning 
portfolio this now encompasses eight new regions covering the south west the south east and 
the west country adding 330 additional stores in total we now clean 30 of the estate
3 years £804m
marks  spencer
working at the new ﬂagship store at westﬁeld stratford city to install all of the mechanical and 
electrical services in a 200000 square feet retail space
9 months nd
capital shopping centres
roof refurbishment of the metrocentre newcastle using liquid plastics built up rooﬁng system 
24 weeks £21m
lloydspharmacy
lighting projects in retail pharmacies to provide improved more energy efficient lighting 
3 months £19m 
value retail plc
contract to provide security services at bicester village from may 201 1 which includes the 
redevelopment of the site’s cctv control room
3 years £14m
waitrose
contract to design build and operate ﬁrst biomasspowered store at east cowes the new 
supermarket will have its energy requirements provided by an innovative offgrid energy centre 
designed built and operated by mitie
nd nd
letter of intent to design build and operate a biomasspowered store at bracknell
nd nd
nd  not disclosed governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
27
26
transport
client contract timeframe total value
the manchester airport group
major cleaning contract with manchester airport which involves terminal cleaning car park 
and road sweeps and internal waste management
4 years nd
greater manchester passenger 
transport executive
planned and reactive painting works to public transport properties throughout 
greater  manchester
3 years nd
transport for london
secured a contract to provide technical facilities management services to the transport for 
london head office portfolio commencing in april 201 1
5 years £155m 
baa airports ltd
air and landside technical facilities management at heathrow
3 years £42m
network rail ltd 
contract extension to include our broad range of fm services around the uk including their 
office building portfolio encompassing a full range of physical and electronic security
1 year £26m
low cost airline
aircraft cleaning and associated services at one of their airport bases
5 years £4m 
manufacturing
client contract timeframe total value
rollsroyce
paneuropean contract to deliver integrated facilities and energy management
rolling nd
luxury automobile and engine 
manufacturing company
cleaning and waste services for this carmaker’s uk premises which includes their head office 
showrooms and industrial cleaning and waste at their manufacturing sites
25 years £63m
agustawestland
security contract for manned guarding at the rotacraft manufacturer’s locations in yeovil 
and farnborough
3 years £19m
leisure
client contract timeframe total value
royal opera house
integrated facilities management contract to deliver services which include engineering 
cleaning security telephony mail and reprographics at the prestigious covent garden 
premises
5 years £19m
historic royal palaces
successful retender of the hrp cleaning contract covering hampton court palace kensington 
palace banqueting house and the tower of london – services include daily cleaning of public 
areas especially after high proﬁle events specialist cleaning of historic areas window cleaning 
waste management feminine hygiene and pest control
3 years £34m
edinburgh castle
awarded a contract to provide cleaning and environmental services for edinburgh castle 
as a historic scotland collaborative partner through the cleaning and associated services 
framework agreement
3 years £08m
healthcare and pharmaceutical
client contract timeframe total value
large pharmaceutical  
company
reawarded a threeyear contract for facilities management of two sites with a guaranteed 
maximum price and innovative approach to helpdesk provision
3 years £32m
utilities
client contract timeframe total value
astrium ltd
integrated facilities management contract for three years with a possible two year extension 
which covers the stevenage and portsmouth sites providing reception mail room cleaning 
grounds maintenance catering and vending services
3 years 
2 years
£56m
centrica
installation of heating systems as part of the scottish government’s heating incentive
3 years £2m
property
client contract timeframe total value
telereal trillium
following a retender exercise we have signiﬁcantly extended our cleaning  
contract for telereal trillium however our technical fm contract was not renewed  
the net reduction in contracted revenue is around £9m per annum although  
there is the potential to offset this with future project works as part of an existing  
property management framework arrangement we have delivered cleaning  
pest control and waste management services on the department for work  pensions  
estate in the north and scotland for 13 years and will now be adding the southern portfolio  
of 600 buildings to the contract for a further seven years
7 years £1 77m
nmk eiendom as norway
facilities management contract including catering as well as other technical and 
soft fm services
7 years £14m 
equivalent
buying force dtz
retained the security contract at follingsby park industrial estate and awarded two new 
contracts at castlegate shopping centre and coliseum leisure and retail park we were 
also successful in securing the lg portfolio for both security and cleaning at four of their 
locations in the uk
3 years £11m
persimmon homes 
plumbing and heating installations for 170 new build housing plots
18 months £1m
nd  not disclosed mitie group plc 
annual report and accounts 201 1
new contract summary
public sector
central and local government
client contract timeframe total value
home office
awarded our ﬁrst immigration centre contract with the home office through the uk border 
agency for campsﬁeld house immigration removal centre where we will deliver a full custody 
and detention service including all aspects of hard and soft facilities management catering 
and energy management
5 years £25m
scottish government
new cleaning and waste contract which covers 144 buildings across scotland
4 years £15m
national assembly for wales
expanded renewed fm contract
5 years £10m
kent county council
mechanical services for public and educational buildings including planned service and 
maintenance for heating and hot water services
4 years £6m
department for international 
development
following our appointment to the office of government commerce buying solutions 
framework agreement we have been awarded a contract with the department for international 
development to provide fm services including helpdesk me maintenance fabric maintenance 
cleaning catering and landscaping
3 years £24m
palace of westminster 
programme of works to renovate and improve the primary me services to the 
house of commons house of lords and the palace of westminster
7 months £15m
education
client contract timeframe total value
luton borough council
awarded the fm contract to deliver services at lea manor ashcroft lealands and challney 
girls schools
25 years £73m
university of the west of england
engineering and maintenance services with building fabric provision across 
student accommodation
5 years £125m
health
client contract timeframe total value
hull  east yorkshire hospitals 
nhs trust 
retained a contract to provide cleaning services for two large acute hospitals hull royal 
inﬁrmary and castle hill hospital
5 years 
2 years
£73m 
£35m
mersey care nhs trust
retained and expanded our technical facilities management contract providing planned and 
reactive building maintenance services throughout the trust’s estate along with strategic energy 
management support
4 years £104m
london hospital
added services to our existing cleaning contract including the supply and delivery 
of consumables on site
6 years £3m 
additional
west midlands  
ambulance service
cleaning of ambulances and buildings over 84 sites new integrated contract previously held by 
four contractors
3 years £42m
tameside hospital nhs 
foundation trust
awarded a contract to provide cleaning and portering services at tameside general hospital
5 years £15m
social housing
client contract timeframe total value
orbit group
contract to deliver reactive repairs voids and planned improvement works to 14000 homes for 
orbit group across east anglia london and the south east
10 years 
5 years
£1 10m
somer housing group
programme to upgrade over 3700 kitchens and bathrooms across homes provided by somer 
housing group
5 years £20m
lambeth living
contract for domestic gas servicing and responsive repairs communal and heating hot water 
service and repairs cold water services and landlord communal services which include lighting 
and emergency lighting
7 years £1 7 5m
homes for islington
expansion of existing contract to cover gas servicing repairs boiler replacement and upgrades 
for approx 9 500 homes
4 years £8m
fareham borough council
contract for kitchen and bathroom refurbishments – approximately 140 kitchens and 
50 bathrooms per annum
5 years £25m
ealing council
fire door replacement and associated works for up to 1000 properties per annum
3 years £26m
south lanarkshire council
central heating installations
15 months £15m
port of leith housing association
shqs refurbishments 
6 months £1m
nd  not disclosed governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
29
28
an evolving  
marketplace
consistent  
performance
k market overview
k operating review mitie group plc 
annual report and accounts 201 1
marketplace overview
private sector
 
sector market 
size pa
mitie 
share
finance and professional £5bn 47
manufacturing £5bn 27
technology and communications £4bn 30
retail £5bn 37
property management £6bn 32
utilities £8bn 12
transport and logistics £1 1bn 11
construction £9bn 05
leisure £6bn 09
organisations are seeking to drive down 
costs by focusing on integrated services 
supplier rationalisation retendering and 
innovation as companies consolidate 
they are examining their cost base and 
identifying opportunities for outsourcing 
our ability to deliver integrated services is 
again proving a key differentiator as we 
have seen with the recent contract 
awards from vodafone and rollsroyce 
many clients are keen to access our 
strengths in a broader range of integrated 
services technology is another important 
driver as more clients appreciate the 
value of instant information being 
displayed via a dashboard on their pc 
we are also experiencing a number of 
clients choosing to take a ‘whole life’ view 
and linking the initial capital expenditure 
to the lifetime operating expenditure of 
their contracts
critical infrastructure projects such as data 
centres will be a major challenge for all 
sectors in the coming years a data centre 
is the hub of a modern organisation 
with failure causing the loss of company
critical facilities including email and 
access to the internet many organisations 
are currently initiating plans to invest 
signiﬁcant funds in data centre infrastructure 
and the lowcarbon energy solutions 
to power them
looking at outsourcing activity in 
the various sectors the ﬁnancial and 
professional services area remains 
particularly active many clients are 
changing their procurement models 
and this has led to high levels of private 
sector tenders most especially in the 
retail  transport and utilities sectors
good opportunities
in existing markets 
and beyond
as a strategic outsourcing and energy services company 
we serve both private and public sector clients 
our marketplace continues to evolve driven by the needs of all 
clients to improve efﬁciency while reducing costs energy remains 
a major expense for many clients and frequently outstrips other 
factors in terms of potential savings 
we are working with clients to look at how best to structure 
outsourcing solutions in new and innovative ways we initiate 
capital expenditure projects and deliver new energy contracts 
that lead to signiﬁcant reductions – not only in monetary terms 
but also in carbon emissions which is an important issue for 
all sectors
63 £12bn 
2011 revenue
 “  isams online is great and 
convenient well done mitie 
for introducing it especially 
as a ﬂoating security officer 
it is very useful”
  nezam uddin 
facebook comment  
april 201 1
 “  mitiegroupplc – it is 
good to see companies 
that we work with committing 
to a strategy for growth 
startupbritain”
  richard betts 
twitter comment  
april 201 1 governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
31
30
public sector
 
sector market 
size pa
mitie 
share
government £6bn 39
social housing £9bn 23
education £12bn 14
healthcare £10bn 10
the uk government local authorities 
and other bodies are initiating cutbacks 
many of them signiﬁcant they are 
looking at expenditure in ﬁne detail – 
from headcount to energy cost and this 
is creating opportunities for outsourcing 
we expect this trend to remain in place 
during the coming years we believe 
that outsourcing has the potential to 
reduce costs while also improving 
services and we are wellpositioned to 
support the uk government’s agenda 
of addressing the deﬁcit particularly 
in our focus areas of justice health 
social housing and education 
mutual ownership models have a 
part to play in reducing the costs of 
management and administration 
these have worked well in the private 
sector and are likely to deliver similar 
beneﬁts in the public sector partnerships 
between the public and private sector 
are expected to be important as the 
government seeks to transform the way 
in which services are provided
energy costs are a key issue for the public 
sector – but so too are carbon emissions 
the carbon reduction commitment 
crc energy efficiency scheme came 
into effect in april 2010 
the crc is a huge part of the 
government’s pledge to reduce 
greenhouse gas emissions by at least 80 
from 1990 levels by 2050 the scheme will 
see organisations with total halfhourly 
metered electricity consumption greater 
than 6000 mega watt hours a year 
equivalent to approximately £460000 
electricity spend forced to buy 
allowances for each tonne of carbon 
dioxide co
2
 they emit and be placed 
in a league table according to their 
energy performance
through our carboncare service we are 
helping all organisations including those 
in the public sector to manage their 
energy use and carbon footprint 
international
an increasing number of clients 
are taking a paneuropean view on 
procurement they want to leverage 
their spend in order to reduce costs 
and improve efficiency across national 
boundaries for example during the 
year rollsroyce appointed us for the 
facilities and energy management of 
its european properties many of our 
clients have an international presence 
as they centralise their procurement 
operations we expect that business 
through paneuropean contracts 
will increase
as part of our international strategy 
we acquired dalkia fm in ireland and 
have developed a senior management 
team with global experience 
this team works closely with our 
partners in service management 
international smi to develop 
international opportunities for mitie
according to research the value of the 
emea europe middle east and africa 
market for outsourced fm services is in 
excess of £250 billion of which around 
10 is integrated services as we 
look at valuecreating opportunities 
across europe for speciﬁc clients 
we are increasingly wellplaced 
to exploit this tremendous potential
emerging growth markets
we continue to identify opportunities 
in new markets and recently we were 
awarded contracts in two sectors which 
are new to us
in february 201 1 we signed our ﬁrst 
agreement for the energy provision for a 
wastetoenergy plant all energy to the 
plant will be sourced from local wood 
with surplus energy being sold back into 
the national grid towards the end of 2010 
we were awarded a ﬁveyear contract 
by the home office to deliver a full 
custody and detention service at 
campsﬁeld house immigration centre this 
is our ﬁrst contract in the prisons sector an 
area where we anticipate signiﬁcant 
future opportunity
37 £07bn 
2011 revenue
heading to ireland
in june 2010 we acquired the 
integrated facilities management 
business of dalkia in ireland 
it provides integrated fm solutions 
for a range of clients in both the 
public and private sectors 
operating in a variety of industries 
including technology and 
communications transport and 
logistics manufacturing utilities 
and ﬁnance this acquisition allows 
us to further support our clients 
overseas and we are delighted to 
welcome the management team 
and employees
using the mitie model  
to enter niche markets
wayne felton is managing director 
of property solutions our latest 
startup and living proof that we 
are passionate about providing 
opportunities for entrepreneurs 
using the mitie model property 
solutions complements our existing 
property management business 
managing both domestic and 
commercial property insurance 
claims it manages large  
nonemergency insurance claims  
as well as emergency response 
services via a 24hour customer 
service centre  mitie group plc 
annual report and accounts 201 1
facilities management
revenue 
7 0
2010
2011 8822
8246
operating proﬁt 
before other items
113
2010
2011 562
505
operating proﬁt margin
03pp
2010
2011 64
61
order book
our facilities management fm business 
is responsible for delivering ‘soft’ fm 
services the division’s offering ranges 
from fully integrated fm and consultancy  
to any of our specialist single services 
which include
security cleaning catering document 
management and reprographics reception 
and front of house waste management 
environmental services landscaping 
pest control
£41bn
we made signiﬁcant progress during 
the year particularly in our ability to bid 
for and win large contracts that span 
many regions and draw on the services 
of all of our divisions as our clients look 
to create value from all of their assets 
we have responded with a ﬂexible 
model that uses our broad range of 
expertise in asset energy and property 
management alongside any or all of 
our fm capabilities 
the savings that clients can achieve by 
transitioning to a full fm service continue 
to drive growth in our business energy 
management is also an important 
differentiator for us and the development 
of carboncare has given us a market
leading offering
we tailor all of our services to suit our 
clients’ needs and this has seen us 
increasingly develop niche offerings 
for speciﬁc sectors such as retail transport 
healthcare and more recently justice 
and prisons 
we have made several enhancements 
to our security business and now offer 
a total security management solution 
which includes manned guarding 
response services key holding and 
remote monitoring via our newlyopened 
technology centre in northern ireland 
specialist services to the police and 
justice markets is a growing area for us 
there are opportunities in prisons a range 
of police support services and we have 
already commenced work in our ﬁrst 
immigration detention centre
we are also developing our catering 
offering with a brand refresh and the 
appointment of a new managing 
director and a sales director
our recent investments in customer 
relationship management and our 
integrated offering are bearing fruit 
we achieved a 842 retention rate  
for rebid contracts during the year 
we are also the third biggest player in 
both cleaning and security in the uk 
and one of the top ten providers for 
all of our other fm services
looking ahead our ability to save costs 
for both new and existing clients along 
with our focus on retaining clients and 
expanding into new markets will support 
continued growth in fm
operating review
exceptional capability
wellplaced for 
future growth
since 1 april 2010 we have operated primarily in four divisions 
facilities technical facilities property and asset management
each division brings together a selection of services that 
naturally ﬁt together – from both an operational and a client 
perspective as we grow more of our contracts incorporate  
two three or even all of our divisions  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
33
32
technical facilities management
revenue 
268
2010
2011 4371
3448
operating proﬁt 
before other items
587
2010
2011 246
155
operating proﬁt margin
1 1pp
2010
2011 56
45
order book
our technical facilities management 
tfm business focuses on ‘hard services’ 
facilities management fm that is led by 
technology  engineering and the need 
to reduce energy consumption 
services include
integrated fm mechanical and electrical 
engineering maintenance mobile multisite fm 
specialist technical services carboncare energy 
services lighting design and maintenance 
building management systems and controls 
compliance services
£14bn
energy reduction is a key growth driver 
and an area where our carboncare 
offering has successfully helped 
differentiate tfm in the marketplace 
in 2010 bsria placed mitie in the top two 
energy services companies in the uk 
a signiﬁcant number of carboncare 
services are provided by tfm it delivers 
a total energy solution that increases 
awareness of environmental issues 
introduces innovative ideas and 
technologies manages energy and 
carbon footprint data ensures legislative 
carbon compliance and delivers 
guaranteed energy reductions we also 
provide decentralised and cleaner 
renewable energy solutions working in 
conjunction with our asset and property 
management businesses
the shift towards integrated fm is also a 
major driver for tfm our technical fm 
expertise underpins our integrated fm 
offering and is particularly important 
where clients’ businesses are focused 
on hard services for example in our 
vodafone and rollsroyce contracts 
which are led by tfm as is the royal 
opera house contract
we have recently launched national 
mobile services which delivers fast 
and responsive mobile technical fm 
services mobiletech across the uk 
most especially to organisations with 
widely spread property portfolios 
our multiskilled technicians provide 
services to clients within a local 
geographic area helping to build strong 
local relationships we anticipate that 
mobiletech will be attractive to retail 
clients where we are seeing an increasing 
number of contracts which require us 
to act as a ‘managing agent’ and take 
responsibility for their entire technical 
fm budgets
as the number of crossselling 
opportunities increases the maintenance 
of data intensive sites is a market where 
we will be leveraging our asset 
management installation capabilities 
a wellmaintained data environment 
is critical for many clients our role is to 
understand the drivers for individual 
clients and the factors that make their 
environment unique we work hard to 
understand and monitor the plant and 
equipment in order to put effective risk 
management programmes in place 
this enables us to identify potential points 
of failure in advance and make sure we 
have the appropriately trained engineers 
who can deliver an immediate response 
to any issues that arise
we focus on people and training at every 
level a recent employee engagement 
survey achieved a 62 class leading 
response rate and concluded that our 
people have an above average level 
of engagement 
current market trends particularly in 
energy reduction and integrated fm 
coupled with the investments we have 
made to supplement our capabilities 
in these areas mean that we are  
wellpositioned to support our clients  
in the fastgrowing tfm arena
property management
revenue 
27
2010
2011 5097
4962
operating proﬁt 
before other items
147
2010
2011 214
251
operating proﬁt margin
09pp
2010
2011 42
51
order book
our property management business 
provides a full suite of integrated services 
from total ﬁtout and refurbishment to 
ongoing repairs including
property maintenance building refurbishment 
painting rooﬁng interior ﬁtout fire protection 
plumbing mechanical and electrical 
engineering installation solar photovoltaic 
panels insurance claims management 
and repairs
£12bn
we have recently made a series of 
changes to our business in order to offer 
our clients more integrated endtoend 
solutions and to operate in a more 
efficient and ﬂexible way 
the integration of our engineering 
contracting business into property 
management is complete as part of 
this process we discontinued some 
of our engineering activities in certain 
parts of the country
local and central government 
departments together with the social 
housing market are an important focus 
for us the eps ltd acquisition has been 
fully integrated and has strengthened 
us in the south east we have launched 
a new partnering model localcare 
which uses shared ownership between 
a local authority or housing association 
a private sector partner and the 
employees who are delivering the 
services it enables the creation of 
mutually owned local organisations 
which deliver costeffective services 
to their communities  mitie group plc 
annual report and accounts 201 1
we have combined our interiors and 
mechanical and engineering installation 
businesses into one integrated ﬁtout 
business increased conﬁdence in the 
uk retail sector has generated new 
demand for store ﬁtout and refurbishment 
and we are conﬁdent of gaining further 
market share as capital spending returns 
in addition our residential solutions 
offering now combines our capabilities in 
plumbing heating installation carpentry 
and decoration to provide a complete 
internal ﬁtout solution to the new build 
housing market 
we completed a renewable energy 
pilot project to install photovoltaic pv 
roof mounted panels that use solar 
cells to convert energy from the sun into 
electricity the installations took place 
on an initial pilot of 200 properties which 
are owned by registered social landlords 
the residents beneﬁt from cheaper 
electricity costs while the homeowner 
receives an income from feedin tariffs 
for any excess energy generated 
we anticipate signiﬁcant opportunities 
in this market with potential for up to 
15000 further properties during 201 1
we are also working overseas for the ﬁrst  
time in conjunction with tfm and fm  
to deliver space planning and project 
work on the rollsroyce property estate 
throughout europe 
our order book is signiﬁcant and we are 
seeing signs of optimism in many of our 
markets property management is now 
in a strong position to take advantage 
of the various growth opportunities in 
our chosen sectors as markets improve 
 
asset management
revenue 
145
2010
2011 624
545
operating proﬁt 
before other items
53
2010
2011 20
19
operating proﬁt margin
03pp
2010
2011 32
35
order book
our asset management division 
develops bespoke energy assets that 
offer a secure and sustainable energy 
supply carbon efficient technologies 
are used to create energy infrastructure 
which provides the electricity  heating 
or cooling required by our clients 
decentralised energy delivers the long
term beneﬁts of guaranteed cost savings 
reduced carbon emissions and supply 
certainty services include
decentralised energy centre development 
lowcarbon data centre development 
renewable energy integration 
energy services company esco 
management community infrastructure
£01bn
we are seeing increased opportunities 
in the decentralised energy market 
both public and private sector clients 
recognise that this is an effective way to 
reduce energy costs and consumption 
without an upfront capital investment 
in many cases the ability to achieve 
sustainability targets whilst retaining 
funding for core services is a compelling 
argument in the current economic 
climate particularly for our public 
sector clients
the good progress made during the year 
is a result of the signiﬁcant investments we 
have made to develop our capabilities 
we have been awarded several 
transformational contracts which 
when completed will provide us with 
worldclass reference sites from which 
to rollout similar models 
at the royal free hospital we successfully 
completed a gas turbine energy centre 
development and are now engaging 
with the client to look at cooling upgrades 
we developed a sustainable biomass 
energy centre for a waitrose store in east 
cowes the ﬁrst of its kind for the john lewis 
partnership and we have also entered 
into a joint venture to develop a biomass
fuelled energy centre for a large uk 
manufacturer
in addition we have established a 
reputation as a leader in the data centre 
market where our skills in understanding 
and mitigating risk proﬁles have brought 
us an impressive portfolio of projects and 
accounts we completed several major 
data centre projects during the year 
including one for a leading global 
telecommunications company
this series of ﬂagship developments 
has given us validation and visibility 
in the marketplace and supported 
the growth of a healthy forward sales 
pipeline we are now able to show 
how organisations with intensive energy 
needs can meet their own requirements 
securely and efficiently while supporting 
their communities through local networks 
we are recognised as one of the few 
providers in the uk that has the track 
record scale and expertise to deliver 
substantial decentralised energy centres 
that will guarantee availability over a 
sustained contract term our business 
will be driven forward by this momentum 
and by our continuing focus on key 
sectors where we have a strong 
competitive capability
operating review governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
35
34
our approach  
to sustainability
an approach which 
links our corporate 
and sustainability 
strategies
 k sustainability review mitie group plc 
annual report and accounts 201 1
sustainability review
identifying the issues
committing to  
addressing them
sustainability at mitie
we have already talked about the 
signiﬁcant commercial opportunities 
opening up to us in the ﬁeld of 
sustainability – both through the 
comprehensive services under our 
carboncare offering and through the 
work we do every day to help clients 
generate locally produced energy
however we haven’t discussed how  
we’ve also worked hard to improve our 
own sustainability performance over the 
last few years we have always believed 
that this makes good business sense  
and have made it a priority accordingly 
we’ve improved our own environmental 
performance and set ourselves 
challenging targets in areas like energy 
and fuel use we’ve started to engage 
directly and more regularly with our 
suppliers to help raise environmental  
and social standards across our whole 
supply chain we’ve extended the  
quality and range of the training we 
offer to employees and reinforced our 
commitment to diversity and inclusion 
and we’ve continued to work actively in 
the community both through sponsoring 
lifechanging projects like our real 
apprentice programme and through 
encouraging our own employees to 
volunteer in their own local 
neighbourhoods
we’re proud of what we have achieved 
but as sustainability has become more 
mainstream the public and our own 
stakeholders have started to expect 
more of us both in the uk and around the 
world with this in mind we have worked 
actively with the sustainability team at 
pricewaterhousecoopers to understand 
the areas where we might improve 
setting ourselves a new more focused 
and demanding strategy going forward 
which will ensure that our business 
is resilient and sustainable not just 
economically but in every other way 
a new simpliﬁed 
streamlined strategy
the challenge for all companies now – 
and especially for those that aspire to 
leadership as we do – is to fully integrate 
sustainability into their corporate strategy 
and the way decisions are made in  
the business day to day this means 
understanding and addressing strategic 
sustainability risks and opportunities and 
linking these to our commercial activities 
and ambitions it means having robust 
kpis and targets that relate directly to our 
sustainability strategy and ensuring that 
our reporting to stakeholders is transparent 
and comprehensive about all of the most 
material issues we face
it was clear from our review that we’ve 
already made real progress in all these 
areas but there is always room for 
improvement our new sustainability 
strategy is designed to help us do this  
our goal is to ensure that our corporate 
and sustainability strategies are mutually 
supportive so that over the long term the 
work we do to improve our sustainability 
performance will create value for our 
shareholders and our efforts to make 
mitie a more proﬁtable business will also 
make it a more sustainable one in simple 
terms it’s about fulﬁlling the ’sustainable’ 
part of our corporate strategy which aims 
to deliver stakeholder value through a 
focus on sustainable and proﬁtable long
term growth
environmental data
 
 
 
resource
 
 
 
units
 
 
 
