6th Jun 2024 08:43
(Alliance News) - Mitie Group PLC on Thursday celebrated reaching all targets set out in its three year plan, amid double-digit increases in sales and profit.
Shares in Mitie, a Glasgow-based facilities management company, rose 0.6% to 120.75 pence each in London on Thursday morning.
In the financial year that ended March 31, pretax profit leapt 48% to GBP156.3 million from GBP105.5 million a year prior.
Basic EPS before other items rose 29% to 12.3 pence from 9.5p, reflecting higher operating profit, a reduction in net finance costs and the benefit from share buybacks, partially offset by a higher corporation tax rate.
Revenue rose 11% to a record GBP4.51 billion from GBP4.06 billion, reflecting growth in key accounts, projects upsell and M&A, offsetting the completion of certain short-term public sector contracts.
Mitie highlighted a "robust" total order book and pipeline of GBP11.4 billion, up 18% from GBP9.7 billion, and GBP18.6 billion, up 27% from GBP14.7 billion respectively, underpinning future growth in key accounts and projects.
Chief Executive Phil Bentley said: "Our divisions are all performing well, with Technical Services, Central Government & 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."
Bentley described the performance as "strong" delivering "record revenue, operating margin expansion and a good return on invested capital."
Operating profit margin before other items climbed to 4.7% from 4.0% a year prior. Return on invested capital improved to 26.4% from 25.4%.
"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," he added.
As a result, Bentley pointed out Mitie "have met or significantly exceeded all of the financial targets set out in the previous three-year plan."
The plan covered the three years ending March.
Mitie has now started to execute its new 'facilities transformation' three-year plan covering financial 2025 to 2027. The company expects this effort to accelerate growth.
"Our confidence in achieving this is underpinned by a record GBP19 billion pipeline of opportunities," Bentley said.
Bentley said financial 2025 "will be another year of delivery towards our medium-term targets and meeting our high single digit revenue growth expectations for the year."
Reflecting the upbeat results and statement, Mitie increased the total dividend by 38% to 4.0p per share from 2.9p.
By Jeremy Cutler, Alliance News reporter
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