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Mitie Group PLC on Thursday raised its dividend as it reported increased revenue for the first half of the year amid strong organic growth. The London-based engineering, security, cleaning and hygiene services provider said pretax profit fell 12% to £49.8 million in the six months to the end of September from £56.8 million a year ago. However, pretax profit before other items climbed 3.7% to £98.0 million from £94.5 million. The separately reported other items include acquisition and disposal related costs of £30.6 million and restructuring costs of £9.9 million. Overall, the cost of other items before tax was up 28% at £48.2 million during the period compared to £37.7 million a year ago. Revenue increased 10% to £2.68 billion from £2.43 billion a year prior. Mitie said this includes 6.4% organic growth driven by net contract wins, projects and pricing and a 4.0% contribution from acquisitions. Mitie said its order book was up 7.1% to £16.5 billion at the end of the period from £15.4 billion at the end of financial 2025. The firm declared an interim dividend of 1.4 pence per share, up 7.7% from 1.3p per share a year ago. Looking ahead, Mitie reiterated its full-year guidance for operating profit before other items of at least £260 million and free cash flow of at least £120 million. The company reported operating profit before other items of £234.1 million for the 12 months to the end of March 2025, with free cash flow of £142.8 million. ‘As we reach the halfway mark in our three-year strategic plan, it is good to see the progress that has been made and the growing momentum towards achieving our targets, and beyond, as the order book and pipeline continue to build,’ said Chief Executive Phil Bentley. ‘We are building a larger, more profitable and more cash generative business with greater capacity to invest for growth, as we have demonstrated with the acquisition of Marlowe. Our mission is to deliver increasing returns for shareholders, through share price appreciation, dividends and share buybacks.’ Bentley added: ‘As we look ahead to the second half of our strategic plan, over the next 18 months, I am confident that the positive macro trends underpinning our business will continue to support our accelerating growth ambitions, with Mitie being uniquely positioned to both expand its market reach and capture further market share.’ Mitie said it has acquired specialist engineering business Forest Group Holdings Ltd for up to £7.0 million. The firm said Blackburn, England-based Forest Group delivers ‘critical refrigeration maintenance services’. Mitie will make an initial payment of £4.5 million with deferred payments of up to £2.5 million over three years, linked to performance. Forest primarily serves major hospital brands such as Mitchells & Butlers PLC and JD Wetherspoon PLC, the company added. Mitie said the deal will allow it to self-deliver refrigeration services, as well as creating ‘significant opportunities’ to expand Forest’s operating model nationally and into the retail and distribution sectors. In the 12 months to the end of January, Forest delivered revenue of £7.6 million and earnings before interest, tax, depreciation and amortisation of £500,000. The acquisition will be funded from Mitie’s existing facilities. Shares in Mitie were down 3.2% at 151.40p on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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