2011 
2010 
full year 
restated
baseline
  
change 
against 
baseline
scope 1
gas and ﬂeet transport fuel tonnes of co2e 44248 42779 3
scope 2
electricity tonnes of co2e 3728 4022 7
intensity tonnes of co2eemployee 082 087 6
intensity tonnes£m 2536 27 21 7
scope 3
energy and business  
car travel
tonnes of co2e 12341 13467 8
upstream
water tonnes of co2e 8 911
intensity tonnes of co2eemployee 00001 00002 50
created waste tonnes 994 1436 31
created waste  
per employee
kg 17 27 37
general waste tonnes 606 989 39
recycled waste tonnes 388 447 13
 recycled 39 31 26
ghg emissions data for 1 april 2010 to 31 march 201 1 in line with ﬁnancial accounting period
notes
in 2010 we participated in the global voluntary reporting programme the carbon disclosure project and were rated 
76 with a performance rating of b
transport despite an increase of 447 vehicles due to business growth our average annual consumption per vehicle 
has  dropped by just over 3 against our 2010 baseline
energy consumption has decreased by 13 against baseline primarily through the reduction in property portfolio 
and improvements in heating and lighting reﬁts although mitie’s energy emissions are not covered under the eu ets 
climate change agreement or carbon reduction commitment energy efficiency scheme we are committed to driving 
down energy wastage through better management and the purchase of 100 renewable energy tariff electricity 
waste the total amount of waste created has reduced by 31 resulting in a lower recycled percentage
water our water consumption had decreased by 1 1 against baseline through improved awareness and reduction 
in managed properties
 2010 data has been restated in line with improved management information and to include a full year of extrapolated 
dalkia fm and eps ltd acquisition data to enable year on year comparison governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
37
36
client service is the heart of our 
business and will drive our longterm 
success as a company this objective 
covers everything related to customer 
relationship management and how 
we meet and – we hope – anticipate 
their needs 
a more efficient business is always 
a more sustainable one which is why 
we’re working hard to become more 
productive cut out unnecessary costs  
and push for all the suppliers we work  
with to have high sustainability standards 
challenging our own cultural practices 
will make us more price competitive and 
give a better service to clients 
there’s more we can do to raise 
awareness of issues like climate change 
among our own people we need to 
ensure every one of our employees 
understands what our stakeholders 
expect of us and what they can do in 
their own everyday work to help reduce 
our environmental impact 
looking after our clients properly
underpinning our group strategy
clients
operating contracts smarter
underpinning our group strategy
operational efficiency
using fewer natural resources
underpinning our group strategy
responsibilitysustainability
six focus areas
we are realigning everything we do on sustainability behind six key areas which 
build on the work we’ve already been doing and are directly aligned with our 
corporate strategy drivers each has a clearlydeﬁned objective and performance 
measures so that we can track our progress and build momentum acquisitions 
our seventh corporate strategy driver has not been incorporated as a separate area 
of focus since the necessary sustainability considerations are carried out as standard 
during due diligence and the relevant performance measures applied post integration 
taking this approach will allow us to focus our time and resources on those issues 
that are of the highest priority both to the business and to our stakeholders 
we want to build a reputation as a provider of worldclass sustainable services that 
delivers exactly what our clients want that’s why our ﬁrst two objectives are concerned 
with our service delivery if we achieve both of these goals we’ll build more longterm 
partnerships become more productive and generate more value both for our clients 
and for ourselves 
what does this mean in practice
we’ll be surveying our key clients at 
least once a year and learn as much 
as we can from the feedback we 
receive by integrating the results into 
our groupwide customer relationship 
management system 
we’ll also make our own expertise 
available to help our clients to set up 
programmes like our pioneering and 
awardwinning real apprentice 
placement scheme widening our 
community footprint and nurturing 
relationships at the same time 
what does this mean in practice
we’ll be using an employee 
communications campaign to 
spearhead a reduction in fuel 
consumption across our whole ﬂeet  
by 10 by 2013 we’ll also be promoting 
the takeup of more sustainable business 
practices to all our team leaders  
through new elearning programmes 
and interactive workshops 
alongside this we’ll run audits of at least 
40 major suppliers every year and will 
expect all of them to meet or exceed 
the targets we set within a 12month 
period environmental issues are 
particularly important here so one 
of our ﬁrst objectives will be to identify 
any particular climate change risks and 
carbon emission hot spots in our supply 
chain and set a baseline against which 
we can measure future performance 
what does this mean in practice
once again this is an area where 
actual rather than estimated data can 
make a real difference we can use 
this data to help engage our own 
people and target areas for quick wins 
by doing this we hope to achieve a  
15 reduction in office energy use by 
2013 compared with the 2010 baseline 
which has been restated to take into 
account acquisitions and other changes 
to the business and an overall recycling 
rate of 80 
we’re also encouraging the use of ultra
low emissions zeroemission and hybrid 
vehicles in our ﬂeet and hope to see a 
further reduction in our average car ﬂeet 
emissions to 135g co2 per km in the next 
year at the same time we’ll work more 
actively with our suppliers to reduce 
packaging waste targeting our top 
ﬁve office suppliers as a ﬁrst priority 
we also aim to establish the percentage 
of suppliers signed on for paperless 
communication and to improve on that 
position going forward by early 2012 
the next two objectives are closely 
related our own environmental objective 
is one of the most important ones for us 
and an area where we believe we can 
make a signiﬁcant impact like many 
other businesses we can do more 
to improve our own environmental 
performance unlike many businesses 
we can help our clients do this as well mitie group plc 
annual report and accounts 201 1
sustainability review
what we do for ourselves we can also 
do for our clients sustainability will be 
an increasingly competitive advantage 
for us going forward as our clients 
look to us to help them improve their 
performance and cut their costs 
we want to offer our clients the best 
service in the market and we can 
only do that if we have the best people 
one way we’ll be doing this is by setting 
ourselves the speciﬁc goal of recruiting 
retaining and motivating our people 
better than any of our peers we want 
all our people to fulﬁl their utmost 
potential and support that through 
formal training and development 
plus opportunities to develop their 
personal skills through volunteering 
this sounds simple enough as an idea 
but given the complexity of our business 
and the sophisticated technical services 
many of our people provide it can be 
a challenge ensuring that every working 
area is as safe as it can possibly be our aim 
is to be even better at doing that 
doing more for our clients 
with less wherever they are 
in the world
underpinning our group strategy
new markets
nurturing our people’s talent
underpinning our group strategy
people
enabling people to work safe 
and go home safe
underpinning our group strategy 
risk
you can read more about what we’re 
doing in all of these areas and see our 
latest performance data at
mitiecomsustainability2011 mitiecomsustainability2011
what does this mean in practice
our innovative low carbon and 
environmental technologies are some 
of the best in the market and noone 
else offers such a complete or integrated 
range we want to grow this area of  
our business and really capitalise on this 
expertise we’ll begin by assessing how 
well our actual and potential clients 
understand our ’green’ capabilities 
and then set ourselves targets to grow 
the business from there we’ll reinforce 
this by ensuring all our employees 
are fully aware of what we can do 
for clients in this increasingly important 
area both in the uk and abroad
what does this mean in practice
earlier in this report we talk about 
our business goals for 2012 if we’re 
to meet these challenges we’ll need 
to have outstanding leaders across the 
business so management development 
will be especially important over the 
next year this will include identifying 
the roles where succession planning 
is either an imminent need or a 
particular challenge 
it’s also vital that all our people 
understand exactly what’s expected 
of them both as individuals and as 
members of teams this is why we’ll 
be refreshing our performance 
management framework and aligning 
it even more closely with our core values 
we’ll be strengthening our internal 
engagement programme establishing 
a core set of measures across mitie so 
we understand the road ahead and 
setting appropriate targets to achieve 
complete reach across the group 
we’ll also encourage people to take 
part as volunteers in a wide range of 
activities whether it’s supporting our 
regional charities’ fundraising efforts 
or getting stuck into our three new 
biodiversity community projects
what does this mean in practice
one of the most effective ways to 
improve health and safety performance 
in any business is to share the lessons 
learned from previous incidents – 
those that happened those that 
were nearmisses and those that were 
successfully prevented one way we’re 
doing this is by providing a new incident 
management platform that will enable 
more effective measurement of a better 
range of health and safetyrelated kpis 
another is by implementing a new 
approach to assessing the root causes 
of incidents and we aim to apply this 
thinking to all major and high potential 
incidents that occur 
we’ll also be launching the third  
phase of our health and safety risk 
management leadership programme 
which is all about ensuring that the most 
senior people in the business lead by 
example when it comes to safety and 
wellbeing at work and further embed 
this focus culturally in the business the 
programme will run in tandem with the 
latest work safe home safe campaign 
which raises awareness of the speciﬁc 
hazards our people might encounter on 
a daily basis of the expected behaviours 
required and to stay safe on the job
the next objective relates to our own 
people who have always been our 
real competitive advantage and the 
reason for our success 
last but deﬁnitely not least our sixth 
objective is in the area of health and 
safety we have a proven track record 
in this area both on our own account 
and in the work we do for clients 
few companies have the extensive 
expertise we do in the management 
mitigation and elimination of risks in the 
workplace it is without doubt one of 
our greatest strengths governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
39
38
a great set  
of results
in fact the 23rd  
consecutive year  
of growth
 k financial review
 k factors that could affect our business mitie group plc 
annual report and accounts 201 1
financial review
strong performance  
on all fronts
suzanne baxter group finance director governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
41
40
mitie has delivered another set of strong 
ﬁnancial results that are underpinned by 
our focus on both organic and acquisitive 
growth cash conversion and the 
maintenance of a strong balance sheet 
during the year we completed 
the integration of the prior year 
acquisitions of dalkia fm and eps ltd 
and have enhanced our portfolio 
on an international basis through the 
acquisition of dalkia fm in ireland 
and the commencement of activities 
in continental europe in support of  
rollsroyce 
we have strengthened our longterm 
funding position by completing an issue 
of us private placement loan notes and 
through the renewal and extension of 
our existing banking facilities these 
facilities provide longterm debt ﬁnancing 
capacity for a range of periods up to 
december 2019  
we enter the new ﬁnancial year in a 
strong position with good prospects 
low gearing and enhanced capacity 
for future growth
financial performance
revenue
revenue has increased by 100 to 
£18914m 2010 £17201m through a 
combination of organic and acquisitive 
growth in line with our strategy the 
increase in revenue is attributable to the 
full year impact of prior year acquisitions 
of £1 135m £19 4m from the acquisition of 
dalkia fm in ireland during the year and 
organic growth of £384m proforma prior 
year revenue including the full year effect 
of acquisitions made in the year ended  
31 march 2010 was £18336m and organic 
growth was 21 on that basis 
we have experienced growth in revenue 
during the year the analysis by operating 
division is set out below
 
201 1 
£m
total  
growth  

organic 
growth  

facilities management 8822 7 0 46
technical facilities 
management
437 1 268 68
property management 5097 27 65
asset management 624 145 145
total revenue 18914 100 21
after the exclusion of discontinued 
activities in our engineering contracting 
business underlying organic revenue 
growth for the year was 35 ﬁrst half  
16 second half 53
the strong growth experienced in our 
facilities technical facilities and asset 
management businesses reﬂects the 
continuation during the year of clients’ 
demand for efficiency enhancing 
energy and facilities management 
solutions challenging conditions 
continued in certain construction related 
markets which negatively affected the 
overall growth proﬁle achieved in our 
property management business
operating proﬁt before other items
operating proﬁt before other items 
increased by 165 to £1083m 2010 
£930m and our margin improved to 
57 2010 54 
the increase in operating proﬁt before 
other items is attributable to the full year 
impact of prior year acquisitions of £24m 
£13m from the acquisition of dalkia fm in 
ireland during the year and organic 
growth of £1 16m proforma prior year 
operating proﬁt before other items 
including the full year effect of acquisitions 
made in the year ended 31 march 2010 
was £954m and organic growth was 
122 on that basis included in operating 
proﬁt before other items is income of £41m 
from an amendment to the past service 
cost of certain deﬁned beneﬁt pension 
schemes as the result of the change from 
rpi to cpi for the valuation of liabilities  
as explained on page 43
other items comprise restructuring and 
acquisition related items as explained on 
the following page 
we have experienced growth in 
operating proﬁt before other items during 
the year the analysis by operating division 
is set out below
 
201 1 
£m
 
margin 

total  
growth  

facilities management 562 64 1 13
technical facilities 
management
246 56 587
property management 214 42 147
asset management 20 32 53
1042 55 120
amendment to deﬁned 
beneﬁt pension scheme 
past service cost
41 – –
total operating proﬁt 
before other items
1083 57 165
the trends in operating proﬁt growth 
reﬂect the market conditions that drove 
our revenue as well as the positive 
contribution from the synergies within 
technical facilities management in 
respect of the acquisition of dalkia fm 
in 2009 
revenue 
 £m
100
2007
2008
2009
2010
2011
15219
12288
1407 2
17201
18914
805
622
722
930
1083
165
2007
2008
2009
2010
2011
operating proﬁt 
before other items 
 £m mitie group plc 
annual report and accounts 201 1
other items
other items for the year were £188m 
2010 £1 19m and comprised the 
amortisation of acquisition related 
intangible assets of £89m 2010 £53m 
and integration acquisition and 
reorganisation costs of £9 9m 2010 £66m 
the increase in the amortisation of 
intangible assets of £36m in the year 
reﬂects the full year effect of the 
amortisation of assets identiﬁed in respect 
of the prior year acquisitions of dalkia fm 
and eps ltd incremental charge £31m 
along with a charge of £05m in respect 
of the amortisation of intangible assets 
identiﬁed during the year following the 
acquisition of dalkia fm in ireland 
integration and acquisition costs of 
£51m 2010 £66m were incurred during 
the year in respect of the acquisitions 
of dalkia fm eps ltd and dalkia fm in 
ireland these charges mainly comprised 
costs associated with the implementation 
of new management internal control 
and back office systems and structures 
furthermore costs of £48m have been 
incurred in respect of the restructuring 
of certain parts of the group’s property 
management business these costs are 
not expected to recur 
after the impact of other items the 
operating proﬁt for the year was £89 5m 
2010 £811m
finance costs
net ﬁnance costs for the year were £27m 
2010 £14m the increase in net costs 
during the year reﬂects the impact of 
funding costs associated with recent 
acquisitions and the increase in interest 
rates payable by the group attributable 
to £100m sterling equivalent borrowings 
drawn down under us private placement 
loan notes in december 2010 as part of 
our reﬁnancing activities 
proﬁt before tax 
proﬁt before tax and before other items for 
the year increased by 153 to £1057m 
2010 £917m 
reported proﬁt before tax for the year 
was £868m 2010 £79 7m an increase 
of 89 on the prior year 
taxation
the tax charge for the year was £214m 
2010 £222m an improvement in the 
effective rate of tax to 247 2010 27 9 
the improvement in the effective tax 
rate is  attributable to the £05m positive 
impact of recalculating the group’s 
overall deferred tax liability at the 
lower corporation tax rate of 26 which 
is effective from 1 april 201 1 along with 
a credit of £32m in respect of prior 
year items 
proﬁt after tax
reported proﬁt after tax for the year 
was £654m 2010 £57 5m an increase 
of 137 on the prior year 
earnings per share
our track record of delivering stakeholder 
value through earnings growth continued 
this year basic eps before other items 
increased by 159 to 226p per share 
2010 19 5p per share 
basic eps was 186p per share 2010 169p 
per share an increase of 101 this latter 
measure showed lower growth due to 
the impact of inyear integration and 
restructuring costs that are nonrecurring
dividend
it is mitie’s policy to grow its dividend in 
line with adjusted earnings per share the 
ﬁnal dividend proposed by the board has 
increased by 19 5 to 49p per share 2010 
41p per share this brings the full year 
dividend to 9 0p per share 2010 7 8p per 
share an increase of 154 the full year 
dividend reﬂects a cover of 25 times 
adjusted earnings per share in line with 
our dividend policy
cash ﬂow funding and liquidity
the conversion of group earnings 
before interest tax depreciation and 
amortisation ebitda to cash for the year 
was achieved at a rate of 867 2010 
952 the cash performance of the group 
remains strong and in excess of our stated 
key performance indicator which targets 
the conversion of ebitda to cash at or 
above 80 on a rolling 12 month basis 
cash conversion measures the success 
of the group in converting operating 
proﬁt measured by ebitda to cash and 
demonstrates the quality of earnings 
and effective cash management 
mitie has consistently delivered cash 
conversion in excess of 90 over the last 
ﬁve years we commented in last year’s 
annual report that we had consciously 
reduced the cash conversion target for 
the current year to 80 as we expected 
to invest in working capital to support 
the organic growth of the business 
we recognised that larger scale fm 
contracts that were expected to enter 
our portfolio during the year would require 
the support of working capital during their 
early months of operation we maintain 
our focus on cash which has allowed us 
to deliver consistently strong performance 
in cash conversion over the last ﬁve years
financial review
759
566
67 9
797
868
89
2007
2008
2009
2010
2011
proﬁt before tax  
 £m
17 2
128
149
19 5
226
basic earnings per share 
before other items 
 p
159
2007
2008
2009
2010
2011
167
11 9
143
169
186
10 1
2007
2008
2009
2010
2011
basic earnings per share 
 p
154
2007
2008
2009
2010
2011
dividend per share 
 p
69
51
60
78
90 governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
43
42
the gearing of the group has remained 
modest and net debt at 31 march 201 1 
was £7 65m 2010 £866m representing a 
net debt to ebitda ratio of 065 2010 084 
during the year we have focused on 
establishing a renewed and longer term 
funding platform for the group as part of 
our reﬁnancing strategy on 16 december 
2010 mitie successfully completed an 
issue of us private placement loan notes 
with institutional investors for a value of 
£100m the issue consists of £40m of notes 
denominated in sterling and ﬁxed at an 
interest rate of 438 maturing in december 
2019 and £60m of notes denominated 
in us dollars 96m maturing in december 
201 7  the us dollar denominated private 
placement proceeds have been 
swapped into sterling debt with half ﬁxed 
at an interest rate of 388 and half with 
a ﬂoating sterling interest rate of libor  
126 the proceeds were used to repay 
shorter dated bank facilities which were 
due to expire in 2012
in addition on 29 march 201 1 mitie 
secured new committed banking facilities 
of £250m which will fall due for renewal 
in september 2015 and will be available 
for drawdown following the agm in july 
201 1 the group also has further overdraft 
facilities of £40m 
key performance indicators kpis
mitie uses a set of clear ﬁnancial and  
nonﬁnancial kpis to measure and 
communicate critical aspects of our 
performance these kpis are aligned 
with our strategic objective of achieving 
sustainable proﬁtable growth and 
our ﬁnancial kpis are speciﬁcally 
focused on the level and quality of our 
earnings and cash ﬂows the control of 
capital expenditure and the sustainability 
of dividends 
we have performed strongly against 
these measures again this year and have 
now demonstrated a ﬁveyear track 
record of strength in each 
details of our ﬁnancial kpis are set out 
on page 14 of this report 
pensions
our ﬁnancial strength remains unaffected 
by any signiﬁcant deﬁcit in respect of 
the deﬁned beneﬁt pension schemes 
to which the group contributes the net 
funding position of all the deﬁned beneﬁt 
pension arrangements included on 
the balance sheet is a deﬁcit of £30m 
2010 £105m this included a deﬁcit of 
£30m on the principal group scheme 
2010 £68m 
the group also contributes to a number 
of deﬁned contribution pension schemes 
as well as making contributions to its 
customers’ deﬁned beneﬁt pension 
schemes under admitted body local 
government status as well as to other 
arrangements in respect of certain 
employees who have transferred to the 
group under tupe the group’s deﬁned 
beneﬁt pension obligations in respect 
of schemes in which it is committed to 
funding amounted to £00m 2010 £37m
following the announcement in the 
june 2010 budget the uk government 
has announced that it will use the cpi 
measure of inﬂation rather than rpi to 
determine the level of future statutory 
pension increases as cpi is lower than 
rpi the application of cpi to the valuation 
of future pension liabilities results in 
a reduction in the value of pension 
obligations on the balance sheet 
the move to a cpi based valuation base 
affects certain of the group’s deﬁned 
beneﬁt pension liabilities the ﬁnancial 
implication of this has been treated as a 
change in deﬁned pension beneﬁts and 
recognised as a negative past service 
cost in the income statement as a result 
of this change a credit of £41m has been 
recognised in the income statement for 
the year ended 31 march 201 1
acquisitions
on 25 june 2010 mitie acquired the 
integrated facilities management 
business of dalkia in ireland this business 
provides integrated fm solutions for a 
range of clients in the public and private 
sectors operating across a range of 
industries including technology and 
communications transport and logistics 
manufacturing utilities and ﬁnance 
the total consideration payable will be up 
to €125m £106m with up to €2m £18m 
only payable dependent upon the 
business achieving a minimum level of 
earnings before interest tax depreciation 
and amortisation for the year ended 
31 december 2010 and other speciﬁc 
targets initial consideration of €9 5m 
£7 9m and €10m £09m of deferred 
consideration was paid in cash during 
the year from the date of ownership 
the business has contributed revenue of 
£19 4m and operating proﬁt before other 
items of £13m which is in line with our 
acquisition business case acquisition 
and integration costs of £03m and £10m 
respectively were incurred during the year 
ended 31 march 201 1
mitie also increased its stake to 50 in 
service management international for 
£05m smi uses a network of fm service 
providers in 34 different territories to tender 
global contracts in which mitie delivers 
the uk services further details of these 
acquisitions can be found within note 31 
to the accounts 
mitie’s entrepreneurial 
investment model 
in august 2010 mitie purchased certain 
minority shareholdings of six mitie 
subsidiary companies under their 
respective articles of association and 
shareholder agreements in accordance 
with arrangements under our 
entrepreneurial investment programme 
known as the mitie model the total 
consideration for all six purchases 
amounted to £68m being satisﬁed as 
to £04m in cash and as to the remaining 
£64m by the issue of 30m new ordinary 
shares of 25p each in mitie group plc 
valued at 209 2p per share being the 
closing market price per share on 
28 july 2010 
suzanne baxter 
group finance director mitie group plc 
annual report and accounts 201 1
strategic risks
category areas of risk mitigation
loss of competitive position
identiﬁcation of appropriate markets and strategies 
investment in infrastructure attraction and retention 
of talented people bid strategy maintenance of 
competitive funding structure identiﬁcation of and 
compliance with key certiﬁcationstandards
focus on clear strategic priorities business case for 
investment in new infrastructure ongoing recruitment 
of new talent attractive reward and retention models 
for key teams strong relationships with equity and 
debt funders internal and external audits 
inadequate management and 
infrastructure to support development 
knowledge of local regulations and practices political
exchange rate risk management control over operations 
management of people suppliers infrastructure and 
culture
approval process for entry into overseas markets 
building overseas knowledge through existing work 
in some overseas jurisdictions formal delegated 
authorities involvement of external specialists insurance 
management of foreign currency exposure
signiﬁcant damage to brand reputation
market perception traditional and social media 
attention consistent brand management
operational framework and risk management 
processes clear policies and procedures on internal 
and external communication dedicated corporate 
affairs team media training brand standards 
dedicated marketing teams 
failure of acquisitions to deliver 
expected beneﬁts
strategic and cultural ﬁt due diligence synergies 
integration issues tupe and pension considerations 
increased gearing management
clear strategy experienced due diligence team 
integration governance and framework deferred 
consideration post acquisition reviews
growth opportunities are not optimised
adaptability of bid teams to market changes pricing of 
tenders agreement of contractual terms and conditions
relationship management programmes in place with 
key targets investment in and a regular review of bid 
pipeline tender and contractual review process with 
clearly deﬁned approval process
responsibility objectives are not met
delivering on our commitment to act sustainably 
and responsibly compliance with social ethical and 
environmental standards consistency of approach 
governance structure and policies data capture 
and impact analysis awareness training carbon 
management strategies
financial risks
category areas of risk mitigation
failure to achieve ﬁnancial objectives
approach to and application of ﬁnancial management 
procedures
group policies and procedures on ﬁnancial 
management dedicated group functions clear 
ﬁnancial key performance indicators to measure and 
communicate ﬁnancial performance formal delegated 
authorities tiered level of review and challenge on 
ﬁnancial results clear internal ﬁnancial controls and 
statement of compliance internal and external audits 
market conditions negatively impact 
on company performance
client credit risk change in customer requirements 
and circumstances change in stock ﬁnancial and 
operational markets price competition change in 
government policyspending inﬂation and interest 
rate uncertainty 
limits in place to manage exposure to individual 
customers and subcontractors hedging 
groupwide credit exposure consolidation tool 
credit insurance ongoing dialogue with ﬁnancial 
community change control procedures
inadequate liquidity to meet obligations
facility maturity risk terms of borrowing instruments short
term cashﬂow movements changes in funding markets
diversiﬁcation of funding sources and tenure regular 
reporting on key indicators cash ﬂow forecasting for 
visibility of short and long term funding requirements 
daily and weekly monitoring of bank balances £250m 
facility spread across six banks and ongoing relationships 
with funders us private placement funds of £100m and 
long term maturity £40m overdraft facility in place 
counterparty or company fails to 
meet obligations leading to signiﬁcant 
ﬁnancial loss
availability and cost of funding covenants credit risk of 
insurers and funding providers pension and share scheme 
administration client and supply chain exposure
daily review of bank balances and quarterly 
review of covenants controls over acceptance 
of counterparty risk audit of key counterparties 
governance over pension schemes 
signiﬁcant ﬁnancial loss due to fraud 
or other economic crimes
volumes of transactions driven by numbers of employees 
customers suppliers and other stakeholders and impact 
of economic climate 
processes and systems designed to prevent fraud
economic crimes conﬁdential whistleblowing and 
reporting channels to investigate and take remedial 
action on identiﬁed instances
factors that could affect our business
a thorough review
of our principal risks 
and uncertainties
a comprehensive approach to risk identiﬁcation mitigation 
and management is critical to mitie and allows us to operate 
and develop our business in the knowledge that key risks 
have been considered accurately and planned for robustly 
the principal risks and uncertainties we face are set out below governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review
45
44
operational risks
category areas of risk mitigation
major health safety or  
environmental incident
working at height working with electricity gas or 
asbestos driving and vehicle safety fire water and  
waste management food safety manual handling  
and hazardous materials slips trips and falls
ongoing training for all employees supported 
by qhse professionals provision of appropriate 
equipment and ppe speciﬁc procedures in place  
for high risk areas internal and external audits
inability to trade
access to premises systems and utilities payment of 
employees adverse weatherevent legislation and 
licence to operate industrial relations provision of 
technology based management information solutions 
to clients control over portfolio and implementation of 
new systems
malicious software protection multiple network routes 
to data centres experienced inhouse it resources 
process and governance for implementation of new 
and existing systems systems support and backups 
diversity and geographic spread of operations 
flexible workforce and network access disaster 
recoverybusiness continuity plans application of 
due process
failure to deliverretain existing business
mobilisation within speciﬁc timescales coordination of 
multiservice delivery complex technical speciﬁcation 
changes to scale and scope of contract works client 
retention availability of appropriately skilled personnel
management of mobilisation plans teams skilled 
to deal with existing and changing technical and 
operational requirements contract management 
and review protocols and plans comprehensive 
business management and controls systems focus 
on innovation and use of technology to add value to 
client service proposition relationship management 
programmes in place with clients 
lack of appropriately skilled people
attraction motivation and retention of talented 
people resourcing at appropriate levels performance 
management management training legislative 
compliance 
competitive remuneration employee reward system 
management and personal development plans 
succession planning apprenticeship and mitie talent 
programmes governance and audit structures to 
ensure legislative compliance
subcontractorssuppliers perform  
poorlyare not appropriately insured
performance of subcontractors and suppliers 
affecting client relationships third party health and 
safety procedures and insurance financial penalties 
consequential lossdamages over reliance on key 
service providers
vetting and induction procedures to meet key 
certiﬁcationstandards document monitoring 
relationship management and performance 
monitoring divisional tcs in place maintenance 
of appropriate insurance both internally and of sub
contractorssuppliers 
loss of conﬁdential information 
availability and security of key systems data storage 
devices and corporate information
malicious software protection policies and 
procedures over use and loss of data physical and  
it access controls and segregation of duties 
compliance risks
category areas of risk mitigation
lack of insurance cover  
or material litigation
insurance covenants visibility of claims increasing 
operational scale balance of internally held risk versus  
risk borne by the market
group and divisional management systems  
annual review of insurance cover and selfinsurance 
all incidents reported within 48 hours risk reduction 
programmes run in conjunction with insurers
noncompliance with legislation
awareness of relevant laws regulations and 
amendments industry licensing capital market 
regulations banking covenant compliance 
departmental responsibility for relevant regulatory 
requirements including new senior accounting 
officer equality and bribery  corruption act 
requirements expert external advisors speciﬁc 
compliance systems in place ongoing training and 
guidance conformance monitoring internal  
external audits mitie group plc 
annual report and accounts 201 1


the directors submit their report together with the audited consolidated financial statements of the mitie group of 
companies for the year ended 31 march 2011 the directors’ report includes the business review the corporate 
governance statement the remuneration report the directors’ responsibility statement all other parts of this annual 
report and accounts and those documents that are referred to within this report and are available 
at wwwmitiecominvestorscorporategovernance 

mitie group plc is the holding company of the group the principal activity of the company is to provide 
management services to the group the group’s activities are focused on the provision of strategic outsourcing 
and energy services in support of the buildings facilities and infrastructure of its clients further details of the subsidiary 
undertakings of the company principally affecting the profits or net assets of the group in the reporting period are listed 
in note 37 to the financial statements  

