H1 FY26 Results

About this update from Mitie Group Plc

[{"type":"text","content":"\n \n 20 November 2025 \n Mitie Group plc \n ​ LEI number: 213800MTCLTKEHWZMJ03 \n   \n Interim results for the six months to 30 September 2025 \n   \n Growing momentum after strong first half performance \n Record contract awards, order book and bidding pipeline \n Confidence in delivery of FY25-FY27 Strategic Plan and financial targets \n   \n \n \n \n \n   \n H1 highlights:  \n \n \n \n \n ·   \n \n \n Group revenue up 10.4% to £2,677m (H1 FY25: £2,426m), including 6.4% organic growth driven primarily by net contract wins, projects and pricing, plus a 4.0% contribution from acquisitions \n \n \n \n \n ·   \n \n \n Record contract awards of £3.8bn total contract value (H1 FY25: £3.7bn) \n \n \n \n \n ·   \n \n \n Order book 2 up 7% to £16.5bn (end FY25: £15.4bn); book to bill ratio 3 141%; renewals 86 % (FY25: 59 %) \n \n \n \n \n ·   \n \n \n Bidding pipeline up 39% to £33.0bn (end FY25: £23.7bn); over 70% to be awarded in next 18 months \n \n \n \n \n ·   \n \n \n Operating profit before Other items 1 up 8% to £109m (H1 FY25: £101m) \n \n \n \n \n ·   \n \n \n Operating profit margin before Other items resilient at 4.1% (H1 FY25: 4.2%), reflecting margin enhancement initiatives, offset by strategic investments as well as inflation and National Insurance headwinds \n \n \n \n \n ·   \n \n \n Basic EPS before Other items up 6% to 5.7p (H1 FY25: 5.4p), reflecting the increase in operating profit and reduction in average share count driven by share buybacks in the prior year, offset by higher interest costs \n \n \n \n \n ·   \n \n \n Operating profit down 3% to £61m (H1 FY25: £63m) and EPS down 13% to 2.6p (H1 FY25: 3.0p); Other items 1 of £48m (H1 FY25: £38m) incl. Marlowe transaction costs (£7m) and costs to achieve synergies (£2m) \n \n \n \n \n ·   \n \n \n Free cash flow generation of £52m (H1 FY25: £34m); operating cash flow of £115m (H1 FY25: £81m) \n \n \n \n \n ·   \n \n \n Average net debt up £113m to £332m, primarily reflecting the Marlowe acquisition \n \n \n \n \n ·   \n \n \n Marlowe acquisition delivers 'Facilities Compliance' market leadership; integration continues to progress well, and synergies delivery remains on track \n \n \n \n \n ·   \n \n \n Refinancing of Marlowe bridge facility completed post-H1 with £180m of 3-7 year US Private Placement notes at average coupon of 5.4% \n \n \n \n \n ·   \n \n \n Interim dividend up 8% to 1.4p per share (H1 FY25: 1.3p) \n \n \n \n \n ·   \n \n \n AI delivering early positive impact by reimagining and automating workflow and workforce management \n \n \n \n \n ·   \n \n \n New share buyback programme of £100m underway; 15m shares purchased for £24m to date \n \n \n \n \n ·   \n \n \n Full year guidance reiterated for operating profit before Other items of at least £260m and free cash flow of at least £120m  \n \n \n \n \n   \n \n \n \n \n   \n \n \n Six months to 30 September 2025 \n \n \n \n \n \n Six months to 30 September 2024 \n \n \n \n \n   \n £m unless otherwise specified \n \n \n Before Other items 1,3 \n \n \n Other items 1 \n \n \n Total \n \n \n Before other    items 1,3 \n \n \n Other items 1 \n \n \n Total \n \n \n \n \n Revenue \n \n \n 2,677.2 \n \n \n - \n \n \n 2,677.2 \n \n \n 2,425.6 \n \n \n - \n \n \n 2,425.6 \n \n \n \n \n Operating profit \n \n \n 108.8 \n \n \n (48.2) \n \n \n 60.6 \n \n \n 101.1 \n \n \n (37.7) \n \n \n 63.4 \n \n \n \n \n Operating profit margin \n \n \n 4.1% \n \n \n - \n \n \n 2.3% \n \n \n 4.2% \n \n \n - \n \n \n 2.6% \n \n \n \n \n Profit before tax \n \n \n 98.0 \n \n \n (48.2) \n \n \n 49.8 \n \n \n 94.5 \n \n \n (37.7) \n \n \n 56.8 \n \n \n \n \n Profit for the period \n \n \n 73.8 \n \n \n (39.1) \n \n \n 34.7 \n \n \n 71.1 \n \n \n (31.0) \n \n \n 40.1 \n \n \n \n \n Basic earnings per share \n \n \n 5.7p \n \n \n \n \n \n 2.6p \n \n \n 5.4p \n \n \n \n \n \n 3.0p \n \n \n \n \n Dividend per share \n \n \n \n \n \n \n \n \n 1.4p \n \n \n \n \n \n \n \n \n 1.3p \n \n \n \n \n Cash generated from operations \n \n \n   \n \n \n   \n \n \n 114.8 \n \n \n \n \n \n \n \n \n 81.4 \n \n \n \n \n Free cash inflow 3 \n \n \n   \n \n \n   \n \n \n 51.9 \n \n \n \n \n \n \n \n \n 34.3 \n \n \n \n \n Average daily net debt 3 \n \n \n   \n \n \n   \n \n \n (331.6) \n \n \n \n \n \n \n \n \n (219.0) \n \n \n \n \n Closing net debt 3 \n \n \n   \n \n \n   \n \n \n (471.4) \n \n \n \n \n \n \n \n \n (187.5) \n \n \n \n \n Total order book 2 \n \n \n   \n \n \n   \n \n \n £16.5bn \n \n \n \n \n \n \n \n \n £12.6bn \n \n \n \n \n Return on invested capital (ROIC) 3 \n \n \n   \n \n \n   \n \n \n 16.3% \n \n \n \n \n \n \n \n \n 25.4% \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 1.      Other items are described in Note 3 to the condensed consolidated financial statement s \n 2.      Order book includes secured fixed term contracts and estimates for projects & variable works. Book to bill ratio is relationship of orders received to revenue recognised \n 3.      Performance before Other items, net debt, free cash flow, EBITDA (rolling 12-month) and ROIC are presented as Alternative Performance Measures. Explanations as to why these measures are presented, and reconciliations to the equivalent statutory measures, are set out in Appendix 1 to the condensed consolidated financial statements \n Commenting on the first six months and the outlook, Phil Bentley, Group Chief Executive, said: \n \"As we reach the halfway mark in our Three-Year Strategic Plan (FY25-FY27), it is good to see the progress that has been made and the growing momentum towards achieving our targets, and beyond, as the order book and pipeline continue to build. We are building a larger, more profitable and more cash generative business with greater capacity to invest for growth, as we have demonstrated with the acquisition of Marlowe. Our mission is to deliver increasing returns for shareholders, through share price appreciation, dividends and share buybacks. \n   \n \"At the start of our Strategic Plan, our ambition was to increase revenue by £1.2bn to £5.6bn in FY27 through high single digit annual revenue growth. We are comfortably on track to exceed this target, having delivered double digit growth over several successive periods, including in the first half of this year. \n   \n \"This sustained performance is a result of investments in sales & marketing; higher margin projects and compliance capabilities; and best-in-class customer-facing technologies and Artificial Intelligence (AI). It also reflects the hard work of our 84,000 colleagues who continue to deliver outstanding service to our customers. I am hugely thankful for their efforts not only in winning, retaining and growing contracts, but also making Mitie a truly inspiring environment, building better places and helping communities to thrive.   \n   \n \"Our business continues to demonstrate resilience and agility in navigating headwinds, including to mitigate the rise in employer National Insurance Contributions since April. We remain focused on delivering an operating margin of at least 5% by FY27 through higher margin Facilities Transformation and Facilities Compliance growth; operational leverage; and through accelerating automation and AI efficiencies.    \n   \n \"As we look ahead to the second half of our Strategic Plan, over the next 18 months, I am confident that the positive macro trends underpinning our business will continue to support our accelerating growth ambitions, with Mitie being uniquely positioned to both expand its market reach and capture further market share. \n   \n \"Our scale, technology, broad capabilities and ability to adapt to the changing needs of our customers are increasingly making us the partner of choice across the public and private sectors. We will continue to unlock the value in our customers' estates through Facilities Management, Transformation and Compliance, and deliver the Future of High Performing Places.\" \n   \n   \n -      END - \n   \n Analyst Presentation and Q&A \n Phil Bentley (CEO) and Simon Kirkpatrick (CFO) will host a presentation and Q&A session today (20 November 2025) at 9.30am at The Shard and via a webcast. For dial in details please contact [email protected] . A copy of the presentation will be available on the company website in advance of the live presentation, www.mitie.com/investors . \n   \n For further information \n \n \n \n \n Kate Heseltine \n Group IR and Corporate Finance Director \n   \n \n \n M: +44 (0)738 443 9112 \n \n \n E: [email protected] \n \n \n \n \n Claire Lovegrove \n Director of Corporate Affairs \n \n \n M: +44 (0)790 027 6400 \n   \n   \n \n \n E: [email protected] \n   \n \n \n \n \n Neil Bennett \n H/Advisors Maitland \n \n \n M: +44 (0)790 000 0777         \n \n \n E: [email protected] \n \n \n \n \n   \n About Mitie: The Future of High Performing Places \n Founded in 1987, Mitie employs 84,000 colleagues and is the leading technology-led Facilities Management, Transformation and Compliance company in the UK.  We are a trusted partner to blue-chip customers across the public and private sectors, working with them to transform their built estates, and the lived experience for their colleagues and customers, as well as providing data-driven insights to inform better decision-making. \n   \n In each of our core services of engineering (hard services) and security and hygiene (soft services) we hold market leadership positions.  We also deliver transformational projects in the areas of power and grid connections, building fit outs & modernisation, decarbonisation, fire safety & security and telecoms infrastructure, alongside compliance capabilities in fire safety & security and environmental services.  Our sector expertise includes central government, critical national infrastructure, defence, financial services, healthcare & life sciences, local government & education, retail & logistics, manufacturing & media and transport & aviation. \n   \n We hold industry-leading ESG credentials, including a place on the CDP Climate change A List, and we have received multiple awards including Best Low Carbon Solution and Net Zero Carbon Strategy of the year. We have validated science-based targets that support our ambitions to reach Net Zero.  We have been recognised as a UK Top Employer for the seventh consecutive year and Most Admired Company in the Support Services sector. We are also ranked 16th in the Top 100 Apprenticeship Employers and ninth in the Inclusive Top 50 UK Employers list. Find out more at  www.mitie.com \n   \n Chief Executive's strategic review \n   \n Overview \n Mitie's strong momentum continued in the six months ended 30 September 2025 (H1 FY26), driving further progress towards the delivery our Three-Year Strategic Plan (FY25-FY27) and financial targets. \n   \n Revenue in H1 FY26 grew by 10.4% to £2,677m (H1 FY25: £2,426m), including organic growth of 6.4% - significantly ahead of core FM market growth at c.3-4% per annum. O perating profit before Other items grew by 7.6% to £108.8m (H1 FY25: £101.1m), whilst basic EPS before Other items grew by 5.6% to 5.7p (H1 FY25: 5.4p). \n   \n The Group operating profit margin before Other items of 4.1% (H1 FY25: 4.2%), reflects our continued trading momentum and progress with our programme of margin enhancement initiatives, offset by strategic investments and inflationary cost headwinds. The prior year margin had also benefited (by 20bps) from higher margin 'surge response' security work, which was mobilised and demobilised at short notice. \n   \n Looking ahead, H2 margins are structurally higher than H1. We have a clear path to our operating margin target of at least 5.0% by FY27, driven by growth in higher margin projects and compliance work, operational leverage and our ongoing programme of margin enhancement initiatives, including those relating to AI and process automation. \n   \n Based on the equivalent statutory measure, operating profit reduced to £60.6m (H1 FY25: £63.4m), due to a £10.5m increase in Other items, largely due to acquisition-related costs for Marlowe. Basic EPS reduced to 2.6p (H1 FY25: 3.0p) due to the increase in Other items and higher net finance costs (also largely relating to Marlowe). Further details are set out in the Finance Review. \n   \n Three-Year Strategic Plan (FY25 - FY27) \n Our Strategic Plan set out to pivot Mitie from traditional 'Facilities Management' to technology and project-led 'Facilities Transformation' leadership in the UK, with deep capabilities to aggregate workflow and workforce data across the built environment as a trusted partner to thousands of large public and private sector organisations.   \n   \n The acquisition of Marlowe, in August, consolidated our leadership position and extended it further, into business-critical 'Facilities Compliance', with significant opportunities to cross-sell regulatory-driven fire safety & security and environmental services to Mitie's client base. As a result, we are well positioned to meet the evolving needs of our customers - underpinned by attractive macro trends - and deliver the 'Future of High Performing Places'. \n   \n At our Capital Markets Event in October 2023, where we launched our Facilities Transformation strategy, we set ambitious financial targets (based on alternative performance measures), inclusive of M&A, to accelerate growth and deliver superior returns to shareholders over the Strategic Plan: \n   \n ·    High single digit compound annual revenue growth \n ·    Operating margin >5% by FY27 \n ·    Basic EPS growth above that of revenue growth, despite higher corporation tax rates \n ·    Annual free cash flow of £150m by FY27 \n   \n Our targets are underpinned by a proactive capital deployment policy, modest leverage of 0.75-1.5x (post-IFRS 16 average net debt/EBITDA) and a return on invested capital (ROIC) above 20%. \n   \n Growing momentum \n Our Strategic Plan is expected to deliver growth through the three pillars of 1) key account growth and scope increases; 2) projects upsell/infill; and 3) M&A. We are targeting high single digit revenue growth annually, inclusive of the contribution from M&A. \n   \n In H1 FY26, organic growth through key accounts (net wins and contract growth) and projects upsell contributed 6.4% to revenue growth, including pricing of 3.2%. Inorganic growth of 4.0% primarily related to the acquisition of Marlowe, alongside infill M&A completed in the prior year.   \n   \n Pillar 1: Record key account contract awards, order book and pipeline of bidding opportunities \n During the period, we won, extended or renewed contracts worth up to £3.8bn total contract value, a record six-month performance following a strong out-turn in the same period last year (H1 FY25: £3.7bn). \n   \n Notable new contract wins in the period included Integrated Facilities Management (IFM) for Aviva; Immigration services for the Home Office; Hygiene services for Landsec's Liverpool ONE complex, Manchester Airport Group and Walgreens Boots Alliance; Security services for the Metropolitan Police Authority and Tate Gallery; Engineering services for Transport for London; and projects work for Willmott Dixon. \n   \n Our contract renewals performance was strong in the period at 86% (FY25: 59%), with notable contract renewals/extensions included Security services for Associated British Ports, Co-operative Group and one of the UK's largest supermarket chains; IFM for GSK, JLL and Manchester Airport Group; Soft services for Barking Havering & Redbridge University Hospital NHS Trust; and Engineering services at RAF Mildenhall.  \n   \n Our total order book increased by £1.1bn (7%) to a record £16.5bn (end FY25: £15.4bn), net of £2.7bn revenue produced. This comprises a Facilities Management order book of £13.6bn (end FY25: £12.6bn) and a Projects order book of £2.9bn (end FY25: £2.8bn), with the latter typically being shorter term in nature than FM contracts. \n   \n Our bidding pipeline stands at a record £33.0bn (end FY25: £23.7bn), comprised of Facilities Management opportunities of £26.1bn (end FY25: £18.9bn) and Projects opportunities of £6.9bn (end FY25: £4.8bn). Across the pipeline, significant sectors include Immigration & Justice, Defence and Central Government in the public sector, alongside Retail, Critical National Infrastructure (including data centres), Transport & Aviation and Financial Services in the private sector. Over 70% of the pipeline is due to be awarded in the next 18 months.  \n   \n Pillar 2: Transformational projects growth underpinned by attractive macro trends \n We continue to see strong demand from our customers for transformational projects across their estates, reflected in a 15% increase in projects revenue to £636m (H1 FY25: £552m) across our two divisions. At our Capital Markets Event in October 2023, we set out plans to grow our Projects business to at least £1.5bn by the end of FY27. Based on the good progress to date, we expect to reach c.£2bn over the medium term.        \n   \n Building modernisation, including lifecycle upgrades, continues to be a key driver of growth, where we are integrating systems to create 'intelligent buildings', and ensuring that buildings meet evolving legislative and regulatory requirements. This includes new fire and security legislation, which places a greater responsibility on building owners and managers to protect occupants, and minimum energy efficiency standards for commercial buildings. Decarbonisation technologies, such as air and ground source heat pumps, solar, electric vehicle charging and battery storage, are also increasingly being sought by our customers, alongside power and grid connections and upgrades. \n   \n The UK is one of the largest data centre markets in Europe and is growing rapidly as a result of the increasing demand for AI infrastructure. We have built leading capabilities to deliver mechanical & electrical, cooling and fire & security systems fit outs in these buildings, and across wider critical environments, and we have a good pipeline of opportunities to drive future growth. \n   \n We continue to deliver a range of projects work across our Defence contracts, reflecting the UK government's commitment to invest in the country's defence capabilities and the modernisation and decarbonisation of its estate. Across Healthcare, Local Government & Education contracts, lifecycle projects work is also a key driver of growth. \n   \n We have undertaken a number of management actions to turn around the telecoms infrastructure business over the last year, which have resulted in a small profit in H1 FY26, reversing a loss of £10m in the same period last year. Revenue reduced by 39% to £20m (H1 FY25: £33m) as we continue to hand back unprofitable work. \n   \n Pillar 3: Growth from M&A - Marlowe acquisition delivers 'Facilities Compliance' leadership \n On 5 August, we completed the acquisition of Testing, Inspection and Certification specialist, Marlowe, for c.£350m, comprising 290p in cash (£228m) and 1.1 Mitie shares per Marlowe share (86.6m new Mitie shares). \n   \n Marlowe has outstanding and highly complementary fire safety & security and water & air hygiene capabilities in the fast growing £7.6bn UK 'Facilities Compliance' market. The combination of Mitie and Marlowe, with c.£550m of revenue, is now the leader in this market, with the potential to become a c.£1bn business in the medium term. Demand for compliance services is underpinned by increasing requirements for business-critical assurance as a result of new legislation and tighter regulation impacting buildings and their owners, including those relating to fire and building safety, energy and the environment. \n   \n Marlowe trading since acquisition has been in line with our expectations (£51m revenue and £3.1m operating profit over the period from 5 August to 30 September). We expect the business to contribute to Mitie an operating profit before Other items of at least £12m in FY26 (Marlowe plc reported FY25: £20m).  Our integration programme, comprising resources from both Mitie and Marlowe, continues to progress at pace across multiple workstreams. We remain on track to deliver at least £30m of cost synergies by FY28, together with accelerated revenue growth through the cross-sell of regulatory driven services to existing Mitie clients. \n   \n Key integration workstreams include optimisation of field force deployments onto a single AI-enabled system; consolidation of certain roles and responsibilities in Finance, HR, IT and Admin; rationalisation of the Marlowe property portfolio; and the migration of Marlowe onto Mitie's cyber-secure and AI-enabled systems. Negotiations with key suppliers have commenced as part of the consolidation of procurement activities, and we are beginning the transition of compliance work that Mitie currently subcontracts to third parties to Marlowe companies. In addition, we have engaged specialist consultants to review the opportunities for Marlowe in the latest Water Industry Regulatory Cycle (Asset Management Period 8, £104bn investment between 2025-2030). \n   \n Operating margin progression  \n We have a clear path to our targeted operating profit margin before Other items of at least 5% by FY27. This will be achieved through our ongoing programme of margin enhancement initiatives, underpinned by AI, as well as operational leverage, alongside the contribution from higher margin projects and compliance work. We expect these management actions to more than offset headwinds from inflation and contract re-pricing dynamics in a competitive environment.  \n   \n During the period we delivered margin enhancement initiative cost savings of £10m, which we expect to increase to £25m over the full year. Key workstreams included the use of technology and AI to streamline tasks and deploy resources more efficiently (see 'technology' section below); our 'Mitie First' initiative to increase self-delivery to customers and reducing our reliance on third-party contractors; working with strategic client accounts to define a best practice service delivery model; the continued outsourcing of certain finance functions; and the ongoing consolidation of Mitie's core systems and processes. We also completed the roll out of Coupa, our procurement supplier platform, in Technical Services during the period.   \n   \n The investments we have been making into sales & marketing, contract re-bids and training and incentives for 'in-contract' teams to drive growth over the contract life are delivering tangible results, including strong revenue growth, good wins and renewals and a record pipeline of bidding opportunities. We also continue to invest in technology, by developing our 'Intelligent360' solutions and enabling AI in our core systems. \n    \n Sustainable free cash flow generation \n We are targeting free cash flow generation of c.£150m per annum by FY27. As previously noted, we expect increased profitability and improved working capital management to offset the higher working capital requirements of our growing projects business, together with some customers (particularly in retail) demanding longer payment terms and the one-off negative impact (c.