Mitie Group announced final dividend of 2.2p per share

DividendMax Ltd.

Mitie Group announced final dividend of 2.2p per share

Mitie Group announced their final FY22 dividend of £19.5m and interim FY23 dividend of £9.4m resulting in a cash outflow of £28.9m in FY23. The £5.7m of dividends paid in FY22 is much lower than in FY23, as it included only the FY22 interim dividend, and no final dividend payment from FY21, because dividend payments were only resumed in FY22 following the Covid pandemic.

Other financial highlights include:

Record revenue1 of £4,055m (FY22: £3,997m), as wins, renewals, acquisitions and inflationary contract re-pricing more than offset contracts that were not renewed and the prior year benefit from short term Covid work

Total contract value (TCV) of £4.3bn awarded in FY23; renewal rates remain over 90%; book to bill ratio of 105%4

Operating profit before other items1,2,3 of £162m (FY22: £167m), versus previous guidance for 'at least £155m', and operating profit margin3 of 4.0% (FY22: 4.2%), with the prior year being boosted by higher margin Covid work

Excluding Covid work, revenue and operating profit before other items increased by 14% and 44% respectively

Basic EPS before other items increased by 3.3% to 9.5p (FY22: 9.2p), benefiting from the refinancing of debt instruments and share buybacks

Operating profit of £117m (FY22: £72m) and basic EPS of 6.8p (FY22: 2.2p), reflecting lower other items

Free cash flow of £66m (FY22: £147m), after closing the customer invoice discounting facility (£45m impact)

Average daily net debt of £84m (FY22: £25m), reflecting the capital allocation policy announced last year. Closing net debt of £44m (FY22: £27m net cash)

Strong balance sheet with leverage of 0.4x (average net debt/EBITDA5)

Recommended final dividend of 2.2p per share versus 1.4p last year; total dividend up 61% to 2.9p (FY22: 1.8p), as payout ratio rises to 30% (FY22: 20%)

Shares for all employee incentive schemes to be purchased (FY23: £38m spent), eliminating the otherwise dilutive effect of issuing new shares to fulfil vesting awards

New £50m share buyback programme announced in April 2023, with the first £25m tranche underway

FY24 has started positively, and the Board is therefore confident in meeting its growth expectations for the year

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