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Mitie Group PLC on Thursday hailed sales growth in financial 2026, alongside announcing two acquisitions which it sees boosting its role in the data centre market. The London-based outsourcing and energy services provider estimates that revenue had risen 11% in the year ended March 31 to a ‘record’ £5.65 billion from £5.08 billion in financial 2025, including 6% organic growth and 5% inorganic growth, mainly from the acquisition of Marlowe PLC. According to Mitie, revenue grew 13% in the fourth quarter alone to £1.53 billion from £1.34 billion, ‘reflecting continued good momentum’. In the third quarter, the company had reported revenue 10% higher on-year at £1.45 billion. It estimated full-year operating profit in the region of £260 million, up 12% from £234 million, implying a ‘resilient’ margin of 4.7%, compared with 4.6% on-year. ‘The uplift in group revenue, combined with our extensive programme of margin enhancement initiatives, has more than offset the material increase in employers’ costs in FY26 (National Insurance Contributions and National Living Wage), unsuccessful contract renewals and certain other one-off costs relating to exited contracts and businesses,’ Mitie stressed. Free cash flow generation was around £150 million in financial 2025, ahead of the minimum £120 million target. Average daily net debt crept up to £445 million from £264 million at the end of March 2025. Mitie valued its bidding pipeline at £31 billion as of March 31, up 29% from £24 billion a year prior. The company continues to target a payout ratio of 30% to 40% and, in October, launched a new £100 million buyback plan. Through that plan and through buybacks for staff incentive schemes, Mitie repurchased shares worth around £90 million in financial 2026. Mitie shares rose 2.9% to 185.30 pence on Thursday morning in London, having gained 42% over the past year. The company also noted progress in the integration of Marlowe, a fire & security and environmental services provider, which it acquired in August for approximately £350 million. In financial 2026, Mitie realised cost synergies of about £5 million related to the purchase. Also on Thursday, Mitie reported two new acquisitions in the fire & security sector - Danish firm El Team Vest and Norway-based ABC Elektro. Mitie owes £7.6 million cash upfront, plus up to £4.0 million in deferred payments over three years for El Team Vest. For ABC Elektro, it will pay £500,000 upfront and up to £400,000 over the next three years. In 2025, El Team Vest’s annual revenue was roughly £16.6 million and ABC Elektro’s was £2.7 million. Mitie sees both firms supporting its ‘projects and ongoing maintenance capabilities in the fast-growing European data centre fire & security systems market’, where Mitie noted its existing clients include Microsoft Corp and Alphabet Inc’s Google. El Team Vest’s recent work includes electrical contracting at the headquarters of ABB Ltd, while ABC Elektro ‘focuses on commercial and construction customers’, Mitie noted. According to Jason Butler, Mitie’s managing director of fire & security projects, the two companies ‘strengthen our ability to deliver complex fire, security and electrical solutions across the Nordics, one of Europe’s most important and fastgrowing data centre hubs’. Mitie Chief Executive Phil Bentley added on Thursday: ‘As we enter the final year of our strategic plan, we are increasing our investments in AI agentic solutions to drive efficiencies and deliver higher value insights to clients, and bringing our industry leading capabilities together in a unified package of facilities management, facilities transformation and facilities compliance solutions. Our strong order book, recent contract wins and bidding pipeline underpin the growing momentum in the business, and we remain confident of delivering our FY27 targets.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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