£10m) arising from the Procurement Act 2023 requiring faster payments to our SME suppliers. \n   \n In H1 FY26, the Group generated £115m of cash from operations (H1 FY25: £81m), leading to a free cash inflow of £52m (H1 FY25: £34m). Higher cash from operations reflects growth in operating profit before Other items, primarily offset by higher capex, leases and interest payments alongside a £24m seasonal working capital outflow in H1. We remain on track to deliver at least £120m of free cash flow in FY26. \n   \n Proactive and growing capital deployment \n Our capital deployment policy is determined by the best use of capital to deliver superior returns to shareholders and drive growth in the business, whilst maintaining a strong financial position, with leverage of between 0.75-1.5x (post-IFRS 16 average net debt / EBITDA). \n   \n We prioritise a progressive dividend at a payout ratio of between 30-40%. We have also committed to purchase all shares required to fulfil colleague incentive schemes to prevent shareholder dilution. We will continue to pursue infill M&A opportunities that are a good strategic fit for our business although, following the Marlowe acquisition, these are likely to be modest in scale over the remainder of the Three-Year Plan. We remain committed to the return of surplus funds to shareholders to maintain leverage within our target range. \n   \n The Board has declared an interim dividend of 1.4p per share (H1 FY25: 1.3p), consistent with our approach of setting the interim dividend at one third of the prior year total dividend (FY25: 4.3p per share). The interim dividend will be paid on 20 February 2026 to all shareholders on the register at 9 January. Shares in Mitie will be quoted ex-dividend on 8 January, and the Dividend Reinvestment Plan election date is 26 January. \n   \n During the period, we completed the acquisition of Marlowe for c.£350m, comprising 290p in cash (£228m) and 1.1 Mitie shares per Marlowe share (86.6m new Mitie shares issued). As part of the acquisition, we incurred transaction costs of £7m (of which £5.7m was paid in H1). We also spent £3.7m on earnouts relating to infill acquisitions completed in prior periods. \n   \n On 14 October, we launched a new £100m share buyback programme to be completed over 12 months. Since the start of FY26, we have purchased 17m shares (£27m) at an average price of c.160p. This includes the 2m shares (£3m) purchased under our previous programme, which was paused to accommodate the Marlowe acquisition. In total we are holding 5m of the 17m shares purchased in treasury to fulfil the 2022 Save As You Earn scheme, vesting in February 2026, and we are cancelling all shares purchased in excess of this. Finally, separate to the share buybacks, we acquired 17m shares at a cost of £23m in H1 to fulfil colleague incentive schemes. \n   \n Strong balance sheet and modest leverage \n Average daily net debt increased by £113m to £332m in H1 FY26 (H1 FY25: £219m), reflecting our proactive capital deployments across dividends, buybacks, share purchases for incentive schemes and M&A, and rolling 12-month leverage was 1.0x post-IFRS 16 average net debt / EBITDA (H1 FY25: 0.7x), within our targeted leverage range of 0.75-1.5x. \n   \n Closing net debt of £471m (FY25: £199m) reflects our proactive capital deployments totalling £305m, alongside a £19m increase in lease obligations as a result of the addition of Marlowe vehicles and leased properties, partially offset by good free cash flow generation of £52m. \n   \n Liquidity and funding \n To facilitate the acquisition of Marlowe, Mitie put in place a £240m short-term bridge facility, which was fully drawn down upon completion of the acquisition in August. After the period end, in mid-October, £60m of the outstanding bridge loan was repaid from our existing balance sheet capacity. The balance of the bridge loan was refinanced by the issuance of £180m of US Private Placement notes on 12 November, and the bridge loan was fully repaid and cancelled on 13 November. \n   \n The new US Private Placement notes have maturities of between 3-7 years with a weighted average coupon of 5.44%. Mitie now has £360m of committed funding with maturities between 2028-2034, at an overall weighted average interest rate fixed at 4.65%, alongside a £250m Revolving Credit Facility maturing in October 2028. \n   \n Technology leadership \n Our competitive advantage is embedded in our people and industry-leading technology, enabling us to deliver transformative, data-driven, 'intelligent' solutions to meet the changing needs of our customers. \n   \n This includes Intelligent Engineering - supporting the 24x7 remote monitoring and predictive maintenance of connected assets and promoting 'well-being' in the built environment; Intelligent Security - enabling the deployment of resources in response to the changing risk and threat profiles of our customers' estates; Intelligent Hygiene - delivering demand-led hygiene based on building usage data and sensor technology; and Intelligent Projects - where our 'Emissions Intelligence' platform is enabling the automation of carbon emissions data capture and reporting as well as the creation of Net Zero carbon pathways for clients.   \n   \n During the period we launched our leading Enterprise Insight Platform, Mozaic 360. Developed on Microsoft Fabric, the platform integrates operational data across each of our 'intelligent' solutions with customer and third-party information to provide comprehensive operational and strategic insights into the daily operations in the 'Built Environment'. It utilises AI to identify patterns and deliver in-depth analysis, creating value maximising strategies for clients. \n   \n For example, four of the UK's largest retailers use 'Intelligent Security' to assess store risk profiles and optimise resource allocation, while 'Intelligent Hygiene' has been implemented by organisations such as GSK, NATS and an international e-commerce business. Our new IoT platform, 'Hark', is being fully integrated with our Computer-Aided Facilities Management systems to enhance our remote monitoring, energy management and predictive maintenance capabilities. \n   \n We have introduced Sphere, a WELL-certified workplace wellbeing solution, which enables our consulting team to measure and enhance the workplace effectiveness. Our customer-facing mobile app, 'Aria', now processes c.40% of service requests without human intervention, having upgraded our 'ESME' chatbot with OpenAI's large language model, and has been shortlisted for the UK IT Industry Award for innovation. \n   \n Intelligent Process Automation is central to our AI strategy, automating systems and processes from start to finish. Building on the success of our autonomous AI email agent, 'Barry', we have extended its use beyond the Engineering helpdesk to Business Services and HR helpdesks. We have also introduced an autonomous AI voice agent, 'Ava', to answer calls and create service requests for the Engineering field force. The autonomous AI email agent is now used by 38 customers, achieving over 90% success and saving c.9,000 hours within the Engineering helpdesk team. \n   \n Across areas such as supply chain management, scheduling, HR and transactional admin, we have launched AI-bots including 'Jeff', 'Sunita', 'Sally' and 'Hazel' to deliver efficiencies and cost savings. In Finance, 'Alan' and 'Karim' are identifying real-time savings in Fleet and enhancing purchase card data analysis. We have also upgraded our Government and Commercial Maximo systems to IBM MAS 9.1, enabling us to embed AI features into core engineering workflow processes. \n   \n Environmental, Social and Governance (ESG) leadership \n Mitie is recognised as a leader in ESG and social value among global industry peers, with these initiatives forming a key part of how we do business. Our leading credentials, including CDP 'A List' and MSCI ESG 'AA' rating, also enable us to partner with our customers to realise their own sustainability and Net Zero carbon ambitions. \n   \n We launched our Plan Zero strategy in 2020, with the ambitious 'Phase 1' goal of becoming carbon neutral for our direct operations by the end of 2025. In recognition of our progress to date, including the electrification of our vehicle fleet and procurement of renewable energy, we marked the completion of Phase 1 ahead of schedule, in July 2025. We are now establishing a new emissions baseline and Plan Zero 2.0 will guide the next phase of our decarbonisation journey.   \n   \n In July, we also launched our new 'Plan Thrive' initiative, supporting our corporate purpose: 'Better Places; Thriving Communities'. This strategic framework is designed to embed social value across Mitie's operations, with key pledges including to 'uplift one million lives and enable 1,000 places to prosper'. Mitie has a strong track record of delivering impactful social initiatives, including through the Mitie Foundation, apprenticeship schemes, recruitment from disadvantaged cohorts, learning and development programmes and responsible supply chain management. \n   \n We continue to offer career development opportunities and industry-leading benefits to our colleagues to attract and retain the best talent. During the period, c.1,600 colleagues were actively learning on over 90 technical, professional and leadership programmes, and we welcomed 150 external apprentices in H1, our highest ever intake. We have expanded our 'Women in Leadership' pathway with a Level 7 Leadership cohort and continued our Inclusion Allies programme, underpinning our broader ED&I commitments. \n   \n Operating review \n As part of our Facilities Transformation Three-Year Plan (FY25-FY27), we continue to simplify our organisational structure to align to our core service line capabilities of Engineering, Security and Hygiene. As such, from the start of FY26 we have absorbed the Communities division into Business Services (Care & Custody has been renamed Immigration & Justice) and Technical Services (Healthcare, Local Government & Education).  \n   \n Business Services \n   \n Business Services is the UK's largest provider of technology-led Security and Hygiene services across c.2,500 larger contracts, including public sector expertise in Central Government and Immigration & Justice. Following the acquisition of Marlowe, i t is also the largest provider of Facilities Compliance services alongside Landscaping and Waste Environmental services. Mitie's Spanish business is reported within the division. \n   \n \n \n \n \n Business Services, £m \n \n \n H1 FY26 \n \n \n Restated 1 \n H1 FY25 \n \n \n Change \n \n \n Restated 1 \n  FY25 \n \n \n \n \n Revenue \n \n \n 1,415 \n \n \n 1,229 \n \n \n 15% \n \n \n 2,538 \n \n \n \n \n Security \n \n \n 580 \n \n \n 517 \n \n \n 12% \n \n \n 1,067 \n \n \n \n \n Hygiene & Environmental services \n \n \n 340 \n \n \n 300 \n \n \n 13% \n \n \n 629 \n \n \n \n \n Central Government \n \n \n 187 \n \n \n 185 \n \n \n 1% \n \n \n 384 \n \n \n \n \n Immigration & Justice \n \n \n 153 \n \n \n 148 \n \n \n 3% \n \n \n 291 \n \n \n \n \n Marlowe \n \n \n 51 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Spain \n \n \n 104 \n \n \n 79 \n \n \n 32% \n \n \n 167 \n \n \n \n \n Operating profit before Other items \n \n \n 85.3 \n \n \n 85.1 \n \n \n 0.2% \n \n \n 180.4 \n \n \n \n \n Operating profit margin before Other items \n \n \n 6.0% \n \n \n 6.9% \n \n \n (0.9ppt) \n \n \n 7.1% \n \n \n \n \n Total order book \n \n \n £7.1bn \n \n \n £4.2bn \n \n \n 69% \n \n \n £6.2bn \n \n \n \n \n   \n 1 Restated to combine Waste and Landscapes (as Environmental) with Hygiene services and include Immigration & Justice (formerly Care & Custody within the Communities division). Marlowe has also been reported in Business Services.   \n   \n Performance highlights \n \n \n \n \n ·   \n \n \n Revenue +15% to £1,415m (H1 FY25: £1,229m), reflects new wins, fire safety & security projects, pricing and acquisitions, partially offset by the completion of certain projects programmes in central government \n \n \n \n \n ·   \n \n \n Operating profit before Other items of £85.3m (H1 FY25: £85.1m), with revenue growth and margin enhancement initiatives replacing the one-off benefits in the prior year from higher margin 'surge response' security work and a legal settlement   \n \n \n \n \n ·   \n \n \n £2.2bn total contract value of wins and extensions/renewals across key public and private sectors, resulting in a 15% increase in total order book to £7.1bn (end FY25: £6.2bn) \n \n \n \n \n ·   \n \n \n UK market leadership position in 'Facilities Compliance' through the acquisition of Marlowe, complementing existing fire safety & security capabilities and adding new water & air hygiene capabilities   \n \n \n \n \n   \n Operational performance \n Business Services delivered a strong revenue performance, with the division benefiting from net wins in the current and prior year, projects and pricing, alongside contributions from the acquisition of Marlowe in August, and Argus Fire and Grupo Visegurity in the prior year.   \n   \n The 90bps reduction in operating margin largely reflects one-off benefits in the prior year, including the provision of higher margin 'surge response' security work (which had also benefited prior year revenue by £41m) and a legal settlement, alongside higher employer National Insurance Contributions in the current period, which are being recovered or mitigated through management actions. This has been partially offset by margin enhancement initiative s, including the technology-driven optimisation of workforce deployment, automation and AI-led solutions to improve productivity and procurement initiatives to consolidate spend across our Preferred Supplier List.        \n   \n The division secured £2. 2 bn total contract value of contract wins and extensions/renewals across key sectors including retail, transport & aviation, financial services, pharmaceuticals and in the public sector. Retail is one of the division's largest sectors, with c.£450m of annual revenue and a blue-chip customer base of national retailers and flagship shopping centres. Alongside continued growth in existing accounts, the division won new contracts to deliver hygiene services for Landsec's Liverpool ONE complex and Walgreens Boots Alliance. The largest contract renewals in the period were for the provision of security services to one of the UK's largest supermarket chains, alongside Co-operative Group. \n   \n More widely, notable wins included security and hygiene services for Aviva, alongside contracts with the Home Office, Metropolitan Police Authority, Tate Gallery and Decathlon, whilst renewals included GSK, JLL, Manchester Airport Group, Associated British Ports and Transport for London. \n   \n Within the sub-divisions, Security delivered a strong performance against a tough prior year comparative, which had benefited from the 'surge response' security work noted above. In addition to net wins, pricing and prior year M&A (Argus Fire), RHI Industrials and GBE Converge delivered notably strong growth in fire safety & security projects work. \n   \n Overall, projects revenue within the division increased by 30% to £167m (H1 FY25: £128m). This included the delivery of end-to-end security, and fire detection & protection solutions for an Iron Mountain data centre, as well as the fit outs of an Ark data centre in Middlesex as part of a new relationship with Microsoft as an approved security integrator, and a Google data centre in Norway. For National Grid, the division delivered civil works, including perimeter fencing, concrete anti-burrow beams and automated sliding gate foundations, at the Didcot national storage facility alongside civil, structural and engineering works on 10 substations across the National Grid Electricity Transmission estate, whilst in Scotland it delivered essential earthing solutions for an expanding network of SSE and Scottish Power substations.   \n   \n Hygiene and Environmental services benefited from prior and current year wins, with notable contracts including Community Health Partnerships, Pladis Global and Walgreens Boots Alliance, whilst in Central Government the completion of certain larger programmes of projects work in FY25 resulted in modest growth. In Immigration & Justice, HMP Millsike, the UK's first all-electric prison, became operational in April 2025, following a period, of mobilisation and is expected to reach capacity to house and rehabilitate c.1,500 Category C inmates by early 2026.    \n   \n In August, Mitie extended its leadership position into the fast growing 'Facilities Compliance' market through the acquisition of Testing, Inspection and Certification specialist, Marlowe. Combined with the division's existing fire safety & security capabilities, the acquisition creates a unique 'Total Fire' offering across active and passive fire solutions and enhances our security systems offering. Marlowe also adds water & air hygiene services, complementing our Energy and Waste businesses. This enables the development of a 'Total Managed Water' offer in a rapidly expanding market with growth driven by increasingly stringent regulatory requirements, including those relating to water scarcity and quality, alongside customer sustainability and resilience targets.   \n   \n The Marlowe integration programme is progressing well and to plan. Steps are also being taken to identify and facilitate the significant opportunities to cross sell Marlowe's compliance services to Mitie clients via our Strategic Client Directors, with initial awards including to Rolls Royce, University Hospitals Coventry & Warwickshire, NATS and Decathlon. Mitie's compliance works that are currently subcontracted to third parties are being transitioned to Marlowe, consistent with our wider 'Mitie First' initiative.  \n   \n The strong performance in Mitie Spain reflected new contract wins (including AENA in the Canary Islands and Autonomous University of Madrid), scope increases and the contribution from Grupo Visegurity. At the end of the period, Mitie Spain acquired the client portfolio of SPM for a total consideration of up to €5m (of which €1.5m was paid during the period), as it continues to build its Security capability in the region. This complements the earlier acquisitions of Grupo Visegurity and Biservicus.    \n   \n Technical Services \n   \n Technical Services is the UK's largest provider of Engineering services to manage facilities and critical assets across c.450 contracts, including contracts for the Ministry of Defence (MoD). The division also delivers transformational projects in the high growth areas of buildings infrastructure, decarbonisation and power and grid connections. \n   \n \n \n \n \n Technical Services, £m \n \n \n H1 FY26 \n \n \n Restated 1 \n H1 FY25 \n \n \n Change \n \n \n Restated \n  FY25 1 \n \n \n \n \n Revenue \n \n \n 1,262 \n \n \n 1,197 \n \n \n 5% \n \n \n 2,545 \n \n \n \n \n       Engineering \n \n \n 683 \n \n \n 652 \n \n \n 5% \n \n \n 1,395 \n \n \n \n \n       Defence \n \n \n 261 \n \n \n 248 \n \n \n 5% \n \n \n 556 \n \n \n \n \n      Healthcare, Local Government & Education 1 \n \n \n 318 \n \n \n 297 \n \n \n 7% \n \n \n 594 \n \n \n \n \n Operating profit before Other items \n \n \n 50.4 \n \n \n 41.0 \n \n \n 22.9% \n \n \n 109.1 \n \n \n \n \n Operating profit margin before Other items \n \n \n 4.0% \n \n \n 3.4% \n \n \n 0.6ppt \n \n \n 4.3% \n \n \n \n \n Total order book \n \n \n £9.5bn \n \n \n £8.1bn \n \n \n 17% \n \n \n £9.2bn \n \n \n \n \n   \n 1 Restated to include Healthcare, Local Government & Education (formerly within the Communities division) within Technical Services \n   \n Performance highlights \n \n \n \n \n ·   \n \n \n Revenue +5% to £1,262m (H1 FY25: £1,197m), reflects new wins, projects and lifecycle works, partially offset by one notable public sector contract that ended in FY25   \n \n \n \n \n ·   \n \n \n Operating profit before Other items +22.9% to £50.4m (H1 FY25: £41.0m), reflecting margin enhancement initiatives and the telecoms infrastructure business turnaround, offset by inflation and a provision on one contract ending in May 2026      \n \n \n \n \n ·   \n \n \n £1.6bn total contract value of contract wins and extensions/renewals resulted in a 3% increase in the total order book to £9.5bn (end FY25: £9.2bn) \n \n \n \n \n   \n Operational performance \n Technical Services benefited from steady revenue growth across each subdivision, driven by new contract wins in the current and prior year, the acquisition of ESM Power in the prior year, pricing and projects and lifecycle works, partially offset by one notable, albeit relatively lower margin, public sector contract that was not renewed at the end of FY25. \n   \n The 60bps improvement in the operating margin to 4.0% (H1 FY25: 3.4%) largely reflected margin enhancement initiatives and management actions to address challenges in our telecoms infrastructure business. This has been partially offset by the impact of inflation and employer National Insurance Contributions, alongside a £5m provision against one loss-making maintenance contract which ends in May 2026 and will not be renewed. The telecoms infrastructure business delivered a small profit in H1 (compared to a loss of £10m in H1 FY25), as we continue to implement steps to improve profitability, whilst revenue reduced by 39% to £20m (H1 FY25: £33m), reflecting the planned exit from unprofitable contracts.    \n   \n Divisional margin enhancement initiatives continued to focus on streamlining account structures, increasing self-delivery, cost savings following the divisional consolidation exercise as well as reducing divisional overheads. Additionally, work has been undertaken to implement GenAI assistants and drive process simplification and standardisation in order to deliver efficiency gains. \n   \n Notable new contracts awards during the period included IFM for Aviva, engineering services for Transport for London and projects work for Willmott Dixon. Notable extensions and renewals included for Barking, Havering & Redbridge University Hospital NHS Trust, GSK, Manchester Airport Group and RAF Mildenhall and Starbucks.  \n   \n Overall, projects revenue within the division increased by 11% to £469m (H1 FY25: £424m). Projects included the award and mobilisation of multi-site solar photovoltaic installations for customers including David Lloyd Clubs, Co-operative Group and Tesco; the completion of the mechanical & electrical design and build of the first phase of a new data centre for Ark at Longcross Park in Surrey; and the design and construction of the second of four planned data centres at Kao's campus in Harlow.   \n   \n In the division's power & grid connections business, investments to rebuild the order book for G2 Energy (acquired from liquidation in 2023) facilitated a £72m contract award from international renewable energy developer, Elements Green, to design and build Staythorpe Battery Energy System, one of the largest in Europe. Works commenced during the period, and the system is expected to be connected to the neighbouring National Grid power station by mid-2027. Upon completion it will have the capacity to store enough energy to power 95,000 homes daily, supporting UK energy resilience and accelerating the transition to net zero.    \n   \n Mitie has been a trusted partner to the UK Armed Forces for over 30 years with Defence contracts now accounting for c.10% of Group revenue. To support a new era of modern, sustainable infrastructure, both domestically and in overseas military locations, we continue to deliver a range of projects work. In H1, this included the completion of refurbishment works on a critical airfield at RAF Mount Pleasant in the Falkland Islands, the installation and commissioning of a new bulk fuel facility at RAF Akrotiri in Cyprus and ongoing works to deliver phased roofing replacements at MoD Corsham. \n   \n In Healthcare, Local Government & Education, the one historically challenging PFI contract acquired with Interserve in 2020 delivered a small profit for the first time (H1 FY25: £0.7m loss), following a series of management actions to improve productivity and re-set pricing. Projects in the sub-division included a new urgent treatment centre at the Cumberland Infirmary in Carlisle and the construction of a new emergency department resuscitation building for Dudley Hospital, alongside wider lifecycle works. \n   \n After the period end, Mitie completed the acquisition of Forest Group, a specialist engineering business delivering critical refrigeration maintenance services, for a maximum cash consideration of £7m (comprising an initial payment of £4.5m and deferred payments of up to £2.5m over three years, linked to performance). The acquisition will enable Mitie to self-deliver critical refrigeration services, including into the Retail sector, where it already has a strong presence in Security and Hygiene through a customer base of national high street retailers and the major supermarket chains. \n   \n   \n Corporate overheads \n Corporate overheads represent the costs of running the Group and include costs for central functions such as commercial sales and business development, finance, marketing, legal and HR. Corporate overhead costs increased by 7.6% to £26.9m (H1 FY25: £25.0m), primarily reflecting the addition of Marlowe's central costs and strategic investments, offset by cost savings from margin enhancement initiative programmes.   \n   \n Finance review \n   \n Alternative Performance Measures \n In addition to presenting statutory measures, the Group presents its results before Other items.  Management believes this is useful for users of the financial statements, providing both a balanced view of the financial statements, and relevant information on the Group's financial performance.  Accordingly, the Group separately reports the cost of restructuring programmes, acquisition and disposal related costs (including the amortisation of acquisition-related intangible assets), gains or losses on business disposals, and other exceptional items as 'Other items'. \n   \n Financial performance \n The reported Income Statement is set out below: \n   \n \n \n \n \n £m unless otherwise specified \n \n \n H1 FY26 \n \n \n H1 FY25 \n \n \n \n \n Revenue \n \n \n 2,677.2 \n \n \n 2,425.6 \n \n \n \n \n Operating profit before Other items \n \n \n 108.8 \n \n \n 101.1 \n \n \n \n \n Other items \n \n \n (48.2) \n \n \n (37.7) \n \n \n \n \n Operating profit \n \n \n 60.6 \n \n \n 63.4 \n \n \n \n \n Net finance costs \n \n \n (10.8) \n \n \n (6.6) \n \n \n \n \n Profit before tax \n \n \n 49.8 \n \n \n 56.8 \n \n \n \n \n Tax \n \n \n (15.1) \n \n \n (16.7) \n \n \n \n \n Profit after tax \n \n \n 34.7 \n \n \n 40.1 \n \n \n \n \n Less: Profit attributable to non-controlling interest \n \n \n (3.2) \n \n \n (2.9) \n \n \n \n \n Profit attributable to owners of the parent \n \n \n 31.5 \n \n \n 37.2 \n \n \n \n \n Basic earnings per share before Other items \n \n \n 5.7p \n \n \n 5.4p \n \n \n \n \n Basic earnings per share \n \n \n 2.6p \n \n \n 3.0p \n \n \n \n \n   \n Revenue \n Revenue for H1 FY26 of £2,677m has grown by 10.4% (H1 FY25: £2,426m). Of this growth, 6.4% (£154m) was organic, driven by growth in Core FM (+2.9ppt), Projects (+2.0ppt), and pricing (+3.2ppt), offset by the completion of 'surge response' security work (-1.7ppt).  The remaining 4.0% (£97m) of growth was inorganic. \n   \n Organic Core FM growth of £70m reflects significant contract wins, such as Integrated Facilities Management (IFM) for Aviva and security for the Metropolitan Police Authority.  Contract renewals have also been strong including security for Associated British Ports and one of the UK's largest supermarket chains, and IFM for GSK and JLL, resulting in a renewal rate of 86% for HY26 (FY25: 59%). \n   \n Organic Projects growth of £48m in the period was driven by good momentum in the Defence sector, and in Healthcare, Local Government & Education.  Building modernisation and decarbonisation projects have also helped to drive growth, together with increasing demand for services related to fits outs for the fast growing data centre market. \n   \n The impact of the repricing of revenue in H1 FY26 was £77m (H1 FY25: £68m), which related to inflation and employer National Insurance Contribution increases. \n   \n The £97m of inorganic growth primarily related to the strategic acquisition of Marlowe, completed in August 2025, combined with the full year impact of the prior year acquisitions of ESM Power, Argus Fire and Grupo Visegurity. \n   \n Operating profit \n Operating profit before Other items was £108.8m (H1 FY25: £101.1m), an increase of £7.7m (+7.6%).  This improvement was driven by Core FM and Projects growth (£6.4m), the turnaround of our Telecoms business (£10.2m), and inorganic growth (£4.7m), partially offset by the completion of 'surge response' security work (-£7.8m) and investments being made to underpin our growth strategy (-£6.2m).  Unrecovered costs associated with inflation and the changes to employer National Insurance Contributions (-£9.6m) have been more than offset by margin enhancement initiative savings (£10.0m). \n   \n The Core FM and Projects profit growth was driven by the revenue growth outlined above, in particular from some higher margin projects works, as well as contract margin improvements in a number of different sectors.  This increase came despite the headwinds from a £5.4m charge relating to a provision for a loss-making maintenance contract that will complete in May 2026, which sits in a structurally low margin sector that we are exiting. \n   \n Of the incremental £10.0m of profit from margin enhancement initiatives, the Target Operating Model programme contributed £5.2m, through overhead efficiencies, primarily through optimisation of the Group's organisational structure and outsourcing of back office functions, as well as £1.8m from efficiencies on contracts and operations.  Savings on contracts and operations were achieved through focusing on the design and optimisation of our account structures, and increasing the levels of 'self-delivery' to customers by reducing our reliance on third-party contractors. We completed the roll out of Coupa (our digital supplier platform) during the period, which generated an incremental £3.0m of savings. \n   \n Of the £4.7m of inorganic profit growth, £3.1m relates to the acquisition of Marlowe, and £1.6m to the prior year acquisitions of ESM Power, Argus Fire and Grupo Visegurity. \n   \n The investments of £6.2m have largely focused on enhancing our sales capabilities and investing in technology to help to drive growth in the final 18 months of our Three-Year Plan, and into FY28 and beyond.  We have incurred above average mobilisation costs of £2.8m in H1 FY26 as a result of our ongoing success at winning large contracts, with the most notable cost being our investment in Millsike prison, which will drive good revenue and profit growth in future periods. \n   \n Operating profit after Other items was £60.6m (H1 FY25: £63.4m), with the increase in operating profit from the factors outlined above being more than offset by higher Other items of £48.2m (H1 FY25: £37.7m), which are explained below. \n   \n Other items \n \n \n \n \n £m \n \n \n H1 FY26 \n \n \n H1 FY25 \n \n \n \n \n Target Operating Model \n \n \n (9.9) \n \n \n (8.2) \n \n \n \n \n Digital supplier platform \n \n \n (0.7) \n \n \n (1.8) \n \n \n \n \n Margin enhancement initiatives costs \n \n \n (10.6) \n \n \n (10.0) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Acquisition transaction costs \n \n \n (7.0) \n \n \n (1.9) \n \n \n \n \n Employment-linked earnout charges \n \n \n (4.4) \n \n \n (5.3) \n \n \n \n \n Other acquisition-related costs \n \n \n (3.6) \n \n \n (0.4) \n \n \n \n \n Acquisition-related cash costs \n \n \n (15.0) \n \n \n (7.6) \n \n \n \n \n Amortisation of acquisition-related intangible assets \n \n \n (15.6) \n \n \n (14.0) \n \n \n \n \n Acquisition-related costs \n \n \n (30.6) \n \n \n (21.6) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Pension-related cash costs \n \n \n - \n \n \n (3.0) \n \n \n \n \n Pension-related non-cash costs \n \n \n (7.0) \n \n \n (3.1) \n \n \n \n \n Pension-related costs \n \n \n (7.0) \n \n \n (6.1) \n \n \n \n \n Total Other items \n \n \n (48.2) \n \n \n (37.7) \n \n \n \n \n of which cash Other items \n \n \n (25.6) \n \n \n (20.6) \n \n \n \n \n   \n Cash Other items of £25.6m in H1 FY26 were £5.0m higher than H1 FY25 (£20.6m), and comprised the costs of delivering the Group's margin enhancement initiatives of £10.6m (H1 FY25: £10.0m) and acquisition-related costs of £15.0m (H1 FY25: £7.6m). \n   \n The margin enhancement initiative costs included the implementation teams, related redundancy costs, professional fees and dual running costs incurred to decommission systems. \n   \n Acquisition-related costs in H1 FY26 included professional fees for the Marlowe acquisition of £7.0m, and employment-linked earnout charges of £4.4m (H1 FY25: £5.3m) which are cash in nature and will be payable to former owners of acquired businesses if post-acquisition performance targets are achieved and employment conditions are satisfied. Other acquisition-related costs include £2.0m in H1 FY26 related to the integration of Marlowe. \n   \n Non-cash Other items of £22.6m (H1 FY25: £17.1m) comprised £15.6m (H1 FY25: £14.0m) of amortisation of acquisition-related intangible assets, and £7.0m (H1 FY25: £3.1m) of pension-related costs (which are further explained in Note 3 to the condensed consolidated financial statements). \n   \n Net finance costs \n Net finance costs increased to £10.8m in H1 FY26 (H1 FY25: £6.6m), primarily due to the interest costs on the £240m bridge facility drawn down in August to finance the Marlowe acquisition, and the issuance of £60m of US Private Placement notes in December 2024 (at a coupon of 5.71%), to replace £30m of maturing notes (at a coupon on 4.04%).  The interest charge on leases increased by £0.9m due to the higher lease liabilities, which are explained below. \n   \n Tax \n The tax charge for the period was £15.1m (H1 FY25: £16.7m), comprising a tax charge on profit before Other items of £24.2m (H1 FY25: £23.4m) and a tax credit for Other items of £9.1m (H1 FY25: £6.7m). \n   \n The effective tax rate on profit before Other items of 24.7% (H1 FY25: 24.8%) is slightly lower than the UK statutory rate of 25%, primarily due to the impact of lower tax rates on overseas profits. \n   \n After Other items, the tax charge for the period equated to an effective tax rate of 30.3%, which is higher than the standard corporation tax rate of 25% due to certain Other items costs, primarily related to acquisitions, not being deductible for tax purposes.  \n   \n The Group paid corporation tax of £9.5m in the period (H1 FY25: £10.3m), of which £7.7m (H1 FY25: £8.6m) was paid in the UK, and £1.8m (H1 FY25: £1.7m) overseas. \n   \n Earnings per share \n Basic earnings per share before Other items increased to 5.7p in the period (H1 FY25: 5.4p). This improvement was a result of the increase in operating profit before Other items in the period (+0.4p), and the reduction in the weighted average number of shares driven by the full year impact of the prior year share buyback programme (+0.2p), partially offset by the increase in net finance charges (-0.3p). \n   \n Basic earnings per share reduced to 2.6p (H1 FY25: 3.0p), with the improvement from the factors outlined above being more than offset by the increase in Other items (explained above, but primarily relating to the Marlowe acquisition costs). \n   \n Return on invested capital (ROIC) \n   \n \n \n \n \n £m unless otherwise specified \n \n \n H1 FY26 \n (R12M) 1 \n \n \n H1 FY25 \n (R12M) 1 \n \n \n \n \n Operating profit before Other items \n \n \n 241.8 \n \n \n 222.5 \n \n \n \n \n Tax 2 \n \n \n (58.3) \n \n \n (48.0) \n \n \n \n \n Operating profit before Other items after tax \n \n \n 183.5 \n \n \n 174.5 \n \n \n \n \n Invested capital \n \n \n 1,125.3 \n \n \n 688.0 \n \n \n \n \n ROIC % \n \n \n 16.3% \n \n \n 25.4% \n \n \n \n \n 1  R12M represents a rolling 12-month basis \n 2 Tax charge has been calculated on operating profits before Other items using the effective tax rate for the last 12 months of 24.1% (H1 FY25: 21.6%) \n   \n ROIC on a rolling 12-month basis has decreased by 9.1ppt to 16.3% in H1 FY26 (H1 FY25: 25.4%), as a result of the temporary impact of the Marlowe acquisition, which completed in August 2025.  ROIC is adversely impacted by the Marlowe acquisition because invested capital increases by the full balance sheet value, whereas operating profit before Other items only benefits from the two month period post acquisition.  ROIC is expected to improve significantly in FY27, once a full 12 months of profit is included for Marlowe and as we start to realise the planned synergy savings. \n   \n Balance sheet \n   \n \n \n \n \n £m \n \n \n H1 FY26 \n \n \n FY25 \n \n \n \n \n Goodwill and intangible assets \n \n \n 1,001.6 \n \n \n 664.5 \n \n \n \n \n Property, plant and equipment \n \n \n 279.9 \n \n \n 246.9 \n \n \n \n \n Working capital balances \n \n \n (175.5) \n \n \n (202.9) \n \n \n \n \n Provisions \n \n \n (97.4) \n \n \n (84.1) \n \n \n \n \n Net debt \n \n \n (471.4) \n \n \n (199.0) \n \n \n \n \n Net retirement benefit assets \n \n \n 18.0 \n \n \n 13.9 \n \n \n \n \n Deferred tax liabilities \n \n \n (25.6) \n \n \n (17.9) \n \n \n \n \n Other net assets \n \n \n 14.6 \n \n \n 6.6 \n \n \n \n \n Net assets \n \n \n 544.2 \n \n \n 428.0 \n \n \n \n \n   \n As at 30 September 2025 the Group's reported net assets were £544.2m, an increase of £116.2m since 31 March 2025.  This increase is primarily driven by the acquisition of Marlowe, which added £123.3m to Group net assets, including £342.0m of provisional goodwill, partially offset by the increase in net debt related to the cash consideration for the acquisition of £228.2m.  The £123.3m increase in net assets from the Marlowe acquisition resulted from the shares issued as part of the total consideration (86.6m shares at £1.42 per share). \n   \n The other elements of the overall increase in net debt of £272.4m are explained further below (in the Cash flow and net debt section). \n   \n Goodwill and intangible assets \n As noted above, the increase of £337.1m is primarily driven by £342.0m of provisional goodwill related to the Marlowe acquisition that was completed during the period.  Given that we are still in the 12 month 'measurement period' following the date of acquisition, a review is currently underway to determine the fair value of assets and liabilities acquired with Marlowe, including valuing the intangible assets acquired, such as customer contracts and relationships.  The completion of this review is expected to reduce the value attributed to goodwill, compared with the provisional value reported at 30 September 2025.  See Note 15 to the condensed consolidated interim financial statements for further details on the acquisition of Marlowe. \n   \n The remaining increase relates to software acquired with Marlowe of £2.9m, goodwill and intangible assets arising from other current and prior year acquisitions of £10.1m and the capitalisation of software development costs of £2.4m.  This increase is partially offset by the amortisation of intangible assets of £20.3m. \n   \n Property, plant and equipment \n The increase of £33.0m is primarily due to the acquisition of Marlowe, which expanded our property and vehicle fleet lease portfolio by £25.3m and added a further £8.1m of owned assets.   \n   \n Provisions \n At 30 September 2025, provisions totalled £97.4m (FY25: £84.1m), which largely comprised contract specific costs of £25.4m (FY25: £33.0m), onerous contracts of £14.4m (FY25: £10.0m) and the insurance reserve of £36.0m (FY25: £27.3m).  The net increase in provisions during the period of £13.3m included the acquisition of Marlowe, which added £12.7m, primarily related to insurance reserves and dilapidation provisions.  The reduction in contract specific provisions was a result of commercial settlements with customers that led to utilisation of the related provisions.  The increase in onerous contracts provision included £5.4m against one loss-making maintenance contract which ends in May 2026, and will not be renewed.  See Note 10 to the condensed consolidated interim financial statements for further details on provisions. \n   \n Retirement benefit schemes \n At 30 September 2025, the Group's net retirement benefit assets on an IAS 19 basis were £18.0m (FY25: £13.9m net assets). The net improvement of £4.1m was driven by favourable movements in financial assumptions, which resulted in an increase in the surplus on the main Group scheme to £18.8m (FY25: £14.4m surplus).  \n   \n The latest triennial valuation for the main Group scheme, which concluded in March 2024, showed an actuarial deficit of £19.4m at 31 March 2023 (materially lower than the previous £72.7m triennial valuation deficit). As a result, deficit repair contributions reduced from c.£14m in FY24 to £8.4m in FY25, and the Group paid a further £3.2m in H1 FY26. \n   \n The scheme actuary provides a quarterly funding update on the main Group scheme. As a result of the continued improvement in the funding position (through a combination of deficit repair contributions and investment returns), the Group has agreed with the trustees that the remaining £4.8m of deficit repair contributions (£1.61m quarterly) due between October 2025 and April 2026 will only become payable if, and to the extent that, the quarterly funding position falls below the level reported at 30 June 2025.  \n       \n As previously reported, the Group reached a settlement agreement with the trustees on certain Section 75 liabilities (related to the multi-employer defined benefit Plumbing & Mechanical Services (UK) Industry Pension Scheme), which will extinguish any future liabilities relating to this scheme.  The total £24.5m liability is being settled over a three-year period in equal monthly payments (which commenced in H2 FY25). \n   \n Deferred tax \n The net deferred tax liability was £25.6m at 30 September 2025, which increased by £7.7m compared with the liability at 31 March 2025, primarily as a result of net deferred tax liabilities acquired with Marlowe and the utilisation of tax losses which reduced deferred tax assets. \n   \n Cash flow and net debt \n   \n \n \n \n \n £m \n \n \n H1 FY26 \n \n \n  H1 FY25 \n \n \n \n \n Operating profit before Other items \n \n \n 108.8 \n \n \n 101.1 \n \n \n \n \n Add back: depreciation, amortisation & impairment \n \n \n 45.5 \n \n \n 35.6 \n \n \n \n \n EBITDA \n \n \n 154.3 \n \n \n 136.7 \n \n \n \n \n Other items \n \n \n (25.6) \n \n \n (20.6) \n \n \n \n \n Other operating movements \n \n \n 8.7 \n \n \n 3.1 \n \n \n \n \n Operating cash flows before movements in working capital \n \n \n 137.4 \n \n \n 119.2 \n \n \n \n \n Working capital movements 1 \n \n \n (24.4) \n \n \n (37.6) \n \n \n \n \n Capex, capital element of lease payments & other \n \n \n (41.8) \n \n \n (30.9) \n \n \n \n \n Interest payments \n \n \n (9.8) \n \n \n (6.1) \n \n \n \n \n Tax payments \n \n \n (9.5) \n \n \n (10.3) \n \n \n \n \n Free cash inflow \n \n \n 51.9 \n \n \n 34.3 \n \n \n \n \n Share buybacks \n \n \n (2.9) \n \n \n (54.6) \n \n \n \n \n Purchase of own shares into trusts \n \n \n (22.6) \n \n \n (9.4) \n \n \n \n \n Acquisitions 2 \n \n \n (239.1) \n \n \n (12.2) \n \n \n \n \n Dividends paid \n \n \n (40.5) \n \n \n (44.5) \n \n \n \n \n Lease liabilities & other \n \n \n (19.2) \n \n \n (20.3) \n \n \n \n \n Increase in net debt during the period \n \n \n (272.4) \n \n \n (106.7) \n \n \n \n \n Closing net debt \n \n \n (471.4) \n \n \n (187.5) \n \n \n \n \n Average daily net debt \n \n \n (331.6) \n \n \n (219.0) \n \n \n \n \n Leverage 3 (average daily net debt/EBITDA) \n \n \n 1.0x \n \n \n 0.7x \n \n \n \n \n 1   Adjusted to exclude movements in restricted cash and other adjustments which do not form part of net debt (as explained in the Alternative Performance Measures Appendix to the condensed consolidated financial statements) \n 2   Acquisitions includes acquisition transaction cost payments and employment-linked earnout payments, the related charges for which are reported within Other items \n 3  Leverage is calculated on a 12-month rolling basis, and uses post-IFRS 16 net debt \n   \n Operating cash flows before movements in working capital improved by £18.2m to £137.4m (H1 FY25: £119.2m), driven by the good trading performance reflected in the increased EBITDA.  This flowed through to an increased free cash inflow of £51.9m (H1 FY25: £34.3m), with the lower cash outflows from working capital broadly offsetting the higher capex, lease payments and tax payments compared to H1 FY25.  \n   \n The cash outflow from working capital of £24.4m (H1 FY25: £37.6m) reflects our seasonal working capital outflow in H1, with the improvement compared with prior year reflecting the ongoing working capital process improvements, partially offset by the impact of longer payment terms being demanded by some customers. \n   \n Capex, capital element of lease payments & other increased by £10.9m compared to H1 FY25. Capex increased by £8.7m in H1 FY26, primarily related to the mobilisation of the Millsike prison contract and the DWP Security contract, together with AI investments in the apps that support the services we provide to our customers.  Capital lease repayments increased by £5.2m, due to the continued transition of our leased fleet to electric vehicles, as well as the expansion of the fleet through acquisitions and new contracts, both in the UK and overseas. Net interest payments increased by £3.7m due to the higher levels of net debt associated with our capital deployment actions and higher lease liabilities. \n   \n Net debt movements associated with acquisitions totalled £239.1m, largely relating to the strategic acquisition of Marlowe, which included net cash consideration of £219.4m (after offsetting net cash acquired of £8.8m) and debt acquired of £9.0m.  