Mitie Group Delivers Strong Q4 Performance, Upgrades FY25 Profit Guidance
Why we think this is very good
The trading update from Mitie Group plc indicates a very strong performance in the fourth quarter, with revenue growth of around 9% and an upgrade to full year operating profit guidance to around £230 million. The company has also delivered good free cash flow generation, a strong financial position, and has launched a new £125 million share buyback programme. These factors, combined with the positive tone of the update and the relatively low valuation, suggest the overall sentiment is very good.
Key Points
- Record revenue up c.13% to c.£5.1bn, including 9% organic growth
- Operating profit guidance upgraded to c.£230m (FY24: £210m)
- Good free cash flow generation of c.£135m, well ahead of guidance
- Strong financial position with leverage at the lower end of target range
- Three strategic acquisitions completed for c.£50m
- New £125m share buyback programme launched for FY26
Summary
Mitie Group plc has reported a strong trading performance in the fourth quarter, with revenue growth of around 9% and an upgrade to full year operating profit guidance to around £230 million. The company has also delivered good free cash flow generation, a strong financial position, and has launched a new £125 million share buyback programme. The broker targets indicate a positive outlook, with Berenberg Bank and Deutsche both reiterating Buy recommendations and increasing their price targets.