Mitie upbeat after jump in annual earnings

(Sharecast News) - Mitie Group said on Thursday that it had started the current year on the front foot, after posting a jump in annual earnings.

Revenues at the facilities manager rose 10.5% in the year to 31 March to �5.6bn, including 5.3% organic growth driven primarily by new contract wins and scope increases. That helped lift adjusted operating profits 13% to �264m.

Contract wins, renewals and extensions totalled �6.3bn, down on the previous year's �7.5bn, which Mitie attributed to an especially strong year in 2025. The order book rose 6% to �16.3bn, while the bidding pipeline surged 34% to �31.7bn, around 70% of which is due to be awarded in the next 18 months.

Outgoing chief executive Phil Bentley said it had been "another year of progress".

He continued: "Looking ahead, we enter the 2027 full year with good momentum, supported by a record order book and bidding pipeline.

"Notwithstanding the potential for some incremental cost inflation as a result of the conflict in the Middle East, our ongoing margin enhancement initiatives - combined with the increasing mix of higher-margin facilities transformation and facilities compliance work and continued investment in data and AI - are expected to support margin progression, which we continue to reinvest for growth."

The group is in the final year of a three-year strategic plan, launched in 2025, which includes capturing a larger share of customer spend in facilities management and growing the facilities transformation business.

Bentley, who will step down at the end of the plan after nearly a decade in the role, said the search for his successor was well underway.

Once restructuring costs, exceptional items and acquisition and disposal costs were factored in, pre-tax profits fell to �123.7m from �145.4m.

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