Bristol outsourcing specialist Mitie yesterday said it was weathering the economic storm, with only "niche areas" of its business affected by the downturn.

In a trading update issued to the stock exchange, the Emersons Green firm said it was on course to hit earnings expectations and had already secured 98 per cent of its expected turnover for the financial year to the end of March.

Mitie works in partnership with local authorities, councils, developers and registered social landlords on kitchen and bathroom installation, heating replacement, gas servicing, maintenance and call-out services.

Mitie added that it was still in a position to consider "selective investment" in new businesses where it sees growth potential, such as facilities management and business development capability.

It added that it would target winning work in areas of Government spending on health, education and social housing.

The firm said it was experiencing a slowing in "niche" areas of its "interior fit-out and new build housing activities" but described its exposure to these markets as "minimal".

The update came on the back of Mitie winning preferred bidder status in two major public sector contracts – the £65 million Derby Building Schools for the Future programme, and £78m of social housing Decent Homes work, across Hampshire, Middlesex, London, Essex, Renfrewshire and Glasgow.

The support services company noted that its performance has been built on its strong interim results for the six months to September 30, 2008.

In November last year, Mitie Group reported a "strong start to the year", as it recorded double-digit growth in its half-year pre-tax profit and revenue, and said incoming orders have secured 94 per cent of its revenue outlook for fiscal 2009.

In 2007, Mitie linked up with Bristol University to install new power plants, saving it £300,000 a year.

The new combined heat and power (CHP) plants which will enable the university to reduce CO2 emissions by 1,500 tonnes a year.