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(Alliance News) - Mitie Group PLC on Tuesday reported robust revenue growth in its first quarter with GBP1.1 billion in new or extended contracts, providing optimism for the year ahead.
The Glasgow-based facilities management company said its revenue for the first quarter of the year ending March 31, 2024 rose by 11% to GBP1.05 billion from GBP945 million a year earlier.
Mitie attributed "this good performance" to increased projects and variable work, contract re-pricing and contributions from acquisitions during financial 2023.
The company's Central Government & Defence division contributed significantly to overall results, with revenue up 24% to GBP208 million from GBP168 million. Meanwhile in Technical Services, revenue increased 21% to GBP310 million from GBP257 million.
Contracts won or extended by Mitie during the quarter were worth around GBP1.1 billion in total, up from GBP800 million the prior year. These included deals with Lloyds Banking Group PLC, Network Rail Ltd and Stellantis NV.
Net debt at June 30 was GBP99 million, up from GBP44 million. Mitie said this included two acquisitions completed during the quarter, of Linx International Group in April and RH Irving Industrials in May, for GBP21 million total. It also included GBP16 million in shares purchased through a GBP50 million buyback announced in April.
Mitie said the first quarter "traditionally" delivers its lowest revenue compared with the rest of the year, and that "Given the good growth achieved, the board remains confident in the group's ability to meet its growth expectations for [financial 2024], particularly as margin enhancement initiatives continue to be delivered".
Shares in Mitie were down 1.6% at 100.40 pence on Tuesday morning in London.
By Emma Curzon, Alliance News reporter
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