Mitie Group Plc · LSE:MTO

Mitie — FY2025 Earnings Presentation

36 slides from Mitie's earnings presentation, Jun 5, 2025

  1. Slide 1: Strong progress in Foundation Year of FY25-FY27 Strategic Plan

    1 Strong progress in Foundation Year of FY25-FY27 Strategic Plan Results presentation for the year ended 31 March 2025 Recommended cash and share offer for Marlowe plc 5 June 2025 The future of high-performing places

  2. Slide 2: FY25 highlights

    2 FY25 highlights Strong progress in Foundation Year of Strategic Plan (FY25 – FY27) Double digit Record contract Three infill revenue and wins/renewals, acquisitions operating order book and expand Projects profit growth bidding pipeline capabilities Strong FCF On track to Marlowe plc generation de

  3. Slide 3: FY25 highlights in charts

    3 FY25 highlights in charts Continued growth across all key Financial performance Growth indicators FCF & capital deployment metrics Revenue: £5.1bn Wins/renewals2: £7.5bn Free Cash Flow3: £143m +13% 5.0 4.5 8% CAGR +21% 8 6 25% CAGR >£100m 120 160 25% CAGR YoY 4.0 YoY 4 guidance 80 (£bn) 3.5 (£bn)

  4. Slide 4: Recommended cash and share offer to acquire Marlowe plc

    4 Recommended cash and share offer to acquire Marlowe plc A compelling opportunity to build ‘Facilities Compliance’ leadership and create significant shareholder value TERMS OF OFFER COMPELLING BENEFITS TO MITIE SHAREHOLDERS TIMELINE  Recommended cash and share offer: £2.90 in cash  A leader in Fa

  5. Slide 5: Financial update

    5 Financial update Simon Kirkpatrick Chief Financial Officer

  6. Slide 6: Headlines

    6 Headlines Double digit revenue and profit growth in FY25 • Revenue growth of 12.9% driven by Headlines (£m) FY25 FY24 % change strong organic growth of 8.5% Revenue1 5,091 4,511 +12.9 • Margin 10bps lower reflecting Operating profit before Other items 234.1 210.2 +11.4 investments in Year 1 of 3YP

  7. Slide 7: Revenue

    7 Revenue Strong revenue growth across all divisions Revenue1 (£m) FY25 FY242 % change • BS growth due to new wins, ‘surge response’ security work, retail sector 2,244 1,977 +13.5 growth, acquisitions, and pricing, partly Business Services (BS) offset by completion of public sector contracts Technic

  8. Slide 8: Revenue

    8 Revenue Strong organic growth supplemented by infill acquisitions 197 5,091 121 4.4% £m 251 11 2.7% 0.2% 4,511 5.6% Organic growth 8.5% Revenue growth: +12.9% FY24 Core FM Projects Pricing Acquisitions FY25

  9. Slide 9: Operating profit

    9 Operating profit 11.4% profit improvement with all divisions increasing year-on-year • BS profit increase from ‘surge response’ security work, new wins and MEIs, partly offset by headwinds from completed Operating profit1 (£m) FY25 FY242 % change public sector contracts Business Services (BS) 163.

  10. Slide 10: Operating profit

    10 Operating profit 11.4% profit growth after more than £26m of investments and inflation headwinds FY25 profit £m 25.2 (17.3) margin: 4.6% FY24 profit (8.9) margin: 4.7% 12.7 234.1 12.2 210.2 Investments & inflation (£26.2m) Strategic profit growth +£50.1m Profit growth: +11.4% FY24 Core FM Acquisi

  11. Slide 11: Cost inflation and regulatory changes

    11 Cost inflation and regulatory changes Inflation tightly managed in FY25; additional inflation and NI headwind in FY26 • FY25 net P&L impact from cost inflation of INFLATION IMPACT £6.8m, reflecting 95% pricing pass through FY25 FY26 outlook on contracts Total cost inflation (£128.2m) (£140.0m) •

  12. Slide 12: Cash flow

    12 Cash flow Good free cash flow generation, despite anticipated working capital outflow and higher lease and interest payments Cash flow (£m) FY25 FY24 • Strong profit generation drives £142.8m of FCF inflow in FY25 Operating profit before Other items 234.1 210.2 • Cash Other items of £34.3m relate

