Mitie Share News (MTO)

(Alliance News) - Mitie Group PLC on Tuesday said it expects a stronger annual performance after upgrading its operating profit guidance and launching a new GBP100 million share buyback, following solid first-half revenue growth and continued progress with the integration of its recent Marlowe acquisition.

In response, shares in Mitie rose 8.5% to 150.80 pence in London on Tuesday morning.

The Shard, London-based engineering, security, cleaning and hygiene services provider, said revenue rose about 10% to GBP2.7 billion in the six months to September 30, from GBP2.4 billion a year earlier, driven by 6.1% organic growth and additional contributions from acquisitions.

Mitie said it now expects operating profit before exceptional items in the year ending March 2026 to be at least GBP260 million, up from GBP234 million the previous year.

Free cash flow is forecast to be at least GBP120 million, down from GBP143 million in financial 2025.

Chief Executive Officer Phil Bentley said the company is "well on the way to building a larger, more profitable and cash generative business" and is on track to deliver its 2025–2027 strategic plan and financial targets.

Mitie said the integration of Marlowe PLC, acquired in August for around GBP350 million, is progressing well and remains on track to achieve at least GBP30 million of cost synergies by 2028.

The deal is strengthening Mitie's position in technology-led facilities management and extending its reach into business-critical compliance services, the company said.

Contract wins, extensions and renewals totalled about GBP3.0 billion in the first half, compared to GBP3.7 billion a year earlier.

Following the Marlowe deal, Mitie said it will resume share buybacks with a new GBP100 million programme to be completed within 12 months, bringing total buybacks since financial 2023 to GBP303 million.

The company will also maintain a progressive dividend policy with a payout ratio of 30% to 40%.

Mitie will publish its interim results for the six months to September 30 on November 20.

By Eva Castanedo, Alliance News reporter

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