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Mitie Group PLC on Thursday celebrated reaching all targets set out in its three year plan, amid double-digit increases in sales and profit. Shares in Mitie, a Glasgow-based facilities management company, rose 0.6% to 120.75 pence each in London on Thursday morning. In the financial year that ended March 31, pretax profit leapt 48% to £156.3 million from £105.5 million a year prior. Basic EPS before other items rose 29% to 12.3 pence from 9.5p, reflecting higher operating profit, a reduction in net finance costs and the benefit from share buybacks, partially offset by a higher corporation tax rate. Revenue rose 11% to a record £4.51 billion from £4.06 billion, reflecting growth in key accounts, projects upsell and M&A, offsetting the completion of certain short-term public sector contracts. Mitie highlighted a ‘robust’ total order book and pipeline of £11.4 billion, up 18% from £9.7 billion, and £18.6 billion, up 27% from £14.7 billion respectively, underpinning future growth in key accounts and projects. Chief Executive Phil Bentley said: ‘Our divisions are all performing well, with Technical Services, Central Government & Defence and Communities delivering double digit revenue growth, and Business Services more than replacing all of the revenue from certain short-term public sector contracts.’ Bentley described the performance as ‘strong’ delivering ‘record revenue, operating margin expansion and a good return on invested capital.’ Operating profit margin before other items climbed to 4.7% from 4.0% a year prior. Return on invested capital improved to 26.4% from 25.4%. ‘Mitie is a cash generative business with a robust balance sheet, and we are committed to investing in accelerated growth, as well as returning surplus funds to shareholders via share buybacks,’ he added. As a result, Bentley pointed out Mitie ‘have met or significantly exceeded all of the financial targets set out in the previous three-year plan.’ The plan covered the three years ending March. Mitie has now started to execute its new ’facilities transformation’ three-year plan covering financial 2025 to 2027. The company expects this effort to accelerate growth. ‘Our confidence in achieving this is underpinned by a record £19 billion pipeline of opportunities,’ Bentley said. Bentley said financial 2025 ‘will be another year of delivery towards our medium-term targets and meeting our high single digit revenue growth expectations for the year.’ Reflecting the upbeat results and statement, Mitie increased the total dividend by 38% to 4.0p per share from 2.9p. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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