Mitie Group warns of £50m NIC knock as it unveils share buyback
The scale of the knock British businesses are set to take from the government’s tax raid was laid bare today after facilities management firm Mitie Group warned of an eye-watering £50m hit from hikes to National Insurance Contributions (NICs).
The London-listed group’s latest estimate for the cost of rising NICs was slightly less than a prior £60m forecast, but will still take a significant chunk out of its profits.
Mitie Group said it anticipates operating profits of around £230m in 2025, up from £210m the year prior. The outsourcer raised its full-year profit guidance and unveiled a £125m share buyback programme.
Full-year revenue rose 13 per cent year-on-year to a record £5.1bn, ahead of previous guidance.
Mitie Group also announced a fresh £125m buyback programme, bringing its cumulative total since 2023 to £325m.
The company noted three acquisitions valued at around £50m had contributed to the strong revenue growth.
Shares are up around 10 per cent this year to date.
“FY25 was the foundation year of our new three-year-plan improving the strength of the Mitie platform and investing in our capabilities to accelerate facilities transformation for our customers,” chief executive Phil Bentley said in a statement.
“These investments contributed to the delivery of good revenue and operating profit growth… Our good underlying cash generation and low leverage has enabled us to sustain a proactive capital deployment policy with our largest share buyback programme now complete and a new £125m programme launched today.”
Mitie Group won a major £136m contract to deliver security services forr the Department for Work and Pensions (DWP) last year.
Bentley said the firm had developed a “record pipeline of opportunities” and “good sales momentum” entering the new financial year.