FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Mitie has reported continued good momentum in Q4 and upgraded its full-year operating profit guidance in its trading update for the year ended 31 March 2025 (FY25) published today.
Highlights include record revenue, up 13% to c.£5.1bn (FY24: £4.5bn), including c.9% organic growth. Revenue growth in Q4 was up by c.9% yoy to £1,350m (Q4 FY24: £1,233m). Following this good trading performance, Mitie says it expects FY25 revenue to grow by c.13% yoy to c.£5,100m (FY24: £4,511m).
As a result of the uplift in Group revenue, combined with Mitie’s extensive programme of margin enhancement, operating profit guidance has been upgraded and is expected to be c.£230m (FY24: £210m), with an operating margin of c.4.5% (FY24: 4.7%).
During Q4 Mitie secured several notable wins and renewals, resulting in a record c.£7bn Total Contract Value (TCV) of wins/renewals/extensions in FY25 (FY24: £6.2bn). This included a significant contract award: (£136m p.a. for 7+3 years) from the Department for Work and Pensions (DWP) in Q4, for security services commencing in October 2025.
Mitie reports it is entering FY26 with a strong order book and £24bn pipeline.
During FY25, Mitie completed its largest share buyback programme to date of £100m, purchasing 89m shares (of which 79m were cancelled). With a strong balance sheet, and leverage at the lower end of its targeted range, Mitie has today launched a new £125m programme for FY26, which will bring the cumulative total undertaken since FY23 to £325m.
Commenting on the results and the outlook, Phil Bentley, CEO, said: “FY25 was the foundation year of our new Three-Year Plan, improving the strength of the Mitie platform and investing in our capabilities to accelerate Facilities Transformation for our customers.
“These investments contributed to the delivery of good revenue and operating profit growth. I’m also pleased that our telecoms projects business, which has negatively impacted margins, returned to breakeven in Q4. Our good underlying cash generation and low leverage has enabled us to sustain a proactive capital deployment policy with our largest share buyback programme now complete and a new £125m programme launched today.
“We are entering FY26 with good sales momentum, including the new security contract win with DWP, a record pipeline of opportunities and a strategic focus on how AI and intelligent process automation can help to deliver margins above 5% by FY27. We continue to evaluate strategic M&A opportunities in our targeted sectors. With this positive outlook, we remain confident in delivering our Facilities Transformation three-Year Plan targets.”
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