Mitie delivers record revenue

In its Full Year results for the year ended 31 March 2024 Mitie’s strong track record of delivery continues with all medium-term targets met or significantly exceeded in FY24.

The technology-led Facilities Transformation company reports record revenue up 11% to £4,511m (FY23: £4,055m), reflecting growth in Key Accounts (including net wins and re-pricing), Projects upsell and M&A.

Operating profit before other items, increased 30% to £210m (FY23: £162m), and Basic EPS before other items was up 29% to 12.3p (FY23: 9.5p), reflecting the increase in operating profit, reduction in net finance costs and benefit from share buybacks.

New contract wins, scope increases and extensions/renewals saw a Total contract value (TCV) of £6.2bn (FY23: £4.3bn), although the contract renewals rate fell to 79%, down from 90% FY23, due to two notable contracts with a combined c.£70m per annum secured contract value not being renewed – one due to pricing and the other seeking an international provider.

Total order book increased by 18% to £11.4bn (FY23: £9.7bn), including an increase of £0.5bn TCV from the consolidation of Landmarc. Mitie says its pipeline of new opportunities stands at a record £18.6bn, and reports a strong free cash flow generation of £158m (FY23: £66m).

Commenting on the year and the outlook, Phil Bentley, Group Chief Executive, said: “We are pleased with our strong performance in FY24, 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.

“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.

“As a result of this positive outturn, we have met or significantly exceeded all of the financial targets set out in the previous Three-Year Plan (FY22 – 24), and this has been reflected in Mitie’s Total Shareholder Return over the period (80% TSR; #10 in FTSE 250).

“We have now started to execute our new Facilities Transformation Three-Year Plan (FY25 – FY27), through which we expect to accelerate growth and extend Mitie’s market leadership position. Our confidence in achieving this is underpinned by a record £19bn pipeline of opportunities, through which we will add further Key Accounts and deliver transformational Projects in higher growth categories, as well as by strategic M&A, which will add to our existing Projects capabilities.

“We have secured a number of new contracts and projects in the fourth quarter of FY24 and first quarter of FY25, which give us good business momentum and we expect to offset, in the medium-term, the contracts lost and ending in FY24. Margin enhancement initiatives are also expected to deliver further benefits in the current year, and we will continue to generate strong cash flows and enhanced shareholder returns.

“My appreciation goes to our 68,000 colleagues. Through their hard work, allied to our technology-led approach, Mitie is transforming the built environment and the lived experience for thousands of public and private sector customers and their colleagues.

“FY25 will be another year of delivery towards our medium-term targets and meeting our high single digit revenue growth expectations for the year.”