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Mitie Group PLC on Thursday said annual profit more than doubled as contracts, renewals and extensions drove its revenue.
The Glasgow-based facilities management company said pretax profit for the year ended March 31 was £106 million, rising from £52 million a year prior. Finance costs fell by 32% to £13.7 million, while administrative expenses dropped 15% to £331.5 million.
Revenue grew slightly by 1.5% to £4.06 billion from £4.00 billion the year before. This was attributed to ‘good momentum’ from new contract wins of £1.9 billion, which included contracts with Dublin Airport, the Department for Work & Pensions, the Home Office, Lloyds Banking Group and the National Grid.
Mitie also noted that renewals and extensions with the firms Deloitte, E.ON and Vodafone drove revenue.
Mitie declared a final dividend of 2.2 pence per share, up 57% from 1.4p per share the year before. This brought the total dividend up 61% to 2.9p per share from 1.8p per share a year prior.
Looking ahead, Mitie said financial 2024 has ‘started positively’, citing new contracts and benefits from contracts won and extended in financial 2023, and will continue to seek growth opportunities.
Chief Executive Officer Phil Bentley said: ‘This positive momentum carried forward into the new financial year gives the board confidence in meeting its growth expectations for financial 2024. Mitie is cash generative and has a strong, stable, and flexible balance sheet to support increased returns to shareholders and future growth opportunities.’
Shares in Mitie were down 0.5% at 95.94 pence each in London on Thursday morning.
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