* Mitie raises 2022 profit to 145-155 million pounds
* Agrees "more favourable" terms on new credit facility
* Shares rise 3%
(Adds shares, details, background)
By Yadarisa Shabong
Sept 24 (Reuters) - Britain's Mitie hiked its fiscal
2022 profit forecast on Friday, after the provider of security
services in virus quarantine hotels won more COVID-related work
in the second quarter and as offices reopen, sending its shares
higher.
The outsourcer provides security, cleaning and engineering
services to corporate and government organisations and helps to
manage some of Britain's COVID-19 testing sites.
It raised its annual operating profit before other items to
a range of 145 million pounds ($198.87 million) to 155 million
pounds from an earlier forecast of 123.5 million pounds.
Shares in the London-listed midcap firm, which have gained
nearly 80% this year, rose 3% in early trade on Friday.
The Delta variant of the novel coronavirus spread rapidly in
Britain after restrictions were eased in England in July,
requiring extensive testing and quarantine measures were
maintained for travellers from several countries.
Mitie, like its rival Serco, said the contribution
from pandemic-related contracts, which have boosted the sector
in the last year, is expected to decline in the second half but
a strong start to the year led to its upgraded outlook.
Mitie's forecast for the year ending March 2022 compared
with 63.4 million pounds it reported for 2021 and includes the
first full year following its acquisition of rival Interserve's
facilities management business last year.
For fiscal 2023, Mitie said market expectations were
unchanged, pending the full recovery to pre-pandemic levels of
its technical services business and "until any further
COVID-related work is judged to be likely in FY23".
The London-based company also agreed with lenders on a 150
million pounds credit facility for four years, replacing the one
it put in place last year during the early days of the pandemic.
The new line was on "significantly more favourable terms", it
said on Friday.
($1 = 0.7291 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry
Jacob-Phillips, Ramakrishnan M. and Barbara Lewis)
Mitie (MTO)
Serco (SRP)
