REG - MITIE Group PLC - Intention to suspend Share Buyback Programme

MITIEAnnouncement

05/06/2025 07:00

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RNS Number : 5136L  MITIE Group PLC  05 June 2025

 

5 June 2025

Mitie Group plc

 

 

Intention to suspend Share Buyback Programme

 

Mitie Group plc ("Mitie" or "the Group"), the UK's leading Facilities
Transformation company, announces that, further to the Rule 2.7 announcement
today of a recommended cash and share offer for Marlowe plc (the "Marlowe
Acquisition"), it is suspending the £125m share buyback programme (the "Share
Buyback Programme"), launched on 16 April 2025, with immediate effect.

 

The Board's capital deployment policy prioritises strategic M&A at returns
materially above our weighted average cost of capital; a progressive dividend
policy (30-40% payout ratio); and the purchase of all shares to fulfil
employee incentive schemes. Surplus funds are returned to shareholders via
share buyback programmes to ensure that we remain within our 0.75-1.5x target
leverage range (post-IFRS 16 average net debt/EBITDA).

 

Under the Share Buyback Programme to date, the Group has purchased a total of
2m ordinary shares of 2.5p each at an average price of 140p. The acquired
shares are being held in treasury to fulfil the 2022 Save As You Earn (SAYE)
scheme, vesting in February 2026. Consistent with the Group's commitment to
purchasing all shares to fulfil employee incentive schemes, it intends to
purchase a further 4m ordinary shares, as an exception to the suspension, to
satisfy the balance of outstanding awards under the 2022 SAYE scheme.

 

Following the Marlowe Acquisition, the Group expects leverage to quickly
reduce through cash generation and increasing profitability, enabling the
resumption of surplus funds being returned to shareholders via share buyback
programmes.

 

 

- END -

 

For further information

 Kate Heseltine                              M: +44 (0)738 443 9112  E: kate.heseltine@mitie.com (mailto:kate.heseltine@mitie.com)

 Group IR & Corporate Finance Director

 Claire Lovegrove                            M: +44 (0)790 027 6400  E: claire.lovegrove@mitie.com (mailto:claire.lovegrove@mitie.com)

 Director of Corporate Affairs

 Neil Bennett                                M: +44 (0)790 000 0777  E: mitie@h-advisors.global (mailto:mitie@h-advisors.global)

 H/Advisors Maitland

 

 

About Mitie: The Future of high Performing Places

Founded in 1987, Mitie employs 76,000 colleagues and is the leading
technology-led Facilities Transformation company in the UK. We are a trusted
partner to a diverse range of blue-chip customers across the public and
private sectors, working with them to transform their built estates, and the
lived experience for their colleagues and customers, as well as providing
data-driven insights to inform better decision-making.

 

In each of our core services of engineering maintenance (hard services) and
security and hygiene (soft services) we hold market leadership positions. We
also deliver projects capabilities in the areas of power and grid connections,
building fit-outs & modernisation, decarbonisation, fire & security,
and telecoms infrastructure. Our sector expertise includes central government,
critical national infrastructure, defence, financial services, healthcare
& life sciences, local government & education, manufacturing, media,
retail & logistics and transport & aviation.

 

We hold industry-leading ESG credentials, including a place on the CDP Climate
change A List, and we have received multiple industry awards recently
including B2B Marketing Team of the Year, Best Low Carbon Solution and Net
Zero Carbon Strategy of the year. Targeting Net Zero by the end of 2025, our
ambitious emissions reduction plans have been validated by the Science Based
Targets initiative (SBTi). We have been recognised as a 'UK Top Employer' for
the seventh consecutive year and 'Britain's Most Admired Company' in the
Support Services sector. Find out more at www.mitie.com.

 

 

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