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 
 
  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance
47
 

 
roger matthews 
nonexecutive chairman 
chairman of the nomination committee 
member of the remuneration committee 
roger was appointed as a nonexecutive director of mitie 
group plc in december 2006 and was later appointed 
as nonexecutive chairman in july 2008 roger previously 
held the roles of group finance director of j sainsbury plc 
and group managing director and group finance 
director of compass group plc roger is nonexecutive 
chairman of lsl property services plc a nonexecutive 
director of zetar plc and trustee of cancer research uk 
ian stewart 
nonexecutive deputy chairman  
ian was appointed as chief executive of mitie group plc 
in 2001 and was appointed as nonexecutive deputy 
chairman in march 2007 ian was a founding member of 
mitie 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 
during the year ruby was appointed to the board of 
trustee directors for the business in the community bitc 
organisation and continues to act as chair of race for 
opportunity a part of the 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 
 
bill robson 
executive director 
bill joined mitie group plc in january 1992 following the 
acquisition of trident maintenance services limited 
he was appointed as an executive director in august 2001 
and now holds the position of managing director of the 
group’s property management division 
  
larry hirst cbe  
nonexecutive director 
member of the audit committee 
larry joined mitie as a nonexecutive director on 
1 february 2010 he held the position of chairman of ibm 
europe middle east and africa until july 2010 and held 
a number of senior positions during his 32 year career with 
ibm including general manager ibm northern region and 
chief executive ibm uk and ireland larry was previously 
appointed as chairman of eskills sector skills council 
larry was appointed as a nonexecutive director of arm 
holdings plc in january 2011 and is also nonexecutive 
chairman of uk trade and industry technology board 
a commissioner of the uk commission for employment 
and skills and a uk business ambassador 
david jenkins  
senior independent director 
chairman of the audit committee 
member of the nomination and remuneration committees 
david was appointed as a nonexecutive director in 
march 2006 david was previously a senior partner with 
deloitte llp in london having spent over 20 years in 
assurance and advisory services david is chairman 
of development securities plc and a nonexecutive 
director of renewable energy systems holdings limited 
he is a governor of downe house school 
terry morgan cbe 
nonexecutive director 
chairman of the remuneration committee 
member of the audit and nomination committees 
terry was appointed as a nonexecutive director in july 
2009 he is currently chairman of crossrail and holds 
positions at m j gleeson group plc invest in thames 
gateway london limited manufacturing technology 
centre limited and the national skills academy for railway 
engineering terry was previously chief executive of tube 
lines limited and has also held positions with bae systems 
rover group plc and lucas girling limited 
graeme potts 
nonexecutive director 
member of the remuneration committee 
graeme was appointed as a nonexecutive director in 
july 2006 graeme previously held appointments with 
inchcape plc rac motoring services and reg vardy plc 
he is a nonexecutive director of ben the motor  allied 
trades benevolent fund and is nonexecutive chairman 
of bikers legal defence limited graeme is managing 
director of eden gm limited a motor retail group 
  
 
46 mitie group plc 
annual report and accounts 201 1


the board recognises that the manner in which the group is governed is critical to the longterm success of the business 
and is committed to the principles of corporate governance for which the board is accountable to shareholders as 
detailed in the combined code on corporate governance 2008 the code in may 2010 the financial reporting 
council ‘frc’ introduced the uk corporate governance code 2010 the ‘new code’ the disclosure requirements 
of the new code apply to companies with accounting periods commencing on or after 29 june 2010 accordingly 
the disclosure requirements of the new code will be reported in the 2012 corporate governance statement however 
all other provisions of a continuing nature are referred to where relevant within this statement 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 and the new code where relevant 
throughout the reporting period significant consideration has been given to the balance of the board and its 
committees and the board is conscious of any noncompliance with the code during the year and before the 
retirement of roger goodman on 31 march 2011 the board reflected a ratio of 45 of independent directors to non
independent directors excluding the chairman compared to a 11 requirement under the code the board confirms 
that the group has complied with all relevant provisions set out in section 1 of the code throughout the year other than 
as noted above  
with effect from 1 april 2011 the board complies with the provisions of code a3 and has going forward an equal 
number of independent and nonindependent directors excluding the chairman 

role of the board  
the board is collectively responsible for the longterm success of the company and accordingly reviews and agrees 
the strategy for the group proposed by the executive directors on an annual basis in setting the strategy the board 
takes account of key matters such as market trends competitive environment privatepublic sector approach 
international aspects people and talent and the mitie model as explained further below ensuring at all times that 
sufficient consideration is given to risk and internal controls matters that are exclusively dealt with by the board include 
setting group objectives and strategies approving business plans and budgets and monitoring performance against 
these approving material acquisitions disposals and business startups including any material transactions outside of 
the normal course of business approving the group’s halfyearly and annual report and accounts appointing and 
removing the chairman directors and company secretary management of the group’s risk profile and monitoring the 
group’s corporate governance arrangements approvals are managed in accordance with the group’s delegated 
authorities and matters are also set out in a schedule of matters reserved for the board which is available at 
wwwmitiecominvestorscorporategovernance 
roles and responsibilities 
there is a clear division of responsibility between the roles of chairman and chief executive as formally set out in the 
terms of reference for each of these roles the chairman is a nonexecutive director and is responsible for the effective 
running and leadership of the board ensuring its effectiveness the chairman liaises with the company secretary on 
the annual board plan agrees and sets the board agendas ensuring at all times that there is sufficient time allocated 
for strategic discussions the chairman encourages openness and fluid communication between executive and  
nonexecutive directors a culture which has been facilitated by meetings between the chairman and individual 
directors the chairman ensures that the nonexecutive directors contribute effectively and that the executive and 
nonexecutive directors are aware of the views of major shareholders he is also responsible for ensuring that the 
board addresses major challenges faced by mitie and for the effective performance of the board and its committees 
the chairman is available to consult with shareholders throughout the year and will be available at the annual general 
meeting ‘agm’ 
the chief executive is responsible for all aspects of the operation and management of the group and its business 
within the authorities delegated by the board she is responsible for developing and effectively implementing strategy 
following approval of the strategic and financial plan by the board the chief executive’s remit includes proposing 
investment into new business and geographical areas and ensuring at all times that the group’s risk profile is 
appropriately considered she ensures the timely and accurate disclosure of information to the board and to 
shareholders she leads the executive directors and senior management team in the daytoday running of the group’s 
business under clear delegation of authority from the board the chief executive maintains regular dialogue with the 
chairman on all important company matters and together they provide coherent leadership of the group   governance accounts
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49
 nonexecutive directors are responsible for exercising their independent skill and judgement in reviewing the proposals 
for the strategic direction of the group the nonexecutive directors constructively challenge and probe the executive 
directors offering a breadth of knowledge experience and individual skills in addition the nonexecutive directors 
are responsible for contributing to the formulation and development of strategy during the reporting period the  
nonexecutive directors held onetoone meetings with certain senior divisional management teams to gain wider 
understanding and appreciation for the business when approving strategy in addition the nonexecutive directors 
monitor high level corporate reporting and satisfy themselves as to the integrity of financial information and the 
operation of key financial controls the terms of appointment of the nonexecutive directors’ and the executive 
directors’ service contracts are available for inspection at mitie’s registered office the head office and at the agm 
the role of the senior independent director is to make himself available to shareholders should they have concerns 
which have not been resolved through the normal channels of chairman chief executive or group finance director 
or for which such contact is inappropriate in the circumstances the senior independent director in particular reviews 
information on major shareholders and financial analysis to obtain a balanced understanding of the issues and 
concerns of shareholders explained further below is the senior independent director’s role in succession planning 
and performance evaluation for the chairman 
the company secretary is responsible for ensuring good communication flows within the board and its committees 
and ensuring that board procedures are complied with 
director indemnity 
the company maintains directors’ and officers’ liability insurance providing appropriate cover for any legal action 
brought against its directors andor officers the memorandum and articles of association of the company extend 
the protection provided to directors in respect of any litigation against directors relating to their position as a director 
of the company and specifically provide that the company may indemnify directors against any liability incurred in 
connection with any negligence default breach of duty or breach of trust in relation to the company and that the 
company may fund defence costs individual directors would still be liable to pay damages awarded to the company 
in any action against them by the company and to repay their defence costs to the extent funded by the company 
if their defence was unsuccessful  
48 mitie group plc 
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composition of the board 
the membership of the board as at 31 march 2011 and biographical details of the directors including details of 
committee chairmanships and other positions held are given on page 47 during the year one executive director 
roger goodman retired from the board to comply with provision b71 of the new code all directors will submit 
themselves for reelection at the forthcoming agm and details are provided in the notice of agm which is also 
available at wwwmitiecominvestors  
during the year nonexecutive director independence was considered by the board the board determined that 
all nonexecutive directors as at 31 march 2011 with the exception of the deputy chairman ian stewart were 
independent in mind and judgement and free from any material relationship that could interfere with their ability 
to discharge their duties effectively specific consideration was given to david jenkins’ prior role with deloitte llp 
mitie’s external auditors and his term of appointment the board determined that david is independent given that he 
had not been involved in the provision of services to mitie and the passage of time since his departure from deloitte llp 
in may 2004 the board has determined that david continues to provide independent influence and constructive 
support to the group in his role as senior independent director 
as part of the ongoing review of board performance the nomination committee and the board specifically reviewed 
the roles of chairman and senior independent director and the composition and chairmanship of each of its 
committees the board is satisfied that its composition is appropriate having regard in particular to the integrity skills 
knowledge and experience of its directors and the size and nature of the business and having regard to its desire 
that the board does not become too large and unwieldy the board as at 31 march 2011 following roger goodman’s 
retirement was comprised of four independent nonexecutive directors a nonexecutive director deemed non
independent as a result of his prior role as chief executive of the group the nonexecutive chairman and three 
executive directors  
the board has four formally constituted committees the audit committee the executive committee the nomination 
committee and the remuneration committee for which the duties and responsibilities of each are set out in the terms 
of reference which are available at wwwmitiecominvestorscorporategovernance all board committees are 
provided with sufficient resources to undertake their duties further details in relation to the composition role and 
functioning of each committee are set out within this directors’ report with the exception of the remuneration 
committee which is explained further in the remuneration report on page 61  
the executive committee members are ruby mcgregorsmith suzanne baxter bill robson and until his retirement as 
a director on 31 march 2011 roger goodman it functions primarily as an approval and signing committee and meets 
on an ad hoc basis as and when required powers are specifically delegated to the committee by the board as 
evidenced in the board minutes and the group delegated authorities register and the committee are instructed 
to revert to the board should any further decision making be required 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  
board appointments  
the nomination committee leads the process for appointments to the board and makes appropriate 
recommendations to the board directors are appointed and may be removed in accordance with the articles 
of association of the company and the provisions of the companies acts as at 23 may 2011 the members of the 
committee are roger matthews committee chairman david jenkins and terry morgan ruby mcgregorsmith 
stepped down from the committee during the year but continues to attend meetings at the invitation of the chairman  
during the year the committee met to evaluate the balance and composition of the board the committee is 
committed to ensuring that new directors bring the requisite skills knowledge and experience required for the role 
being considered it oversaw the board succession planning with relation to the retirement of roger goodman and 
determined that his responsibilities be maintained by the executive board members in considering any succession for 
the role of the chairman the senior independent director chairs the committee in addition with support from the 
newly appointed group hr director the committee has introduced a separate meeting in the coming year which will 
be attended by the chief executive and group hr director to address succession planning for the board and across 
the group to ensure that there is a sufficient mix of experience and skills the committee recognises the need for the 
board to have a balance of skills experience independence and knowledge of the company as outlined in b1 of the 
new code and in the search for new candidates the committee has due regard for the benefits of diversity including 
gender in line with section b2 of the new code new director appointments recommended to the board by the 
committee are undertaken in accordance with the committee’s objective appointment and recruitment process 
director commitments 
executive directors are permitted to accept appointments outside the group provided permission is sought from the 
chairman and the chief executive and that the additional appointments do not interfere with the directors’ ability 
to discharge their duties effectively the commitments outside the group of the executive directors are detailed 
in the remuneration report on page 64 executive directors are entitled to retain any fees earned from these 
external appointments  governance accounts
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51
 director development 
the board has a general policy that each new director receives a tailored induction suitable to their role which includes 
visits to company and key client sites 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 in addition to the induction pack all directors 
receive a copy of the board handbook which contains essential information such as board and committee terms of 
reference an overview of directors’ statutory duties corporate governance and regulatory guidelines a copy of the 
board delegated authorities and an overview of the company’s insurance arrangements the handbook is reviewed 
and updated regularly as and when regulatory developments arise  
director information and support 
directors are supplied with an agenda and supporting papers for all board meetings in a timely manner and in the 
same timeframe have access to a secure facility for accessing board packs electronically this ensures that each 
director is appropriately briefed and able to discharge their duties properly papers submitted regularly for the board’s 
review include reports on health and safety current trading and performance corporate development activities and 
briefings from the company secretary on matters relating to corporate governance the board will also receive from 
time to time detailed presentations from nonboard members on operational matters the board its committees and 
its directors have access to the advice and services of the company secretary and where appropriate external 
independent legal advice funded by mitie in addition to scheduled board and committee meetings during the year 
the chairman met the nonexecutive directors on several occasions without the executive directors being present and 
the chairman of the audit committee meets with the group finance director on a regular basis 
all directors are expected to allocate sufficient time to the company to discharge their responsibilities effectively 
and where possible attend all board meetings and the agm any time commitment matters are addressed by the 
chairman with the director concerned during the year ended 31 march 2011 there were six scheduled board 
meetings additional unscheduled board meetings were held to deal with the review and approval of acquisitions 
and issues relating to shares and other administrative matters each year the board holds a dedicated strategy meeting 
and a budget meeting directors’ attendance at scheduled board and committee meetings audit remuneration and 
nomination of which they are members is shown in the following table 
director  board audit  remuneration nomination 
number of meetings held in year  6 3 8 1
  
r j matthews 6– 8 1
i r stewart  6– ––
r mcgregorsmith
1
 6– ––
s c baxter  6– ––
n r goodman
2
 6– ––
w robson  6– ––
d s jenkins  63 81
g j potts  6– 7–
t k morgan cbe 6 3 8 1
l hirst cbe 63 – –
  
note 
1 ruby mcgregorsmith stepped down from the nomination committee in may 2010 
2 roger goodman retired from the board on 31 march 2011 
directors’ interests  
with regards to the appointment and replacement of directors the company is governed by its articles of association 
the code the new code the companies acts and related legislation the articles may be amended by special 
resolution of the shareholders  
director conflicts 
the board has a formal policy on the declaration and management of director conflicts in accordance with the 
articles of association of the company which has operated effectively during the reporting period any potential 
situation or transactional conflict must be reported as soon as possible to the chairman the chief executive and the 
company secretary where a potential conflict is authorised under the statutory powers and powers granted under 
the articles of association to the board such conflict is kept under ongoing review 
50 mitie group plc 
annual report and accounts 201 1

 
board evaluation and reelection 
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 meetings 
and discussions this process includes feedback on the performance of the chairman which is reviewed by the senior 
independent director and independent discussions are held as required with the nonexecutive directors in order to 
appraise the performance of the chairman 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 introducing a separate meeting to 
deal with strategic planning each year which is followed up with defined actions to be reported back to the board 
clearer focus within management reporting on strategic matters and a strengthening of the hr support for the 
remuneration committee as part of the formal board evaluation the board has considered the performance of each 
director and is satisfied that they continue to be effective and demonstrate clear commitment to their role to comply 
with provision b71 of the new code all directors are subject to annual reelections the board is currently considering its 
approach to the externally facilitated performance evaluation of directors every three years in accordance with b62 
of the new code 

financial and business reporting 
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 the business 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 4 and 5  
− the chief executive’s review on pages 6 to 11  
− the key performance indicators on pages 12  1   
− the marketplace overview on pages 30 and 31 
− the operating review which includes the business model on pages 31 to 34  
− the sustainability review on pages 35 to 38 
− the financial review on pages 39 to 43 and 
− factors that could affect our business on pages 44 and 45 
collectively these sections present a balanced assessment of the company’s position and prospects they demonstrate 
how the directors have acted in the way most likely to promote the success of the company explaining how the 
company generates and preserves value over the longer term and provides an overview of the strategy for delivering 
the company’s objectives 
going concern 
the directors acknowledge the financial reporting council’s going concern and liquidity risk guidance for directors 
of uk companies issued in october 2009 the group’s business activities together with factors likely to affect its future 
development performance and position are set out in the business review as referred to on pages 6 to 45 the financial 
position of the group its cash flows liquidity position and borrowing facilities are described in the financial review on 
pages 40 to 43 in addition note 25 to the consolidated financial statements includes details of the group’s objectives 
policies and processes for managing its capital its financial risk management objectives details of its financial 
instruments and hedging activities and its exposure to credit risk and liquidity risk 
the group’s financial forecasts taking into account possible sensitivities in trading performance indicate that the group 
will be able to operate within the level of its committed borrowing facilities 
the group’s committed borrowing facilities comprise £100m of us private placement loan notes expiring between 
december 2017 and december 2019 which were issued in december 2010 and its committed banking facilities 
the group renegotiated its banking facilities in march 2011 and its new committed facility of £250m will be available 
for drawdown in july 2011 subject to the approval of an amendment to the articles of association at the forthcoming 
agm to clarify the definition of borrowing limits until that point the group’s existing committed banking facility of 
£230m remains available for use by the group the new committed facility will remain in place until september 2015 
the directors have a reasonable expectation that the group has adequate resources to continue in operational 
existence for the foreseeable future thus they continue to adopt the going concern basis of accounting in preparing 
the annual report and accounts  
to 4 governance accounts
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53
 risk management and internal control 
the board recognises that it is responsible for determining the level of risk acceptable that is appropriate for the group 
when establishing and operating to achieve the group’s strategic objectives the board is responsible for the group’s 
system of internal control and for reviewing its effectiveness this system is designed to support the group’s pursuit of 
achieving its objectives and strategies and also the identification and management of risks that may impact upon mitie 
and upon the environment in which the group operates the system of internal control is designed to manage rather 
than eliminate the risk of failing to achieve these objectives and strategies and it will only provide reasonable and not 
absolute assurance against material misstatement and loss 
internal control framework 
the board and senior management are responsible for maintaining and developing a culture of integrity competence 
fairness and responsibility throughout the group essential to this is the recruitment and retention of 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 
monitoring the system of internal control 
monitoring is carried out throughout the year via the receipt and review of various reports presentations and discussions 
with management as set out above specifically the audit committee supports the board by monitoring and guiding 
the activities of the internal audit function including approving the internal audit programme 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 auditors to further encourage a culture 
of risk management within the business the executive board regularly reviews the programme of risk management 
undertaken across the group to demonstrate the importance of the management and assessment of risk at a senior 
level 
risk management 
the board confirms that there is a continuing process for identifying evaluating and managing significant risks faced 
by the group which has been reviewed and improved during the reporting period with support from grant thornton 
this work has focused on the assurance framework that exists within the group the use and compilation of risk registers 
and an increase in the use of computer assisted audit techniques the board confirms that its risk assessment process 
has been in place throughout the reporting year and up to the date of approval of the annual report and accounts 
and that this process is monitored by the board in accordance with the revised guidance on internal control issued by 
the financial reporting council specifically the board considers the nature and extent of the significant risks it takes in 
setting strategy which are detailed further in the section regarding risk factors that could affect the business on pages 
44 and 45 the process for identifying evaluating and managing risks requires the group and its principal businesses to 
consider strategic operational financial and compliance risks and the effectiveness of the mitigating controls based 
on a pre and postcontrols risk evaluation the principal risks identified from this process are recorded on the group’s 
risk register which is maintained by the group’s business risk function this register is reviewed periodically by the board 
the risk register forms the basis of the internal audit programme for each year with risk areas reviewed on an annual 
to triennial basis dependent upon materiality and inherent risk assessment during the reporting period the board 
has been considering the introduction of the bribery act 2010 and accordingly has implemented a revised fraud 
policy and accompanying procedures to mitigate the risks posed within the business ‘whistleblowing’ activity is 
communicated to the audit committee along with the results of investigations carried out these investigations have 
not identified any risks that result in a material unmitigated exposure to the group 
52 mitie group plc 
annual report and accounts 201 1

 
reviewing the effectiveness of the system of internal control 
in line with turnbull guidance and c21 of the new code the board performs a formal annual assessment of the 
operation and effectiveness of the system of internal control covering all material controls including financial 
operation and compliance controls and updates this assessment prior to the signing of the annual report and 
accounts the board also holds discussions with senior management and reviews the results of a formal internal controls 
review and system effectiveness confirmation from each operating subsidiary the head of business risk attends each 
audit committee meeting to provide regular updates on the effectiveness of the group’s internal controls the board 
confirms that management has taken steps during the year to improve the system of internal control embed effective 
controls further into the operations of the group and to address improvements as they come to management’s 
attention these steps are monitored at executive level to ensure they are implemented appropriately and that 
they are effective 
consolidated accounts preparation and financial reporting 
the consolidated accounts of the group are prepared by the group finance function that is responsible for the review 
and compilation of reports and financial results from each of the operating divisions and subsidiaries within the group 
in accordance with the group internal control and reporting procedures each operating division supports its report and 
results submission with a statement of compliance with the group’s principal internal controls which is subject to review 
and sample audit by the internal audit function in addition the representations made by the board in support of the 
consolidated financial statements including those in relation to the operating divisions are supported by detailed 
papers and cascaded reporting requirements throughout the group which are reviewed by either the group finance 
team or internal audit and presented to the audit committee and the board for final approval as appropriate  
internal control systems information and communication 
the group maintains a number of systems and processes that report relevant information to group executive 
management and the board as necessary this includes financial and nonfinancial information regarding business 
performance compliance with policy and procedure relevant regulations and business critical matters at an 
operational level each division and business holds regular board and management meetings to maintain and develop 
relationships between separate divisions and to address specific matters regional meetings are also held and are 
attended by regional representatives of each division senior group management also regularly attend these meetings 
the audit committee 
the company has a formally constituted audit committee comprised of independent nonexecutive directors the 
audit committee is generally responsible for 
− monitoring and reviewing the integrity of the group’s corporate reporting which includes any formal announcements 
relating to the group’s financial performance and any significant financial reporting judgements therein 
− monitoring and reviewing the independence and objectivity of the group’s external auditors the objectivity and 
effectiveness of the audit process and the effectiveness and implementation of the group policy on the provision of 
nonaudit services the nonaudit services policy  
− monitoring and reviewing the integrity and effectiveness of the group’s internal financial controls environment 
internal audit function and business risk management structures and 
− making recommendations to the board on shareholder resolutions for the appointment of and remuneration for 
external auditors  
the chairman of the committee will be available at the agm to answer any questions about the work of the 
committee 
committee composition 
the committee consists entirely of independent nonexecutive directors and is chaired by david jenkins during the 
year the audit committee comprised david jenkins terry morgan and larry hirst the composition of the committee 
meets the requirements of the code 
all members of the committee are considered as being appropriately experienced to fulfil their duties and david 
jenkins continues to be deemed by the board as at the date of this report to have significant recent and relevant 
financial experience through his qualifications and held appointments  
meetings of the committee 
during the year the audit committee held three meetings see summary of meeting attendance on page 51 the 
audit committee invited the external auditors chairman chief executive group finance director and head of 
business risk to attend relevant parts of the meetings of the committee the matters under consideration at these 
meetings included 
− generally monitoring the group’s corporate reporting process and the statutory audit of the annual group accounts 
− the halfyearly financial report and annual report and accounts 
− critical accounting policies and judgements  governance accounts
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 − 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 2011 
− 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 met with the chairman of 
the audit committee without the presence of the executive directors 
internal audit function 
the remit of the audit committee includes the monitoring of the internal audit function and the arrangements by which 
employees may raise concerns regarding any matters of financial reporting or other perceived improprieties across 
the group the group’s internal audit function reports directly to the group counsel and the chairman of the audit 
committee the committee continues to review the size and composition of the internal audit function to ensure that it 
remains effective given the increasing size and complexity of the group and the emphasis placed upon remediation 
rectification and reaudit of issues identified through the internal audit programme  
external auditor 
prior to 1994 mitie was audited by bdo binder hamlyn who merged their practice with deloitte since 1994 mitie group 
plc has been audited by the firm now known as deloitte llp previously touche ross  co deloitte  touche and 
deloitte  touche llp each year the audit committee reviews auditor performance in respect of audit services audit 
related services and nonaudit services the audit committee is committed to ensuring the independence and 
objectivity of the external auditors and confirms that the requirements of the nonaudit services policy have been met 
throughout the year when considering the appointment of the external auditor there are no contractual obligations 
that restrict the audit committee’s capacity to recommend a particular firm for appointment the lead audit 
engagement partner is rotated every five years with the next rotation due in respect of the year ending 31 march 2014 
the audit committee is satisfied with the performance of the external auditor and after due consideration has 
recommended the reappointment of deloitte llp to the board 
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 notification to 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 also restricts 
the external auditors from performing work which will result in them auditing their own work making management 
decisions for the group creating a conflict of interest finding themselves in the role of advocate for mitie or creating 
any potential threat to their independence additionally the external auditors will only be considered for the provision 
of nonaudit services if they are best suited to perform the work in question deloitte llp also maintains its own internal 
controls designed to safeguard its independence a summary of the fees paid to the external auditors is given in note 6 
to the financial statements 
disclosure of information to the auditors 
each of the directors in office as of the date of approval of this annual report and accounts confirms that 
− so far as heshe is aware there is no relevant audit information being information required by the auditors in the 
preparation of their report of which the company’s auditors are unaware and 
− heshe has each taken all the steps that heshe ought to have taken as a director to make himselfherself aware of 
any relevant audit information and to establish that the company’s auditors are aware of such information 
this confirmation is given and should be interpreted in accordance with section 418 of the companies act 2006 
reappointment of auditors 
deloitte llp have expressed their willingness to continue in office as auditors and the resolution to reappoint them will 
be proposed at the forthcoming agm  
54 mitie group plc 
annual report and accounts 201 1