  13. Slide 13: Balance sheet

    13 Balance sheet Strong and stable balance sheet underpins ongoing shareholder returns, and M&A £m FY25 FY24 • Increase in net debt due to capital allocation actions undertaken and higher lease liabilities Closing net (debt) (199) (81) • Average leverage (0.8x) at the bottom end Average daily net (d

  14. Slide 14: FY27 Financial Targets

    14 Summary Good FY25 performance provides confidence in delivering ambitious 3YP targets 2023 Capital Markets Event (CME) FY25 Performance High single digit revenue growth • Double digit revenue (and operating profit) growth (CME baseline: £4.4bn) • Margins stable (4.6%) after investments to enhance

  15. Slide 15: Strategic update

    15 Strategic update Phil Bentley Chief Executive Officer

  16. Slide 16: Recap: the Mitie-Verse

    Recap: the Mitie-Verse Growing legislative and regulatory requirements are relevant to each of our customer sectors NEW LEGISLATION AND REGULATIONS Fire • Fire Safety Act 2021 • Building Safety Act 2022 Security • National Security Act 2023 • Worker Protection Act 2023 • Terrorism Act 2025 Energy &

  17. Slide 17: Our FY25-FY27 Strategic Plan is targeted on growth

    17 Our FY25-FY27 Strategic Plan is targeted on growth Focused on meeting customer needs, delivering Facilities Management; Transformation; and now Compliance OUR PILLARS OF … ENABLE US TO SATISFY EVOLVING … AND BUILD A LEADING GROWTH… CUSTOMER NEEDS… OFFERING Fire & Security Environmental Sustainabi

  18. Slide 18: Strong Facilities Management growth in Key Accounts

    18 £372m Key (£600m Strong Facilities Management growth in Key Accounts account 3Y target) growth and Investments in the Foundation Year of the Plan have driven record growth scope increases Record New Wins (£bn TCV) £1bn Record Renewals (£bn TCV) (+34% CAGR, +14% y-o-y) (+14% CAGR, +39% y-o-y) TCV

  19. Slide 19: Strong Facilities Transformation growth in projects

    19 £139m (£200m Strong Facilities Transformation growth in projects Projects 3Y target) upsell/infill Our expanded capabilities delivered £1.2bn (+14% yoy) of transformational projects M&E, HVAC, Building fabric c.80% £250k projects for existing typical project customers size (+65% yoy) Fire & Secur

  20. Slide 20: Facilities Compliance is an attractive growth market

    20 Facilities Compliance is an attractive growth market M&A Large market with strong growth rates, high recurring revenues and attractive margins, underpinned by the increasing building compliance requirements COMPLIANCE MARKET CHARACTERISTICS  Large addressable market: c.1.5m commercial and public

  21. Slide 21: Two complementary businesses…

    £300m 21 (£400m 3Y target) Two complementary businesses… M&A Adding compliance capabilities to cross-sell to Mitie’s underserved customers FACILITIES COMPLIANCE LEADER £300m revenue £250m revenue £550m revenue ~10% EBITDA margin Maintenance 70% self-delivery Maintenance Projects Projects 60% recurri

  22. Slide 22: …with significant revenue opportunities to expand capabilities

    £300m 22 (£400m …with significant revenue opportunities to expand capabilities M&A 3Y target) Building scale, leadership and self-delivery in the key segments of Facilities Compliance CREATES ‘TOTAL FIRE’ OFFERING ENHANCES SECURITY SYSTEMS OFFERING ADDS ENVIRONMENTAL SERVICES Creates a leader in £3.

