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Investing.com -- Mitie Group PLC (LON:MTO) reported a strong start to its fiscal year, with revenue for the first quarter of fiscal 2026 (FY26) rising 10.1% year-on-year to £1.28 billion, supported by 8% organic growth. Gains were driven by new contract wins, project delivery and pricing, the company said.
Facilities Management revenue rose 7.3%, while its higher-margin Facilities Transformation division grew 12.8%, both against strong comparatives.
The company secured £1.2 billion in new contracts and renewals, down from a record £2 billion in the prior-year quarter. However, its bidding pipeline reached a record £29 billion, up 22% from FY25.
Mitie said it remains on track with cost initiatives aimed at offsetting unrecovered National Insurance cost pressures.
Net debt increased to £240 million from £199 million at the end of March, reflecting capital investments and seasonal working capital outflows.
Average daily net debt rose to £238 million from £173 million a year ago.
Mitie said its acquisition of Marlowe plc is expected to close on August 4, following 98% shareholder approval. The £350 million deal will create a market leader in Facilities Compliance, with planned cost synergies of at least £30 million.
“In the first quarter of our new fiscal year we have maintained strong trading momentum, with double digit revenue growth," said Mitie Group CEO Phil Bentley. He added that the Marlowe acquisition is a “key step” in Mitie’s strategy.
“With today’s strong update, we remain on track to deliver our ambitious Strategic Plan, pivoting Mitie from being the U.K. 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," Bentley continued.