"MITIE is well positioned to continue its history of strong growth."

Chairman’s statement

I am delighted to announce that 2008 has been another year of strong growth for MITIE. This year was our 20th year of revenue and profits growth.

Throughout the last year we have continued to forge new relationships and build on long-term partnerships with our clients and are delighted to welcome thousands of new people to MITIE.

We are now well positioned for the next stage in our development with an excellent management team and a well developed strategy in place targeting our three markets of facilities, property and engineering services.

Results
MITIE has had another excellent year, with 14.5% growth in our revenue to £1,407.2m (2007: £1,228.8m). Operating profit before amortisation rose by 20.5% to £72.2m (2007: £59.9m) with profit before tax increasing by 20.0% to £67.9m (2007: £56.6m). Adjusted earnings per share grew by 21.1% to 14.9p per share (2007: 12.3p per share). Underlying operating profit margins were maintained within our target range of 5–6% at 5.1% (2007: 5.1%) whilst reported operating profit margins increased from 4.9% to 5.1%.

Dividend
The Board is recommending a final dividend of 3.2p per Ordinary share making a total of 6.0p per share for the year, a 17.6% increase on 2007. This increase is in line with our dividend policy to maintain dividends in line with underlying earnings growth at a cover ratio of 2.5 times adjusted earnings.

The dividend will be paid on 4 August 2008 to shareholders on the register at 4 July 2008.

Pensions
The Group contributes to a range of defined benefit and defined contribution pension schemes.

Board changes
I am pleased to report that the surplus within the defined benefit schemes has continued this year with a net surplus of £7.5m (2007: £0.5m).

This will be my last year as Non-Executive Chairman of MITIE as I will retire at the Company’s Annual General Meeting (AGM) on 31 July 2008. I have thoroughly enjoyed the last six years with MITIE. I will leave the Company in a very strong financial position and with excellent prospects to succeed in the future under the stewardship of Roger Matthews, who will be appointed as Non-Executive Chairman at the close of the AGM. Roger has been a Non-Executive Director since December 2006 and brings with him a wide range of skills and experience from his previous positions as Group Finance Director of J Sainsbury plc and Group Managing Director and Group Finance Director of Compass Group PLC.

Cullum McAlpine, who has been a Non-Executive Director of MITIE since April 2003 and is Chairman of the Audit Committee and Senior Independent Non-Executive Director, will also retire from the Board at the Company’s AGM. I would like to thank Cullum for his support to MITIE and the Board over the past five years.

The following Board changes will also take effect from 31 July 2008. David Jenkins will be appointed as Senior Independent Non-Executive Director and Chairman of the Audit Committee. Roger Matthews will assume the chairmanship of the Nomination Committee.

The recruitment of a new Non-Executive Director will commence during the year.

Corporate governance
We are committed to maintaining high standards of corporate governance. The Board recognises that MITIE is expected to act to the highest standards of responsibility at all times and we therefore have in place a set of governance structures and practices designed to ensure that MITIE is run responsibly in the best interests of all its stakeholders.

Outlook
In this my last year as Chairman of MITIE, I would like to wish the management team every success for the future. We enter the new financial year with our business aligned to meet the needs of our ever changing markets. Current economic conditions are requiring businesses to re-evaluate their cost base and to focus resource and attention on reducing risk and uncertainty in volatile markets. This provides us with opportunities as organisations seek to reduce costs through outsourcing.

We are confident that we are well positioned to continue our strategy of delivering stakeholder value by focusing on sustainable, profitable growth through 2008 and beyond.

David C Ord
Chairman