 

the board is committed to an ongoing proactive dialogue with institutional and private investors and welcomes 
the introduction of the uk stewardship code applicable to institutional shareholders to further encourage engagement 
between the company and its shareholders the principal method of communication between the board and 
shareholders is via news announcements the interim management statements the halfyearly financial report the 
annual report and accounts the sustainability report and mitie’s website wwwmitiecom a full programme of 
formal and informal events institutional investor meetings and presentations are also held following the half yearly 
and preliminary results announcements which are led by the chief executive and group finance director  
the chairman and senior independent director are available for additional meetings with shareholders upon request 
the board encourages the ongoing dialogue between the directors and investors and as such all directors were 
present at the 2010 agm and made themselves available for direct discussions with shareholders latest group 
information financial reports corporate governance and sustainability matters halfyearly and preliminary results 
presentations major shareholder information and all announcements are made available to shareholders 
via the mitie website wwwmitiecom which has a specific area dedicated to investor relations  
significant importance is attached to investor feedback on the group’s performance and as such the 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 receive the monthly chief executive’s report which has a section dedicated to investor feedback and broker 
updates and detailed analyst and investor feedback following the halfyearly and preliminary results presentations 
the chairman is responsible for ensuring that the board is made aware of the issues and concerns of the major 
shareholders the agm also allows shareholders to address and discuss any issues surrounding the group directly 
with the executive and nonexecutive directors 
electronic communications 
the directors remain committed to improving and extending the electronic methods in which the company 
communicates with its shareholders not only allowing the latest information on the group to be provided instantly 
but recognising the environmental benefits the board encourages each shareholder to join the growing number of 
investors electing to receive their information electronically and further details on how to register are provided on the 
inside back cover of this report 

financial results and dividends 
a detailed commentary on the financial results of the group for the year is contained within the financial review on 
pages  to 43 of this report the profit before taxation for the financial year is £868m 2010 £797m the directors have 
recommended and paid the following dividends during the year 
− recommended a total ordinary dividend of 90p per share for the year ended 31 march 2011 2010 78p with a total 
value of £319m based upon the number of shares issued as at 23 may 2011 2010 £276m 
− paid on 3 february 2011 an interim dividend of 41p per ordinary share with a total value of £144m 2010 £131m 
− recommended a final dividend of 49p per ordinary share with a total value of £175m based upon the number of 
shares issued as at 23 may 2011 2010 £145m 
the final dividend for the year will be paid on 12 august 2011 subject to shareholder approval at the agm to ordinary 
shareholders on the register on 24 june 2011 the company operates a dividend reinvestment plan drip which 
allows shareholders to build their holding by using the cash dividend to purchase additional shares in mitie further 
details on the operation of the drip are included at the back of this report and are available from mitie’s registrar 
during the reporting period the trustees of the company’s employee benefit trusts waived dividends on shares held 
shares held in the employee benefit trust are for the operation of the company’s employee share schemes as 
explained further on page 65 

share capital and powers of shareholders 
the group is financed through both equity share capital and debt instruments details of changes to the company’s 
share capital are given in note 29 to the financial statements the company has a single class of shares – 25p ordinary 
shares – with no right to any fixed income and with each share carrying the right to one vote at general meetings of the 
company under the company’s articles of association holders of ordinary shares are entitled to participate in any 
dividends prorata to their holding the board may propose and pay interim dividends and recommend a final dividend 
for approval by the shareholders at the agm a final dividend may be declared by the shareholders in a general 
meeting by ordinary resolution but such dividend cannot exceed the amount recommended by the board  
39 governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance
57
 
in december 2010 the company completed an issue of us private placement loan notes with institutional investors 
the issue consisted of £40m of notes denominated in sterling and fixed at 438 maturing in nine years and £60m of 
notes denominated in us dollars 96m maturing in seven years the us dollar denominated private placement 
proceeds were swapped into sterling debt with half fixed at 388 and half with a floating sterling interest rate of libor 
plus 126 
on 29 march 2011 the group renegotiated its banking facilities and its new committed facility of £250m will be 
available for drawdown in july 2011 subject to the approval of an amendment to the articles of association at the 
forthcoming agm to clarify the definition of borrowing limits further details can be found in the notice of agm 
restrictions on the trading of shares 
certain shares that are issued as consideration upon acquisition by the company of the shares of minority shareholders 
in mitie model companies have restrictions placed upon them that both prevent the transfer of such shares andor 
attach specific clawback provisions for periods of up to two years following allotment otherwise there are no specific 
restrictions on the size of any shareholding or on the transfer of shares which are both governed by the provisions of the 
articles of association of the company available at www mitiecominvestorscorporategovernance and prevailing 
legislation the directors are not aware of any agreements between company shareholders that may result in 
restrictions on the transfer of securities or on voting rights no person has any special rights of control over the 
company’s share capital details of employee share schemes are set out below and in note 34 to the accounts  
share capital authorisations 
the 2010 agm authorised 
− the directors to allot under s551 companies act 2006 shares up to an aggregate nominal amount of £331882541 
shares representing one third of the issued share capital plus 15029127 outstanding commitment in respect of options 
granted under mitie’s share schemes such total equating to 3759 of the issued share capital as at 31 march 2010  
– during the reporting period the directors utilised this authority and the preceding authority to allot 4615605 shares 
to an aggregate nominal amount of £11539013 to employees participating in mitie’s share schemes and to minority 
shareholders in consideration for mitie model shares as explained further below 
− the disapplication under section 5701 companies act 2006 of preemption rights over allotted shares up to an 
aggregate nominal value equal to £44146463 or a maximum 17658585 shares representing 5 of the issued share 
capital as at 31 march 2010 – during the reporting period the directors utilised this authority and the preceding 
authority to allot 4615605 shares to an aggregate nominal amount of £11539013 to employees participating in 
mitie’s share schemes and to minority shareholders in consideration for mitie model shares as explained further below 
and 
− the company to make market purchases of its own shares up to a total of 35317170 shares representing 10 of the 
issued share capital as at 31 march 2010 – during the reporting period the directors did not utilise this authority 
further details of these authorisations are available in the notes to the 2010 notice of agm available at  
wwwmitiecominvestors shareholders are referred to the 2011 notice of agm which is available at 
wwwmitiecominvestors which contains similar provisions in respect of the company’s equity share capital 
during the year to 31 march 2011 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 
under the terms of certain shareholder agreements and articles of association relating to mitie model companies 
certain minority shareholders in such companies may provide an option for the purchase by the company of their 
minority shares the mechanism for calculating the price to be paid in respect of such transfer is transparent on an 
armslength basis and in accordance with the pricing structure generally applicable for other transfers under the 
mitie model in consideration for these purchases the company generally has the option to settle payment in cash 
or in mitie shares on 12 august 2010 the company announced the purchase of certain minority shareholdings in six 
mitie subsidiary companies the selling shareholders gave certain warranties and assurances relating to past and future 
performance of the relevant subsidiary companies the shares issued in consideration are being held in safe custody 
for a maximum period of two years and may be sold to meet any claims that the company may have in the future in 
relation to those warranties and assurances details of these structures are generally available to the extent 
incorporated into the articles of association for individual mitie model companies from companies house at 
wwwcompanieshousegovuk  
other share matters 
there are a number of other agreements with provisions that take effect alter or terminate upon a change of control 
of the company such as bank facility agreements and employee share plans none of these are considered to be 
significant in terms of their likely impact on the 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  
56 mitie group plc 
annual report and accounts 201 1

 
interests in share capital 
as at 23 may 2011 the company has been notified of the following significant holdings of voting rights in its shares under 
the disclosure and transparency rules  
  
number of 
ordinary shares 
of 25p each  
percentage 
of share
capital 
massachusetts financial services company 17993365 509
majedie asset management limited 16327802 505
fmr llc 18000006 504
invesco limited 17965851 502
details of the directors’ interests in the share capital of the company are detailed within the remuneration report as at 
23 may 2011 the directors’ interests have not changed from those held as at 31 march 2011 
agm 
the 2011 agm will be held at the offices of ubs investment bank 1 finsbury avenue london ec2m 2pp at 230pm on 
13 july 2011 the notice of agm will be available at wwwmitiecominvestors on 6 june 2011 

employee involvement and employee equitybased incentivisation 
the board remains committed to fostering and developing a culture of employee involvement in the business through 
communication with employees and equity involvement whereby employees are enabled to build a stake in the 
company through the company’s various equitybased incentive schemes  
communication with mitie’s employees continues to have a high priority the group communicates with employees 
through the use of groupwide mailings employee magazines and updates employeefocused initiatives and media 
networks and provision of access to broadcasts of periodic financial presentations  
we are also committed to developing our use of social media tools as an effective way of communicating with our 
people as we recognise that these methods can provide great ways of allowing our people to give us feedback share 
ideas and engage with the wider mitie community 
our social media tools are supported by a new groupwide intranet system that was launched during the year 
the system has already improved communications and information sharing across the business and includes regular 
blog updates by the executive board members and functional teams  
through the use of their own communication processes each of the group’s businesses is encouraged to ensure that 
employees are kept informed on group and individual business developments and social networking sites continue to 
play an important part of engagement and communication with employees  
the group continues to operate its groupwide mitie starsprogramme to recognise and reward exceptional 
performance by its people the mitie’s got talent groupwide talent contest continues to be supported and 
encourages employee engagement and recognition the group sustainability report contains further details of these 
initiatives and is available from wwwmitiecom employees remain actively involved in the group’s activities via an 
employee forum this year the forum held two meetings and included presentations by senior management or 
functional heads as requested by the employee representatives the 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 the mitie long term incentive plan to incentivise and reward senior members of the 
mitie management team the executive share option scheme for certain other employees and the savings related 
share option scheme which is open to all eligible employees of the group during the year the remuneration 
committee reviewed the effectiveness and suitability of the group’s employee share schemes and recommended to 
the board amendments to equityincentive schemes as outlined further in the remuneration report and notice of agm 
specifically the introduction of a share incentive plan to be available to all employees and therefore encouraging 
wider equity participation within the group the board believes that the changes proposed to shareholders maximise 
the accessibility effectiveness and incentive value of equity schemes 
the group has historically grown by giving entrepreneurial managers the opportunity to create wealth by taking the risk 
of starting a new business taking equity stakes at fair value in those new businesses in conjunction with mitie and then 
dependent on a preagreed pricing structure offering to sell that stake to mitie predominantly in exchange for mitie 
shares at the option of mitie this incentivisation scheme typically provides for such managers to elect to offer their 
stake in their business to mitie between the fifth and tenth years from the date of establishment of the business   governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance
59
 
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 accordingly on 17 january 2011 the group launched a £10m 
entrepreneurial fund to back management teams with innovative ideas for starting mutually owned businesses 
employee diversity and inclusion 
the board remains committed to developing further a culture that encourages the inclusion and diversity of all of 
the group’s employees through respecting and appreciating their differences and 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  
the company actively supports diversity and inclusion and during the reporting period established a diversity  
inclusion steering group to heighten awareness of diversity issues and accordingly oversaw the launch of a dedicated 
diversity week activities included presentations workshops and training sessions focused on equality and diversity 
issues further information can be found within the group’s dedicated sustainability report which can be found at 
wwwmitiecom 
financial instruments 
the group’s financial instruments include bank loans finance leases overdrafts us private placement loan notes and 
performance guarantees in addition various other financial instruments such as trade creditors and trade debtors arise 
from its trade the use of interest rate swaps and currency derivatives are used to manage interest and currency risk 
when necessary or material the principal objective of these instruments is to raise funds for general corporate purposes 
and to manage financial risk further details of these instruments are given in note 24 to the financial statements  
finance costs 
the amount of interest capitalised by the group is set out in further detail in note 9 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 a copy of the 
group’s standard purchasing terms can be found at wwwmitiecomsuppliers at 31 march 2011 the group had 
36 days’ purchases outstanding 2010 31 days 
fixed assets 
the board does not believe that there is any material difference between the book value and the current open market 
value of the group’s interests in land and buildings 
events after the balance sheet date 
there have not been any significant events since the balance sheet date 
future developments 
the operating review sets out the board’s view on likely future developments of the group 
research and development 
given the nature of the group’s activities it does not carry out any material research and development work 
donations 
donations to charity and community projects made during the year amounted to £190738 2010 £110500 it is the 
group’s policy not to make political donations and during the reporting period no political contributions were made 
2010 £nil the total value of community investment was £534015 2010 £392483  
branch offices 
the group operate registered branch offices in the republic of ireland and the isle of man further details of the group’s 
principal subsidiaries are given in note 37 to the financial statements 
by order of the board 
 
marieclaire haines  
company secretary 
23 may 2011 
58 mitie group plc 
annual report and accounts 201 1

 
statement of directors’ responsibilities in respect of the accounts 
the directors are responsible for preparing the annual report and accounts the directors are required to prepare 
the financial statements for the group in accordance with international financial reporting standards as adopted 
by the eu ifrs and have chosen to prepare company financial statements in accordance with united kingdom 
generally accepted accounting practice uk gaap 
in the case of international financial reporting standards ifrs accounts international accounting standard 1 
requires that financial statements present fairly for each financial year the company’s financial position financial 
performance and cash flows this requires the faithful representation of the effects of transactions other events 
and conditions in accordance with the definitions and recognition criteria for assets liabilities income and expenses 
set out in the international accounting standards board’s ‘framework for the preparation and presentation of 
financial statements’ in virtually all circumstances a fair presentation will be achieved by compliance with ifrs 
where applicable the directors are also required to properly select and apply accounting policies present information 
including accounting policies in a manner that provides relevant reliable comparable and understandable 
information and provide additional disclosures when compliance with the specific ifrs requirements is insufficient to 
enable users to understand the impact of particular transactions other events and conditions on the entity’s financial 
position and financial performance  
in the case of uk gaap accounts the directors are required to prepare financial statements for each financial year 
which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that 
period in preparing these financial statements the directors are required to select suitable accounting policies and 
then apply them consistently make judgements and estimates that are reasonable and prudent and state whether 
applicable accounting standards have been followed subject to any material departures disclosed and explained in 
the financial statements  
the directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at 
any time the financial position of the company safeguarding the assets taking reasonable steps for the prevention 
and detection of fraud and other irregularities and the preparation of a directors’ report and directors’ remuneration 
report which comply with the relevant requirements of the companies acts listing rules and disclosure and 
transparency rules dtrs  
the directors are also responsible for the maintenance and integrity of the company website financial statements 
published by the company on this website are prepared in accordance with uk legislation which may differ from 
legislation in other jurisdictions  
to the best of each director’s knowledge the financial statements prepared in accordance with the applicable set 
of accounting standards and contained within this annual report and accounts give a true and fair view of the assets 
liabilities financial position and profit or loss of the group and the undertakings included in the consolidation taken 
as a whole and the management report which is incorporated into the directors’ report includes a fair review of the 
development and performance of the business and the position of the company and the undertakings included in the 
consolidation taken as a whole together with the description of the principal risks and uncertainties they face  
by order of the board 
 
ruby mcgregorsmith suzanne baxter  
chief executive  group finance director 
23 may 2011 23 may 2011 
  governance accounts
mitie group plc 
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overview business review governance
61

this report has been prepared on behalf of the board in accordance with s420 of the companies act 2006 and in line 
with the schedule 8 of the large and medium–sized companies and groups accounts and reports regulations 2008 
and covers all directors who served on the board during the reporting period the remuneration committee believes 
in and promotes good governance through the adoption of the code and the new code compliance with the listing 
rules and due reference to the abi guidelines the aforementioned regulations require certain elements of this report 
to be audited by the company’s auditors and for them to state that the audited information has been duly prepared 
in accordance with the regulations the report therefore has been arranged into two sections section a not subject 
to audit and section b subject to audit the report will be presented for shareholder approval at the forthcoming agm 
on 13 july 2011 
section a the following information is not subject to audit 

membership 
the remuneration committee met eight times in the year and is comprised of solely nonexecutive directors of the 
company the members of the remuneration committee are terry morgan committee chairman david jenkins 
graeme potts and roger matthews ruby mcgregorsmith chief executive and the group hr director attended 
committee meetings by invitation only to provide further information on the company’s performance and the 
performance and remuneration of the executive directors 
advisers to the committee 
during the year the committee requested the attendance of and sought advice from kepler associates kepler 
associates provide no other services to the company  
terms of reference  
the terms of reference for the committee are available on request from the company secretary 
thecompanysecretarymitiecom and from the company’s website the terms of reference include 
− shaping and agreeing with the board the framework of policy for the remuneration of executive directors and 
certain aspects of the remuneration of senior management  
− determining the total individual remuneration package of each executive director with due regard to the 
performance of the individual in line with the agreed remuneration policy 
− agreeing executive directors’ contractual terms  
− acting on behalf of the board in connection with the establishment and administration of the group’s current  
andor future share plans including the selection of participants the setting of option prices and the setting of 
performance targets 
− drafting and approving the directors’ remuneration report and any remuneration related resolutions to be put to 
the shareholders at the group’s agm  
 

60 mitie group plc 
annual report and accounts 201 1

 

general remuneration principles 
the committee is responsible for formulating remuneration policies and principles that promote the success of the 
company in creating value for shareholders over the longer term through alignment with the corporate objectives 
and business strategy after taking into full account the associated risks the committee understands that it is 
accountable to shareholders for the decisions made on executive remuneration and seeks to maintain open and 
constructive communication where changes on remuneration policy are being proposed 
the remuneration policy for the company’s executive directors and other group senior executives is shaped by 
the requirement to align the interests and individual performance of the senior executive team with those of mitie’s 
shareholders the policy has particular regard to the company’s and the group’s longstanding culture of encouraging 
equity ownership in order to achieve this alignment  
the committee and the board continue to believe that the principle of equity incentivisation has been a key driving 
force in the past success of the group consequently in order to maintain and further develop mitie’s performance 
culture the committee believes that the remuneration packages of the executive directors should continue to contain 
significant performancerelated equitybased elements 
the remuneration committee believes exceptional performance should be matched with appropriate remuneration 
to attract retain and motivate directors and management while being mindful of the behaviour that such packages 
create the committee ensures that packages are linked to and support the longterm performance of the company  
remuneration policy 
the remuneration policy of the company promotes and embeds the company’s remuneration principles 
the company’s policy is 
performance linked company performance determines a significant element of remuneration packages 
only topend performance can achieve the stretching targets that are reflected in the 
performancelinked pay elements of the packages 
shareholder aligned the discretionary share schemes are based on eps growth aligning the interests of 
shareholders and the members of the senior executive team bonuses are structured 
to reward the attainment of the strategic target of longterm sustainable profitable 
growth 
comprehensive and simple the overall remuneration policy is comprehensive without becoming overcomplicated 
and encourages executives to concentrate on growth of the group 
the remuneration committee believes and is satisfied that the remuneration policy is appropriate and takes account 
of the group’s performance and strategic objectives 
the committee plans to continue to use this approach and policy as a framework for the setting of future packages 
whilst having due regard for the remuneration packages offered across the group and the external market 
share ownership policy 
a share ownership policy for executive directors was introduced in 2007 at the same time as the ltip under this policy 
all executive directors are required over time to build and maintain a shareholding in the company worth 100 of 
base salary 150 of salary for any executive director who is granted an ltip award of more than 100 of base salary 
the committee recognises that the principal mechanism for building up this holding will be on the exercise of ltip 
awards and accordingly until such time as the shareholding requirement is met executive directors will be expected 
to retain no fewer than 50 of shares net of taxes that vest under the ltip  
table 1 share ownership update 
value of target 
holding as at 
1 may 2010
1
 
number of 
ordinary shares 
owned as at  
31 march 2011 
value of  
holding as at  
31 march 2011
2
 
percentage of 
target holding 
achieved as at 
1 may 2011
r mcgregorsmith  £735000 341071 £670205 91
s c baxter  £474000 71230 £139967 30
n r goodman
3
 £297000954542 £1875675 632
w robson  £306000 1555835 £3057216 999
note 
1 on the 1 may each year the committee reviews the expected target holding for the executive directors calculated as a percentage of salary 
2 calculated at a share price of 1965p being the closing market price on 31 march 2011 the share price used to calculate the target holding as at 31 march 2010 
was 2287p 
3 roger goodman retired on 31 march 2011  governance accounts
mitie group plc 
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overview business review governance
63
 

the overall package for executive directors consists of a fixed element salary and certain benefits and a variable 
element annual performancerelated bonus and longterm equity based incentives and has been structured in order 
to align the executive directors’ packages with the interests of shareholders the committee tests the remuneration 
structure regularly to ensure that it remains aligned with business needs and is appropriately positioned relative to the 
market the balance between the fixed and variable elements of the executive directors’ packages is set out below 
base salary 
benchmarking is conducted by external remuneration consultants against sector and size comparators in respect 
of base salary total cash ie salary plus bonus and total remuneration the committee also takes account of a range 
of other factors when determining appropriate salary levels including market conditions and the responsibilities and skills 
of the individual directors  
the executive directors received salary increases during the year that took account of the range of factors described 
above the continued growth and performance of the group and the performance of the individual executive directors 
with due consideration of the outcomes of the benchmarking exercise  
annual bonus 
variable remuneration is designed to drive mitie’s performance and be aligned to the group strategic objective 
of achieving longterm sustainable profitable growth the annual bonus rewards mainly shortterm company 
performance but also has a link to longerterm performance through partial delivery in mitie group plc shares 
during 201011 executive directors had the opportunity to earn bonuses of up to 125 of salary with any bonus earned 
above 100 of salary deferred into mitie group plc shares for two years and forfeited should the director leave the 
business during this period as in the previous year up to100 of salary could be earned for the achievement of group 
budgeted financial performance and following an amendment by the remuneration committee in may 2010 the 25 
additional level of bonus for 201011 would be assessed on a series of nonfinancial strategic targets in setting the non
financial strategic targets the remuneration committee had due consideration of the longerterm success of the 
company and the aligning of interests with shareholders the remuneration committee continue to believe that the 
performance targets for the annual bonus are sufficiently stretching for the maximum bonus payment 
during the year under review mitie achieved the financial performance target in full and 100 of base salary was 
paid in cash the remuneration committee decided that significant overall progress had been achieved on the non
financial strategic targets and therefore awarded a further 25 of base salary deferred into mitie group plc shares 
for two years 
as at the date of the report the committee expects the annual bonus structure for 201112 to remain broadly unchanged 
sharebased incentives 
the remuneration package reinforces longterm decision making and sustainable profitable growth through the use of 
sharebased incentives for executive directors and certain senior group executives the principal methodologies and 
schemes designed to support this ethos are the company’s ltip as described on page 65 and the share ownership 
policy as described on page 62 vesting of share awards under the ltip are based on performance measured over 
three years this period is considered appropriate to align rewards to executive directors with the strategic objectives of 
the company certain executive directors still retain options granted under the esos details of the holdings are set out 
in table 4 of section b below it is the intention of the committee not to issue further esos options to executive directors 
although esos continues to be used to reward and incentivise certain other members of the senior group executive 
and management teams details of the amendments to share schemes applicable below board level are detailed 
on page 65  
62 mitie group plc 
annual report and accounts 201 1

 

other standard benefits 
the other benefits awarded to the executive directors consist of contributions to a pension scheme private healthcare 
and the provision of a car allowance 

all directors are appointed for an indeterminate period of office but are subject to annual reelection at the agm in 
accordance with the new code 
the executive directors’ service contracts are available for inspection at mitie’s registered office the head office and 
at the agm all the executive directors have rolling service contracts which provide for a maximum of 12 months’ 
notice from either party there are no provisions for compensation on termination of employment set out within the 
contracts of the executive directors the dates of the service contracts of the executive directors are set out below 
table 2 executive director’s service contracts 
contract term 
date of 
agreement notice period 
r mcgregorsmith  rolling contract  01apr03 12 months
s c baxter  rolling contract  10apr06 12 months
w robson  rolling contract  01apr03 12 months

the board recognises that the appointment of executive directors to nonexecutive positions at other companies 
can be beneficial both for the individual director and the group through the broadening of their experience and 
knowledge ruby mcgregorsmith receives fees of £51000 per annum in respect of her role as a nonexecutive 
director of michael page international plc as set out in the directors’ and governance report executive directors 
are entitled to retain any fees earned from external appointments  

nonexecutive directors’ fees 
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 non
executive directors are paid a basic fee with an additional fee for chairing a committee together with expenses 
incurred in carrying out their duties on behalf of the company nonexecutive directors are not eligible to participate 
in any of the company’s share schemes or the annual bonus scheme nor do they receive pension or ancillary benefits 
further details of fees paid to nonexecutive directors are provided in table 1 of section b below 
nonexecutive directors’ engagement terms 
the terms of appointment of the nonexecutive directors are available for inspection at mitie’s registered office the 
head office and at the agm the nonexecutive directors are engaged for an initial term of three years which is 
terminable on either three or six months’ notice and thereafter on a rolling term  
table 3 nonexecutive directors’ engagement terms 
 additional duties date of engagement terms initial contract term notice period
r j matthews  
chairman
chairman of nomination committee 04dec06 3 years 6 months
i r stewart deputy chairman 30mar07 3 years 6 months
d s jenkins 
senior independent director 
chairman of audit committee 31jan06 3 years 6 months
g j potts  01aug06 3 years 6 months
t k morgan cbe chairman of remuneration committee 01jul09 3 years 3 months
l hirst cbe 01feb10 3 years 3 months
  governance accounts
mitie group plc 
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overview business review governance
65
 

equitybased incentive schemes 
during the reporting period the committee has thoroughly reviewed the company’s sharebased incentive schemes 
to ensure their continued effectiveness the group currently operates three equitybased incentive schemes as set 
out below the board is proposing the renewal of scheme rules where indicated below and the introduction of new 
schemes as detailed the interests of the executive directors in each of these schemes is set out in tables 4 and 5 of 
section b below  
2001 saye scheme ‘2001 saye’ 
the 2001 saye scheme is the company’s nondiscretionary option scheme open to all eligible employees and is 
approved for hmrc purposes salary deductions are made and savings are used to purchase the options at the end 
of the threeyear period no options have been issued to any directors under the 2001 saye scheme an award may 
not be granted under the 2001 saye scheme rules after september 2011 when the scheme expires  
following a review by the remuneration committee the board continues to believe that the saye scheme encourages 
equity participation for all employees and proposes the introduction of new saye scheme rules ‘2011 saye’ details of 
which can be found in the notice of agm in addition to the introduction of the 2011 saye the board proposes the 
introduction of a new share incentive plan ‘2011 sip’ which allows employees to use their salary to purchase shares in 
the company further details of the scheme are found in the notice of agm 
2001 executive share option scheme ‘2001 esos’ 
the 2001 esos is a discretionary scheme and therefore not open to all employees of the group the award of options 
under the 2001 esos is generally focused towards employees who are below main board level and who do not 
participate in the ltip currently 2001 esos is used to retain reward and motivate employees with continuous service of 
six months who are part of the leadership team of the group includes senior managers managers and team leaders 
the scheme has been approved by hmrc and options over shares to an individual limit of £30000 can be awarded 
in the approved element of the scheme above £30000 options are awarded under the unapproved for hmrc 
purposes section of the scheme overall awards are limited to 100 of an individual’s base salary following changes 
to the scheme approved by shareholders at the 2007 agm the esos has a single performance threshold for vesting 
of the options – average growth in earnings per share over the threeyear vesting period must exceed inflation 
measured as rpi plus 4 per annum the scheme permits the grant of share appreciation rights and the settlement 
of outstanding unapproved options with share appreciation rights no price is payable upon award in respect of 
2001 esos  
as a result of the review of equity schemes by the remuneration committee the board is recommending an 
introduction of new esos rules ‘2011 esos’ which are broadly consistent with the 2001 esos as detailed in the 
notice of agm the board feels that the scheme continues to offer incentive and motivation to those employees 
below main board level and proposes to continue with awards on the basis explained above 
the share options detailed in table 4 of section b were granted to executive directors prior to 2007 under the 2001 
esos and the performance conditions that applied at the date of grant required a percentage growth in the 
company’s earnings per share equal to or in excess of 10 per annum compound over the period from the date of 
grant of the option to the date on which the option first became exercisable the performance conditions relating to 
the awards to directors detailed below are the same as for any other member of the schemes who received awards at 
the same time since the grant to ruby mcgregorsmith and suzanne baxter detailed in table 4 of section b there have 
been no grants to directors under the 2001 esos both under the unapproved part and the hmrcapproved part and 
it is the committee’s current policy that equitybased incentives for directors will be based solely upon ltip awards  
longterm incentive plan ‘ltip’ 
the ltip is a discretionary scheme and therefore not open to all employees of the group the ltip is focused on 
incentivising executive directors and senior management awards under the ltip may be made either through a  
jointownership structure or through direct grants in the form of nilcost options conditional shares or forfeitable shares 
the committee may also decide to grant cashbased awards of an equivalent value to sharebased awards or to 
satisfy sharebased awards in cash although it does not currently intend to do so an award may not be granted under 
the current ltip after 26 july 2017 when the current scheme expires no payment other than in respect of any 
individual recipient electing to pay income tax and national insurance where appropriate is required for the grant of 
an award  
awards are not transferable except on death and are not pensionable the scheme rules in line with standard industry 
practice contain provision for prorata vesting in the event of retirement redundancy disability andor death in the 
event of a change of control of the group awards will be prorated both for time and performance subject to the 
discretion of the committee 
the upper limit on the market value as at grant of awards that an individual executive director may receive in any 
financial year is 200 of annual base salary in exceptional circumstances such as recruitment the rules currently allow 
for awards of up to 250 of any employee’s annual base salary  
64 mitie group plc 
annual report and accounts 201 1
175
150
125
100
75
50
apr 2006 apr 2007 apr 2008 apr 2009 apr 2010 apr 2011
tsr rebased to 100
mitie
ftse 250
ftse 350

 
the committee continues to believe that eps is the most appropriate longterm performance measure for mitie 
as it is aligned with the group’s strategy and kpis this performance criterion has the advantages of simplicity and 
transparency which the committee believes enhance the ltip’s effectiveness as an incentive awards will normally 
vest after three years provided that certain performance criteria have been met all awards are subject to 
performance conditions that require adjusted eps less inflation measured by the retail prices index – rpi to exceed 
certain performance thresholds over a threeyear period where eps growth is less than a ‘lower performance threshold’ 
no awards will vest awards vest in full when eps growth is equal to or more than an ‘upper performance threshold’ 
vesting is on a straightline basis for performance between these levels  
for ltip awards granted in 2010 the lower performance threshold at which 25 of an award vests is rpi  5 per 
annum and the upper performance threshold is rpi  10 per annum table 5 in section b provides details of the 
performance targets governing the vesting of ltip awards granted in prior years  
as announced on 30 march 2010 the committee approved the accelerated vesting of ltip awards granted in 2007 
in line with the plan rules this decision was taken by the committee after thorough and considered reflection and did 
not result in any additional costs to the company the upper performance threshold applicable to the 2007 ltip award 
was assessed to have been achieved and consequently the awards granted in 2007 vested in full on 26 july 2010 
the normal vesting date the committee assessed the extent to which the performance conditions applicable to the 
award had been satisfied confirming that no shares were to be clawedback and approved the transfer of legal title 
ltip awards granted to and exercised by the executive directors are set out in table 5 of section b below  
share dilution 
the company manages dilution rates within the abi guidelines of 10 of issued ordinary share capital in respect of  
allemployee schemes and discretionary schemes the ltip esos and saye and 5 in respect of discretionary schemes 
the ltip and esos in calculating compliance with these guidelines the company allocates available ‘headroom’ on 
a tenyear flatline basis making adjustments for projected lapse rates and projected increases in issued share capital  
ltip awards are satisfied through the market purchase of shares held by the mitie group plc employee benefit trust 
2007 and the mitie group plc employee benefit trust 2008 the potential dilution of the company’s issued share capital 
is set out below in respect of all outstanding awards granted under the company’s equitybased incentive schemes 
which are to be satisfied through the allotment of new shares 
table 4 share dilution at 31 march 2011 
 
current total 
dilution
all share plan maximum 10  81
discretionary share plans maximum 5 43

the graph below shows the total shareholder return performance of mitie shares compared with the ftse 250 and 
ftse 350 support services indices over a fiveyear period to 31 march 2011 the committee is of the opinion that these 
comparators provide a clear picture of the performance of mitie relative to a range of companies of comparable 
size as well as a specific group of companies within the same sector total shareholder return is calculated according 
to the large and mediumsized companies and groups accounts and reports regulations 2008 and assumes that 
all dividends are reinvested 
the market price of the company’s shares as at 31 march 2011 was 1965p the highest and lowest prices during the 
year were 2411p and 1887p respectively  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance
67
section b information subject to audit 

table 1 provides details of directors’ remuneration paid to or receivable by each person who served as a director 
during the year 
table 1 directors’ remuneration  
 
base 
salaryfees 
£’000
performance 
related 
bonus 
earned 
in year 
£’000
performance 
related 
bonus 
deferred in 
shares 
£’000
1
salary 
supplement 
in lieu of 
pension 
contributions 
£’000
contributions 
to pensions 
schemes 
£’000
benefits  
£’000 
2011
 total 
£’000
2010
 total 
£’000
executive directors  
r mcgregorsmith  490 490 123 98 12 16 1229 1157
s c baxter  316 316 79 63 16 790 800
n r goodman
2 
 29729774591216 755 676
w robson  306 306 77 61 12 16 778 676
nonexecutive directors  
r matthews  140 – – – – – 140 140
i r stewart 40 – – – – – 40 40
d s jenkins  45 – – – – – 45 45
g potts  40 – – – – – 40 40
t k morgan cbe
3
 45––––– 45 34
l hirst cbe 40––––– 40 7
total  1759 1409 352 282 36 64 3902 3615
note  
1 deferred into mitie group plc 25p shares 
2 roger goodman retired on 31 march 2011 
3 the fees in consideration for the services of terry morgan cbe were paid to tkm management services limited 

the pension benefits of directors who are members of the mitie group plc defined benefit pension scheme are set 
out in table 2 below the transfer values of the directors’ accrued benefits under the defined benefit pension scheme 
calculated in a manner consistent with retirement benefit schemes which do not represent a sum paid or payable 
to the individual director are set out in table 3 
table 2 defined benefit pension scheme benefits  
accrued 
pension 
31 march 2010 
£’000
increase in 
accrued 
pension during 
the year  
£’000 
real increase in 
accrued 
pension 
£’000
accrued 
pension 
31 march 2011 
£’000 
r mcgregorsmith  13 2 2 15
n r goodman
1
 303 2 33
w robson  34 3 2 37
note 
1 roger goodman retired on 31 march 2011 
table 3 defined benefit pension scheme transfer values  
transfer values 
31 march 2010 
£’000
contributions 
made by the 
director 
£’000
increase in 
accrued 
pension over 
the year 
 £’000 
transfer value of 
pension 
increase after 
inflation net of 
contributions 
£’000
transfer value 
31 march 2011 
£’000
r mcgregorsmith  103 0 2 14 126
n r goodman
1
 54902 31 641
w robson  522 0 2 25 596
note 
1 roger goodman retired on 31 march 2011 
–

