21st Nov 2024 13:52
(Correcting that Mitie is London-based.)
(Alliance News) - Mitie Group PLC on Thursday said it was confident in meeting full-year expectations as it reported half-year growth.
The London-based engineering, security, cleaning and hygiene services provider said in the six months to September 30, pretax profit rose by 8.6% to GBP56.8 million from GBP52.3 million the prior year.
Revenue rose on-year by 17% to GBP2.43 billion from GBP2.08 billion, helped by new contract wins and the contribution from acquisitions.
In July, the firm acquired electrical engineering business ESM Power for an initial GBP4.3 million in a transaction valued up to GBP8.5 million subject to it meeting performance targets.
The FTSE 250-listed firm reported record pact wins and renewals over the period, with total contract value up 54% to GBP3.7 billion compared with GBP2.4 billion the previous year.
Mitie declared a 30% increase in its interim dividend to 1.3 pence per share from 1.0p the prior year.
The firm reiterated its confidence in meeting board expectations for the full-year results as well as delivering on its three-year plan targets, "notwithstanding headwinds from the recent autumn budget".
It estimates additional costs of GBP25 million in financial 2026 associated with changes to UK employers national insurance contributions and the national minimum wage, but noted mitigation plans relating to margin enhancement initiatives and other management actions.
Shares in Mitie fell 6.5% to 103.80 pence on Thursday afternoon in London.
Mitie said its three-year plan from financial year 2025-2027 pivots the business from traditional facilities management to technology driven facilities management.
Mitie Chief Executive Phil Bentley said: "We are in the foundation year of our new facilities transformation 3-year plan; a year in which we are making investments in technology, sales and marketing and our projects capabilities.
"During the first six months of our new plan, we have delivered good strategic progress and financial performance as our investments start to bear fruit.
"Our financial and operational performance has been good, and I'm pleased that this momentum has continued into the second half of the year. This underpins our confidence that we will deliver the board's expectations for the full year, as we progress towards our ambitious medium-term targets."
By Christopher Ward, Alliance News reporter
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