REG - MITIE Group PLC - Launch of new £125m share buyback programme FY26

MITIEAnnouncement

16/04/2025 07:05

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250416:nRSP1680Fa&default-theme=true

RNS Number : 1680F  MITIE Group PLC  16 April 2025

16 April 2025

Mitie Group plc

 

Mitie launches new £125m share buyback programme in FY26

 

Mitie Group plc ("Mitie" or "the Group"), the UK's leading Facilities
Transformation company, announces its intention to launch a new £125m share
buyback programme (the "Share Buyback Programme") in respect of its ordinary
shares of 2.5 pence each ("Ordinary Shares") in FY26, commencing from the date
of this announcement.

 

The Board's capital deployment policy prioritises strategic M&A at returns
materially above our weighted average cost of capital; a progressive dividend
policy (30-40% payout ratio); and the purchase of all shares to fulfil
employee incentive schemes (c.15m shares p.a.). Surplus funds are returned to
shareholders via share buyback programmes to ensure that we remain within our
0.75-1.5x target leverage range (post-IFRS 16). At 31 March 2025, the Group's
leverage was c.0.9x.

 

During FY25, we completed our largest share buyback programme to date of
£100m, purchasing 89m shares (of which 79m were cancelled). With a strong
balance sheet, and leverage at the lower end of our targeted range, we have
today launched a new £125m programme for FY26, which will bring the
cumulative total undertaken since FY23 to £325m.

 

Within the FY26 Share Buyback Programme, c.6m shares will be held in treasury
to satisfy the 2022 Save As You Earn (SAYE) scheme, vesting in February 2026.
Ordinary Shares acquired in excess of this will be cancelled.

 

The Board will keep the share buyback programme under review in light of the
timing of value-creating acquisitions, and in order to maintain leverage
within our target range.

 

In order to execute the Share Buyback Programme, Mitie has entered into an
instruction with Peel Hunt LLP ("Peel Hunt") in respect of the £125m
(excluding expenses) programme in relation to the purchase by Peel Hunt,
acting as principal during the period commencing on 16 April 2025 and ending
no later than 31 March 2026, of Ordinary Shares in the share capital of Mitie
("Shares") and the simultaneous on-sale of such Shares by Peel Hunt to Mitie.
Peel Hunt will make its trading decisions concerning the timing of the
purchases of Mitie's Ordinary Shares independently of, and uninfluenced by,
the Group.

 

The Share Buyback Programme will be conducted within certain pre-set
parameters, and in accordance with the general authority to repurchase shares
granted by Mitie's shareholders at the 2024 Annual General Meeting (which
authority is expected to be renewed at the 2025 Annual General Meeting),
Chapter 9 of the UK Listing Rules and the provisions of the Market Abuse
Regulation 596/2014/EU dealing with buyback programmes.

 

Mitie will announce any market repurchase of Ordinary Shares no later than
7.30 a.m. on the business day following the calendar day on which the
repurchase occurred.

 

- END -

For further information

 Kate Heseltine                              M: +44 (0)738 443 9112  E: kate.heseltine@mitie.com (mailto:kate.heseltine@mitie.com)

 Group IR & Corporate Finance Director

 Claire Lovegrove                            M: +44 (0)790 027 6400  E: claire.lovegrove@mitie.com (mailto:claire.lovegrove@mitie.com)

 Director of Corporate Affairs

 Neil Bennett                                M: +44 (0)790 000 0777  E: mitie@h-advisors.global (mailto:mitie@h-advisors.global)

 H/Advisors Maitland

 

About Mitie: "Better places; Thriving Communities"

Founded in 1987, Mitie employs 72,000 colleagues and is the leading
technology-led Facilities Transformation company in the UK.  We are a trusted
partner to around 3,000 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.

In each of our core services of engineering (hard services) and security and
hygiene (soft services) we hold market leadership positions.  We also deliver
projects capabilities in the areas of power and grid connections, building fit
outs & modernisation, decarbonisation, fire & security, and telecoms
infrastructure.  Our sector expertise includes central government, critical
national infrastructure, defence, financial services, healthcare & life
sciences, local government & education, retail & logistics and
transport & aviation.

We hold industry-leading ESG credentials, including a place on the CDP Climate
change A List, and we have received multiple industry awards recently
including B2B Marketing Team of the Year, Best Low Carbon Solution and Net
Zero Carbon Strategy of the year. Targeting Net Zero by the end of 2025, our
ambitious emissions reduction plans have been validated by the Science Based
Targets initiative (SBTi).  We have been recognised as a UK Top Employer for
the seventh consecutive year and Most Admired Company in the Support Services
sector. Find out more at www.mitie.com (http://www.mitie.com/) .

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCSFUFMIEISESL