Mitie revenues hit record £4.5bn on contract wins

6th Jun 2024 07:05

(Sharecast News) - Annual profits at outsourcing giant Mitie surged as revenues hit a record £4.5bn - in line with company expectations laid out in April's trading update.

Pre-tax profit for the year to March 31 came in at £156m from £105m a year earlier. Revenues were up from £4bn as Mitie's order book rose to $11.4bn from £90.7bn. Shareholders were rewarded with a 38% dividend increase to 4p a share.

Operating profits jump by 30% to £166m.

The results mean that Mitie had "met or significantly exceeded" all of its financial targets set out in its previous three-year plan, said group chief executive Phil Bentley.

"We are pleased with our strong performance in full-year 2024, having delivered record revenue, operating margin expansion and a good return on invested capital. 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 said.

"Our divisions are all performing well, with technical services, central government and 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."

The company - which operates everything from cleaning to security - completed seven strategic acquisitions for a combined total of £65m in the year, while total contract wins totalled £6.2bn.

It has recently secured work from public sector organisations like the Department for Transport, the Defence Infrastructure Organisation, and Spanish airport operator Aena.

Reporting by Frank Prenesti for Sharecast.com