 
66 mitie group plc 
annual report and accounts 201 1

 
the benefits of the executive directors who are members of the mitie group plc defined benefit pension scheme 
are based on a pensionable salary capped at £123600 the company made contributions to the group’s defined 
benefit scheme on behalf of the three directors who are members of the scheme at a rate of 10 2010 10 of the 
value of the benefit cap of £123600 in addition the three directors received a salary supplement of 20 of salary 
2010 20 in lieu of pension contributions following approval of the remuneration committee in order to bring the 
value of their benefits in line with market practice 
suzanne baxter is not a member of the mitie group plc defined benefit pension scheme as the scheme was closed 
to new entrants in 2005 before she joined the group it is the intention of the remuneration committee that the value 
of the pension benefits provided to suzanne baxter should mirror the value of the pension benefits provided to the other 
executive directors under the capped defined benefit arrangements albeit that her benefits are provided through a 
separate defined contribution arrangement following an assessment of the value of her defined contribution pension 
scheme assets as at 31 march 2010 no pension contributions were required for suzanne baxter for the year ended 
31 march 2011 2010 135 of base salary in addition suzanne baxter received a salary supplement of 20 of base 
salary 2010 20 in lieu of pension contributions following approval of the remuneration committee in order to 
bring the value of her benefits in line with market practice 

in accordance with the register of directors’ interests the rights of the directors to subscribe for and their holdings 
of shares in mitie group plc are as set out in tables 4 5 and 6 
table 4 directors’ interests in options granted under the mitie group plc 2001 executive share option scheme  
 
esos options 
outstanding at  
1 april 2010 
granted 
during 
the year
lapsed 
during 
the year
exercised 
during 
the year
esos options 
outstanding at 
31 march 2011
1
exercise  
price  
p exercisable between
r mcgregorsmith   
unapproved scheme  100000 – – – 100000 162 0608 0615
unapproved scheme 100000 – – – 100000 191 0609 0616
s c baxter    
unapproved scheme  35000 – – – 35000 191 0609 0616
approved scheme 15000 – – – 15000 191 0609 0616
1 the market price of the company’s shares as at 31 march 2011 was 1965p the highest and lowest prices during the year were 2411p and 1887p respectively 
table 5 directors’ interests in nilcost options granted under the mitie group plc 2007 long term incentive plan  
 year of grant
1
 ltip options 
outstanding at  
1 april 2010 
granted during 
the year at 
22324pshare
lapsed 
during 
the year
exercised 
during 
the year
2
ltip options 
outstanding at 
31 march 2011
3
 
exercise  
price  
p exercisable between
r mcgregorsmith 2007 145440 – – 145440 – nilcost 0310 0311
 2008 409894 –––409894 nilcost 06110612 
 2009 430338 –––430338 nilcost 06120613
 2010 – 438989––438989 nilcost 06130614
s c baxter 2007 102201 – – 102201 – nilcost 0310 0311
 2008 273262 –––273262 nilcost 06110612 
 2009 282847 –––282847 nilcost 06120613
 2010 – 283103––283103 nilcost 06130614
n r goodman
4
 2007 94340 – –94340 – nilcost 03100311
 2008 129564 –––129564 nilcost 06110612
 2009 134422 –––134422 nilcost 06120613
 2010 – 133041––133041 nilcost 06130614
w robson 2007 94340 – – 94340 – nilcost 0310 0311
 2008 129564 –––129564 nilcost 06110612 
 2009 134422 –––134422 nilcost 06120613
 2010 – 137072––137072 nilcost 06130614
note 
1 the performance criteria applicable to the 2007 and 2008 awards are lower and upper performance thresholds of rpi5 pa and rpi14 pa respectively  
the performance criteria applicable to the 2009 and 2010 award are lower and upper performance thresholds of rpi5 pa and rpi10 pa respectively 
2 the options granted in 2007 were approved to vest and were exercised on 30 march 2010 the committee assessed the extent to which the performance conditions 
applicable to the award and confirmed that these had been satisfied on the normal vesting date of 26 july 2010 the market price on exercise was 2239p 
3 the market price of the company’s shares as at 31 march 2011 was 1965p the highest and lowest prices during the year were 2411p and 1887p respectively  
the directors acquired a conditional joint beneficial interest with the mitie employee benefit trust 2008 in the shares awarded under the ltip in 2008 2009 and 2010  
the full beneficial interest will transfer to the director only if the performance criteria applicable to the award are met  
4 roger goodman retired on 31 march 2011  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance
69
 
table 6 director share ownership  
number of ordinary mitie shares 
beneficially owned as at  
31 march 2011
1
 
number of ordinary mitie shares 
beneficially owned as at 
1 april 2010 or date of 
appointment if later
executive directors  
r mcgregorsmith  341071 399376
s c baxter  71230 112201
n r goodman
2
 954542 993761
w robson  1555835 1595053
nonexecutive directors  
r matthews  100000 100000
i r stewart  2020000 2020000
d s jenkins  50000 50000
g potts  15000 15000
t k morgan cbe nil nil
l hirst cbe 25000 nil
note 
1 a proportion of the shares were sold on 8 june 2010 to settle tax liabilities arising from the accelerated vesting of the 2007 ltip award 
2 roger goodman retired on 31 march 2011 
table 7 directors’ interests in mitie subsidiary companies under the mitie model  
 
number of 
shares 
31 march 2011
number of 
shares 
1 april 2010
r mcgregorsmith  
mitie transport services ltd c ordinary shares of £1 each 900 900
table 7 above details the beneficial interests of the directors who were in office on 31 march 2011 in the share 
capital of certain of the company’s subsidiary companies the interests of directors in these subsidiary companies 
were acquired under the mitie model further details of which are given in the directors’ report on page 57 no such 
interests have been acquired by directors since 2004 and it is the company’s policy that directors will not be entitled 
to participate in any mitie model investments in the future 
this report was approved by the board and has been signed on its behalf by 
 
terry morgan cbe  
chairman remuneration committee 
68 mitie group plc 
annual report and accounts 201 1

for the year ended 31 march 2011 
we have audited the group financial statements of mitie 
group plc for the year ended 31 march 2011 which 
comprise the consolidated income statement the 
consolidated statement of comprehensive income the 
consolidated balance sheet the consolidated statement 
of changes in equity the consolidated statement of cash 
flows and the related notes 1 to 37 the financial reporting 
framework that has been applied in their preparation is 
applicable law and international financial reporting 
standards ifrss as adopted by the european union 
this report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 of the 
companies act 2006 our audit work has been undertaken 
so that we might state to the company’s members those 
matters we are required to state to them in an auditors’ 
report and for no other purpose to the fullest extent 
permitted by law we do not accept or assume 
responsibility to anyone other than the company and 
the company’s members as a body for our audit work 
for this report or for the opinions we have formed 
respective responsibilities of directors and auditor 
as explained more fully in the directors’ responsibilities 
statement the directors are responsible for the 
preparation of the group financial statements and for 
being satisfied that they give a true and fair view our 
responsibility is to audit and express an opinion on the 
group financial statements in accordance with applicable 
law and international standards on auditing uk and 
ireland those standards require us to comply with the 
auditing practices board’s apb’s ethical standards 
for auditors 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are 
free from material misstatement whether caused by 
fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the group’s 
circumstances and have been consistently applied and 
adequately disclosed the reasonableness of significant 
accounting estimates made by the directors and the 
overall presentation of the financial statements in 
addition we read all the financial and nonfinancial 
information in the annual report to identify material 
inconsistencies with the audited financial statements if we 
become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report 
opinion on financial statements 
in our opinion the group financial statements 
− give a true and fair view of the state of the group’s 
affairs as at 31 march 2011 and of its profit for the year 
then ended 
− have been properly prepared in accordance with ifrss 
as adopted by the european union and 
− have been prepared in accordance with the 
requirements of the companies act 2006 and article 4 
of the ias regulation 
opinion on other matters prescribed by the companies act 
2006 
in our opinion the information given in the directors’ report 
for the financial year for which the financial statements are 
prepared is consistent with the group financial statements  
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
under the companies act 2006 we are required to report 
to you if in our opinion 
− certain disclosures of directors’ remuneration specified 
by law are not made or 
− we have not received all the information and 
explanations we require for our audit 
under the listing rules we are required to review 
− the directors’ statement contained within the directors’ 
report corporate governance statement in relation to 
going concern 
− the part of the corporate governance statement 
relating to the company’s compliance with the nine 
provisions of the june 2008 combined code specified 
for our review and 
− certain elements of the report to shareholders by the 
board on directors’ remuneration 
other matters 
we have reported separately on the parent company 
financial statements of mitie group plc for the year ended 
31 march 2011 and on the information in the directors’ 
remuneration report that is described as having been 
audited  
 
 
 
ian krieger senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
bristol united kingdom 
23 may 2011 
 
 
 
  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
71

for the year ended 31 march 2011 
 
  2011 2010
 notes 
before
other
items
£m
other 
 items 
£m 
total 
£m
before  
other  
items 
£m  
other 
 items
£m 
total 
£m
continuing operations   
revenue 34 18914 – 18914 17201 – 17201
cost of sales  15935 – 15935 14440 – 14440
 gross profit  2979 – 2979 2761 – 2761
   
administrative expenses  1896 188 2084 1831 119 1950
operating profit  46 1083 188 895 930 119 811
   
investment revenue 8 04 – 04 18 – 18
finance costs 9 30 01 31 31 01 32
net finance costs  26 01 27 13 01 14
   
profit before tax  1057 189 868 917 120 797
tax 10 264 50 214 253 31 222
profit for the year   793 139 654 664 89 575
   
attributable to   
equity holders of the parent  791 139 652 660 89 571
noncontrolling interests  02 – 02 04 – 04
  793 139 654 664 89 575
earnings per share eps    
– basic 12 226p 40p 186p 195p 26p 169p
– diluted 12 222p 39p 183p 192p 26p 166p
   
 other items are analysed in note 5 
 
70 mitie group plc 
annual report and accounts 201 1

for the year ended 31 march 2011 
 
 
notes 
2011 
£m 
2010
£m
profit for the year  654 575
other comprehensive incomeexpense   
actuarial losses on defined benefit pension schemes 35 11 131
exchange differences on translation of foreign operations  05 – 
losses on a hedge of a net investment taken to equity  04 – 
cash flow hedges   
 losses arising during the year  14 – 
 reclassification adjustment for gains included in profit and loss  09 – 
tax chargecredit on items taken directly to equity  01 42
other comprehensive expense for the year net of tax  16 89
   
total comprehensive income for the financial year  638 486
   
attributable to   
equity holders of the parent  636 482
noncontrolling interests  02 04
  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
73
 
notes 
2011
£m
2010
£m
noncurrent assets  
goodwill  13 3330 3240
other intangible assets 14 647 674
property plant and equipment 15 593 545
trade and other receivables 18 116 – 
deferred tax assets 21 91 141
total noncurrent assets  4777 4600
  
current assets  
inventories 16 55 39
trade and other receivables 18 4701 4056
cash and cash equivalents 20 1306 237
total current assets  6062 4332
  
total assets  10839 8932
  
current liabilities  
trade and other payables 23 4329 3593
current tax liabilities  166 150
financing liabilities 24 26 46
provisions 28 45 99
total current liabilities  4566 3888
  
net current assets  1496 444
  
noncurrent liabilities  
financing liabilities 24 2048 1062
provisions 28 82 112
retirement benefit obligation 35 30 105
deferred tax liabilities 21 133 131
total noncurrent liabilities  2293 1410
  
total liabilities  6859 5298
  
net assets  3980 3634
 

at 31 march 2011 
72 mitie group plc 
annual report and accounts 201 1

at 31 march 2011 
 
notes 
2011  
£m 
2010
 £m
equity   
share capital 29 89 88
share premium account 30 806 767
merger reserve 30 851 803
sharebased payments reserve 30 75 54
own shares reserve 30 138 81
other reserves 30 02 02
hedging and translation reserve 30 04 – 
retained earnings  2238 1923
equity attributable to equity holders of the parent  3919 3556
   
noncontrolling interests  61 78
total equity  3980 3634
the financial statements were approved by the board of directors and authorised for issue on 23 may 2011 they were 
signed on its behalf by 
 
 
 
ruby mcgregorsmith  suzanne baxter 
chief executive  group finance director  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
75

for the year ended 31 march 2011 
 
share 
capital  
£m 
share 
premium 
account 
£m 
merger 
reserve 
£m
share
based 
payments 
reserve 
£m
own 
shares 
reserve 
£m
other 
reserves 
£m
hedging 
and 
translation 
reserve
£m
retained 
earnings 
£m 
attributable 
to equity 
holders of 
the parent 
£m 
non
controlling 
interests 
£m
total 
£m
at 1 april 2009 81 244 672 44 52 02 – 1674 2665 101 2766
total comprehensive 
income – – – – – – – 482 482 04 486
shares issued  07 523 131 – – – – – 661 – 661
dividends paid – – – – – – – 247 247 02 249
purchase of own shares  – – – – 45 – – – 45 – 45
sharebased payments – – – 10 16 – – 14 40 – 40
acquisitions and other 
movements in non
controlling interests – – – – – – – – – 25 25
at 31 march 2010 88 767 803 54 81 02 – 1923 3556 78 3634
total comprehensive 
income – – – – – – 04 640 636 02 638
shares issued  01 39 48 – – – – – 88 – 88
dividends paid – – – – – – – 289 289 02 291
purchase of own shares  – – – – 57 – – – 57 – 57
sharebased payments – – – 21 – – – 12 33 – 33
acquisitions and other 
movements in non
controlling interests  – – – – – – – 48 48 17 65
at 31 march 2011 89 806 851 75 138 02 04 2238 3919 61 3980

for the year ended 31 march 2011 
 
share 
capital  
£m 
share 
premium 
account 
£m 
merger 
reserve 
£m
share
based 
payments 
reserve 
£m
own 
shares 
reserve 
£m
other 
reserves 
£m
hedging 
and 
translation 
reserve
£m
retained 
earnings 
£m 
attributable 
to equity 
holders of 
the parent 
£m 
non
controlling 
interests 
£m
total 
£m
at 1 april 2009 81 244 672 44 52 02 – 1674 2665 101 2766
total comprehensive 
income – – – – – – – 482 482 04 486
shares issued  07 523 131 – – – – – 661 – 661
dividends paid – – – – – – – 247 247 02 249
purchase of own shares  – – – – 45 – – – 45 – 45
sharebased payments – – – 10 16 – – 14 40 – 40
acquisitions and other 
movements in non
controlling interests – – – – – – – – – 25 25
at 31 march 2010 88 767 803 54 81 02 – 1923 3556 78 3634
total comprehensive 
income – – – – – – 04 640 636 02 638
shares issued  01 39 48 – – – – – 88 – 88
dividends paid – – – – – – – 289 289 02 291
purchase of own shares  – – – – 57 – – – 57 – 57
sharebased payments – – – 21 – – – 12 33 – 33
acquisitions and other 
movements in non
controlling interests  – – – – – – – 48 48 17 65
at 31 march 2011 89 806 851 75 138 02 04 2238 3919 61 3980
74 mitie group plc 
annual report and accounts 201 1

for the year ended 31 march 2011 
notes 
2011 
 £m 
2010 
£m
operating profit   895 811
adjustments for   
 sharebased payment expense 33 40
 pension charge 35 38
 amendment to defined benefit pension scheme past service cost 41 –
 pension contributions 79 63
 depreciation of property plant and equipment 179 164
 amortisation of intangible assets 108 59
 gain on disposal of property plant and equipment  01 04
operating cash flows before movements in working capital   1129 1045
increasedecrease in inventories  16 02
increase in receivables  708 414
increase in payables  620 363
decrease in provisions  – 12
cash generated by operations   1025 984
income taxes paid  143 222
interest paid  25 34
additional pension contribution – 05
net cash from operating activities  857 723
investing activities  
interest received 02 19
purchase of property plant and equipment  210 217
purchase of subsidiary undertakings net of cash acquired 118 1579
purchase of other intangible assets 50 58
disposals of property plant and equipment  30 31
net cash outflow from investing activities  346 1804
financing activities   
repayments of obligations under finance leases  32 22
proceeds on issue of share capital  27 31
proceeds from share placing  – 418 
repayments of loan notes on purchase of subsidiary undertakings  58 –
bank loans repaidraised  37 900
private placement notes raised  1002 –
purchase of own shares 57 45
equity dividends paid 289 247
noncontrolling interests dividends paid  02 02
net cash inflow from financing  554 1033
   
net increasedecrease in cash and cash equivalents  1065 48
   
net cash and cash equivalents at beginning of the year  237 285
effect of foreign exchange rate changes  04 –
net cash and cash equivalents at end of the year  1306 237
net cash and cash equivalents comprise   
cash at bank  1306 237
  1306 237
34 
35 
35 
35 
15 
14 
35 
31 
14 
30 
11  governance accounts
mitie group plc 
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overview business review governance accounts
77

for the year ended 31 march 2011 
reconciliation of net cash flow to movements in net debtfunds 
 
notes 
2011 
£m
2010 
£m
net increasedecrease in cash and cash equivalents  1065 48
effect of foreign exchange rate changes  04 –
bank loans repaidraised  32 900
private placement notes raised  1002 –
noncash movement in private placement notes and associated hedges  03 –
repayments of loan notes on purchase of subsidiary undertakings  58 –
issue of loan notes on purchase of subsidiary undertakings  39 –
increase in finance leases  14 27
decreaseincrease in net debt during the year  101 975
  
opening net debtfunds  866 109
closing net debt 27 765 866
 
 76 mitie group plc 
annual report and accounts 201 1


basis of preparation 
the group’s financial statements for the year ended 31 march 2011 are prepared in accordance with international 
financial reporting standards ifrss adopted for use in the european union and therefore the group financial 
statements comply with article 4 of the eu ias regulation 
as more fully detailed in the directors’ report corporate governance statement the roup’s financial statements 
have been prepared on a going concern basis 
the group’s financial statements have been prepared on the historical cost basis except for certain financial 
instruments which are required to be measured at fair value 
the accounting policies adopted in the preparation of the consolidated financial statements are consistent with those 
followed in the preparation of the group’s annual financial statements for the year ended 31 march 2010 except for the 
adoption in the year of  
− ifrs 3 ‘business combinations’ revised 2008 adoption of this revised standard has resulted in changes to the initial 
recognition and subsequent measurement of deferred contingent consideration the standard also requires all 
acquisition related costs to be recognised as period expenses in accordance with the relevant ifrs the revised 
standard applies to all of the group’s business combinations that occurred on or after 1 april 2010 adoption of this 
revised standard has resulted in a reduction in profit before tax of £03m and a reduction in net assets of £02m and 
− ias 27 ‘consolidated and separate financial statements’ revised 2008 changes in a parent’s ownership interest 
in a subsidiary that do not result in a loss of control are accounted for within shareholders’ equity no gain or loss is 
recognised on such transactions and goodwill is not remeasured any difference between the change in the non
controlling interest and the fair value of the consideration paid or received is recognised directly in equity and 
attributed to the owners of the parent adoption of this revised standard had no impact on profit before tax but 
resulted in a reduction in net assets of £48m 
the following amendments and interpretations are also effective for the first time in the current year but have had no 
impact on the results or financial position of the group 
− ifric 17 ‘distributions of noncash assets to owners’  
− amendments to ifrs 2 ‘group cashsettled sharebased payment transactions’ 
− ias 28 ‘investments in associates’ – consequential amendments arising from amendments to ifrs 3 
− ias 31 ‘interests in joint ventures’ – consequential amendments arising from amendments to ifrs 3 
− amendments to ias 32 ‘financial instruments presentation’ – classification of rights issues  
− amendments to ias 39 ‘financial instruments recognition and measurement’ – eligible hedged items and 
− amendments resulting from april 2009 annual improvements to ifrss 
the following standards and interpretations have been issued but are not yet effective and in some cases have not yet 
been adopted by the eu 
− amendment to ifric 14 ‘prepayments of a minimum funding requirement’ 
− ifric 19 ‘extinguishing financial liabilities with equity instruments’ 
− amendments to ifrs 7 ‘financial instruments disclosures’ – transfers of financial assets 
− ifrs 9 ‘financial instruments’ 
− amendments to ias 12 ‘income taxes’ – recovery of underlying assets 
− ias 24 revised ‘related party disclosures’  
− ias 27 revised ‘separate financial statements’ 
− ias 28 revised ‘investments in associates and joint ventures’ 
− ifrs 10 ‘consolidated financial statements’ 
− ifrs 11 ‘joint arrangements’ 
− ifrs 12 ‘disclosures of interests in other entities’ 
− ifrs 13 ‘fair value measurement’ and 
− amendments resulting from may 2010 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 
g governance accounts
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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 ompany and subsidiaries are prepared in accordance with uk generally 
accepted accounting practice with the exception of the acquired dalkia companies adjustments are made in the 
consolidated accounts to bring into line any dissimilar accounting policies that may exist between uk gaap and ifrs 
all intercompany balances and transactions including unrealised profits arising from intergroup transactions have 
been eliminated in full 
subsidiaries are consolidated from the date on which control is transferred to the group and cease to be consolidated 
from the date on which control is transferred out of the group where necessary adjustments are made to the financial 
statements of subsidiaries to bring the accounting policies used into line with those used by the group  
interests of noncontrolling interest shareholders are measured at the noncontrolling interest’s proportion of the net fair 
value of the assets and liabilities recognised changes in a parent’s ownership interest in a subsidiary that do not result in 
a loss of control are accounted for within shareholders’ equity no gain or loss is recognised on such transactions and 
goodwill is not remeasured any difference between the change in the noncontrolling interest and the fair value of 
the consideration paid or received is recognised directly in equity and attributed to the owners of the parent 
business combinations 
the acquisition of subsidiaries is accounted for using the acquisition method the cost of the acquisition is measured at 
the aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity 
instruments issued by the group in exchange for control of the acquiree acquisition costs incurred are expensed 
the acquiree’s identifiable assets liabilities and contingent liabilities that meet the conditions for recognition are 
recognised at their fair value at the acquisition date except for noncurrent assets or disposal groups that are 
classified as held for resale in accordance with ifrs 5 ‘noncurrent assets held for sale and discontinued operations’ 
which are recognised and measured at fair value less costs to sell 
goodwill arising on acquisition is recognised as an asset and initially measured at cost being the excess of the cost 
of the business combination over the group’s interest in the net fair value of the identifiable assets liabilities and 
contingent liabilities recognised if after reassessment the group’s interest in the net fair value of the acquiree’s 
identifiable assets liabilities and contingent liabilities exceeds the cost of the business combination the excess is 
recognised immediately in profit or loss 
where applicable the consideration for an acquisition includes any assets or liabilities resulting from a contingent 
consideration arrangement measured at fair value at the acquisition date subsequent changes in such fair values are 
adjusted against the cost of acquisition where they result from additional information obtained within one year from 
the acquisition date about facts and circumstances that existed at the acquisition date all other subsequent changes 
in the fair value of contingent consideration classified as an asset or liability are recognised in accordance with ias 39 
either in profit or loss or as a change to other comprehensive income changes in the fair value of contingent 
consideration classified as equity are not recognised 
any business combinations prior to 1 april 2010 were accounted for using the standards in place prior to the adoption of 
ifrs 3 revised 2008 which differ in the following respects transaction costs directly attributable to the acquisition 
formed part of the acquisition costs contingent consideration was recognised if and only if the group had a present 
obligation the economic outflow was more likely than not and a reliable estimate was determinable and subsequent 
adjustments to the contingent consideration were recognised as part of goodwill 
goodwill 
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the 
fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition  
goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment 
losses it is reviewed for impairment at least annually any impairment is recognised immediately in profit or loss and is 
not subsequently reversed 
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units expected to 
benefit from the synergies of the combination cashgenerating units to which goodwill has been allocated are tested 
for impairment annually or more frequently when there is an indication that the unit may be impaired if the 
recoverable amount of the cashgenerating unit is less than the carrying amount of the unit the impairment loss is 
allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the 
unit prorata on the basis of the carrying amount of each asset in the unit an impairment loss recognised for goodwill is 
not reversed in a subsequent period 
on disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on 
disposal
c
78 mitie group plc 
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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 
software and development expenditure is capitalised as an intangible asset if the asset created can be identified if it is 
probable that the asset created will generate future economic benefits and if the development cost of the asset can 
be measured reliably 
following initial recognition the carrying amount of an intangible asset is its cost less any accumulated amortisation 
and any accumulated impairment losses intangible assets are reviewed for impairment annually or more frequently 
when there is an indication that they may be impaired amortisation expense is charged to administrative expenses in 
the income statement on a straightline basis over its useful life 
revenue 
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the 
revenue can be reliably measured revenue represents income recognised in respect of services provided during 
the period stated net of value added tax and is earned predominantly within the united kingdom 
revenue from a contract to provide services is recognised by reference to the stage of completion of the contract at 
the balance sheet date revenue from time and material contracts is recognised at the contractual rates as labour 
hours and tasks are delivered and direct expenses incurred in other cases where services provided reflect a 
contractual arrangement to deliver an indeterminate number of acts over the contract term revenue is recognised 
on a straightline basis unless this is not an accurate reflection of the work performed where a straightline basis is 
not appropriate for example if specific works on contracts represent a significant element of the whole revenue is 
recognised based on the percentage of completion method based on the proportion of costs incurred at the balance 
sheet date relative to the total estimated cost of completing the contracted work  
revenue from longterm contracts represents the sales value of work done in the year including fees invoiced and 
estimates in respect of amounts to be invoiced after the year end profits are recognised on longterm contracts 
where the final outcome can be assessed with reasonable certainty in calculating this the percentage of completion 
method is used based on the proportion of costs incurred to the total estimated cost cost includes direct staff costs 
and outlays full provision is made for all known or anticipated losses on each contract immediately such losses are 
forecast 
gross amounts due from customers are stated at the proportion of the anticipated net sales value earned to date less 
amounts billed on account to the extent that fees paid on account exceed the value of work performed they are 
included in creditors as gross amounts due to customers 
interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate 
applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the 
financial asset to that asset’s net carrying amount 
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets 
that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of 
those assets until such time as the assets are substantially ready for their intended use or sale all other borrowing costs 
are recognised in profit or loss in the period in which they are incurred 
leasing 
finance leases which transfer to the group substantially all the risks and benefits incidental to ownership of the leased 
item are capitalised at the inception of the lease at the fair value of the leased item or if lower at the present value 
of the minimum lease payments lease payments are apportioned between the finance charges and reduction of the 
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability finance charges are 
charged directly against income 
capitalised leased assets are depreciated over the shorter of the estimated life of the asset or the lease term 
leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating 
leases operating lease payments are recognised as an expense in the income statement on a straightline basis over 
the lease term any lease incentives are amortised on a straightline basis over the noncancellable period for which the 
group has contracted to lease the asset together with any further terms for which the group has the option to continue 
to lease the asset if at the inception of the lease it is judged to be reasonably certain that the group will exercise the 
option  governance accounts
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foreign currency 
the financial statements of each of the group’s businesses are prepared in the functional currency applicable to that 
business transactions in currencies other than the functional currency are recorded at the rate of exchange at the 
date of transaction monetary assets and liabilities denominated in foreign currencies at the balance sheet date are 
reported at the rates of exchange prevailing at that date 
nonmonetary items carried at fair value that are denominated in foreign currencies are translated at the rates 
prevailing at the date when the fair value was determined nonmonetary items that are measured in terms of 
historical cost in a foreign currency are not retranslated 
exchange differences arising on the settlement of monetary items and on the retranslation of monetary items 
are included in profit or loss for the period exchange differences arising on the retranslation of nonmonetary items 
carried at fair value are included in profit or loss for the period except for differences arising on the retranslation of  
nonmonetary items in respect of which gains and losses are recognised directly in equity for such nonmonetary items 
any exchange component of that gain or loss is also recognised directly in equity 
on consolidation the assets and liabilities of the group’s overseas operations including goodwill and fair value 
adjustments arising on their acquisition are translated into sterling at exchange rates prevailing at the balance 
sheet date income and expenses are translated into sterling at average exchange rates for the period exchange 
differences arising are recognised directly in equity in the group’s hedging and translation reserve on disposal of a 
foreign operation the deferred cumulative amount recognised in equity relating to that particular foreign operation 
shall be recognised in the income statement  
retirement benefit costs 
the group operates and participates in a number of defined benefit schemes in respect of the schemes in which the 
group participates the group accounts for its legal and constructive obligations over the period of its participation 
which is for a fixed period only 
in addition the group operates a number of defined contribution retirement benefit schemes for all qualifying 
employees 
payments to the defined contribution and stakeholder pension schemes are charged as an expense as they fall due 
for the defined benefit pension schemes the cost of providing benefits is determined using the projected unit 
credit method with actuarial valuations being carried out at each balance sheet date actuarial gains and losses 
are recognised in full in the period in which they occur they are recognised outside profit and loss and presented in 
the statement of comprehensive income 
past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is 
amortised on a straightline basis over the average period until the benefits become vested 
the retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit 
obligation as adjusted for unrecognised past service cost and as reduced by the fair value of scheme assets any asset 
resulting from this calculation is limited to past service cost plus the present value of available refunds and reductions in 
future contributions to the plan  
taxation 
the tax expense represents the sum of the tax currently payable and deferred tax 
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the 
income statement because it excludes items of income or expense that are taxable or deductible in other years and it 
further excludes items that are never taxable or deductible the group’s liability for current tax is calculated using tax 
rates that have been enacted or substantively enacted by the balance sheet date 
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit 
and is accounted for using the balance sheet liability method deferred tax liabilities are generally recognised for all 
taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable 
profits will be available against which deductible temporary differences can be utilised such assets and liabilities are 
not recognised if the temporary difference arises from goodwill or from the initial recognition other than in a business 
combination of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that 
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered 
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the 
asset is realised based upon tax rates and legislation that have been enacted or substantively enacted at the balance 
sheet date deferred tax is charged or credited in the income statement except when it relates to items charged 
or credited directly to equity in which case the deferred tax is also dealt with in equity 
 
