A record year
Mitie has delivered a good financial performance and made further progress against its strategic priorities in FY23. Thanks to the hard work of our 64,000 colleagues, the Group has achieved a record level of revenue, grown earnings and continued to focus on delivering shareholder returns.Download Mitie's Annual Report and Accounts 2023
Revenue, including share of joint ventures and associates 1
Operating profit before other items 1 2 3
Basic earnings per share before other items 1 2
Dividend per share
Group revenue 1
Operating profit 1 3
Free cash flow
Average daily net debt
1. From continuing operations.
2. Other items are as described in Note 4 to the consolidated financial statements.
3. Operating profit includes share of profit after tax from joint ventures and associates.
Chief Executive’s strategic review
Mitie’s performance in FY23 has surpassed the Board’s expectations. The business has been transformed over the last six years, and we have made further significant progress this year against each of our strategic pillars. We are now the largest facilities management business in the UK, and our unrelenting ambition is to drive the business to reach its full potential, not just financially but also through its positive contribution to the environment and society.
Mitie’s journey over the past six years has been transformative. The first few years focused on improving customer service, increasing employee engagement, divesting non-core assets and strengthening the balance sheet. Once achieved, these were the foundations for the second phase of our strategy to build scale and drive operational leverage from the Interserve acquisition in 2020. Our strategic focus since then has been on delivering returns.
We are now the largest facilities management business in the UK, and our unrelenting ambition is to drive the business to reach its full potential, not just financially but also through its positive contribution to the environment and society. Despite the challenging macroeconomic environment, we have made significant progress against our strategic priorities this year, delivering a record level of revenue and growth in earnings per share, and continuing to strengthen our ESG credentials. We have a strong platform for future growth, and we are well-positioned to benefit from the opportunities that lie ahead for the business.
Delivering on our strategic priorities
We have continued to make progress this year against each of the strategic pillars we set out in June 2021: Grow Mitie, Enhance Margins and Generate Cash, underpinned by our three Capability Enablers – ‘Science of Service’, ‘Great Place to Work’ and ‘Decarbonisation Delivered’.
Our strategy targets mid-to-high single digit revenue growth, an operating margin before other items of 4.5%–5.5%, sustainable free cash flow and a return on invested capital (ROIC) in excess of 20% over the medium term. We will continue building our technology-led offering across our three core business areas of Cleaning & Hygiene, Security and Technical Services, where we already hold market-leading positions, alongside complementary services such as Landscapes, Waste and Care & Custody. We are also expanding our presence in the high-growth areas of decarbonisation, security technology and telecoms infrastructure, both through our in-house capabilities and our acquisitions strategy.
Mitie’s three capability enablers are our differentiators, giving us a competitive edge to win new business, cross-sell our services and continue to build strong, long-term relationships with blue-chip customers across the public and private sectors. We aspire to be a trusted partner to every single one of our customers, and our talented colleagues are our ambassadors. That is why we strive to ensure our 64,000-strong team has the skills, expertise and resources to deliver The Exceptional, Every Day.