In news on UK stocks, Mitie Group PLC (GB:MTO) announced its FY24 results, achieving record revenues and higher profits. For the full year, Mitie Group’s revenue grew 11% year-over-year to £4.5 billion, while operating profit increased 30% to £210 million.
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Riding on robust figures, the company surpassed all financial targets outlined in its three-year plan, which ended in FY24. Further, the company’s remarkable shareholder return of 80% during that period positioned it in the 10th spot in the FTSE 250 index.
Following the results, MTO shares gained in early trading hours but are currently at a loss of 0.67%.
Miti Group is a leading facilities management company in the UK and caters to multiple industries, like finance, pharmaceuticals, retail, and transport.
Highlights from Mitie Group’s Results
Mitie’s strong financial performance during the year was driven by acquisitions, re-pricing, and new contract wins. In FY24, the company’s total contract value increased to £6.2 billion from £4.3 billion in the previous year. The company ended the year with a robust order book of £11.4 billion and a pipeline of £18.6 billion.
Speaking of shareholders’ rewards, Mitie Group announced a final dividend of 3p per share, resulting in a final dividend of 4p per share for FY24. This reflects a growth of 38% over the previous year’s total payment of 2.9p.
Additionally, the company initiated a £50 million buyback program and has repurchased 7 million shares as part of the same.
Are Mitie Shares a Good Buy?
Post-results, analyst Sam Dindol from Stifel Nicolaus confirmed a Buy rating on Mitie stock, predicting an upside of 21%. Dindol is impressed by the current business momentum of the company, backed by a strong order book. He predicts 7% revenue growth for FY25, with margins expected to remain flat.
According to TipRanks’ consensus, MTO stock has received a Strong Buy rating, backed by three Buy recommendations. The Mitie Group share price forecast is 142.50p, which is 19% higher than the current price level.
