Mitie revenues lift but Middle East conflict could drive costs higher – UK Times

Outsourcing giant Mitie has revealed a jump in revenues for the past year but cautioned that it could see the Iran war drive costs higher.

The company, which offers services including security and cleaning, said stronger sales were buoyed by new contracts and acquisitions.

It told shareholders that revenues lifted by 10.5% to £5.62 billion for the year to March 31, compared with a year earlier.

This included 5.3% from organic growth, largely linked to new contracts, and 5.2% from acquisitions.

The group said it made further progress in its three-year strategic plan, which has seen the group focus on its facilities services.

The strategy has also seen Mitie secure £25 million in savings over the past year, more than offsetting cost headwinds, including inflation, increased national insurance contributions and unsuccessful contract renewals.

Chief executive Phil Bentley said it has seen “progression” in profit margins to allow the firm to invest, but highlighted “the potential for some incremental cost inflation as a result of the conflict in the Middle East”.

On Thursday, the group reported adjusted pre-tax profits of £236.4 million, up from £217.9 million a year earlier.

The UK-based firm was founded in 1987 and employs around 84,000 workers.

Mr Bentley said: “Looking ahead, we enter full-year 2027 with good momentum, supported by a record order book and bidding pipeline.

“After almost a decade as chief executive, it remains my intention to retire from Mitie at the end of the FY25-FY27 strategic plan, once a successor is in place – a process that is well under way.

“I am proud of the progress we have made in transforming Mitie into a world-class industry leader, positioned to deliver the ‘future of high-performing places’ for our customers.”