Mitie posts strong set of results in first year of facilities transformation plan

Mitie has reported a strong set of full-year results for the twelve months ended 31 March 2025 showing good progress in the first year of its 2025-2027 Facilities Transformation Plan. Revenue rose 13 per cent year-on-year to £5.1 billion, with 9 per cent organic growth driven by new contracts, pricing, and upsell activity.

Highlights include:

• Record contract awards up 21 per cent to £7.5bn TCV of wins and renewals/extensions (FY24: £6.2bn)
• Record total order book up 35 per cent to £15.4bn (FY24: £11.4bn)
• Record pipeline up 27 per cent to £23.7bn (FY24: £18.6bn)
• Strong free cash flow generation of £143m (FY24: £158m); operating cash flow of £249m (FY24: £228m)

The outsourcing giant has also announced a cash and share offer for Marlowe plc a leading player in the Testing, Inspection and Compliance (TIC) market.

Commenting on the year and the outlook, Phil Bentley, Group Chief Executive, said:

“FY25 was a year of good financial and operational progress for Mitie, as we embarked on our new Three-Year Plan for Facilities Transformation.

“The investments we made in the foundation year of our Plan contributed to the delivery of double-digit revenue and operating profit growth, alongside a return on invested capital that significantly exceeds our weighted average cost of capital. Our divisions all performed well, and I am pleased that following a series of proactive actions our telecoms infrastructure business in Technical Services, which had negatively impacted margins in the year, returned to breakeven in the fourth quarter.

“As part of our new Three-Year Plan, we launched a new corporate narrative and branding alongside a bold social value pledge to uplift one million lives, reflecting our purpose-led commitment to creating ‘Better Places; Thriving Communities’. Mitie colleagues, our growing presence in the Communities we serve, and our technology leadership, are integral to delivery of this commitment. As ever, I am hugely grateful and indebted to all our 76,000 Mitie colleagues who delivered outstanding service to our customers throughout FY25, as reflected in a record Net Promoter Score of +63pts.

“We continue to make good progress with our margin enhancement initiatives, delivering £25m of cost savings in the year. Looking ahead, our estimate of the cost increase from the rise in Employers’ National Insurance Contributions in FY26 is c.£50m (down from an initial estimate of £60m). Contractual recoveries from customers are expected to be at least £35m, with the balance mitigated through new margin enhancement initiatives.

“Our strategic focus on AI and intelligent process automation will contribute to the expected delivery of an operating margin above 5 per cent by FY27, underpinned by higher margin M&A opportunities in our targeted sectors.

“We have entered FY26 with good sales momentum, and a record order book and pipeline of bidding opportunities. With this positive outlook, we have growing confidence in delivering our ambitious Facilities Transformation Three-Year Plan targets and creating increasing value for our stakeholders.”