Acquisitions also included employment-linked earnout payments of £3.7m related to prior periods acquisitions, initial consideration of £1.3m for a Spanish security business (SPM) acquired during the period, and payments related to acquisition transaction costs of £5.7m, mainly for Marlowe. \n   \n During the period, we purchased 2m shares for £2.9m into treasury to fulfil the 2022 Save as You Earn scheme, and a further 17m shares were purchased into employee trusts to satisfy share incentive schemes (at a cost of £22.6m).  In October, we resumed our share buyback programme, with a £100m programme to be completed over 12 months. \n   \n Dividends paid of £40.5m include the final FY25 dividend of £36.6m (3.0p per share), which was paid in August 2025, and a £3.9m dividend paid to the Landmarc minority shareholder. \n   \n Lease liabilities & other include an increase in lease liabilities in H1 FY26 (net of capital repayments) of £19.6m (H1 FY25: £20.7m), primarily driven by the lease liabilities acquired with Marlowe of £25.3m. \n   \n Net debt \n Average daily net debt of £331.6m for H1 FY26 was £67.6m higher than in FY25 (£264.0m), contributing to a leverage ratio (average daily net debt / EBITDA) of 1.0x for H1 FY26 on a rolling 12-month basis (FY25: 0.8x), which is at the lower end of our target range of 0.75-1.5x.  Closing net debt at 30 September 2025 of £471.4m was £272.4m higher than at 31 March 2025 (£199.0m).  \n   \n As noted above, the increases in net debt during H1 FY26 were driven by acquisitions and distributions to shareholders (totalling £305.1m), combined with the additional lease liabilities & other of £19.2m, partially offset by the free cash inflow of £51.9m. \n   \n Liquidity and covenants \n As at 30 September 2025, the Group had £670.0m of committed funding arrangements, comprising £180m of US Private Placement notes with long-dated maturities between 2030 and 2034 at a blended average interest rate of 3.86%, a £250m Revolving Credit Facility maturing in October 2028, and a £240m short-term bridge facility, which was put in place to facilitate the acquisition of Marlowe. \n   \n On 13 October 2025, £60m of the Marlowe bridge facility was repaid from Mitie's existing balance sheet capacity, and the balance was refinanced by the issuance of £180m of US Private Placement notes on 12 November 2025. The new US Private Placement notes have maturities of between 3-7 years, and a weighted average interest rate fixed at 5.44%. \n   \n On 18 July 2025, DBRS Morningstar confirmed that Mitie's BBB investment grade credit rating remains unchanged. \n   \n Mitie's two key covenant ratios are leverage (ratio of consolidated total net borrowings to adjusted consolidated EBITDA) and interest cover (ratio of consolidated EBITDA to consolidated net finance costs), with a maximum of 3.0x and minimum of 4.0x respectively. Covenant ratios are measured on a post-IFRS 16 basis with appropriate adjustments for leases, being primarily the exclusion of lease liabilities from net debt and the inclusion of a charge equivalent to lease payments against EBITDA. \n   \n As at 30 September 2025, the Group was operating well within these ratios at 0.88x covenant leverage and 25.4x interest cover. A reconciliation of the calculations is set out in the table below: \n   \n \n \n \n \n   \n £m \n \n \n \n \n \n H1 FY26 \n (R12M) 6 \n \n \n H1 FY25 (R12M) 6 \n \n \n \n \n Operating profit before Other items \n \n \n \n \n \n 241.8 \n \n \n 222.5 \n \n \n \n \n Add: depreciation, amortisation & impairment \n \n \n \n \n \n 86.8 \n \n \n 67.2 \n \n \n \n \n Headline EBITDA \n \n \n \n \n \n 328.6 \n \n \n 289.7 \n \n \n \n \n Add: covenant adjustments 1 \n \n \n \n \n \n 19.8 \n \n \n 21.6 \n \n \n \n \n Leases adjustment 2 \n \n \n \n \n \n (71.7) \n \n \n (53.8) \n \n \n \n \n Consolidated EBITDA \n \n \n (a) \n \n \n 276.7 \n \n \n 257.5 \n \n \n \n \n Full-year effect of acquisitions & disposals \n \n \n \n \n \n 15.8 \n \n \n 6.6 \n \n \n \n \n Full-year effect of Landmarc step acquisition \n \n \n \n \n \n - \n \n \n 0.3 \n \n \n \n \n Adjusted consolidated EBITDA \n \n \n (b) \n \n \n 292.5 \n \n \n 264.4 \n \n \n \n \n Net finance costs \n \n \n \n \n \n 20.4 \n \n \n 11.5 \n \n \n \n \n Less: covenant adjustments \n \n \n \n \n \n - \n \n \n (0.6) \n \n \n \n \n Leases adjustment 3 \n \n \n \n \n \n (9.5) \n \n \n (7.1) \n \n \n \n \n Consolidated net finance costs \n \n \n (c) \n \n \n 10.9 \n \n \n 3.8 \n \n \n \n \n Interest cover (ratio of (a) to (c)) \n \n \n 25.4x \n \n \n 68.0x \n \n \n \n \n Net debt \n \n \n \n \n \n 471.4 \n \n \n 187.5 \n \n \n \n \n Covenant adjustment 4 \n \n \n \n \n \n 0.1 \n \n \n - \n \n \n \n \n Impact of hedge accounting & upfront fees \n \n \n \n \n \n 2.7 \n \n \n 2.2 \n \n \n \n \n Leases adjustment 5 \n \n \n \n \n \n (217.8) \n \n \n (194.7) \n \n \n \n \n Consolidated total net debt/(cash) \n \n \n (d) \n \n \n 256.4 \n \n \n (5.0) \n \n \n \n \n Covenant leverage (ratio of (d) to (b)) \n \n \n 0.88x \n \n \n < 0x \n \n \n \n \n 1 Covenant adjustments to EBITDA relate to share-based payments charges, and pension administration expenses and past service costs \n 2 Leases adjustment for EBITDA relates to depreciation charge for leased assets and interest charge for lease liabilities (i.e. application of a charge equivalent to lease payments) \n 3 Leases adjustment for net finance costs relates to interest charge for lease liabilities (i.e. removal of interest on lease liabilities) \n 4 Covenant adjustment for net debt relates to cash held in a bank in Cyprus \n 5 Leases adjustment for net cash relates to lease liabilities (i.e. removal of lease liabilities) \n 6 R12M represents a rolling 12-month basis \n   \n   \n Principal risks and uncertainties affecting the business \n Mitie continues to demonstrate its commitment to effective risk management practices while navigating a rapidly evolving external environment characterised by global instability and economic volatility. The Group remains responsive to challenges spanning political, economic, environmental, and technological domains, which present ongoing risks to the broader business landscape. In the first half of FY26, Mitie addressed significant developments, including heightened geopolitical tensions, evolving labour policies, and threats to critical infrastructure, all of which influenced its operational and strategic landscape. This period was underlined by a notable rise in sophisticated cyber-attacks, particularly ransomware incidents targeting prominent UK organisations. Such events have underscored the importance of safeguarding critical systems and driven increased investment in cybersecurity measures and risk mitigation strategies. \n   \n Importantly, Mitie successfully oversaw the go-live of HMP Millsike (a new 1,468 place Category C resettlement prison), marking a critical milestone in its work within the prison sector. This development underlines Mitie's expansion into key infrastructure settings, strengthening its position in delivering essential services to communities across the UK. Through its active involvement in the prison sector, Mitie continues to leverage its expertise to ensure effective operational outcomes, while robust risk oversight remains integral to its approach. This focus aligns with the Group's broader strategy of maintaining resilience and delivering high-quality services under challenging economic and social conditions. \n   \n The Group also completed the acquisition of Marlowe during this period, significantly enhancing its capabilities in compliance, environmental, and safety services. While this acquisition offers substantial growth potential, it introduces inherent integration risks that Mitie continues to manage proactively. Comprehensive efforts are underway to align Marlowe's operations with Mitie's processes and culture, ensuring a seamless transition, operational efficiency, and long-term value creation. \n   \n A cornerstone of Mitie's resilience is its enterprise risk management framework, which it continues to prioritise with rigour. Central to this framework is the Group's advanced online risk management tool, which currently captures over 6,000 risks across its operations. This system enables the ongoing monitoring of control effectiveness through assurance activities, allowing the Group to identify, mitigate, and manage risks at both strategic and operational levels. By maintaining this robust approach, Mitie enhances accountability and resilience in an increasingly complex and volatile business environment. \n   \n The adoption of the \"three lines of defence\" model remains fundamental to Mitie's risk management approach. The first line consists of operational management teams, who are responsible for identifying and managing risks within their day-to-day roles. The second line comprises the Group's enterprise risk management function, which provides oversight, offering guidance, policies, and tools to support risk assessment and mitigation. Finally, the third line is formed by the Group's internal audit function, which delivers independent assurance on the effectiveness of risk controls and processes. This structured approach ensures risks are managed comprehensively at every level of the Group, fostering a strong culture of accountability and continual improvement. \n   \n As Mitie transitions into the second half of FY26, the Group anticipates facing key risks including escalating geopolitical instability, economic uncertainty, threats to critical infrastructure, and increasingly sophisticated cyber-attacks. Additionally, it remains focused on aligning its operations with forthcoming policy changes and maintaining the momentum in integrating Marlowe's capabilities seamlessly into its existing framework and enhancing its work in the prison management sector. Despite these pressures, Mitie has demonstrated resilience, adaptability, and a proactive stance in managing risks, ensuring its operations remain robust and responsive to the external challenges. \n   \n Further details on Mitie's risk management strategies, controls, and mitigation measures can be found in the Group's Annual Report and Accounts 2025, pages 76 to 87. \n   \n Responsibility statement \n The Directors of Mitie Group plc confirm that, to the best of their knowledge: \n \n \n \n \n ·         \n \n \n the unaudited condensed consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34 Interim Financial Reporting; and \n \n \n \n \n ·         \n \n \n the interim management report, as required by rules 4.2.7R and 4.2.8R of the Disclosure Guidance and Transparency Rules, includes a fair review of: \n \n \n \n \n \n \n \n -      important events during the six months ended 30 September 2025 and their impact on the unaudited condensed consolidated financial statements; \n \n \n \n \n \n \n \n -      a description of the principal risks and uncertainties for the second half of the year; and \n \n \n \n \n \n \n \n -      related parties' transactions and changes therein. \n \n \n \n \n The names and functions of the Directors of Mitie Group plc are available on the Group's website: \n www.mitie.com/investors/corporate-governance/our-board . \n   \n On behalf of the Board \n   \n   \n   \n Phil Bentley \n Chief Executive Officer \n 19 November 2025 \n   \n INDEPENDENT REVIEW REPORT TO Mitie Group plc \n   \n Conclusion \n Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. \n   \n We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2025 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and the related Notes 1 to 18. \n   \n Basis for conclusion \n We conducted our review in accordance with the International Standard on Review Engagements (UK) 2410, \"Review of Interim Financial Information Performed by the Independent Auditor of the Entity\" (\"ISRE (UK) 2410\"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. \n   \n As disclosed in Note 1 (a), the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, Interim Financial Reporting. \n   \n Conclusions relating to going concern \n Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the Directors have inappropriately adopted the going concern basis of accounting or that the Directors have identified material uncertainties relating to going concern that are not appropriately disclosed. \n   \n This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the Group to cease to continue as a going concern. \n   \n Responsibilities of directors \n The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. \n In preparing the half-yearly financial report, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. \n   \n Auditor's responsibilities for the review of the financial information \n In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, including our Conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report. \n   \n   \n   \n Use of our report \n Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose.  