Mitie Group PLC (LSE:MTO) shares reached a six-month high after a positive trading update was paired with a reinstated dividend, a new share buyback programme and an acquisition.
Full year revenues rose 58% to £3.99bn, with operating profit jumping from £4mln to £72ml, the outsourcer said.
It has reinstated its final dividend with a 1.4p a share payout, launched an initial £50mln buyback and is also paying up to £12.4mln for Custom Solar, which specialises in solar power systems for public and private sector clients.
Mitie chief executive Phil Bentley said: "The current year has started well, with significant contract wins from Hammerson, Netflix, Poundland, and Primark as well as renewals/extensions of our contracts to support military bases in Cyprus, Ascension Islands, and the Falklands.
"This new business momentum, together with a full year's contribution from significant contract wins including FDIS and BAE and the uptick in government projects and variable works (as our customers experience higher utilisation rates across their buildings), gives us confidence in our growth outlook."
He said the impact of inflation was being "well managed", with further benefits to come this year from margin enhancement initiatives.
As a result, in the new financial year, after excluding the £448mln COVID-19 related contract work that was delivered in 2022, Bentley said Mitie expected to deliver "mid to high single digit revenue growth, together with good operating margin progress".
Mitie shares rose almost 10% to 67.7p, their highest since November.