UK's Mitie Group Q1 revenue rises 10% on strong Business Services
UK's Mitie Group Q1 revenue rises 10% on strong Business Services
Overview
UK facilities management firm's Q1 FY27 revenue rose 10% yr/yr to £1.41 bln
Business Services division revenue up 23%, offsetting 5% decline in Technical Services
Company purchased 11 mln shares for £18 mln under ongoing £100 mln buyback programme
Outlook
Mitie targets annual free cash flow of £150m in FY27
Company expects above-market growth and margin expansion over the medium term
Mitie says improved contract wins and retention will support performance in the balance of the year
Result Drivers
NEW CONTRACT WINS & PRICING - Organic revenue growth of 4% was driven by new contract wins, projects growth and pricing, partly offset by a 2% impact from prior-year Technical Services contract losses
MARLOWE ACQUISITION - Inorganic growth of 6% was primarily due to the prior year acquisition of Marlowe, boosting Facilities Compliance revenue
BUSINESS SERVICES STRENGTH - Business Services division revenue rose 23%, supported by prior-year contract wins in Security & Hygiene, Marlowe contribution, and fire & security capital projects
Company press release: ID:nRSU1148Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue |
| GBP 1.41 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Mitie Group PLC is GBp202.50, about 34.1% above its July 20 closing price of GBp151.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
July 20 - UK's Croma Security FY revenue rises 15%, helped by acquisitions
July 20 - UK's Big Yellow Q1 revenue rises on new store openings
July 20 - UK's Segro rejects $18.2 billion Prologis bid as takeover tussle intensifies
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)