- Outsourcing firm’s interim profit up 24%
- Shares within touching distance of new highs
- Raised full-year guidance confirmed
FTSE 250 facilities management and energy services company Mitie Group (MTO) demonstrated it is the ‘comeback kid’ with another strong set of results and the reaffirmation of its recently-raised full-year profit target.
The shares added 2p or just under 2% to 108p, just shy of their intraday year-high of 110p, taking their year-to-date gains to 45%, before easing slightly in mid-morning trading.
‘GOOD FIRST HALF’
Mitie provides facilities management services to the public and private sectors, ranging from engineering to security, cleaning and waste management.
For the six months to the end of September, the firm posted an 11% increase in revenue to £2.12 billion aided by contract re-pricing, growth in new contracts, upselling on existing contracts and ‘fill-in’ acquisitions.
The total value of contract wins, renewals and extensions was £2.4 billion or 114% of first-half revenue, with an 88% renewal rate.
Operating profit jumped 24% to £85 million, and the firm reiterated its new guidance for full-year profit of £190 million suggesting an acceleration in the six months to next March.
‘We had a good first half with revenue, profits and earnings per share all up strongly. Our divisions are performing well, and I'm particularly encouraged by our performance in Technical Services and Central Government & Defence’, commented chief executive Phil Bentley.
‘The group is on track to have met, or significantly exceeded, all of our previous medium-term financial targets and guidance for (the financial year to March) 2024, the final year of our current Three-Year Plan.’
NEW PLAN, NEW TARGETS
At its capital markets day in October, the firm set out a new three-year plan to March 2027 with ambitious new financial targets.
‘Our Facilities Transformation strategy will enhance the built environment of our customers by improving productivity, working environments, security and cleanliness, whilst reducing their carbon intensity’, said Bentley.
‘This strategy will extend Mitie's market leadership positions in the UK - the largest and most dynamic FM market in Europe - and will enable Mitie to reach its full potential.’
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