Mitie backs FY profit expectations after record Q3 revenues

(Sharecast News) - Mitie backed its full-year profit expectations on Thursday as it reported a jump in third-quarter revenues. In the three months to the end of December, revenue rose 14% on the same period a year earlier to a record £1.15bn. This reflected continued growth in key accounts and projects upsell, contract re-pricing and infill M&A.

There was organic growth of 10.%, inclusive of 4.1% contract re-pricing through key accounts - net contract wins and losses and contract growth - and projects upsell. Infill M&A completed since 1 October 2022 contributed a further 4% of inorganic growth, it said.

The facilities management and professional services firm hailed good sequential trading momentum, with Q3 revenue 6% above the second quarter and 9% above the first.

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

"We expect good revenue momentum to continue into the fourth quarter, albeit against a very strong prior year comparative for projects work," it said. "As such, Q4 revenue growth is expected to moderate to mid-single digits, still comfortably ahead of the wider facilities management market."

At 1055 GMT, the shares were up 2% at 101.93p.