UK's Mitie posts double-digit growth as CEO succession advances
UK's Mitie posts double-digit growth as CEO succession advances June 4 (Reuters) - British outsourcer Mitie Group MTO.L posted double-digit revenue and profit growth on Thursday as chief executive Phil Bentley said his retirement plans were advancing and the search for his successor was "well underway."
Here are a few details about its results and forecast:
Mitie reported revenue of £5.62 billion ($7.55 billion) for the year to March 31, up 10.5% from a year earlier, driven by new contract wins including hygiene services for Transport for London, security contracts and pricing increases.
The company provides security, cleaning and engineering services and has benefited both from its acquisition of compliance specialist Marlowe, and from new contract wins that capitalize on increased government spending on water infrastructure and power grids, as well as from booming demand for data centre development.
Operating profit before exceptional items rose 13% to £264.1 million, beating LSEG analyst estimates of £254.88 million, helped by cost savings from margin enhancement initiatives and synergies from the Marlowe integration.
The company delivers mechanical, electrical, cooling and security systems for hyperscalers and supports clients including Microsoft, Google and Equinix, with growing AI-driven investments expected to boost margin expansion toward its FY25-27 strategic targets.
Bentley, who has led Mitie since November 2016, reiterated his intention to retire at the end of the strategic plan once a successor is in place.
Mitie also plans to buyback £100 million of shares in fiscal 2027 and recommended a final dividend of 3.1 pence per share.
($1 = 0.7446 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Ronojoy Mazumdar)