Mitie Group plc posts record quarterly revenues in latest financial results

Posted to News on Sunday, January 26, 2025 Share:

FACILITIES MANAGEMENT giant Mitie Group plc has posted record quarterly revenues in Q3, up 15% year-on-year to £1,317 million (Q3 FY24: £1,146 million). There’s a good trading momentum, with Q3 revenue 4% above Q2 and 13% above Q1, while total contract value of wins/renewals/extensions in the year to date has risen 37% to £4.8 billion (FY24 YTD: £3.5 billion).

Q3 year to date free cash flow generation of £59 million (FY24 YTD: £62 million) is supporting proactive capital deployments. The £100 million share buyback programme is nearing completion (£90 million has been spent to date at circa 117 pence).

Two strategic infill acquisitions were completed in Q3 with a total investment in higher growth, higher margin infill mergers and acquisitions of £49 million so far this year. The closing net debt is £246 million (31 March 2024: £81 million).

The Mitie Group as an entity is on track to deliver operating profit before other items of circa £225 million (FY24: £210 million) and free cash flow of at least £100 million (FY24: £158 million) in FY25.

Business Services division

Revenues within the Business Services division, which includes Mitie’s security-focused operation, are up 15% to £577 million (Q3 FY24: £501 million), benefiting from net contract wins, recent acquisitions (including Argus Fire and Grupo Visegurity), ‘surge response’ security work for the Home Office (which ended in October) and pricing.

This more than offset the completion of the Afghan Relocations and Assistance Programme, the Inland Border Force contract and one notable central Government contract that was not renewed at the end of FY24.

Strategic, operational and financial progress

Commenting on the results, Phil Bentley (CEO at Mitie Group plc) said: “In the foundation year of our new Facilities Transformation Three-Year Plan, we have continued to make good strategic, operational and financial progress, reflecting our focus on growth markets and underpinned by attractive macro trends.”

Bentley added: “Revenue growth in Q3 was slightly ahead of the half year out-turn and included the benefits from transformational projects work, scope increases and record new contract wins in earlier periods. Our contract wins and extensions/renewals are a leading indicator of future growth. Our strong performance once again in Q3 is therefore encouraging.”

In conclusion, Bentley stated: “Looking ahead, the investments we’re making will enhance our growth and resilience by strengthening our market-leading position, expanding our £25 billion pipeline [+36% year-to-date] and driving cross-sell opportunities. We’re confident in the outlook for the full year, as well as our progress towards our ambitious medium-term targets.”

*Further information is available online at www.mitie.com