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Investing.com -- Mitie Group reported revenue of £2.68 billion for the first half of fiscal 2026 (FY26), up 10.4% year-over-year, supported by 6.4% organic growth from net contract wins, project work and pricing, with acquisitions contributing a further 4%.
Operating profit before Other items increased 8% to £109 million, while the margin held broadly steady at 4.1% despite inflation and higher National Insurance costs.
Profit before tax, before other items, totaled £98 million in the first six months, up from £94.5 million in the year-ago period.
Free cash flow improved to £52 million from £34 million a year earlier, with operating cash flow up sharply to £115 million.
Mitie posted record contract awards of £3.8 billion and expanded its order book to £16.5 billion, a 7% increase from the end of the previous financial year. The bidding pipeline grew 39% to £33 billion, with more than 70% of that expected to be awarded within 18 months.
Renewal rates were strong at 86%, and the book-to-bill ratio reached 141%. The company reiterated full-year guidance for at least £260 million in operating profit before Other items and at least £120 million in free cash flow.
Chief executive Phil Bentley said the group has reached “the halfway mark in our Three-Year Strategic Plan (FY25-FY27)” with growing momentum and a clear line of sight to its financial targets.
He added that Mitie is “building a larger, more profitable and more cash generative business,” supported by investments in sales, higher-margin projects and AI-driven efficiencies.
"We remain focused on delivering an operating margin of at least 5% by FY27 through higher margin Facilities Transformation and Facilities Compliance growth; operational leverage; and through accelerating automation and AI efficiencies," Bentley added.
After the period-end, Mitie said it had completed the acquisition of Forest Group for maximum cash consideration of £7 million.
"The acquisition will enable Mitie to self-deliver critical refrigeration services, including into the Retail sector, where it already has a strong presence in Security and Hygiene through a customer base of national high street retailers and the major supermarket chains," Mitie said in the release.