Mitie backs full-year guidance as interim profits, revenue rise

(Sharecast News) - Mitie backed its recently-lifted full-year guidance on Thursday as it hailed a "good" first-half performance, with profits and revenue higher. In the six months to the end of September, operating profit rose 24% to £85m, while revenue grew 11% to £2.1bn.

Pre-tax profit increased to £52.3m from £43.1m a year earlier and the interim dividend was hiked 43% to 1p a share.

The company said revenue growth was driven by increased project and variable works, contract re-pricing, and acquisitions, partially offset by the completion of Covid contracts in the first quarter and scope reductions. Scope reductions include the wind down of the Afghan Relocations and Assistance contract, which reduced revenue by £16m.

Mitie said it remains on track to deliver guidance for operating profit before other items of at least £190m in FY24, up from £162m a year earlier.

Chief executive Phil Bentley said: "Looking ahead, we are encouraged by new key account wins, increased revenues from projects upsell, and the positive momentum from cost savings initiatives implemented in the first half."