Shares in Mitie Group PLC (LSE:MTO) jumped 13% to near a five-year high at 92.2p after issuing a bullish unscheduled year-end trading update and unveiled its intention to carry out a £50mln share buyback.
The facilities management specialist highlighted a better than expected profit margin and organic revenue growth in the fourth quarter.
For the full year ending 31 March, EBITA guidance has been raised to “at least £155mln” from “at least £145mln”, with revenue “slightly ahead” of the prior year's £4bn and the company said positive momentum from its margin-enhancing activities is expected to continue in the new financial year.
Combined with accretion from a reloaded £50m buyback, broker Jefferies said it believes consensus EPS estimates are likely to increase by circa 10%.