- Full-year profit guidance raised to at least £260 million after strong first-half growth
- Revenue up 10% to £2.7 billion, driven by new contracts and acquisitions
- New £100 million share buyback launched as Marlowe integration progresses
Mitie Group PLC (LSE:MTO) shares climbed 8% in early trading after the facilities management group upgraded its full-year profit guidance and restarted share buybacks, following a strong first-half performance.
The company now expects operating profit of at least £260 million for the year to March 2026, ahead of the £234 million reported last year and above market forecasts.
Revenue rose around 10% to £2.7 billion in the six months to 30 September, with organic growth of just over 6%.
The gains were fuelled by new contracts in the defence, healthcare and education sectors, as well as the recent acquisition of compliance specialist Marlowe, completed in August.
Integration of Marlowe is said to be on track, with £30 million of cost synergies expected by 2028.
Chief executive Phil Bentley said the results showed “strong momentum” as Mitie builds a larger and more profitable business. “The combination of solid growth, disciplined capital deployment and the Marlowe integration gives us confidence to resume share buybacks,” he added.
Panmure Liberum said the update was slightly ahead of expectations, noting that earnings guidance beat consensus estimates of £256 million and that free cash flow had improved to about £50 million.
It maintained a 'buy' rating and a 170p price target, saying Mitie’s valuation at around 10.5 times 2026 earnings looks good value.
Mitie also announced a £100 million share buyback to be completed over the next year, adding to the £303 million returned since 2023. The company said it remains on course to meet its strategic targets through 2027.
The shares rose 11p to 150p, valuing the business at £2 billion.