Mitie shares soar as it snaps up new contracts
PUBLIC and private sector firms are turning to the outsourcing giant Mitie for all sorts of services, from installing solar panels to cleaning hospitals and painting car park lines.
Such demand helped the FTSE 250 group post record annual revenues and launch a share buyback.
The stock gained 6.6pc, or 7.4p, to 119p.
Mitie’s financial year ended on a high as it landed contracts with Eastern Police Forces for custody services alongside security work for Sainsbury’s and Lloyds.
The group gained work from the Government’s Future Defence Infrastructure Services (FDIS) to help military homes for the armed forces and their families become greener. The firm also bought seven companies, including the contractor JCA Engineering, for £65m. Mitie expects its revenues, which rose 10pc to £1.2bn in the fourth quarter to the end of March, to have increased by around 11pc to at least £4.5bn across the entire financial year. It also reckons profits jumped 23pc to £200m – up from its estimate of at least £190m in January – and launched a £50m share buyback.
Mid- cap car dealer Inchcape was also on the rise, revving up 4.1pc, or 28.5p, to 727p, as it outlined plans for a share buyback following the sale of its UK retail operations. The unit, which employs 3,600 people across more than 80 sites, will be sold to the US-based rival group 1 Automotive for £346m.
Inchcape wants to focus on its distribution business, which will make up more than 99pc of its global revenues and profits after the sale of its UK retail operations.
Around £100m of proceeds will be returned to shareholders through a share buyback programme.
But FTSE 250 peer Page Group headed in the other direction as the recruiter cut roles amid a global hiring slowdown. The firm reduced its fee-earner workforce by 1.7pc – equivalent to 100 jobs – in the first quarter of 2024.
Profits, which slumped 19.2pc to £27.1m in the UK during the period, fell 12.8pc to £219.7m across the group as clients tightened their recruitment budgets and took longer to hire permanent staff. Shares sank 9.1pc, or 44.2p, to 440p. Money manager Ashmore took a tumble as institutional investors reduced their appetite for risk.
Its managed assets fell by £1.7bn to £41.6bn in the third quarter to the end of March. Shares fell 3.3pc, or 6.1p, to 181.8p.
On the wider market, the FTSE 100 dropped 0.4pc, or 30.05 points, to 7965.53 and the FTSE 250 lost 0.1pc, or 22.35 points, to 19698.89.
London’s top index headed back towards 8000 points, after it almost closed at a record high on Friday before, giving up its gains late in the afternoon.
Markets shrugged off tensions in the Middle East after Iran launched drone attacks against Israel over the weekend.
Oil dipped a touch, falling below $90 a barrel.
It sent Shell down 1.6pc, or 47.5p, to 2889.5p and BP slipped 2.2pc, or 11.8p, to 527.3p.