Mitie Group Boosts Profit Forecast and Initiates Buyback
(Reuters) - British outsourcer Mitie Group lifted its annual profit outlook on Wednesday and forecast double-digit percentage growth in revenue, encouraged by growth in services provided and as cost-checking measures from a turnaround plan pay off.
The company also launched a share buyback programme of 125 million pounds ($165.8 million) and said costs related to the government's proposals for firms to contribute more to employee insurance were tracking lower than expected for fiscal 2026.
An uncertain economic outlook, made worse by turmoil due to proposed U.S. tariffs, has muted growth prospects for companies globally as they adapt to changing policies and sentiment.
However, Mitie, which provides security, cleaning, engineering and other services to public and private sector clients, is in the midst of a three-year plan to boost margins through productivity gains and increased use of artificial intelligence.
British firms have also been saddled with labour costs as the government increased employers' social security contributions and minimum wages.
Mitie now expects these costs to be about 10 million pounds lower than its previous projection of about 60 million pounds.
It expects profit for the year ended March 31 of about 230 million pounds, and revenue to grow about 13% to 5.1 billion pounds, while targeting margins of more than 5% by fiscal 2027.
($1 = 0.7541 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)
