Acquisitions help drive top-line growth for Mitie Group

(Sharecast News) - Facilities management company Mitie said it expects solid profit growth this year after a decent first half, helped by recent acquisitions. The company is now guiding to an operating profit before one-off items of "at least £190m" for the year to 31 March 2024, up from £162m previously.

"Our guidance is underpinned by good ongoing trading and positive momentum within the margin enhancement initiatives implemented in the first half of the year," Mitie said in a statement on Wednesday.

Group revenues in the first half to 30 September totalled £2.1bn, up 11% year-on-year, helped by an increase in projects and variable work, pricing, and the contribution from recent acquisitions.

In April, Mitie acquired consultancy Linx International, strengthening its position in the intelligence and technology-led fire and security market; May saw the purchase of RHI Industrials, an installer of high-tech security and access controls; while Spanish security business Biservicus Group was snapped up in September.

In mechanical and electrical engineering markets, it also bought engineering contractor JCA Engineering in September, and in August purchased the assets of G2Energy, a high voltage and battery energy storage contractor, via a liquidation process.

Mitie said that acquisitions contributed around 17% of inorganic revenue growth during the first half.

The company ended the period with net debt of £115m, up from £70m at the start of the year, due to increased lease costs and capital allocations.

The stock was up nearly 3% at 101.8p by 0845 BST.