Launch of share buyback programme

RNS Number : 2369O

MITIE Group PLC

09 June 2022

 

9 June 2022

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

Mitie Group plc - Launch of share buyback programme

Mitie Group plc ("Mitie" or the "Group") is pleased to announce that it intends to commence a share buyback programme in respect of its ordinary shares of 2.5 pence each ("Ordinary Shares") up to a maximum consideration of £50 million, from the date of this announcement (the "Share Buyback Programme").

As highlighted in the Group's Full Year statement for the 12 months to 31 March 2022, published this morning (which disclosed the Share Buyback Programme), the Group delivered a robust financial performance, with strong underlying growth, delivering a record £4bn of revenue in FY22, operating profit of £167m and free cash flow of £133m.

Following the refinancing in the first half of FY22 and the cash flow generated during the year, the Group now has a balance sheet which is strong, stable and flexible, to support future growth opportunities and increase returns to shareholders

Consistent with the Group's capital allocation strategy and reflecting the strong cash flow generation, robust balance sheet and the positive outlook for the business, the Board is today launching an initial £50m share buyback programme over the next 12 months.

Mitie plans to execute the buy-back in two tranches. In respect of the first tranche, Mitie announces that it has entered into an instruction with Jefferies International Limited ("Jefferies") in relation to the purchase by Jefferies, acting as principal during the period commencing on 9 June 2022 and ending no later than 8 December 2022, of ordinary shares in the share capital of Mitie ("Shares") for an aggregate consideration (excluding expenses) of no greater than £25 million and the simultaneous on-sale of such Shares by Jefferies to Mitie, where they will be cancelled. Jefferies will make its trading decisions concerning the timing of the purchases of Mitie's Ordinary Shares independently of, and uninfluenced by, the Group. It is anticipated that the second tranche, subject to a separate instruction, will commence promptly on completion of the first and be executed by Peel Hunt LLP.

The Programme will be conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted by the Group's shareholders at the 2021 Annual General Meeting (which authority is expected to be renewed at the 2022 Annual General Meeting), Chapter 12 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.

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For further information

Fiona Lawrence Group IR Director	M: [phone]	E:  [e-mail]
Claire Lovegrove Head of Media Relations	M: [phone]	E: [e-mail]
Richard Mountain FTI Consulting	M: [phone]

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works and is the leading facilities management company in the UK. We offer a range of services to the Public Sectors in Central Government and Defence and Communities (Healthcare, Education and Campus & Critical).  Our Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning and Office Services) divisions serve private sector customers in Telecoms, Financial & Professional Services, Transport and Industrials and increasingly to the public sector. Finally, our Specialist Services (Care & Custody, Landscapes, Waste Management and Spain) division serves both the public and private sectors in these niche businesses.

Mitie acquired Interserve's facilities management business on 30 November 2020 and now employs 72,000 people. We are the champion of the 'Frontline Heroes' who have kept Britain working during the COVID pandemic. We take care of our customers' people and buildings, through the 'Science of Service', delivering essential services and deploying industry-leading technology to create safe and effective workspaces.

The business continues to execute its technology-led strategy and in the past twelve months has received multiple awards. Find out more at www.mitie.com .

 

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