No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent.  Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability. \n   \n   \n BDO LLP \n Chartered Accountants \n London, UK \n 19 November 2025 \n   \n   \n BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). \n   \n   \n Condensed consolidated income statement \n For the six months ended 30 September 2025 \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n 30 September 2025 \n \n \n \n \n \n 30 September 2024 \n \n \n \n \n \n \n \n Notes \n \n \n Before \nOther items \n£m \n \n \n Other \nitems 1 £m \n \n \n Total \n£m \n \n \n Before \nOther items \n£m \n \n \n Other \nitems 1 £m \n \n \n Total \n£m \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 2 \n \n \n 2,677.2 \n \n \n - \n \n \n 2,677.2 \n \n \n 2,425.6 \n \n \n - \n \n \n 2,425.6 \n \n \n \n \n Cost of sales \n \n \n \n \n \n (2,386.1) \n \n \n - \n \n \n (2,386.1) \n \n \n (2,171.8) \n \n \n - \n \n \n (2,171.8) \n \n \n \n \n Gross profit \n \n \n \n \n \n 291.1 \n \n \n - \n \n \n 291.1 \n \n \n 253.8 \n \n \n - \n \n \n 253.8 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Administrative expenses \n \n \n \n \n \n (182.8) \n \n \n (48.2) \n \n \n (231.0) \n \n \n (157.5) \n \n \n (37.7) \n \n \n (195.2) \n \n \n \n \n Other income \n \n \n \n \n \n 0.8 \n \n \n - \n \n \n 0.8 \n \n \n 4.5 \n \n \n - \n \n \n 4.5 \n \n \n \n \n Share of (loss)/profit of joint ventures and associates \n \n \n \n \n \n (0.3) \n \n \n - \n \n \n (0.3) \n \n \n 0.3 \n \n \n  -   \n \n \n 0.3 \n \n \n \n \n Operating profit/(loss) 2 \n \n \n 2 \n \n \n 108.8 \n \n \n (48.2) \n \n \n 60.6 \n \n \n 101.1 \n \n \n (37.7) \n \n \n 63.4 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Finance income \n \n \n \n \n \n 2.2 \n \n \n - \n \n \n 2.2 \n \n \n 1.9 \n \n \n - \n \n \n 1.9 \n \n \n \n \n Finance costs \n \n \n \n \n \n (13.0) \n \n \n - \n \n \n (13.0) \n \n \n (8.5) \n \n \n - \n \n \n (8.5) \n \n \n \n \n Net finance costs \n \n \n \n \n \n (10.8) \n \n \n - \n \n \n (10.8) \n \n \n (6.6) \n \n \n - \n \n \n (6.6) \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit/(loss) before tax \n \n \n \n \n \n 98.0 \n \n \n (48.2) \n \n \n 49.8 \n \n \n 94.5 \n \n \n (37.7) \n \n \n 56.8 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tax \n \n \n 4 \n \n \n (24.2) \n \n \n 9.1 \n \n \n (15.1) \n \n \n (23.4) \n \n \n 6.7 \n \n \n (16.7) \n \n \n \n \n Profit/(loss) for the period \n \n \n \n \n \n 73.8 \n \n \n (39.1) \n \n \n 34.7 \n \n \n 71.1 \n \n \n (31.0) \n \n \n 40.1 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity holders of the parent \n \n \n \n \n \n 69.9 \n \n \n (38.4) \n \n \n 31.5 \n \n \n 67.4 \n \n \n (30.2) \n \n \n 37.2 \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 3.9 \n \n \n (0.7) \n \n \n 3.2 \n \n \n 3.7 \n \n \n (0.8) \n \n \n 2.9 \n \n \n \n \n Profit/(loss) for the period \n \n \n \n \n \n 73.8 \n \n \n (39.1) \n \n \n 34.7 \n \n \n 71.1 \n \n \n (31.0) \n \n \n 40.1 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share (EPS) attributable to \nowners of the parent \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic \n \n \n 6 \n \n \n 5.7p \n \n \n   \n \n \n 2.6p \n \n \n 5.4p \n \n \n \n \n \n 3.0p \n \n \n \n \n Diluted \n \n \n 6 \n \n \n 5.3p \n \n \n   \n \n \n 2.4p \n \n \n 5.0p \n \n \n \n \n \n 2.7p \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Notes: \n 1. Other items are as described in Note 3.  \n 2.   Including impairment losses on trade receivables, other receivables and accrued income of £1.7m (2024: £3.2m). \n   \n   \n Condensed consolidated statement of comprehensive income \n For the six months ended 30 September 2025 \n   \n \n \n \n \n \n \n \n Notes \n \n \n 30 September \n 2025 \n£m \n \n \n 30 September \n  2024 \n£m \n \n \n \n \n Profit for the period \n \n \n \n \n \n 34.7 \n \n \n 40.1 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Items that will not be reclassified to profit or loss in subsequent periods \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Remeasurement of retirement benefit assets/liabilities \n \n \n 16 \n \n \n 7.9 \n \n \n 6.9 \n \n \n \n \n Tax charge relating to items that will not be reclassified to profit or loss in subsequent periods \n \n \n \n \n \n (2.0) \n \n \n (0.5) \n \n \n \n \n \n \n \n \n \n \n 5.9 \n \n \n 6.4 \n \n \n \n \n Items that may be reclassified to profit or loss in subsequent periods \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Exchange differences on translation of foreign operations \n \n \n \n \n \n 1.2 \n \n \n (0.9) \n \n \n \n \n \n \n \n \n \n \n 1.2 \n \n \n (0.9) \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Other comprehensive income for the period \n \n \n \n \n \n 7.1 \n \n \n 5.5 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n \n 41.8 \n \n \n 45.6 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Equity holders of the parent \n \n \n \n \n \n 38.6 \n \n \n 42.6 \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 3.2 \n \n \n 3.0 \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n \n 41.8 \n \n \n 45.6 \n \n \n \n \n   \n Condensed consolidated statement of financial position \n As at 30 September 2025 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Notes \n \n \n 30 September \n 2025 \n£m \n \n \n 31 March \n 2025 \n£m \n \n \n \n \n Non-current assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Goodwill \n \n \n 7 \n \n \n 747.6 \n \n \n 397.8 \n \n \n \n \n Other intangible assets \n \n \n \n \n \n 254.0 \n \n \n 266.7 \n \n \n \n \n Property, plant and equipment 1 \n \n \n 13 \n \n \n 279.9 \n \n \n 246.9 \n \n \n \n \n Interests in joint ventures and associates \n \n \n \n \n \n 1.3 \n \n \n 1.6 \n \n \n \n \n Trade and other receivables \n \n \n 8 \n \n \n 22.8 \n \n \n 20.5 \n \n \n \n \n Contract assets \n \n \n \n \n \n 1.6 \n \n \n 1.9 \n \n \n \n \n Retirement benefit assets \n \n \n 16 \n \n \n 20.7 \n \n \n 16.3 \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n 0.3 \n \n \n - \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 1,328.2 \n \n \n 951.7 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Inventories \n \n \n \n \n \n 26.6 \n \n \n 14.9 \n \n \n \n \n Trade and other receivables \n \n \n 8 \n \n \n 1,056.3 \n \n \n 967.9 \n \n \n \n \n Contract assets \n \n \n \n \n \n 1.4 \n \n \n 0.7 \n \n \n \n \n Current tax receivable \n \n \n \n \n \n 12.6 \n \n \n 4.1 \n \n \n \n \n Cash and cash equivalents \n \n \n 11 \n \n \n 169.8 \n \n \n 180.4 \n \n \n \n \n Total current assets \n \n \n \n \n \n 1,266.7 \n \n \n 1,168.0 \n \n \n \n \n Total assets \n \n \n \n \n \n 2,594.9 \n \n \n 2,119.7 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 9 \n \n \n (1,089.0) \n \n \n (1,012.6) \n \n \n \n \n Deferred income \n \n \n \n \n \n (143.7) \n \n \n (140.9) \n \n \n \n \n Current tax payable \n \n \n \n \n \n (5.4) \n \n \n (3.4) \n \n \n \n \n Financing liabilities \n \n \n 12 \n \n \n (61.4) \n \n \n (52.2) \n \n \n \n \n Provisions \n \n \n 10 \n \n \n (44.1) \n \n \n (37.4) \n \n \n \n \n Total current liabilities \n \n \n \n \n \n (1,343.6) \n \n \n (1,246.5) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Net current liabilities \n \n \n \n \n \n (76.9) \n \n \n (78.5) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 9 \n \n \n (14.7) \n \n \n (22.2) \n \n \n \n \n Deferred income \n \n \n \n \n \n (36.8) \n \n \n (33.1) \n \n \n \n \n Financing liabilities \n \n \n 12 \n \n \n (573.7) \n \n \n (322.9) \n \n \n \n \n Provisions \n \n \n 10 \n \n \n (53.3) \n \n \n (46.7) \n \n \n \n \n Retirement benefit liabilities \n \n \n 16 \n \n \n (2.7) \n \n \n (2.4) \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n (25.9) \n \n \n (17.9) \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n (707.1) \n \n \n (445.2) \n \n \n \n \n Total liabilities \n \n \n \n \n \n (2,050.7) \n \n \n (1,691.7) \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Net assets \n \n \n \n \n \n 544.2 \n \n \n 428.0 \n \n \n \n \n  Note: \n 1.  Includes owned property, plant and equipment of £68.3m (31 March 2025: £54.5m) and right-of-use assets of £211.6m (31 March 2025: £192.4m). During the six months ended 30 September 2025, owned property, plant and equipment additions were £13.4m, and acquisitions of businesses added a further £8.1m. These increases were partially offset by depreciation of £7.5m and disposals of £0.2m. Refer to Note 13 for right-of-use assets. \n Condensed consolidated statement of financial position continued \n For the six months ended 30 September 2025 \n   \n \n \n \n \n \n \n \n \n \n \n 30 September 2025 \n£m \n \n \n 31 March \n 2025 \n£m \n \n \n \n \n Equity \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Share capital \n \n \n \n \n \n 33.5 \n \n \n 31.3 \n \n \n \n \n Share premium \n \n \n \n \n \n 132.0 \n \n \n 132.0 \n \n \n \n \n Merger reserve \n \n \n \n \n \n 278.1 \n \n \n 157.0 \n \n \n \n \n Own shares reserve \n \n \n \n \n \n (72.0) \n \n \n (65.1) \n \n \n \n \n Share-based payments reserve \n \n \n \n \n \n 44.2 \n \n \n 40.4 \n \n \n \n \n Capital redemption reserve \n \n \n \n \n \n 5.3 \n \n \n 5.3 \n \n \n \n \n Hedging and translation reserve \n \n \n \n \n \n (1.6) \n \n \n (2.8) \n \n \n \n \n Retained profits \n \n \n \n \n \n 107.8 \n \n \n 112.3 \n \n \n \n \n Equity attributable to owners of the parent \n \n \n \n \n \n 527.3 \n \n \n 410.4 \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 16.9 \n \n \n 17.6 \n \n \n \n \n Total equity \n \n \n \n \n \n 544.2 \n \n \n 428.0 \n \n \n \n \n   \n Condensed consolidated statement of changes in equity \n For the six months ended 30 September 2025 \n \n \n \n \n \n \n \n \n \n \n \n \n \n 30 September 2025 \n \n \n \n \n \n \n \n Share capital \n£m \n \n \n Share premium \n£m \n \n \n Merger reserve 1 \n£m \n \n \n Own shares reserve \n£m \n \n \n   \n Share-based payments reserve \n £m \n \n \n Capital redemption reserve \n £m \n \n \n Hedging and \ntranslation \nreserve \n£m \n \n \n Retained profits \n£m \n \n \n Total attributable to owners of parent \n£m \n \n \n   \n Non-controlling interests \n £m \n \n \n   \n   \n Total equity \n £m \n \n \n \n \n At 1 Apr...

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