  23. Slide 23: Significant cost synergies have been independently verified

    £300m 23 (£400m Significant cost synergies have been independently verified M&A 3Y target) £30m cost synergies will drive margin accretion SOURCES OF COST SYNERGIES1 COST SYNERGY DELIVERY PROFILE £30m Phasing – Expect to exit FY27 at 100% run rate (£30m) Support functions Cost to Achieve – £27m Elim

  24. Slide 24: Accelerates progress towards our FY27 targets

    24 Key Accelerates progress towards our FY27 targets account Projects M&A growth and upsell/infill Compelling financial benefits, creating value for shareholders scope increases CAPITAL MARKETS EVENT THE ENLARGED GROUP FY27 FINANCIAL TARGETS • Target of c.£75m p.a. spend over 4 years (£300m) FINANCI

  25. Slide 25: FY25 Summary

    25 FY25 Summary Strong progress in Foundation Year of Strategic Plan (FY25 – FY27) Double digit Record contract Three infill revenue and wins/renewals, acquisitions operating order book and expand Projects profit growth bidding pipeline capabilities Strong FCF Marlowe plc On track to generation acqu

  26. Slide 26: Appendix

    Appendix 1

  27. Slide 27: Our record £24bn pipeline of bidding opportunities

    27 Key Our record £24bn pipeline of bidding opportunities account growth and Over two thirds of the pipeline is due to be awarded in the next 18 months scope increases Better value for Keeping the Cleaner power Improved outcomes taxpayers nation safe connections for patients Delivering A safer, more

  28. Slide 28: AI-led technology leadership

    28 >5% AI-led technology leadership Operating margin by FY27 Our strategic focus on AI and Intelligent Process Automation (IPA) differentiates our core capabilities and will contribute to the delivery of margin enhancement initiatives in FY26 Intelligent Engineering Intelligent Hygiene Digital Twins

  29. Slide 29: One Mitie

    29 One Mitie We are an award-winning destination employer in our industry OUR PEOPLE PLAN OUTCOMES Investment in skills 01 Investing in skills to fuel growth Technical early career apprentices Engineering graduate scheme Flagship launch of Sales & Growth Academy An industry leading employee Focus on

  30. Slide 30: Appendix

    Appendix 2

  31. Slide 31: Business Services

    31 Business Services £m FY25 FY241 Increase / % change (decrease) Security1 1,067 863 204 +24 Hygiene 461 407 54 +13 Central Government1 384 447 (63) (14) Spain 167 114 53 +47 Waste 85 77 8 +10 Landscapes 80 69 11 +16 Total revenue 2,244 1,977 267 +14 Operating profit before Other items 163.0 149.8

  32. Slide 32: Technical Services

    32 Technical Services Increase / £m FY25 FY241 % change (decrease) Engineering 1,421 1,326 95 +7 Defence1 556 491 65 +13 Total revenue 1,977 1,817 160 +9 Operating profit before Other items 79.0 74.9 4.1 +5.5 Operating margin before Other items, % 4.0% 4.1% (0.1ppt) Total order book £5.0bn £4.0bn £1

  33. Slide 33: Communities

    33 Communities £m FY25 FY241 Increase / % change (decrease) Local Government & Education 300 265 35 +13 Healthcare 321 275 47 +17 Care & Custody1 249 177 72 +41 Total revenue 870 717 153 +21 Operating profit before Other items 47.5 36.1 11.4 +31.6 Operating margin before Other items, % 5.5% 5.0% +0.

  34. Slide 34: Return on invested capital (ROIC)

    34 Return on invested £m FY25 FY24 % change capital (ROIC) Operating profit before Other items 234.1 210.2 +11 Tax1 (55.5) (39.7) +40 Operating profit before Other items after tax 178.6 170.5 +5 Invested capital2 730.2 645.0 +13 ROIC % 24.5% 26.4% (1.9ppt) 1 Tax charge has been calculated on operati

  35. Slide 35: Invested capital (for ROIC)

    35 Invested capital £m FY25 FY24 Increase / (decrease) % change (for ROIC) Net assets 428.0 473.7 (45.7) (10) Add: Non-current liabilities 445.2 327.6 117.6 +36 Current provisions 37.4 66.5 (29.1) (44) Current private placement notes - 30.0 (30.0) (100) Deduct: Non-current deferred tax assets - (7.9

  36. Slide 36: Disclaimer

    36 Disclaimer NOT FOR RELEASE, PRESENTATION, PUBLICATION, OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION This presentation has been prepared by Mitie Group plc (“Mitie”) solely

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