Mitie: Outsourcing firm based in London’s Shard posts record £4.51bn revenue after M&A spree
Outsourcing company Mitie Group posted record revenue of £4.51bn as new contract wins and a spate of M&A led to growth across the business.
The figure marked an 11 per cent increase year-on-year and came alongside a near third jump in operating profit to £210m.
Investors are set for bumper payouts as a result, with earnings per share up 29 per cent to 12.3p. Mitie Group’s full-year dividend sits at 4p, up from 2.9p the year prior.
The FTSE 250 firm, which has its head office in the Shard in London, has bounced back from a dire period during the Covid-19 pandemic, when its stock price fell to 22-year lows.
It , while total contract wins totalled £6.2bn.
Shares are up over 22 per cent in the year to date. The group unveiled a £50m share buyback programme in April and said 7m of those shares had been purchased to date at an average priuce of 119p.
Mitie Group chief executive Phil Bentley said: “We are pleased with our strong performance in FY24, having delivered record revenue, operating margin expansion and a good return on invested capital. 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.
“Our divisions are all performing well, with technical services, central government and 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.
“As a result of this positive outturn, we have met or significantly exceeded all of the financial targets set out in the previous three-year plan and this has been reflected in Mitie’s total shareholder return over the period.”
Looking ahead, the company said it has a robust total order book and pipeline of £11.4bn, up from £9.7bn the year prior.
“FY25 will be another year of delivery towards our medium-term targets and meeting our high single digit revenue growth expectations for the year,” Bentley added.
In wake of its recent acquisitions, its share price has risen sharply in the last 12 months, up more than 27 per cent.