Facilities management company, Mitie Group has posted a solid start to its fiscal year with a 10.1 per cent increase in revenue for the first quarter, driven by a £29 billion pipeline of opportunities.
The company’s revenue reached £1.2 billion in the three months up to 30 June 2025, up from £1.1 billion in the same period last year – a growth of 10.1 per cent, significantly ahead of the UK FM market growth of 3 per cent.
The growth was primarily driven by eight per cent organic expansion, fuelled by net contract wins, scope increases, and strong project growth.
Recent mergers and acquisitions contributed an additional 2.1 per cent of inorganic growth, driven by the prior year’s deals with Argus Fire, ESM Power, and Grupo Visegurity, all of which are performing strongly.
It also announced £1.2 billion in total contract value (TCV) from new contract wins, extensions, and renewals, although this was lower than last year’s record £2 billion.
A record £29 billion pipeline of bidding opportunities saw a 22 per cent increase over the period (FY2025: £23.7 billion).
Notable new contracts included integrated facilities management for Aviva, security services for the Metropolitan Police, and engineering services for Transport for London.
Mitie’s ongoing expansion efforts also include the acquisition of Marlowe.
The £350 million deal, set to complete in early August, is set to strengthen Mitie’s position in the fast-growing facilities compliance sector.
In addition, it was recently announced that Wickes Group chairman and senior independent director at Kerry Group, Christopher Rogers will take over as chairman, succeeding Derek Mapp, who steps down after eight years of service.
Despite an increase in net debt to £240 million (FY2025: £199 million) due to capital deployments and seasonal working capital outflows, the firm said it remains on track to meet its strategic goals, including delivering £150 million in free cash flow by FY2027.
The company said it will focus on maintaining a strong balance sheet and executing its planned share buyback programme.
Phil Bentley, chief executive officer, said: “In the first quarter of our new fiscal year we have maintained strong trading momentum, with double digit revenue growth.
“The acquisition of Marlowe, announced in June, represents a key step in our strategic plan.
“Facilities compliance is an increasingly business-critical need for our customers, and we see significant opportunities to benefit from greater scale in this high growth sector.”
Was this interesting? Try: Van Elle and VolkerWessels announce new strategic partnership amid transfer of concrete piling kit
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
