City analysts have responded positively to FTSE 250-listed outsourcing company Mitie Group PLC (LSE:MTO)’s upped annual profit guidance.
Mitie cited a strong half-year performance, reporting robust revenue growth of approximately 11%, with organic growth at around 9.3%, totalling £2.1 billion for the first six months of the year.
The group estimated £190 million in operating profit for the year ending 31 March 2024, compared to £162 million for the 2023 fiscal year.
The company's order book saw a healthy boost, with an additional £2.2 billion added year-to-date, surpassing the entire 2023 financial year total.
This growth was primarily attributed to an increase in projects, variable work, pricing strategies and strategic acquisitions.
"Mitie is cash generative and has a strong balance sheet to support increased returns to shareholders and future growth opportunities," Shore Capital Markets said of the group.
Jefferies further praised Mitie's revenue momentum, cost control and inflation pass-through, with second-quarter turnover exceeding expectations by 2%.
Looking ahead, Jefferies anticipates a potential rise in consensus full-year 2024 earnings-per-share estimates by the mid-single digits. Mitie will also host a CMD (Capital Markets Day) soon, where additional strategic plans and growth initiatives are expected to be unveiled.
“We confidently re-iterate our buy rating,” said Jefferies.
Mitie shares rallied 5% to 103.89p at the time of writing.