80 mitie group plc 
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deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against 
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends 
to settle its current tax assets and liabilities on a net basis 
property plant and equipment 
property plant and equipment is stated at cost less accumulated depreciation and any impairment in value 
depreciation is charged so as to write off the cost less expected residual value of the assets over their estimated useful 
lives and is calculated on a straightline basis as follows 
freehold buildings and long leasehold property – over 50 years 
leasehold improvements    – period of the lease 
plant and vehicles    – 3–10 years 
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 cash
generating unit to which the asset belongs  
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated 
future cash flows are discounted to their present value using a pretax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows 
have not been adjusted 
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount 
the carrying amount of the asset or cashgenerating unit is reduced to its recoverable amount an impairment loss 
is recognised as an expense immediately 
where an impairment loss subsequently reverses the carrying amount of the asset or cashgenerating unit is increased 
to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the 
carrying amount that would have been determined had no impairment loss been recognised for the asset or cash
generating unit in prior years a reversal of an impairment loss is recognised as income immediately 
inventories 
inventories are stated at the lower of cost and net realisable value 
costs represent materials direct labour and overheads incurred in bringing the inventories to their present condition 
and location net realisable value is based on estimated selling price less further costs expected to be incurred to 
completion and estimated selling costs provision is made for obsolete slow moving or defective items where 
appropriate 
financial instruments 
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party 
to the contractual provisions of the instrument the group derecognises financial assets and liabilities only when the 
contractual rights and obligations are discharged or expire 
assets that are assessed not to be individually impaired are subsequently assessed for impairment on a collective basis 
objective evidence of impairment for a portfolio of receivables includes the group’s past experience of collecting 
payments the number of delayed payments in the portfolio past the average credit period as well as observable 
changes in national or local economic conditions that correlate with default on receivables 
the carrying amount of the financial asset is reduced by the impairment loss directly with the exception of trade 
receivables where the carrying amount is reduced through the use of an allowance account when a trade 
receivable is considered uncollectable it is written off against the allowance account subsequent recoveries of 
amounts previously written off are credited against the allowance account changes in the carrying amount of the 
allowance account are recognised in the income statement 
financial assets comprise loans and receivables and are measured at initial recognition at fair value and subsequently 
at amortised cost appropriate allowances for estimated irrecoverable amounts are recognised where there is 
objective evidence that the asset is impaired cash and cash equivalents comprise cash in hand and demand deposits 
and other shortterm highly liquid investments that are readily convertible to a known amount of cash and are subject 
to an insignificant risk of changes in value 
financial liabilities comprise certain trade and other payables and financing liabilities including bank and other 
borrowings and are measured at initial recognition at fair value and subsequently at amortised cost with the exception 
of derivative financial instruments which are either classified as fair value through profit and loss or may be accounted 
for using hedge accounting bank and other borrowings are stated at the amount of the net proceeds after deduction 
of transaction costs finance charges including premiums payable on settlement or redemption and direct issue costs 
are accounted for on an accruals basis in the income statement 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 
  governance accounts
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equity instruments issued by the company are recorded at the proceeds received net of direct issue costs 
derivative financial instruments and hedge accounting 
the group uses derivative financial instruments including cross currency interest rate swaps and forward foreign 
exchange contracts to manage the group’s exposure to financial risks associated with interest rates and foreign 
exchange derivative financial instruments are initially recognised at fair value at the date the derivative contract is 
entered into and are subsequently remeasured to their fair value determined by reference to market rates at each 
balance sheet date and included as financial assets or liabilities as appropriate the resulting gain or loss is recognised 
in profit or loss immediately unless the derivative is designated and effective as a hedging instrument in which event 
the timing of the recognition in profit or loss depends on the nature of the hedge relationship  
the group may designate certain hedging instruments including derivatives as either fair value hedges cash flow 
hedges or hedges of net investments in foreign operations hedges of foreign exchange risk on firm commitments are 
accounted for as cash flow hedges at the inception of the hedge relationship the entity documents the relationship 
between the hedging instrument and the hedged item along with its risk management objectives and its strategy for 
undertaking various hedge transactions furthermore at the inception of the hedge and on an ongoing basis the 
group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting 
changes in fair values or cash flows of the hedged item 
fair value hedges 
hedges are classified as fair value hedges when they hedge the exposure to changes in the fair value of a recognised 
asset or liability changes in the fair value of derivatives that are designated and qualify as fair value hedges are 
recorded in profit or loss immediately together with any changes in the fair value of the hedged item that are 
attributable to the hedged risk the change in the fair value of the hedging instrument and the change in the hedged 
item attributable to the hedged risk are recognised in the line of the income statement relating to the hedged item 
hedge accounting is discontinued when the group revokes the hedging relationship the hedging instrument expires or 
is sold terminated exercised or no longer qualifies for hedge accounting the fair value adjustment to the carrying 
amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date 
cash flow hedges 
hedges are classified as cash flow hedges when they hedge the exposure to changes in cash flows that are 
attributable to a particular risk associated with either a recognised asset or liability or a forecast transaction the 
effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are 
recognised in other comprehensive income and accumulated in equity within the group’s translation and hedging 
reserve the gain or loss relating to any ineffective portion is recognised immediately in profit or loss amounts previously 
recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods 
when the hedged item is recognised in profit or loss in the same line of the income statement as the recognised 
hedged item however when the forecast transaction that is hedged results in the recognition of a nonfinancial asset 
or a nonfinancial liability the gains and losses previously accumulated in equity are transferred from equity and 
included in the initial measurement of the cost of the nonfinancial asset or nonfinancial liability hedge accounting is 
discontinued when the group revokes the hedging relationship the hedging instrument expires or is sold terminated 
exercised or no longer qualifies for hedge accounting any gain or loss recognised in other comprehensive income at 
that time is accumulated in equity and is recognised when the forecast transaction is ultimately recognised in profit or 
loss when a forecast transaction is no longer expected to occur the gain or loss accumulated in equity is recognised 
immediately in profit or loss 
hedges of net investments in foreign operations 
hedges are classified as net investment hedges when they hedge the foreign currency exposure to changes in the 
group’s share in the net assets of a foreign operation hedges of net investments in foreign operations are accounted 
for similarly to cash flow hedges any gain or loss on the hedging instrument relating to the effective portion of the 
hedge is recognised in other comprehensive income and accumulated in the group’s translation and hedging reserve 
the gain or loss relating to any ineffective portion is recognised immediately in profit or loss gains or losses on the 
hedging instrument relating to the effective portion of the hedge accumulated in equity are reclassified to profit or loss 
in the same way as exchange differences relating to the foreign operation as described above  
82 mitie group plc 
annual report and accounts 201 1


provisions 
provisions are recognised when the group has a present obligation legal or constructive as a result of a past event 
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation 
and a reliable estimate can be made of the amount of the obligation where the group expects some or all of a 
provision to be reimbursed for example under an insurance contract the reimbursement is recognised as a separate 
asset but only when the reimbursement is virtually certain the expense relating to any provision is presented in the 
income statement net of any reimbursement if the effect of the time value of money is material provisions are 
determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments 
of the time value of money and where appropriate the risks specific to the liability where discounting is used the 
increase in the provision due to the passage of time is recognised as a borrowing cost 
bid mobilisation and precontract costs 
rendering of services 
all bid costs are expensed through the income statement up to the point where contract award or full recovery of the 
costs is virtually certain 
the confirmation of the preferred bidder for a contract by a client is the point at which the award of a contract is 
considered to be virtually certain costs incurred after that point but before the commencement of services under the 
contract are defined as mobilisation costs these costs are capitalised and included within trade and other receivables 
on the balance sheet provided that the costs relate directly to the contract are separately identifiable can be 
measured reliably and that the future net cash inflows from the contract are estimated to be no less than the amounts 
capitalised  
the capitalised mobilisation costs are amortised over the life of the contract generally on a straightline basis or on a 
basis to reflect the profile of work to be performed over the life of the contract if the straightline basis is not considered 
to be appropriate for the specific contract to which the costs relate if the contract becomes loss making any 
unamortised costs are written off immediately 
construction contracts 
in the case of construction contracts precontract costs that are direct costs associated with securing a contract and 
which can be separately identified and measured reliably are included in the cost of the contract when the realisation 
of income from the contract is virtually certain their treatment is as for mobilisation costs above  
sharebased payments 
the group operates a number of executive and employee share option schemes for all grants of share options and 
awards the fair value as at the date of grant is calculated using the blackscholes model and the corresponding 
expense is recognised on a straightline basis over the vesting period based on the group’s estimate of shares that 
will eventually vest save as you earn saye options are treated as cancelled when employees cease to contribute 
to the scheme resulting in an acceleration of the remainder of the related expense 
the group has taken advantage of the transitional provisions of ifrs 2 in respect of equitysettled awards and has 
applied ifrs 2 only to equitysettled awards granted after 7 november 2002 that had not vested before 1 april 2005 

critical judgements in applying the group’s accounting policies 
in the process of applying the group’s accounting policies which are described in note 1 above management 
has made the following judgements that have the most significant effect on the amounts recognised in the 
financial statements 
revenue recognition 
revenue is recognised for certain project based contracts based on the stage of completion of the contract activity 
this is measured by comparing the proportion of costs incurred against the estimated wholelife contract costs 
key sources of estimation uncertainty 
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date 
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the 
next financial year are discussed below 
measurement and impairment of intangible assets 
the measurement of intangible assets other than goodwill on a business combination involves estimation of future 
cash flows and the selection of suitable discount rates determining whether goodwill and other intangible assets 
are impaired requires an estimation of the value in use of the cashgenerating units to which the goodwill has been 
allocated the value in use calculation involves an estimation of the future cash flows of cashgenerating units and also 
the selection of appropriate discount rates to use in order to calculate present values the carrying value of goodwill 
and other intangible assets is £3977m 2010 £3914m at the balance sheet date see notes 13 and 14 management 
do not consider that any reasonably foreseeable change in the key assumptions would result in an impairment  governance accounts
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85
 

measurement of provisions and defined benefit pension obligations  
the group’s provisions per note 28 comprise deferred contingent consideration and insurance reserve 
the measurement of provisions and defined benefit obligations requires judgement in particular the calculation 
of defined benefit obligations is dependent on material key assumptions including discount rates mortality rates 
future returns on assets and future contribution rates the present value of defined benefit obligations at the balance 
sheet date is £1268m 2010 £1801m see note 35  
the sensitivity of defined benefit pension obligations to changes in principal actuarial assumptions is shown below 
 
change in 
assumption
increase
decrease 
in liability 
£m
discount rate 05 108
 –05 146
retail price inflation 05 44
 –05 38
consumer price inflation 05 19
 –05 19
mortality rate 1 year 38

 
2011
£m
2010
£m
rendering of services 16545 14644
construction contracts  2369 2557
total 18914 17201

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 
the financial data below reflects the performance of our four divisions in the organisational structures that applied 
during the year on 1 april 2010 the acquired dalkia fm business and our engineering maintenance business 
which were previously in the asset management division were restructured to bring together our technical facilities 
management proposition within a new operating division branded technical facilities management furthermore the 
engineering contracting offering of our asset management division was combined with our property management 
business to consolidate its proposition the acquired dalkia fm in ireland business was incorporated into facilities 
management with effect from 25 june 2010 
the comparative data below in respect of the year ending 31 march 2010 has been adjusted to reflect the 
reorganisation revenue and operating profit before other items for the year ending 31 march 2010 for dalkia fm and 
engineering maintenance of £3448m and £155m respectively have been excluded from the comparative data below 
for asset management and included within the comparative period disclosures for technical facilities management 
in addition revenue and operating profit before other items for the year ending 31 march 2010 for engineering 
contracting of £2012m and £49m have been excluded from the comparative data below for asset management 
and included within the comparative period disclosures for property management 
84 mitie group plc 
annual report and accounts 201 1


   2011  2010
2
 
 
 
revenue  
£m  
operating  
profit before 
other items
1
  
£m  
margin 

profit 
before tax 
£m
revenue 
£m 
operating  
profit before 
other items
1
  
£m  
 
 
margin  
 
profit 
before tax 
£m
facilities 
management 8822 562 64 526 8246 505 61 488
technical facilities 
management 4371 246 56 155 3448 155 45 63
property 
management 5097 214 42 130 4962 251 51 230
asset management 624 20 32 16 545 19 35 16
amendment to 
defined benefit 
pension scheme 
past service cost 
note 35 – 41 – 41 – – – –
total 18914 1083 57868 17201 930 54 797
 
1 other items are analysed in note 5 
2 represented in the structure which applied during the year
  
 
the revenue analysis above is net of inter segment sales which are not considered significant 
no single customer accounted for more than 10 of external revenue in 2011 or 2010 
in the year ending 31 march 2010 the group early adopted the improvement to ifrs 8 issued in april 2009 which clarified 
that a measure of segment assets should be disclosed only if that amount is regularly provided to the chief operating 
decision maker and consequently no segment assets are disclosed  
 
geographical segments 
   2011  2010
 
 
 
revenue  
£m  
operating  
profit before 
other items 
£m  
margin 

profit 
before tax 
£m
revenue 
£m 
operating  
profit before 
other item
£m  
 
 
margin  
 
profit 
before tax 
£m
united kingdom 18664 1073 57 861 17162 930 54 797
other countries 250 10 40 07 39 – – –
total 18914 1083 57868 17201 930 54 797
 other items are analysed in note 5 

the group separately identified and disclosed restructuring and acquisition related items termed ‘other items’  
 
2011 
£m 
2010
£m
administrative expenses  
restructuring costs relating to integration of dalkia fm eps ltd and dalkia fm in ireland 48 66
restructuring costs of property management businesses 48 –
acquisition costs 03 –
amortisation of acquisition related intangibles 89 53
 188 119
finance costs  
unwinding of discount on deferred contingent consideration 01 01
other items before tax 189 120
tax on other items 50 31
other items net of tax 139 89
 s  governance accounts
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87
 

operating profit has been arrived at after chargingcrediting 
 
2011
£m
2010
£m
depreciation of property plant and equipment note 15 179 164
amortisation of intangible assets note 14 108 59
gain on disposal of property plant and equipment 01 04
staff costs note 7 9225 8786
a detailed analysis of auditors’ remuneration is provided below 
 
2011
£’000
2010
£’000
fees payable to the company’s auditors for the audit of the company’s annual accounts 50 50
fees payable to the company’s auditors and their associates for the audit of the company’s 
subsidiaries pursuant to legislation 625 550
other audit related services to the group 10 –
total audit fees 685 600
 
tax services 142 47
other services 261 28
nonaudit fees 403 75
 
total 1088 675
in addition to the amounts shown above the auditors received fees of £19000 2010 £16000 for the audit of the group 
pension scheme and trusts and £nil 2010 £97000 of fees were incurred in relation to acquisitions including these 
amounts total nonaudit fees payable to the company’s auditors were 57 2010 31 of the year’s total audit fees  

number of people 2011 2010
the average number of people employed during the financial year was 
facilities management 50130 46239 
technical facilities management 4682 3462 
property management 3877 3734 
asset management 171 196 
total group 58860 53631 
 represented in the structure which applied during the year see note 4 
the number of people employed at 31 march was 
total group 61906 56579
 
their aggregate remuneration comprised 
2011
£m
2010
£m
wages and salaries 8428 7977
social security costs 690 659
other pension costs 74 110
sharebased payments note 34 33 40
 9225 8786
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 
86 mitie group plc 
annual report and accounts 201 1


 
2011 
£m 
2010
£m
interest on bank deposits 02 16
other interest receivable  02 01
fair value movement on derivative financial instruments – 01
 
04 18

 
2011 
£m 
2010
£m
interest on bank and other borrowings 31 30
interest on obligations under finance leases 03 03
loss arising on derivatives in a designated fair value hedge 27 –
gain arising on adjustment for the hedged item in a designated fair value hedge 29 –
fair value movement on other derivative financial instruments 01 –
unwinding of discount on deferred contingent consideration 01 01
total interest expense 34 34
less amounts included in the cost of qualifying assets 03 02
 31 32
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 14 2010 09 to expenditure on such assets 

 
2011 
£m 
2010
£m
current tax 157 238
deferred tax note 21 57 16
 214 222
corporation tax is calculated at 280 2010 280 of the estimated assessable profit for the year 
the charge for the year can be reconciled to the profit per the consolidated income statement as follows 
 
2011 
£m 
2010
£m
profit before tax 868 797
tax at the uk corporation tax rate of 280 2010 280 243 223
  
expenses not deductible for tax purposes 08 02
impact of changes in statutory tax rates 05 –
tax losses not recognisedpreviously unrecognised – 02
prior year adjustments 32 01
tax charge for the year 214 222
in addition to the amount charged to the consolidated income statement tax relating to retirement benefit costs 
sharebased payments and hedged items amounting to £01m has been charged directly to equity 2010 credit 
of £42m  governance accounts
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89
proposed final dividend for the year ended 31 march 2011 of 49p 2010 41p per share 175 145
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  

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 
 
2011
£m
2010
£m
net profit attributable to equity holders of the parent before other items 791 660
other items net of tax 139 89
net profit attributable to equity holders of the parent 652 571
 other items are analysed in note 5 
 
 
number of shares 
2011
million
2010
million
weighted average number of ordinary shares for the purpose of basic eps 3505 3384
effect of dilutive potential ordinary shares share options 64 60
weighted average number of ordinary shares for the purpose of diluted eps 3569 3444
 
 
2011
p
2010
p
basic earnings per share – before other items 226 195
basic earnings per share  186 169
diluted earnings per share – before other items 222 192
diluted earnings per share  183 166
the weighted average number of ordinary shares in issue during the year excludes those accounted for in the own 
shares reserve see note 30 
following the acquisition of dalkia fm in 2009 190m new ordinary shares of 25p each were placed on 12 august 2009 
with certain institutional and other qualified investors  

 

 
2011
£m
2010
£m
amounts recognised as distributions to equity holders in the year 
final dividend for the year ended 31 march 2010 of 41p 2009 36p per share 145 116
interim dividend for the year ended 31 march 2011 of 41p 2010 37p per share 144 131
 289 247
 
88 mitie group plc 
annual report and accounts 201 1


 £m
cost 
at 1 april 2009 2012
acquisition of subsidiaries 1036
acquisition of noncontrolling interests 187
change in deferred contingent consideration for subsidiaries acquired in prior years 05
at 1 april 2010 3240
acquisition of subsidiaries 116
  04
change in deferred contingent consideration for subsidiaries acquired in prior years 30
at 31 march 2011 3330
accumulated impairment losses 
at 1 april 2009 –
at 1 april 2010 –
at 31 march 2011 –
carrying amount 
at 31 march 2011 3330
at 31 march 2010 3240
goodwill acquired in a business combination is allocated at acquisition to the cashgenerating units cgus that 
are expected to benefit from that business combination goodwill has been allocated to cgus which align with the 
business segments as this is how goodwill is monitored by the group internally  
cost 
2011 
£m 
2010
£m 
facilities management 1600 1513 
technical facilities management 827 817 
property management 858 865 
asset management 45 45 
 3330 3240 
 represented in the structure which applied during the year see note 4 
the group tests goodwill at least annually for impairment 
the recoverable amounts of the cgus are determined from value in use calculations the key assumptions for the value 
in use calculations are those regarding the discount rates growth rates and expected changes to selling prices and 
direct costs during the period management estimates discount rates using pretax rates that reflect current market 
assessments of the time value of money and the risks specific to the cgus the growth rates are based on industry 
growth forecasts changes in selling prices and direct costs are based on past practices and expectations of future 
changes in the market 
the group prepares cash flow forecasts derived from the most recent financial budgets approved by the board for 
the next five years and extrapolates cash flows for the following five years based on an estimated growth rate of 2 
2010 2 per annum this rate does not exceed the average longterm growth rate for the relevant markets 
impact of foreign exchange governance accounts
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91
 

the rates used to discount the forecast cash flows from cgus which are based on the company’s weighted average 
cost of capital are shown below the same rate is applied to all cgus reflecting that all cgus have the same access 
to the roup’s treasury functions and borrowing lines to fund their operations and that no cgu demonstrates levels of 
risk that are significantly different from those experienced by the group as a whole 
 
2011

2010

facilities management 80 94
technical facilities management 80 94
property management 80 94
asset management 80 94
no reasonably foreseeable change in the key assumptions would result in an impairment of the goodwill of any of 
the cgus  

acquisition related 
 
customer 
relationships
£m
other
£m
total 
acquisition 
related 
£m 
software and 
development 
expenditure
£m
total
£m
cost  
at 1 april 2009 140 – 140 161 301
additions 34289 431 58 489
at 1 april 2010 482 89 571 219 790
additions 2406 30 50 80
impact of foreign exchange 01 – 01 – 01
at 31 march 2011 507 95 602 269 871
  
amortisation  
at 1 april 2009 56 – 56 01 57
charge for the year 43 10 53 06 59
at 1 april 2010 99 10 109 07 116
charge for the year 66 23 89 19 108
at 31 march 2011 165 33 198 26 224
  
carrying amount  
at 31 march 2011 342 62 404 243 647
at 31 march 2010 383 79 462 212 674
customer relationships are amortised over their useful lives based on the period of time over which they are 
anticipated to generate benefits these currently range from six to eight years other acquisition related intangibles 
include acquired software trade names and noncompete agreements and are amortised over their useful lives 
which currently range from three to ten years software and development costs are amortised over their useful life 
of between five and ten years once they have been brought into use 
g
90 mitie group plc 
annual report and accounts 201 1


 
freehold 
properties
£m
leasehold 
properties 
£m 
plant and 
vehicles 
£m 
total
£m
cost    
at 1 april 2009 51 75 654 780
additions – 10 256 266
acquired with subsidiaries – – 29 29
disposals – – 103 103
at 1 april 2010 51 85 836 972
additions – 61 195 256
transfers – 17 17 –
disposals 03 06 118 127
at 31 march 2011 48 157 896 1101
   
accumulated depreciation and impairment   
at 1 april 2009 07 28 304 339
charge for the year 01 09 154 164
disposals –– 76 76
at 1 april 2010 08 37 382 427
charge for the year 01 13 165 179
transfers – 11 11 –
disposals 01 05 92 98
at 31 march 2011 08 56 444 508
   
carrying amount   
at 31 march 2011 40 101 452 593
at 31 march 2010 43 48 454 545
the net book value of plant and vehicles held under finance leases included above was £92m 2010 £83m 
additions to fixtures and equipment during the year amounting to £46m 2010 £49m were financed by new 
finance leases 

 
2011 
£m 
2010
£m
workinprogress 41 10
materials 14 29
 55 39

 
2011 
£m 
2010
£m
trade receivables note 18 3035 2303
amounts recoverable on contracts note 19  943 1105
other debtors 141 170
cash and cash equivalents note 20 1306 237
 5425 3815
 
included in current assets 5309 3815
included in noncurrent assets 116 –
 5425 3815 governance accounts
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93
 

all financial assets are classified as loans and receivables amounts recoverable on contracts include applications for 
payment from customers which have no fixed payment terms until invoiced 

 
2011
£m
2010
£m
amounts receivable for the sale of services 3104 2410
allowance for doubtful debt 69 107
trade receivables 3035 2303
 
amounts recoverable on contracts note 19  943 1105
other debtors 141 170
prepayments and accrued income 698 478
 4817 4056
 
included in current assets 4701 4056
included in noncurrent assets 116 –
 4817 4056
ageing of trade receivables 
 
2011
£m
2010
£m
neither impaired nor past due 2198 1658
not impaired and less than three months overdue 675 579
not impaired and more than three months overdue 169 117
impaired receivables 62 56
allowance for doubtful debt 69 107
 3035 2303
movement in the allowance for doubtful debt 
 
