The Mitie Group Board has declared an interim dividend of 0.7 pence per share (H1 FY22: 0.4 pence per share). The interim dividend will be paid on 1 February 2023 to all shareholders that are on the register at the close of business on 16 December 2022. Shares in the Company will be quoted ex-dividend on 15 December 2022. The dividend reinvestment plan election date is 5 January 2023.
Other financial highlights include:
Revenue was £1,923m as new contract wins, acquisitions and price inflation more than offset the boost in the same period last year from short-term COVID-related contracts (H1 FY22: £1,912m)
Total contract value of £1.5bn added during H1, with renewal rates over 90%. Book to bill ratio of 107%
Operating profit before other items was £68.0m, down 20% (H1 FY22: £85.3m), and operating profit margin before other items 1.0ppts lower at 3.5% (H1 FY22: 4.5% was boosted by higher margin short-term COVID-related contracts)
Excluding short-term COVID-related contracts:
- Revenue grew 16%, reflecting good momentum across all divisions and effective management of inflationary pressures
- Operating profit before other items of £65.4m was 45% better (H1 FY22: £45.0m) with margin of 3.4% (H1 FY22: 2.7%), as margin enhancement initiatives started to deliver
Operating profit after other items was £50.5m (H1 FY22: £59.2m), as reduced other items (£17.5m of other items in H1 FY23 versus £26.1m in H1 FY22) partially offset the reduction in COVID-related contracts
Average daily net debt for the six months to 30 September 2022 was £62m (FY22: £25m), following the unwind of the £45m customer invoice discounting, the £50m share buyback and £20m FY22 final dividend, with leverage remaining comfortably below long-term target of less than 1.0x average net debt/EBITDA
Increased guidance for FY23 with operating profit before other items now expected to be at least £145m
