Mitie Group (MTO) Q1 24/25 TU earnings summary

Executive summary

• Q1 FY25 revenue increased by 10.5% year-over-year to £1,164m, driven by acquisitions, project growth, and pricing.

• Secured £2.0bn in contract wins and renewals, including major accounts in both public and private sectors.

• Launched a new three-year margin enhancement program, targeting £20m in FY25 cost savings.

• Commenced a £50m share buyback, with 21m shares purchased to date.

• Acquired ESM Power post-period for £5.5m to strengthen high voltage power connections expertise.

Financial highlights

• Revenue grew 10.5% year-over-year to £1,164m (Q1 FY24: £1,053m), with organic growth of 4.4% and 6.1% from M&A.

• Net debt rose to £182m at 30 June 2024, up from £81m at 31 March 2024, due to working capital outflow and capital allocation.

• Average daily net debt was £173m, up from £168m in Q4 FY24.

Outlook and guidance

• On track to deliver high single-digit revenue growth for FY25.

• Margin enhancement initiatives expected to raise operating margin over the medium term.

• Focused on investment in the new Facilities Transformation Three-Year Plan (FY25–FY27) to accelerate growth.