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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 £230 million, up from £210 million in financial 2024.
Revenue rose 13% to around £5.1 billion from £4.5 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 £135 million, exceeding the company’s guidance of at least £100 million.
Net debt at March-end stood at £205 million, or around £265 million on an average post-IFRS 16 basis, within Mitie’s target leverage range.
Mitie also announced a new £125 million share buyback for financial 2026, following the completion of a £100 million programme in the recent year. The company has now committed £325 million to buybacks since financial 2023.
In a new contract win, Mitie secured a £136 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 £1.61 billion.
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