2011
£m
2010
£m
balance at the beginning of the year 107 65
impairment losses recognised 10 62
amounts written off as uncollectable 19 06
amounts recovered during the year 29 14
 69 107
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 40 days 2010 38 days 
the directors consider that the carrying amount of trade and other receivables approximates their fair value 
92 mitie group plc 
annual report and accounts 201 1


 
contracts in progress at the balance sheet date 
2011 
£m 
2010
£m
amounts due from contract customers included in trade and other receivables 943 1105
amounts due to contract customers included in trade and other payables – 08
 943 1097
  
contract costs incurred plus recognised profits less recognised losses to date 7213 9649
less progress billings 6270 8552
 943 1097
included in current assets 827 1097
included in noncurrent assets 116 –
 943 1097
at 31 march 2011 retentions held by customers for contract work amounted to £158m 2010 £177m  

 
2011 
£m 
2010
£m
cash and cash equivalents 1306 237
 1306 237
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with an original maturity 
of three months or less the carrying amount of the assets approximates their fair value  
at 31 march 2011 £70m 2010 £nil of cash and cash equivalents were held in foreign currencies 
included in cash and cash equivalents are deposits totalling £91m 2010 £73m held by the group’s insurance 
subsidiary which are not readily available for the general purposes of the group 
the credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high  
creditratings assigned by recognised international creditrating agencies and are managed through regular review  governance accounts
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95
 

the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during 
the current and prior reporting period 
 
accelerated tax 
depreciation 
£m 
retirement 
benefit 
obligations
£m
intangible 
assets acquired
£m
share options
£m
shortterm 
timing 
differences 
£m 
tax losses
£m
total
£m
at 1 april 2009 04 08 25 10 35 12 28
chargecredit to income 10 08 15 06 09 04 16
credit to equity – 37 – 01 – – 38
acquisition of subsidiaries  04 – 120 – 44 – 72
at 1 april 2010 02 21 130 17 88 16 10
chargecredit to income 08 18 32 03 57 03 57
creditcharge to equity – 01 – 02 01 – –
acquisition of subsidiaries  – – 08 – 13 – 05
reallocation – 04––04– –
at 31 march 2011 10 08 106 12 41 13 42
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 
 
2011
£m
2010
£m
deferred tax assets 91 141
deferred tax liabilities 133 131
net deferred tax liabilityasset 42 10
the group has unutilised income tax losses of £50m 2010 £52m that are available for offset against future profits 
in addition the group has £04m 2010 £05m of capital losses  
the uk government announced a reduction in the uk corporation tax rate from 28 to 26 from 1 april 2011 which 
was substantively enacted on 29 march 2011 the reduction in the balance sheet carrying value of deferred tax assets 
and liabilities to reflect the rate of tax at which those assets are expected to reverse has resulted in a deferred tax credit 
of £05m to the income statement the uk government has indicated that it intends to enact further reductions in the 
main tax rate of 1 each year down to 23 by 1 april 2014 future rate reductions would further reduce the uk deferred 
tax assets and liabilities recognised but the actual impact will be dependent on the deferred tax position at the time  

 
2011
£m
2010
£m
trade creditors 2123 1791
other creditors 162 155
accruals and deferred income 1331 1002
financing liabilities note 24 2074 1108
 5690 4056
 
included in current liabilities 3642 2994
included in noncurrent liabilities 2048 1062
 5690 4056
 
94 mitie group plc 
annual report and accounts 201 1


with the exception of derivative financial instruments and the private placement notes all financial liabilities are held 
at amortised cost the directors estimate that their carrying value approximates their fair value derivative financial 
instruments which are included in financing liabilities are initially recognised at fair value at the date the contract is 
entered into and are subsequently remeasured to their fair value through profit or loss unless they are designated as 
hedges for which hedge accounting can be applied see note 25 the carrying value of the private placement notes 
at 31 march 2011 includes a fair value adjustment for interest rate and currency risk of £21m the fair value of the 
private placement notes is not significantly different from their carrying value 

 
2011 
£m 
2010
£m
payments received on account 31 41
trade creditors 2123 1791
other taxes and social security 682 604
other creditors 162 155
accruals and deferred income 1331 1002
 4329 3593
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 36 days 2010 31 days  
the directors consider that the carrying amount of trade and other payables approximates their fair value 

 
2011 
£m 
2010
£m
bank loans 968 1000
private placement notes 976 –
loan notes 16 35
derivative financial instruments note 25 32 05
obligations under finance leases note 26 82 68
 2074 1108
  
included in current liabilities 26 46
included in noncurrent liabilities 2048 1062
 2074 1108
the banking facilities and private placement notes are unsecured but have financial and nonfinancial covenants 
and obligations commonly associated with these arrangements  
included in current liabilities are £24m 2010 £22m of obligations under finance leases see note 26 £02m 
2010 £05m of derivative financial instruments see note 25 and £nil 2010 £19m of loan notes 
included in bank loans are £118m 2010 £nil of loans denominated in foreign currency  governance accounts
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97
 

private placement notes 
on 16 december 2010 the group issued us960m and £400m of private placement ‘pp’ notes in the united states 
private placement market the pp notes are unsecured and rank pari passu with other senior unsecured indebtedness 
of the group in order to manage the risk of foreign currency fluctuations and to manage the group’s finance costs 
through a mix of fixed and variable rate debt the group has entered into cross currency interest rate swaps the swap 
contracts have the same duration and other critical terms as the borrowings and are considered to be highly effective 
the amount maturity and interest terms of the pp notes are as shown below 
tranche maturity date amount interest terms swap interest
7 year 18 december 2017 us48m us fixed at 339 £ fixed at 388
7 year 18 december 2017 us48m us fixed at 339 £ libor  126
9 year 18 december 2019 £400m £ fixed at 438 na
the weighted average interest rates paid during the year on the overdrafts and loans outstanding were as follows 
 
2011

2010

overdrafts 19 20
bank loans 10 09
private placement notes 36 –
loan notes – –
at 31 march 2011 the group had available £1323m 2010 £1212m of undrawn committed borrowing facilities in 
respect of which all conditions precedent had been met the facilities have an expiry date of january 2012 the loans 
carry interest rates which are currently determined at 04 over libor details of the group’s contingent liabilities are 
provided in note 32  
the group renegotiated its banking facilities in march 2011 and its new committed facility of £250m will be available for 
drawdown in july 2011 subject to the approval of an amendment to the articles of association at the forthcoming 
agm to clarify the definition of borrowing limits until that point the group’s existing committed banking facility of £230m 
remains available for use by the group the new committed facility will remain in place until september 2015 the group 
also has further overdraft facilities of £40m  

the group’s treasury function monitors and manages the financial risks relating to the operations of the group 
these risks include interest rate risk foreign currency risk liquidity risk and credit risk the group seeks to minimise 
the effects of these risks by using derivative financial instruments to hedge these risk exposures the use of financial 
derivatives is governed by group policies and reviewed regularly group policy is not to trade in financial instruments 
hedging activities 
cash flow hedges 
the group holds a number of cross currency interest rate swaps designated as cash flow hedges biannual fixed interest 
cash flows arising over the periods to december 2017 and denominated in us from the us private placement market 
are exchanged for fixed interest cash flows denominated in sterling the group also holds a number of forward 
exchange currency contracts designated as hedges of highly probable forecast transactions all cash flow hedges 
were assessed as being highly effective as at 31 march 2011 
fair value hedges 
the group holds a number of cross currency interest rate swaps designated as fair value hedges fixed interest cash 
flows denominated in us from the us private placement market are exchanged for floating interest cash flows 
denominated in sterling all fair value hedges were assessed as being highly effective as at 31 march 2011 
hedge of net investment in foreign operations 
included in bank loans at 31 march 2011 was a borrowing of €95m 2010 nil which has been designated as a hedge 
of the net investment in the republic of ireland business of dalkia fm in ireland and is being used to hedge the group’s 
exposure to foreign exchange risk on this investment gains or losses on the translation of the borrowing are transferred 
to equity to offset gains or losses on the translation of the net investment 
96 mitie group plc 
annual report and accounts 201 1


derivative financial instruments 
the carrying values of derivative financial instruments at the balance sheet date were as follows 
 
derivative financial instruments are measured at fair value fair values of derivative financial instruments are calculated 
based on a discounted cash flow analysis using appropriate market information for the duration of the instruments 
fair value measurements are classified into three levels depending on the degree to which the fair value is observable 
level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities 
level 2 fair value measurements are those derived from other observable inputs for the asset or liability and  
level 3 fair value measurements are those derived from valuation techniques using inputs that are not based on 
observable market data  
we consider that the derivative financial instruments fall into level 2 
the cross currency interest rate swaps are net settled and other contracts are gross settled 
foreign currency risk 
the group has limited exposure to transactional foreign currency risk from trading transactions in currencies other than 
the functional currency of individual group entities the group considers the need to hedge its exposures appropriately 
and will enter into forward foreign exchange contracts to mitigate any significant risks 
the group has some exposure to translational foreign currency risk from the translation of its operations in the republic 
of ireland and other european territories the group considers the need to hedge its exposures appropriately  
in addition on 16 december 2010 the group issued us960m and £400m of private placement ‘pp’ notes in the 
united states private placement market and this has been fully hedged into sterling using cross currency interest rate 
swaps see note 24 
interest rate risk  
the group’s activities expose it to the financial risks of interest rates the group’s treasury function reviews its risk 
management strategy on a regular basis and will appropriately enter into derivative financial instruments in order to 
manage interest rate risk having issued us960m and £400m of private placement ‘pp’ notes in the united states 
private placement fixed rate market on 16 december 2010 the group has swapped us48m into floating rate debt 
see note 24 
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 2011 and reserves would decreaseincrease by £06m 2010 £03m  
 
assets
2011 
£m
assets  
2010  
£m 
liabilities 
2011 
£m 
liabilities
2010 
£m
cross currency interest rate swaps designated  
as cash flow hedges – 08 –
cross currency interest rate swaps designated  
as fair value hedges – 21 –
derivative financial instruments hedging private placement notes – 29 –
callable interest rate swaps – 02 05
forward foreign exchange contracts – 01 –
 – 32 05
included in current assetsliabilities – 
02 05
included in noncurrent assetsliabilities – 30 –
 – 32 05
–
–
–
–
–
–
–
–
– governance accounts
mitie group plc 
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99
 

credit risk  
the group’s credit risk to all of its banks and financial counterparties is monitored on an ongoing basis and formally 
reported quarterly the value of business placed with financial institutions is reviewed on a daily basis 
the group’s principal financial assets are cash and cash equivalents and trade and other receivables 
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the balance sheet are 
net of allowances for doubtful receivables an allowance for impairment is made where there is an identified loss event 
which based on previous experience is evidence of a reduction in the recoverability of the cash flows in addition 
where appropriate certain debts are subject to credit insurance 
the group has no significant concentration of credit risk with exposure spread over a large number of counterparties 
and customers 
liquidity risk 
the group monitors its risk to a shortage of funds using a cash flow projection model which considers the maturity of the 
group’s assets and liabilities and the projected cash flows from operations bank facilities which allow for appropriate 
headroom in the group’s daily cash movements are then arranged details of our bank facilities can be found in 
note 24 
the tables below summarise the maturity profile including both undiscounted interest and principal cash flows of the 
group’s financial liabilities  
at 31 march 2011 
within
one year 
£m
in the second 
to fifth years 
£m 
after 
five years
£m
total
£m
trade creditors 2123 – – 2123
other creditors 162 – – 162
accruals and deferred income 1331 – – 1331
financing liabilities 61 1228 1080 2369
financial liabilities 3677 1228 1080 5985
 
at 31 march 2010 
within
one year 
£m
in the second 
to fifth years 
£m 
after
five years
£m
total
£m
trade creditors 1791 – – 1791
other creditors 155 – – 155
accruals and deferred income 1002 – – 1002
financing liabilities 70 1083 – 1153
financial liabilities 3018 1083 – 4101
all financial liabilities other than financing liabilities are interest free details of financing liabilities are given in note 24 
all financial assets are recoverable within one year except for those disclosed as noncurrent in note 17 
market risk  
the group’s activities expose it to the financial risks of interest rates the group’s treasury function reviews its risk 
management strategy on a regular basis and will appropriately enter into derivative financial instruments in order 
to manage interest rate risk group policy is not to trade in financial instruments 
capital risk management  
the group manages its capital to ensure that entities in the group will be able to continue as going concerns while 
maximising the return to stakeholders through the optimisation of debt and equity the capital structure of the group 
consists of net debtfunds per note 27 and equity per the consolidated statement of changes in equity 
the group’s capital structure is reviewed regularly the group is not subject to externally imposed regulatory capital 
requirements with the exception of those applicable to the group’s captive insurance subsidiary which is monitored 
on a regular basis 
98 mitie group plc 
annual report and accounts 201 1


minimum lease payments  present value of lease payments
2011
£m
2010 
£m  
2011 
£m 
2010
£m
amounts payable under finance leases    
within one year 27 25  24 22
in the second to fifth years inclusive 62 52  57 46
after five years 01 –  01 –
 90 77  82 68
less future finance charges 08 09 – –
present value of lease obligations 82 68  82 68
less amount due for settlement within 12 months  24 22 24 22
amount due for settlement after 12 months 58 46  58 46
the average remaining lease term is 38 months 2010 35 months for the year ended 31 march 2011 the average 
effective borrowing rate was 29 2010 42 interest rates are fixed at the contract date all leases are on a fixed 
repayment basis and no arrangements have been entered into for contingent rental payments all lease obligations 
are denominated in sterling 
the fair value of the group’s lease obligations approximates their carrying amount the group’s obligations under 
finance leases are protected by the lessors’ rights over the leased assets 

 
2011 
£m 
2010
£m
cash and cash equivalents note 20 1306 237
bank loans note 24 968 1000
private placement notes note 24 976 –
derivative financial instruments hedging private placement notes note 25 29 –
net debt before loan notes and obligations under finance leases 667 763
loan notes note 24 16 35
obligations under finance leases note 26 82 68
net debt 765 866
 governance accounts
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101
 

 
deferred 
contingent 
consideration 
£m 
insurance 
reserve
£m
total
£m
at 1 april 2010 129 82 211
amounts charged to the income statement 01 25 26
utilised during the year 81 25 106
amounts recognised through goodwill 04 – 04
at 31 march 2011 45 82 127
  
included in current liabilities  45
included in noncurrent liabilities  82
  127
 
 
deferred 
contingent 
consideration 
£m 
insurance 
reserve
£m
total
£m
at 1 april 2009 110 94 204
amounts charged to the income statement 01 18 19
utilised during the year 20 30 50
amounts recognised through goodwill 38 – 38
at 31 march 2010 129 82 211
  
included in current liabilities  99
included in noncurrent liabilities  112
  211
provision is made for deferred contingent consideration which may become payable up to 2012 subject to profit 
targets being attained at the best estimate of the directors a total of £26m was provided in respect of acquisitions 
made during the year of which £07m was settled in cash during the year see note 31 
during the year deferred contingent consideration of £35m in respect of the acquisition in 2009 of eps ltd was settled  
cash due to attainment of profit targets £39m of deferred contingent consideration in respect of the acquisition in 
2007 of robert prettie was settled in loan notes in addition £30m of deferred contingent consideration that arose on 
acquisitions accounted for under ifrs 3 2004 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 
in 
100 mitie group plc 
annual report and accounts 201 1


ordinary shares of 25p 
number  
million £m
authorised 
  
at 31 march 2010 and 31 march 2011 5000 125
  
allotted and fully paid 
  
at 1 april 2010 3532 88
issued for acquisitions 30 01
issued under share option schemes 16 –
at 31 march 2011 3578 89
   
at 1 april 2009 3230 81
issued for placing 190 05
issued for acquisitions 90 02
issued under share option schemes 22 –
at 31 march 2010 3532 88
during the year 30m 2010 90m ordinary shares of 25p were allotted in respect of the acquisition of noncontrolling 
interests at a midmarket price of 2092p 2010 2378p giving rise to share premium of £16m 2010 £80m and a 
merger reserve of £48m 2010 £131m 
during the year 16m 2010 22m ordinary shares of 25p were allotted in respect of share option schemes at a price 
between 117p and 226p 2010 95p and 220p giving rise to share premium of £23m 2010 £30m 
on 12 august 2009 190m new ordinary shares of 25p each were placed with certain institutional and other qualified 
investors by ubs limited and investec bank plc acting as joint bookrunners and joint brokers giving rise to share premium 
of £413m 

share premium account 
the share premium account represents the premium arising on the issue of equity shares see note 29 
merger reserve 
the merger reserve represents amounts relating to premiums arising on shares issued subject to the provisions of section 
612 of the companies act 2006 see note 29 
sharebased payment reserve 
the sharebased payment reserve represents credits relating to equitysettled sharebased payment transactions 
granted after 7 november 2002 that have not yet fully vested see note 34 
own shares reserve 
the group uses shares held in the employee benefit trust to satisfy options under the group’s ltip share option scheme 
during the year 26m shares were purchased at a cost of £57m the own shares reserve at 31 march 2011 represents 
the cost of 59m 2010 33m shares in mitie group plc with a weighted average of 53m 2010 46m shares during the 
year 
other reserves 
other reserves are comprised of the revaluation reserve of £02m 2010 £02m the capital redemption reserve of 
£03m 2010 £03m and other reserves of £01m 2010 £01m 
hedging and translation reserve 
the hedging and translation reserve represents foreign exchange differences arising on translation of the group’s 
overseas operations movements relating to cash flow hedges and movements on net investment hedges 
  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
103
 

during the year a net cash outflow of £118m arose on the acquisitions set out below 
 £m
dalkia fm in ireland  73
service management international limited  05
noncontrolling interests 04
environmental property services limited deferred consideration 35
other 01
net cash outflow on acquisitions 118
current year acquisitions 
purchase of fm business of dalkia in ireland 
on 25 june 2010 mitie acquired 100 of dfm providers limited subsequently renamed mitie facilities management 
limited and dalkia energy and facilities limited subsequently renamed mitie limited together dalkia fm in ireland 
for total consideration of up to €125m the transaction has been accounted for by the acquisition method of 
accounting in accordance with ifrs 3 2008 below we provide provisional information on the acquisition final 
information on fair values will be presented after the end of the 12 month measurement period in the group’s half
yearly financial report for the six months to 30 september 2011 
 
book value 
£m 
fair value 
adjustments
£m
fair value
£m
net assets acquired  
intangible assets 88 58 30
deferred tax liabilityasset 11 04 07
trade and other receivables 54 04 50
cash and cash equivalents 15 – 15
trade and other payables 49 08 57
current tax liability 02 – 02
net assets acquired 95 66 29
 
goodwill 77
total consideration 106
 
satisfied by 
 
cash 88
deferred contingent consideration 18
total consideration 106
  
net cash outflow arising on acquisition 
 
cash consideration 88
cash and cash equivalents acquired 15
net cash outflow 73
acquisition related costs included within other items note 5 amounted to £03m 
the goodwill arising on the acquisition of dalkia fm in ireland is attributable to the underlying profitability of the 
companies expected profitability arising from new business and the anticipated future operating synergies arising from 
assimilation into the group none of the goodwill recognised is expected to be deductible for income tax purposes 
provision is made for deferred contingent consideration at the directors’ best estimate of the likely future obligation 
deferred contingent consideration of up to €20m which may become payable up to 2012 subject to certain profit 
and other targets being attained is included above deferred contingent consideration of €10m was settled in cash 
during the year 
102 mitie group plc 
annual report and accounts 201 1


dalkia fm in ireland contributed £194m to revenue and £13m to the group’s operating profit before other items for the 
period if the acquisition had taken place at the start of the period the group’s revenue and operating profit before 
other items would have been approximately £1897m and £109m respectively 
purchase of service management international limited 
the group increased its stake to 50 in service management international limited for total cash consideration of £05m 
purchase of noncontrolling interests 
mitie 
engineering 
maintenance 
north ltd 
£m 
mitie 
engineering 
maintenance 
caledonia ltd
£m
mitie 
engineering 
services 
midlands ltd
£m
mitie 
engineering 
projects ltd
£m
mitie 
engineering ltd 
£m 
mitie services 
retail ltd 
£m 
total
£m
noncontrolling interests 04 – 02 04 07 02 19
retained earnings 12 01 06 08 24 02 49
total purchase consideration 16 01 08 12 31 – 68
    
shares issued – mitie group plc 15 01 08 12 28 – 64
cash consideration 01 ––– 03 – 04
total purchase consideration 16 01 08 12 31 – 68
prior year acquisitions 
the group reported provisional information on the acquisitions made in the prior year in the annual report and 
accounts 2010 below we provide final information on those acquisitions the final fair value of net assets acquired 
presented below has reduced by £33m since the provisional fair value information was presented this has resulted  
were not significant to the prior year balance sheet  
purchase of dalkia technical facilities management 
on 12 august 2009 mitie acquired 100 of dalkia technical facilities management dalkia fm for total consideration of 
£1195m the transaction was accounted for by the purchase method of accounting in accordance with ifrs 3 2004  
 
provisional fair 
value 
£m 
final fair value 
adjustments 
£m 
final
£m
net assets acquired   
intangible assets 299 – 299
deferred tax liabilityasset 37 03 34
property plant and equipment 24 04 20
inventories 12 – 12
trade and other receivables 598 05 603
trade and other payables 421 15 436
current tax liability 03 – 03
net assets acquired 472 11 461
 
goodwill 734
total consideration 1195
 
satisfied by 
cash 1162
directly attributable costs 33
total consideration 1195
 
net cash outflow arising on acquisition 
cash consideration 1195
net cash outflow 1195
 
in a corresponding £33m increase to goodwill these changes 
fair value governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
105
 

purchase of environmental property services limited 
on 20 november 2009 mitie acquired 100 of environmental property services limited eps ltd for a maximum 
consideration of up to £409m with an initial consideration of £368m the transaction was accounted for by the 
purchase method of accounting in accordance with ifrs 3 2004  
provisional fair 
value 
£m 
final fair value 
adjustments
£m
final
£m
net assets acquired  
intangible assets 133 – 133
deferred tax liabilityasset 35 09 26
property plant and equipment 05 01 04
inventories 04 – 04
trade and other receivables 186 02 188
cash and cash equivalents 35 – 35
trade and other payables 209 32 241
loans  23 – 23
net assets acquired 96 22 74
 
goodwill 335
total consideration 409
 
satisfied by 
cash 403
directly attributable costs 06
total consideration 409
 
net cash outflow arising on acquisition 
cash consideration 409
cash and cash equivalents acquired 35
loan acquired 23
net cash outflow 397
deferred contingent consideration of £35m which was provided for at 31 march 2010 was settled in cash during the 
period due to attainment of profit targets and is now included in cash consideration above  
fair value
104 mitie group plc 
annual report and accounts 201 1


the company is party with other group companies to cross guarantees of each other’s bank and other borrowings 
commitments and overdrafts of £ 0m 2010 £2700m 
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 £45m 2010 £129m per note 28 the actual amounts payable may vary up to a maximum of 
£69m 2010 £324m 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 £349m 2010 £234m in the ordinary course of business these are 
not expected to result in any material financial loss  

the group as lessee 
 
2011 
£m 
2010
£m
minimum lease payments under operating leases recognised in income for the year 101 96
at the balance sheet date the group had total outstanding aggregate commitments for future minimum lease 
payments under noncancellable operating leases which fall due as follows 
 
2011 
£m 
2010
£m
within one year 99 76
in the second to fifth years inclusive 175 152
after five years 55 40
 329 268
operating lease payments represent rentals payable by the group for certain of its office properties and hire of vehicles 
and other equipment these leases have average durations ranging from three to ten years no arrangements have 
been entered into for contingent rental payments 

equitysettled share option schemes 
the company has four share option schemes 
the mitie group plc long term incentive plan ltip 
the ltip was introduced in 2007 the awards of shares or rights to acquire shares the awards are offered to a small 
number of key senior management where offered as options the exercise price is nil the vesting period is three years 
if the awards remain unexercised after a period of four years from the date of grant the awards expire the awards 
may be forfeited if the employee leaves the group before the awards can be exercised a performance condition 
must be satisfied the number of awards that vest is determined by a sliding scale above the retail price index per 
annum compound growth in earnings per share over a threeyear period 
the mitie group plc 1991 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day 
period immediately preceding the date of grant the vesting period is three years if the options remain unexercised 
after a period of ten years from the date of grant the options expire options may be forfeited if the employee leaves 
the group no options have been granted under this scheme since august 2001 
the mitie group plc 2001 executive share option scheme  
the executive share option scheme exercise price is equal to the average market value of the shares over the five day 
period immediately preceding the date of grant the vesting period is three years if the options remain unexercised 
after a period of ten years from the date of grant the options expire options may be forfeited if the employee leaves 
the group before options can be exercised the performance condition that must be satisfied is that the percentage 
growth in earnings per share over a threeyear period must be equal or greater than 100 per annum compound in 
respect of awards prior to july 2007 and 40 above the retail price per annum thereafter 
368
index  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
107
 

the mitie group plc 2001 saye scheme 
the saye scheme is open to all employees the exercise price is not less than 800 of the market value of the shares 
on the day preceding the date on which invitations to participate in the scheme are issued for options granted prior 
to september 2009 the vesting period is five years for options granted in september 2009 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 
2011  2010
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  181 162  173 162
granted during the year 80 140  54 139
forfeited during the year 20 194  18 172
exercised during the year 16 151  28 108
outstanding at the end of the year 225 152  181 162
   
exercisable at the end of the year 30 202  22 163
 included within this balance are 02m 2010 03m 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 
 
2011
£m
2010
£m
long term incentive plan share options 16 24
2001 executive share options 09 07
2001 saye share options 08 09
 33 40
the weighted average share price at the date of exercise for share options exercised during the year was 206p 
2010 234p the options outstanding at 31 march 2011 had exercise prices other than nil in the case of the ltip 
ranging from 117p – 254p 2010 117p – 254p and a weighted average remaining contractual life of 44 years 
2010 46 years in the year ended 31 march 2011 options were granted in june july and august 2010 in respect 
of the ltip saye and executive share option schemes the aggregate of the estimated fair values of the options 
granted on those dates was £44m in the year ended 31 march 2010 options were granted in june july and august 
2009 in respect of the ltip executive and saye share option schemes the aggregate of the estimated fair values of the 
options granted on those dates was £47m 
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are 
as follows 
 2011 2010
share price p 191–230 133–230
exercise price p 0–254 0–254
expected volatility  28–36 27–36
expected life years 3–6 3–6
riskfree rate  149–525 242–525
expected dividends  222–393 143–330
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 
 
106 mitie group plc 
annual report and accounts 201 1


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 £81m 2010 £72m during the year as at 31 march 2011 contributions of £05m 
2010 £05m due in respect of the current reporting period had not been paid over to the schemes 
defined benefit schemes 
group defined benefit scheme 
the group operates a defined benefit pension scheme called the mitie group plc pension scheme where mitie 
group plc is the principal employer  
the assets of the scheme are held separately from the group contributions to the scheme are charged to the 
income statement so as to spread the cost of pensions over the employees’ working lives with the group  
under the scheme the employees are entitled to retirement benefits varying between 0 and 66 of final salary 
on attainment of a retirement age of 65 no other postretirement benefits are provided the 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 as at 1 april 2008 by mr chris bamford fellow of the institute of actuaries from aon 
consulting limited the next triennial valuation is due to be carried out as at 1 april 2011 
other defined benefit schemes 
grouped together under ‘other schemes’ is one 2010 one scheme in which the group is a participating employer 
and a number of schemes to which the group makes contributions under admitted body status to our customers’ 
defined benefit schemes in respect of certain tupe employees these valuations are updated by the actuaries at each 
balance sheet date the present values of the defined benefit obligations the related current service cost and past 
service cost were measured using the projected unit credit method 
for the admitted body schemes which are all part of the local government pension scheme the group will only 
participate for a finite period up to the end of the contracts the group is required to pay regular contributions as 
decided by the relevant scheme actuaries and detailed in the schemes’ schedule of contributions in a number 
of cases contributions payable by the employer are capped and any excess recovered from the body that the 
employees transferred from in addition in certain cases at the end of the contract the group will be required to 
pay any deficit as determined by the scheme actuary that is remaining for its notional section of the scheme 
assumptions 
following the announcement in the june 2010 budget the uk government has announced that it will use the consumer 
price index cpi measure of inflation rather than the retail price index rpi to determine the level of future statutory 
pension increases as cpi is lower than rpi the application of cpi to the valuation of future pension liabilities results in 
a reduction in the value of pension obligations on the balance sheet the move to a cpi based valuation base affects 
certain of the group’s defined benefit pension liabilities the financial implication of this has been treated as a change 
in defined pension benefits and recognised as a negative past service cost in the income statement as a result of this 
change a credit of £41m has been recognised in the income statement for the year ended 31 march 2011 
group schemes  other schemes
2011

