Home Money MARKET REPORT: Mitie shares soar as it secures new contracts

MARKET REPORT: Mitie shares soar as it secures new contracts

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New contracts: Shares in outsourcing giant Mitie gained 6.6% after the FTSE 250 group posted record annual revenues and launched a share buyback.

Companies in the public and private sectors are turning to outsourcing giant Mitie for everything from installing solar panels to cleaning hospitals and painting parking lines.

This demand helped the FTSE 250 group post record annual revenues and launch a share buyback.

The stock gained 6.6 per cent, or 7.4p, to 119p.

Mitie’s financial year ended on a high as it secured contracts with Eastern Police Force for custodial services along with security work for Sainsbury’s and Lloyds.

The group has secured work from the Government’s Future Defense Infrastructure Services (FDIS) to help the military homes of armed forces and their families become greener.

New contracts: Shares in outsourcing giant Mitie gained 6.6% after the FTSE 250 group posted record annual revenues and launched a share buyback.

The company also bought seven companies, including contractor JCA Engineering, for £65m.

Mitie expects its revenue, which rose 10 per cent to £1.2bn in the fourth quarter to the end of March, to have risen around 11 per cent to at least £4.5bn for the full financial year.

It also estimates profits rose 23 per cent 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, accelerating 4.1 per cent, or 28.5 pence, to 727 pence, 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 rival US group 1 Automotive for £346m.

Inchcape wants to focus on its distribution business, which will account for more than 99 per cent of its global revenue and profits following the sale of its UK retail operations.

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Stock market surveillance – Horizonte Minerals

MARKET REPORT Mitie shares soar as it secures new contracts

Shares in a Glencore-backed nickel miner plunged more than 80 percent after it failed to raise new funding to complete its project in Brazil.

Horizonte Minerals warned that none of the remaining options – such as liquidating the nickel mine assets – are likely to “recover any value” for shareholders.

Most of those who considered providing funds decided not to do so due to the “unfavorable nickel market environment.”

The shares fell 83.6 per cent, or 1.99 pence, to 0.39 pence.

Around £100 million of the 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 company reduced its salaried workforce by 1.7 percent (equivalent to 100 jobs) in the first quarter of 2024.

Profits, which fell 19.2 per cent to £27.1 million in the UK during the period, fell 12.8 per cent to £219.7 million across the group as clients tightened their budgets hiring process and took longer to hire permanent staff.

The shares sank 9.1 per cent, or 44.2p, to 440p. Money manager Ashmore suffered a slide as institutional investors reduced their risk appetite.

Its assets under management fell by £1.7bn to £41.6bn in the third quarter to the end of March. The shares fell 3.3 per cent, or 6.1 pence, to 181.8 pence.

In the broader market, the FTSE 100 fell 0.4 per cent, or 30.05 points, to 7,965.53 and the FTSE 250 lost 0.1 per cent, or 22.35 points, to 19,698.89.

London’s main index returned to 8,000 points, after almost closing at an all-time high the previous Friday, giving up its gains late in the afternoon.

Markets shrugged off tensions in the Middle East after Iran launched drone strikes against Israel over the weekend.

Oil fell slightly, falling below $90 a barrel.

Shell fell 1.6 per cent, or 47.5 pence, to 2,889.5 pence and BP fell 2.2 per cent, or 11.8 pence, to 527.3 pence.

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