London, June 11, 2026, 13:03 BST
- Mitie Group PLC closed just above flat at 160.90p, up 0.19%. Investors are watching after new allegations related to the company’s Home Office immigration contracts brought added reputational risk.
- Shares remain up after last week’s FY26 numbers, with a 5% dividend hike and a £100 million FY27 buyback in the works.
- Next up is seeing if the allegations get contained, or if they turn into a contract risk for a business heavily exposed to government deals.
Mitie Group PLC shares edged up in London on Thursday after news of alleged racism and hate speech among staff on immigration contracts surfaced, putting more reputational risk in focus for investors alongside the company’s strong order book and its £100 million buyback. Shares traded at 160.90p, up 0.30p, or 0.19%, based on delayed LSEG data from Investors Chronicle at 12:44 BST.
Mitie’s change was minor, but timing is key. After the company spent last week pushing investors to look at cash generation, margins, and returns following its FY26 results on June 4, Thursday’s development looks different: it concerns the public-sector contracts that support Mitie’s order book.
Mitie is investigating claims of racism, antisemitism, Islamophobia and hate speech among staff at immigration removal centres and deportation operations, The Guardian reported. The paper said Mitie bosses had received a dossier detailing the examples. The Home Office told The Guardian it sees the investigation as Mitie’s responsibility.
Mitie shareholders have more than just PR risks to think about. In its FY26 results, Mitie reported new contract wins in Immigration & Justice, landing deals with Scottish Prison Services and the Home Office. The company also extended existing Immigration & Justice work with the Home Office. Immigration & Justice revenue was up 10% to £319 million for FY26. Central Government revenue reached £377 million.
Mitie’s Business Services division posted £2.99 billion in revenue and £187.1 million in operating profit before other items for FY26. “Operating profit before other items” is profit that leaves out acquisition, restructuring and amortisation charges the company puts outside of core trading. Margin for the unit dropped 0.8 points to 6.3%, with Mitie blaming inflation, higher employer National Insurance payments, and losing a high-margin public sector contract. Investegate
That’s why even a small drop in the shares was enough for this news. Mitie’s pitch to investors is built on public and private clients still trusting it to run big, sensitive contracts. In facilities management, any contract trouble can hit margins fast if it forces more oversight, retraining, fines, rebidding, or lost business.
Cash remains solid for Mitie. The company posted FY26 revenue of £5.62 billion, up 10.5%. Operating profit before other items climbed 13% to £264.1 million. Free cash inflow was £162.1 million. The total order book stood at £16.3 billion, with a bidding pipeline of £31.7 billion.
Mitie’s board recommended a 3.1p final dividend, which brings the total FY26 payout to 4.5p per share, a 5% rise on the year. But for the market, the bigger focus is on the buyback plans. The company expects to spend £100 million on share buybacks in FY27—about £40 million left from the current plan, plus a new £60 million programme. Buybacks cut the share count and can lift earnings per share if Mitie keeps generating cash.
Mitie’s earnings are still under scrutiny. Statutory profit after tax dropped to £90.3 million from £108.4 million, while underlying operating profit moved up. The fall is tied to “other items,” which rose to £112.7 million. Mitie said those included amortisation, margin work, and costs from the Marlowe deal. Investegate
Marlowe is still a key part of the growth plan. Mitie wrapped up the £350 million cash and shares deal in August 2025, picking up new testing, inspection and certification services. That business brought in £208 million revenue during its first eight months with Mitie, which helped Facilities Compliance revenue jump 115% to £421 million and delivered £7 million of initial cost synergies in FY26. Mitie keeps its target of at least £30 million in Marlowe synergies by FY28.
Mitie CEO Phil Bentley put the focus on momentum and succession in the latest results. In the FY26 statement, Bentley said the company heads into FY27 with “good momentum, supported by a record order book and bidding pipeline.” He repeated his plan to retire at the end of the FY25-FY27 strategic plan, once a successor steps in. Reuters reported last week that Bentley is looking to step down by the end of March 2027. Investegate
Analyst sentiment on the stock remains mostly positive. Investors Chronicle reported 10 analysts covering the shares: three with “buy” ratings, five at “outperform”, and two sitting at “hold” as of June 4. No analysts had “sell” calls. Their median 12-month price target was 202.50p, with the last price in the table at 160.60p. Investors Chronicle
Mitie could face more than just an internal probe if today’s allegations push further. In its own stress testing, the company points to risks from lost contracts, contracts not renewed, margin pressure, higher costs and less cash generation. These risks could come up fast if public-sector customers ask for changes to how Mitie operates, hold back contract decisions or look again at key deals.
Mitie’s Q1 FY27 trading update and AGM is set for July 21, 2026. Investors want proof that the £100 million buyback is still backed by cash flow, while watching for any fallout from the Home Office-linked investigation on Immigration & Justice contract flow.