2010 
  
2011 
 
2010

key assumptions used for ias 19 valuation    
discount rate 560 560  560 560
expected return on scheme assets    
 equity instruments 800 800  800 800
 debt instruments 500 500  500 500
 property 750 750  750 750
 other assets 150 150  150 150
 alternative assets 700 700  700 700
expected rate of salary increases 450 450  400 up to 450
retail price inflation 350 350  350 350
consumer price inflation 270 na  270 na
future pension increases  350 350  280 350
 governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
109
 

the overall expected return on assets is calculated as the weighted average of the expected return of each asset 
class the expected return on equities is the sum of dividend growth and capital growth net of investment expenses 
the return on gilts and bonds is the current market yield on longterm bonds the expected return on property has 
been set equal to that expected on equities less a margin the expected return on other assets is the rate earned by 
the scheme on cash and alternate assets 
the sensitivity of defined benefit obligations to changes in principal actuarial assumptions is shown in note 2 
amounts recognised in administrative expenses in respect of these defined benefit schemes are as follows 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
current service cost  41 03 44 29 10 39
interest cost  62 07 69 50 32 82
expected return on scheme assets  70 08 78 51 32 83
negative past service cost 34 07 41 – – –
 01 05 06 28 10 38
amounts recognised in the consolidated statement of comprehensive income are as follows 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
actual return on scheme assets 63 04 59 196 149 345
expected return on scheme assets  70 08 78 51 32 83
actuarial lossesgains on liabilities 10 18 08 267 126 393
 17 06 11 122 09 131
the cumulative amount of actuarial loss recognised since 1 april 2004 in the consolidated statement of comprehensive 
income is £247m 2010 £236m 
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 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes
£m
total
£m
fair value of scheme assets  1145 98 1243 1014 615 1629
present value of defined  
benefit obligations  1175 93 1268 1082 719 1801
deficitsurplus in scheme  30 05 25 68 104 172
contract adjustment – 05 05 – 67 67
net pension liability 30 – 30 68 37 105
108 mitie group plc 
annual report and accounts 201 1


movements in the present value of defined benefit obligations were as follows 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 1082 719 1801 743 518 1261
41 03 44 29 10 39
interest cost  62 07 69 50 32 82
contributions from scheme members  08 01 09 09 05 14
actuarial gains and losses  10 09 01 267 168 435
benefits paid  22 04 26 16 11 27
negative past service cost 34 07 41 – – –
contract transfers 28 617 589 – 03 03
at 31 march 1175 93 1268 1082 719 1801
movements in the fair value of scheme assets were as follows 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
at 1 april 1014 615 1629 773 458 1231
expected return on scheme assets  70 08 78 51 32 83
actuarial gains and losses 07 12 19 145 117 262
contributions from the 
sponsoring companies 54 25 79 52 16 68
contributions from scheme members  08 01 09 09 05 14
benefits paid  22 04 26 16 11 27
contract transfers 28 535 507 – 02 02
at 31 march  1145 98 1243 1014 615 1629
the analysis of the scheme assets at the balance sheet date was as follows 
 2011 2010
 
group scheme
£m
other schemes
£m
total
£m
group scheme 
£m 
other schemes 
£m 
total
£m
equity instruments 498 70 568 567 447 1014
debt instruments 246 18 264 222 102 324
property 177 05 182 114 51 165
other assets 18 05 23 22 15 37
alternative assets 206 – 206 89 – 89
at 31 march  1145 98 1243 1014 615 1629
the pension schemes have invested in property occupied by the group with a fair value of £39m 2010 £39m 
generating rental of £03m 2010 £03m at 31 march 2011 the pension schemes held no mitie group plc shares 
2010 nil the pension schemes have not invested in any other assets used by the group transactions between 
the group and the pension schemes are conducted at arm’s length 
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 890 years 2010 874 years and for a female aged 650 years 
the expected life is 920 years 2010 898 years mortality for the other schemes is that used by the relevant 
scheme actuary 
current service cost   governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
111
 

the history of experience adjustments is as follows 
 group schemes
 
2011
£m
2010
£m
2009 
£m 
2008
£m
2007
£m
fair value of scheme assets 1145 1014 773 886 832
present value of defined benefit obligations 1175 1082 743 787 827
deficitsurplus in the scheme 30 68 30 99 05
  
experience adjustments on scheme liabilities  05 01 113 120 32
percentage of scheme liabilities  04 01 153 152 39
 
experience adjustments on scheme assets 07 145 212 41 05
percentage of scheme assets 06 143 274 48 10
 
 other schemes
 
2011
£m
2010
£m
2009 
£m 
2008
£m
2007
£m
fair value of scheme assets 98 615 458 523 614
present value of defined benefit obligations 98 652 492 547 614
deficitsurplus in the scheme 373424–
  
experience adjustments on scheme liabilities  09 07 109 52 10
percentage of scheme liabilities  92 10 222 100 16
 
experience adjustments on scheme assets 13 117 130 60 –
percentage of scheme assets 133 190 284 115 –
the estimated contributions expected to be paid to the group schemes during the current financial year are £40m 
2010 £50m and to other schemes £03m 2010 £16m 
as at 31 march 2011 contributions of £08m 2010 £24m due in respect of the current reporting period had not been 
paid over to the schemes 

transactions between the company and its subsidiaries which are related parties have been eliminated on 
consolidation and are not disclosed in this note 
during the year the group derived £56m of construction revenue from joint ventures and associated undertakings 
no invoices were outstanding at the year end no other disclosures have been made in respect of joint ventures and 
associated undertakings on the grounds of materiality 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  
the group’s key management personnel are the directors and nonexecutive directors whose remuneration is disclosed 
in the audited section of the directors’ remuneration report the sharebased payment charge relating to share options 
granted to key management personnel is £08m 2010 £14m  
 
–
110 mitie group plc 
annual report and accounts 201 1


the companies set out below are those which were part of the group at 31 march 2011 and in the opinion of the 
directors significantly affected the group’s results and net assets during the year principal subsidiaries are incorporated 
in the united kingdom and are held directly or indirectly by mitie group plc  
division activities principal subsidiaries 
at 31 march 
2011 
 voting 
rights owned 
at 31 march 
2011 
 ownership 
interest 
at 31 march
2011
  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 2011 we recognised four 
principal business lines which were 
facilities management which 
comprises our managed services 
business services client services 
and pfi businesses cleaning 
and environmental which 
encompasses our cleaning 
landscaping and pest 
control businesses security 
and catering 
mitie facilities services ltd 
 
mitie cleaning  
environmental services ltd  
 
 
 
mitie security holdings ltd 
1000 1000 1000
992 
 
992 992
944 999 999
technical facilities 
management 
our technical facilities 
management division focuses on 
facilities management that is led 
by technology engineering and 
energy requirements it comprises 
the integrated operations of our 
engineering maintenance business 
and dalkia fm 
mitie technical facilities 
management ltd formerly 
dalkia energy  technical 
services ltd 
 
 
1000 1000 1000
  
property  
management 
our property management division 
offers an integrated property 
management service including 
mechanical and electrical 
engineering energy and more 
general facilities management 
services in addition to the 
traditional services such as 
maintenance refurbishment 
painting roofing interior fitout fire 
protection plumbing and heating 
mitie property services 
uk ltd 
 
robert prettie  co ltd 
 
environmental property 
services ltd 
 
 
801 801 801
1000 1000 1000
1000 1000 1000
  
 
asset  
management 
our asset management 
division provides the 
integration management 
and maintenance of technical 
assets to meet the challenges 
of the lowcarbon economy 
including energy design 
generation and certification 
infrastructure projects building 
services and mechanical 
and electrical engineering  
mitie asset management ltd 
 
 
 
mitie infrastructure ltd 
 
1000 1000 1000
1000 1000 1000
the companies listed above represent the principal subsidiary companies of the group a full list of subsidiary 
companies will be annexed to the next annual return 
  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
113

 
we have audited the parent company financial 
statements of mitie group plc for the year ended 
31 march 2011 which comprise the company balance 
sheet and the related notes 38 to 51 the financial 
reporting framework that has been applied in their 
preparation is applicable law and united kingdom 
accounting standards united kingdom generally 
accepted accounting practice 
this report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 
of the companies act 2006 our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to them in 
an auditors’ report and for no other purpose to the fullest 
extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the 
company’s members as a body for our audit work for 
this report or for the opinions we have formed 
respective responsibilities of directors and auditor 
as explained more fully in the directors’ responsibilities 
statement the directors are responsible for the 
preparation of the parent company financial statements 
and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the 
parent company financial statements in accordance with 
applicable law and international standards on auditing 
uk and ireland those standards require us to comply with 
the auditing practices board’s apb’s ethical standards for 
auditors 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements 
are free from material misstatement whether caused by 
fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the parent 
company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness 
of significant accounting estimates made by the directors 
and the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial 
information in the annual report to identify material 
inconsistencies with the audited financial statements if we 
become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report 
opinion on financial statements 
in our opinion the parent company financial statements 
− give a true and fair view of the state of the parent 
company’s affairs as at 31 march 2011 
− have been properly prepared in accordance with 
united kingdom generally accepted accounting 
practice and 
− have been prepared in accordance with the 
requirements of the companies act 2006 
opinion on other matters prescribed by the companies act 2006 
in our opinion 
− the part of the directors’ remuneration report to be 
audited has been properly prepared in accordance 
with the companies act 2006 and 
− the information given in the directors’ report for the 
financial year for which the financial statements are 
prepared is consistent with the parent company 
financial statements 
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
matters where the companies act 2006 requires us to 
report to you if in our opinion 
− adequate accounting records have not been kept by 
the parent company or returns adequate for our audit 
have not been received from branches not visited by 
us or 
− the parent company financial statements and the part 
of the directors’ remuneration report to be audited are 
not in agreement with the accounting records and 
returns or 
− certain disclosures of directors’ remuneration specified 
by law are not made or 
− we have not received all the information and 
explanations we require for our audit 
other matters 
we have reported separately on the group financial 
statements of mitie group plc for the year ended 
31 march 2011  
 
 
 
ian krieger senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
bristol united kingdom 
23 may 2011 
 
112 mitie group plc 
annual report and accounts 201 1

at 31 march 2011 
 
 
notes 
2011 
£m 
2010
£m
fixed assets   
tangible assets 41 302 256
investments in subsidiary undertakings 42 6454 6275
total fixed assets  6756 6531
 
  
current assets   
debtors 43 493 577
total current assets  493 577
 
  
total assets  7249 7108
 
  
creditors amounts falling due within one year 44 1623 1470
provisions 46 45 99
total current liabilities  1668 1569
 
 
net current liabilities  1175 992
 
  
total assets less current liabilities  5581 5539
 
  
creditors amounts falling due after more than one year 45 984 1016
provisions 46 16 46
total liabilities  2668 2631
 
 
net assets  4581 4477
 
  
capital and reserves   
share capital 47 89 88
share premium account 48 806 767
merger reserve 48 851 803
sharebased payments reserve 48 78 61
own shares reserve 48 138 81
other reserves 48 03 03
profit and loss account 48 2892 2836
equity shareholders’ funds   4581 4477
the financial statements of mitie group plc company registration number sc 19230 were approved by the board of 
directors and authorised for issue on 23 may 2011 they were signed on its behalf by 
 
ruby mcgregorsmith  suzanne baxter 
chief executive  group finance director  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
115

for the year ended 31 march 2011 
 

basis of accounting 
the separate financial statements of the company are presented as required by company law they have been 
prepared under the historical cost convention and in accordance with applicable united kingdom accounting 
standards and law  
as more fully detailed in the directors’ report corporate governance statement the company’s financial statements 
have been prepared on a going concern basis 
the principal accounting policies are summarised below they have been applied consistently throughout the year 
and the preceding year 
investments 
fixed asset investments in subsidiaries are shown at cost less any provision for impairment  
tangible fixed assets 
tangible fixed assets are stated at cost less accumulated depreciation and any impairment in value depreciation is 
charged so as to write off the cost of the assets over their estimated useful lives and is calculated on a straightline basis 
as follows 
plant and vehicles  3–10 years 
software and development costs 5–10 years 
the carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances 
indicate the carrying value may not be recoverable if any such indication exists and where the carrying values exceed 
the estimated recoverable amount the assets or cashgenerating units are written down to their recoverable amount 
the recoverable amount of tangible fixed assets is the greater of net selling price and value in use in assessing value 
in use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects 
current market assessments of the time value of money and the risks specific to the asset 
borrowing costs 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets 
that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of 
those assets until such time as the assets are substantially ready for their intended use or sale all other borrowing costs 
are recognised in profit or loss in the period in which they are incurred 
provisions 
provisions are recognised when the company has a present obligation as a result of a past event and it is probable 
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable 
estimate can be made of the amount of the obligation where the company expects some or all of a provision to be 
reimbursed for example under an insurance contract the reimbursement is recognised as a separate asset but only 
when the reimbursement is virtually certain the expense relating to any provision is charged to the profit and loss 
account net of any reimbursement if the effect of the time value of money is material provisions are determined by 
discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value 
of money and where appropriate the risks specific to the liability where discounting is used the increase in the 
provision due to the passage of time is recognised as a borrowing cost 
taxation 
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been 
enacted or substantively enacted at the balance sheet date 
deferred tax is provided in full on timing differences that result in an obligation at the balance sheet date to pay more 
tax or a right to pay less tax at a future date at rates expected to apply when they crystallise based upon tax rates 
and legislation that have been enacted or substantively enacted at the balance sheet date timing differences arise 
from the inclusion of items of income and expenditure in tax computations in periods different from those in which they 
are included in the financial statements deferred tax is not provided on timing differences arising from the revaluation 
of fixed assets where there is no commitment to sell the asset or on unremitted earnings of subsidiaries and associates 
where there is no commitment to remit these earnings deferred tax assets are recognised to the extent that it is 
regarded as more likely than not that they will be recovered deferred tax assets and liabilities are not discounted 

114 mitie group plc 
annual report and accounts 201 1

 

financial instruments  
trade receivables are measured at initial recognition at fair value appropriate allowances for estimated irrecoverable 
amounts are recognised in the profit and loss account where there is objective evidence that the asset is impaired 
cash and cash equivalents comprise cash in hand and demand deposits and other shortterm highly liquid investments 
that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value 
interest bearing bank loans and overdrafts are recorded at the proceeds received net of direct issue costs finance 
charges including premiums payable on settlement or redemption and direct issue costs are accounted for on an 
accruals basis in the profit and loss account and are added to the carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise  
trade payables are measured at amortised cost 
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs 
financial assets and financial liabilities are recognised on the company’s balance sheet when the company becomes 
a party to the contractual provisions of the instrument 
sharebased payments 
the company operates a number of executive and employee share option schemes for all grants of share options 
and awards the fair value as at the date of grant is calculated using the blackscholes model and the corresponding 
expense is recognised on a straightline basis over the vesting period save as you earn saye options are treated as 
cancelled when employees cease to contribute to the scheme resulting in an acceleration of the remainder of the 
related expense options over the company’s shares awarded to employees of the company’s subsidiaries are 
accounted for as a capital contribution within the carrying value of investments in subsidiary undertakings 
pensions  
pension costs represent amounts paid to one of the group’s pension schemes for the purposes of frs 17 ‘retirement 
benefits’ the company has been unable to identify its share of the underlying assets and liabilities of the group defined 
benefit pension scheme on a consistent and reasonable basis therefore the company is accounting for contributions 
to the scheme as if it were a defined contribution scheme note 35 to the consolidated financial statements sets out the 
details of the ias 19 ‘employee benefits’ net pension liability of £30m 2010 £105m  

as permitted by section 408 of the companies act 2006 the company has elected not to present its own profit and 
loss account for the year mitie group plc reported a profit after taxation for the financial year ended 31 march 2011 
of £329m 2010 £101m which included £47m of nondistributable profits that arose from internal restructuring during 
the year 
the auditors’ remuneration for audit services to the company was £50000 2010 £50000  
detailed disclosures of directors’ remuneration and share options are given in the audited section of the directors’ 
remuneration report contained in the consolidated financial statements 

 
2011 
£m 
2010
£m
amounts recognised as distributions to equity holders in the year  
final dividend for the year ended 31 march 2010 of 41p 2009 36p per share 145 116
interim dividend for the year ended 31 march 2011 of 41p 2010 37p per share 144 131
 289 247
  
proposed final dividend for the year ended 31 march 2011 of 49p 2010 41p per share 175 145
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  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
117
 
 

 
plant and 
vehicles 
£m 
software and 
development 
costs
£m
total
£m
cost 
   
at 1 april 2010 74 213 287
additions 34 50 84
disposals 03 – 03
at 31 march 2011 105 263 368
  
accumulated depreciation  
at 1 april 2010 24 07 31
charge for the year 19 19 38
disposals 03 – 03
at 31 march 2011 40 26 66
  
carrying amount  
at 31 march 2011 65 237 302
at 31 march 2010 50 206 256
borrowing costs of £03m 2010 £02m were capitalised during the year as part of software and development costs 

 
£m
shares at cost 
at 1 april 2010 6391
additions  162
capital contribution re sharebased payments 17
at 31 march 2011 6570
 
provision for impairment 
at 1 april 2010 116
at 31 march 2011 116
 
carrying amount 
at 31 march 2011 6454
at 31 march 2010 6275
details of the acquisitions in the year are provided in note 31 of the consolidated financial statements and a listing 
of principal subsidiaries in note 37 additions to the cost of investments of £162m include those incurred to obtain 
associated intangible assets in the form of noncompete agreements valued at £05m the cumulative cost  
of noncompete agreements included in investments is £46m 2010 £41m 
116 mitie group plc 
annual report and accounts 201 1

 
 

 
2011 
£m 
2010
£m
amounts owed by subsidiary undertakings 462 525
other debtors 06 15
corporation tax – 17
prepayments and accrued income 25 20
 493 577
the directors consider that the carrying amount of debtors approximates their fair value 

 
2011 
£m 
2010
£m
overdraft 256 1142
loan notes – 19
trade creditors 18 28
amounts owed to subsidiary undertakings 1162 186
other taxes and social security 15 34
accruals and deferred income 99 61
corporation tax 73 –
 1623 1470
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 

 
2011 
£m 
2010
£m
loan notes 16 16
bank loans 968 1000
 984 1016
the group’s bank loans with the exception of the private placement notes are held by the parent company mitie 
group plc for details of group borrowings see note 24 

deferred 
contingent 
consideration 
£m 
 
 
deferred tax 
£m 
total
£m
at 1 april 2010 129 16 145
utilised during the year 81 – 81
other movements in the year 03 – 03
at 31 march 2011 45 16 61
   
falling due within one year   45
falling due after more than one year   16
   61
details of the deferred contingent consideration are provided in note 28 of the consolidated financial statements  governance accounts
mitie group plc 
annual report and accounts 201 1
overview business review governance accounts
119
 
 

ordinary shares of 25p 
number
million £m
authorised  
  
at 31 march 2010 and 31 march 2011 5000 125
 
allotted and fully paid 
  
at 1 april 2010 3532 88
issued for acquisitions 30 01
issued under share option schemes 16 –
at 31 march 2011 3578 89
 
at 1 april 2009 3230 81
issued for placing 190 05
issued for acquisitions 90 02
issued under share option schemes 22 –
at 31 march 2010 3532 88
details of movements in share capital during the year are provided in note 29 of the consolidated financial statements  

 
 
capital 
£m 
share
premium 
account
£m
merger
reserve
£m
sharebased 
payments
reserve 
£m
own shares 
reserve
£m
 
other 
reserves  
£m 
profit
and loss 
account
£m
total 
£m
at beginning of year  88 767 803 61 81 03 2836 4477
shares issued 01 39 48 – – – – 88
purchase of own shares  – – – – 57 – – 57
sharebased payments – – – 17 – – 16 33
profit for the year  – – – – – – 329 329
dividends paid 
to shareholders – – – – – – 289 289
balance at 31 march 2011 89 806 851 78 138 03 2892 4581
 £1924m is nondistributable £1877m having arisen from internal restructuring in the year ended 31 march 2008 and £47m in the year ended 31 march 2010 

details of contingent liabilities have been given in note 32 of the consolidated financial statements 
share 
118 mitie group plc 
annual report and accounts 201 1

 
 

equitysettled share option schemes 
the company has four share option schemes as described in note 34 of the consolidated financial statements 
the company recognised the following expenses related to sharebased payments 
 
2011 
£m 
2010
£m
long term incentive plan share options 13 20
2001 executive share options 02 02
2001 saye share options 01 01
 16 23
the fair value of options is measured by use of the blackscholes model the inputs into the blackscholes model are as 
described in note 34 of the consolidated financial statements 

the company makes management charges to all of its subsidiaries whether they are whollyowned or otherwise  
transactions have been given in note 36 of the consolidated financial statements  
and receives dividends from its subsidiaries according to their ability to remit them other details of related party  shareholder information
dividend reinvestment plan drip
mitie has set up a dividend reinvestment 
plan drip to enable you to build your 
shareholding by using your cash 
dividends under a standing election 
to buy additional shares in mitie if you 
would  like to receive further information 
including details of how to apply please 
call capita registrars on 020 8639 3402 
or contact them by sending an email to  
sharescapitaregistrarscom
mitie online share portal
mitie has launched a shareholder portal 
where shareholders can register and can
–  access information on shareholdings 
and movements
–  update address details
–  view dividend payments received 
and register bank mandate instructions
–  sell mitie shares
–  complete an online proxy voting form 
and
–  register for ecommunications allowing 
mitie to notify shareholders by email 
that certain documents are available 
to view on its website this will further 
reduce mitie’s carbon footprint as well 
as reduce costs
if you wish to register please sign up at 
wwwmitiesharescom
corporate website
this report can be downloaded in pdf 
format from the mitie website which also 
contains additional general information 
about mitie please visit wwwmitiecom about mitie please visit wwwmitiecom
results
2012 interim management statement 15 august 201 1
2012 halfyearly results 21 november 201 1
dividends
201 1 halfyearly dividend 41p paid 3 february 201 1
201 1 final dividend 49p proposed
201 1 final ex dividend date 22 june 201 1
201 1 final dividend record date 24 june 201 1
201 1 final dividend last date for receipt
revocation of drip mandate 18 july 201 1
201 1 final dividend payment date 12 august 201 1
2011 annual general meeting
201 1 annual general meeting 13 july 201 1
company details
mitie group plc  
1 harlequin office park  
fieldfare  
emerson green  
bristol 
bs16 7fn 
telephone 44 0 1 1 7 970 8800 
fax 44 0 1 1 7 301 4159 
email groupmitiecom  
website wwwmitiecom
registered number sc 19230
registrars
capita registrars  
the registry 
34 beckenham road
beckenham
kent
br3 4tu
telephone 44 0 871 664 0300 
website wwwmitiesharescom
calls cost 10p a minute plus network extras lines are open 830am – 530pm mon – fri
printed on cocoon offset which is produced from 100 recovered 
waste both the paper mill and printer involved in the production 
support the growth of responsible forest management and are 
both accredited to iso14001 which speciﬁes a process for continuous 
environmental improvement and both are fsc certiﬁed this report 
is printed using vegetable oil based inks
if you have ﬁnished reading the report and no longer wish to retain it 
please pass it on to other interested readers or dispose of it in your 
recycled paper waste thank you 
 
design and production radley yeldar  wwwrycom 
print mitie document solutions massive thanks
our success wouldn’t be  
possible without our people  
they are also the reason we’re  
so excited about mitie’s future
keep track of our progress 
mitie

group

plc
mitie group plc
1 harlequin office park 
fieldfare 
emersons green 
bristol bs16 7fn 
united kingdom
t 44 0 1 1 7 970 8800
f 44 0 1 1 7 301 4159
e groupmitiecom


Summary:
 mitie group plc 
annual report and accounts 201 1
strong results…  
and exciting market 
opportunities
revenue 
 £m
100
2007
2008
2009
2010
2011
15219
12288
1407 2
17201
18914
165
2007
2008
2009
2010
2011
operating proﬁt 
before other items 
 £m
805
622
722
930
1083
89
2007
2008
2009
2010
2011
proﬁt before tax  
 £m
67 9
566
759
868
797
chairman’s statement
roger matthews chairman business review governance accounts overview
mitie group plc 
annual report and accounts 201 1
05
04
overview
we have had another year of strong 
progress at mitie with doubledigit 
growth in revenue earnings and 
dividends this is an excellent 
performance against a uk economic 
backdrop that remains challenging 
and is a testament to the passion and 
hard work of our people 
during the year we have made excellent 
progress on our key strategic initiatives 
continuing to invest in our people 
technology facilities management fm 
and energy propositions as well as our 
overseas capability we were delighted 
to retain and expand contracts with  
rollsroyce and vodafone which 
conﬁrmed our strategy of providing 
integrated fm and energy services 
we also acquired dalkia fm in ireland 
and made a signiﬁcant investment in the 
fast developing decentralised energy 
market we start the new ﬁnancial year 
in a strong and conﬁdent position
results
during the year revenues grew by 100 
to £18914m 2010 £17201m operating 
proﬁt before other items increased by 
165 to £1083m 2010 £930m reﬂecting 
an improved margin of 57 2010 54 
proﬁt before tax and other items increased 
by 153 to £1057m 2010 £917m 
earnings per share before other items 
grew by 159 to 226p per share 2010 
19 5p per share 
we have retained our strong focus 
on cash reporting cash inﬂows from 
operations of £1025m 2010 £984m 
for the year which represents excellent 
conversion of ebitda to cash of 
867 2010 952 the balance sheet 
is extremely strong with net debt at the 
year end at 065 times ebitda at £7 65m 
2010 £866 m after using debt funding 
of £7 3m for an acquisition 
we have recently reﬁnanced our bank 
facilities and now have committed 
bank facilities of £250m until september 
2015 which will be available for draw 
down after the agm we also drew down 
£100m equivalent of us private placement 
debt in december 2010 in a mix of notes 
which mature between seven and nine 
years both of these facilities leave us in 
a strong position to take advantage of 
valuecreating acquisition opportunities 
as they arise 
we continue to see strong growth in 
our order book which increased by 
63 during the year and now stands 
at a record £68bn 2010 £64bn 
our sales pipeline currently stands at 
£1 14bn and our contracted revenue for 
the year ending 31 march 2012 is 81 of 
budgeted revenue 2010 75 
dividend
we continue to generate attractive 
dividends and dividend growth for 
our shareholders the board has 
recommended an increased ﬁnal 
dividend of 49p per ordinary share 
providing a total dividend per share for 
the year of 9 0p a 154 increase on 2010 
this is consistent with our dividend policy 
to maintain dividends in line with 
underlying earnings per share growth 
at a cover ratio of 25 times adjusted 
earnings subject to shareholder 
approval at the annual general meeting 
the dividend will be paid on 12 august 
201 1 to shareholders on the register at 
24 june 201 1
board
after serving for 1 7 years at mitie of 
which nine have been on the board 
roger goodman stepped down 
as a plc director on 31 march 201 1 
we thank him for his valuable 
contribution to the board
people
we would like to thank all of our people 
for  their exceptional efforts and support 
and to welcome the 5327 people who 
joined us during the year we are now 
a company of 61906 individuals which 
makes us one of the uk’s largest private 
sector employers 
in particular we would like to welcome 
those who joined us following our 
acquisition of dalkia fm in ireland
it is our talented dedicated people 
who allow us to achieve consistently 
strong results and maintaining the 
motivation of our people is critical to our 
future success we remain focused on 
recognising and rewarding exceptional 
team performance nurturing talent and 
providing opportunities for our people 
to succeed in their careers
outlook
mitie is in an excellent position we 
continue to focus on organic growth 
supplemented by selective acquisitions 
and the development of our integrated 
business model overseas
we have a diverse highquality client 
base across both the public and private 
sectors which underpins our consistent 
track record this has enabled us to 
continue investing in our people 
technology and new markets all of 
which supports our strong order book 
and growing sales pipeline
there are exciting opportunities in our 
markets as clients across the board 
look to introduce further innovation and 
efficiencies into their businesses we are 
ﬁnancially robust and have a clear 
strategy for the development of our 
business we are conﬁdent that mitie will 
continue to build on its long track record 
of sustainable proﬁtable growth
roger matthews  
chairman
basic earnings per share 
before other items 
 p
159
2007
2008
2009
2010
2011
149
128
17 2
226
19 5
10 1
2007
2008
2009
2010
2011
basic earnings per share 
 p
167
11 9
143
169
186
154
2007
2008
2009
2010
2011
dividend per share 
 p
69
51
60
78
90