16th Apr 2025 09:27
(Alliance News) - Mitie Group PLC on Wednesday upgraded its full-year profit guidance, secured a new government contract, and launched a share buyback programme as fourth-quarter trading lifted revenue and earnings for financial 2025.
The Glasgow-based engineering, security, cleaning and hygiene services provider now expects operating profit before other items for the year ended March 31 to be around GBP230 million, up from GBP210 million in financial 2024.
Revenue rose 13% to around GBP5.1 billion from GBP4.5 billion, with 9% organic growth driven by "key" accounts, project demand and price increases.
The operating margin edged down to 4.5% from 4.7%, due to investment in a restructuring programme, as well as losses in the telecoms projects business, which returned to breakeven in the final quarter.
Free cash flow for the year was approximately GBP135 million, exceeding the company's guidance of at least GBP100 million.
Net debt at March-end stood at GBP205 million, or around GBP265 million on an average post-IFRS 16 basis, within Mitie's target leverage range.
Mitie also announced a new GBP125 million share buyback for financial 2026, following the completion of a GBP100 million programme in the recent year. The company has now committed GBP325 million to buybacks since financial 2023.
In a new contract win, Mitie secured a GBP136 million per annum security services deal with the Department for Work & Pensions. The seven-year contract, with a potential three-year extension, begins in October 2025.
Chief Executive Officer Phil Bentley said Mitie entered financial 2026 with "good sales momentum" and a strong order pipeline, supported by continued investment in automation and AI as part of its long-term margin improvement plan.
Mitie will report its financial 2025 results on June 5.
Its shares were up 5.1% at 128.20 pence in London on Wednesday, giving the company a market capitalisation of GBP1.61 billion.
By Eva Castanedo, Alliance News reporter
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