FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Mitie has released its Q1 FY26 Trading Update for the three-month period ended 30 June 2025, reporting continued strong trading momentum with revenue growth of 10.1% to £1,282m (Q1 FY25: £1,164m), which is significantly ahead of UK FM market growth of c.3%.
This strong performance included organic growth of 8.0% driven by net wins and scope increases on existing contracts, alongside projects work. Infill M&A contributed a further 2.1% of inorganic growth through the prior year acquisitions of Argus Fire, ESM Power and Grupo Visegurity, which Mitie states are all performing strongly.
During the quarter, Mitie won, extended or renewed contracts with up to £1.2bn TCV, against a record prior year comparative (Q1 FY25: £2.0bn), including several notable new key accounts. These include IFM contracts for Aviva and Hull University Teaching Hospitals NHS Trust, immigration services for the Home Office, security services for the Metropolitan Police Authority, engineering services for Transport for London and cleaning for Walgreens Boots Alliance.
Notable contract renewals and extensions included AS Watson Group, Central London Community Healthcare NHS Trust, Defence Infrastructure Organisation, Manchester Airports Group, Starbucks, Scottish Parliament and Transport for London (security services).
On the 5 June, the outsourcing giant also announced a c.£350m recommended cash and share offer for Marlowe plc a leading player in the Testing, Inspection and Compliance (TIC) market. The acquisition has received 98% support from Marlowe shareholders and is expected to complete 4 August.
Commenting on the results and outlook, Phil Bentley, CEO, said: “In the first quarter of our new fiscal year we have maintained strong trading momentum, with double digit revenue growth. Our core Facilities Management offer grew by 7.3%, as we secured and extended a number of key accounts, whilst Facilities Transformation – delivered through client projects work – grew by 12.8%, against a strong prior year comparative.
“The acquisition of Marlowe, announced in June, represents a key step in our Strategic Plan. Facilities Compliance is an increasingly business-critical need for our customers, and we see significant opportunities to benefit from greater scale in this high growth sector. The overwhelming support from Marlowe’s shareholders reflects the compelling strategic and financial rationale for the Mitie offer, and will enable them to participate in further value creation as Mitie shareholders. We look forward to welcoming the Marlowe team and executing our integration programme, delivering at least £30m of cost synergies and cross selling these high value services to Mitie’s customers.
“With today’s strong update, we remain on track to deliver our ambitious Strategic Plan, pivoting Mitie from being the UK leader in Facilities Management to the leader in technology and project-led Facilities Transformation and, with the acquisition of Marlowe, a leader in Facilities Compliance.”
