REG - MITIE Group PLC - Share Buyback Programme doubled from £50m to £100m

MITIEAnnouncement

24/07/2024 07:00

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RNS Number : 5498X  MITIE Group PLC  24 July 2024

24 July 2024

Mitie Group plc

 

Share Buyback Programme doubled from £50m to £100m

 

Mitie Group plc ("Mitie" or "the Group"), the UK's leading Facilities
Transformation company, provides an update on its share buyback programme
("Share Buyback Programme") in respect of its ordinary shares of 2.5 pence
each ("Ordinary Shares"), which commenced on 15 April 2024.

 

Following a strong financial performance in FY24 and continued good momentum
in Q1 FY25, and after reviewing the expected timing of the pipeline of M&A
opportunities, Mitie is doubling its Share Buyback Programme, from £50m to
£100m. Since the programme commenced, Mitie has purchased 21m Ordinary Shares
at a cost of £25m (119p average price per share), through Peel Hunt LLP.

 

Mitie's Capital Allocation policy prioritises strategic infill M&A at
returns above our ROIC target, a progressive dividend, and the purchase of all
shares to fulfil employee incentive schemes, with the return of surplus funds
to shareholders via share buybacks. Our objective is to be within our target
leverage range of 0.75x to 1.5x (average net debt / EBITDA). At 30 June 2024,
the Group's trailing 12-month leverage was 0.6x.

 

In order to facilitate the continued execution of the Share Buyback Programme,
Mitie has entered into an instruction with Stifel Nicolaus Europe Limited
("Stifel") with immediate effect in respect of the next £50m tranche
(excluding expenses) of the upsized £100m Share Buyback Programme in relation
to the purchase by Stifel, acting as principal, of Ordinary Shares in the
share capital of Mitie and the simultaneous on-sale of such Ordinary Shares by
Stifel to Mitie. Stifel will make its trading decisions concerning the timing
of the purchases of Mitie's Ordinary Shares independently of, and uninfluenced
by, the Group.

 

The Board will continue to review the progress of the Share Buyback Programme
in the context of when M&A opportunities complete during the year.

 

The Share Buyback Programme will be conducted within certain pre-set
parameters, and in accordance with the general authority to repurchase shares
granted by Mitie's shareholders at the 2024 Annual General Meeting, Chapter 12
of the UK Listing Rules and the provisions of the Market Abuse Regulation
596/2014/EU dealing with buyback programmes.

 

Mitie will announce any market repurchase of Ordinary Shares no later than
7.30 a.m. on the business day following the calendar day on which the
repurchase occurred.

 

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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

 Richard Mountain                M: +44 (0)790 968 4466

 FTI Consulting

 

About Mitie

 

Founded in 1987, Mitie employs 68,000 colleagues and is the leading
technology-led Facilities Transformation company in the UK. We are a trusted
partner to around 3,000 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 (Hard Services) and Security and
Cleaning & Hygiene (Soft Services) we hold market leadership positions. We
also upsell Projects capabilities in the areas of building fitouts and
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, Retail & Logistics and
Transport & Aviation.

Over the previous Three-Year Plan (FY22 - FY24) Mitie delivered a Total
Shareholder Return (TSR) of 80% (#10 in FTSE 250). Our new Facilities
Transformation Three-Year Plan (FY25 - FY27) will extend Mitie's market
leadership position through accelerated growth and deliver enhanced
shareholder returns.

We hold industry leading ESG credentials, including a place on the CDP Climate
change A List, and in the past 12 months we have received multiple industry
awards 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 sixth consecutive year. Find out more at www.mitie.com
(http://www.mitie.com/) .

 

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